How much does custom software cost in India?

Quick answer

Custom software costs the number of hours it takes multiplied by the hourly rate. At Code Colonies the rate is USD 2 or INR 199 an hour under 2good.dev, with a minimum of 150 hours (USD 300 or INR 29,850 before tax), no advance and payment after you accept the work. A focused web application usually needs 150 to 240 hours, so roughly INR 29,850 to INR 47,760 at that rate. A SaaS product with several workflows needs 420 hours or more.

Rates across the Indian market vary widely by firm and seniority, so the hours estimate matters as much as the rate. A low rate on an inflated estimate costs more than a fair rate on an honest one.

Typical hours by type of project

These ranges come from the model our delivery leads use to size work, the same one behind the Instant Estimate. They cover a focused first version up to an extensive build, before extra features such as payments or AI.

• Corporate or marketing website: 150 to 210 hours.
• Web application or customer portal: 150 to 500 hours.
• Mobile app for iOS and Android: 150 to 600 hours.
• SaaS product: 200 to 850 hours.
• AI agent or automation: 150 to 380 hours.
• Private knowledge assistant: 150 to 320 hours.
• Document intelligence for invoices, KYC or contracts: 150 to 340 hours.
• Integration with an ERP, CRM or Tally: 150 to 310 hours.
• Data dashboard or internal tool: 150 to 300 hours.

At USD 2 an hour, a 250 hour project costs USD 500. At INR 199 an hour, it costs INR 49,750. Taxes are added as applicable.

What moves the number

Screen count is a weak guide to cost. These items move the hours far more, and the estimator adds them as separate blocks:

• Integrations with your tools: about 30 hours, more when the other system has no clean API.
• AI features inside the product: about 45 hours, plus running costs for the model.
• WhatsApp or voice channels: about 35 hours, plus Meta or telecom message charges.
• Data migration from an old system: about 30 hours, often more when the old data is messy.
• DPDP or GDPR consent and data rights: about 25 hours to build consent records, notices and rights requests properly.
• Hindi, Gujarati or other languages: about 20 hours for the interface, more for content.
• A fully custom design: about 15% more hours than a clean standard interface.

Costs that sit outside the build

Ask every vendor to list these, because they recur after launch:

• Cloud hosting, domains and email delivery.
• Third party charges such as payment gateway fees, SMS, WhatsApp template messages and map APIs.
• AI model usage, which grows with volume. See keeping AI running costs under control.
• Support and maintenance after the warranty period.

How to compare two quotes

1. Ask for the hours and the rate separately. A single lump sum hides where the effort sits.
2. Ask what done means. A signed specification with acceptance criteria protects both sides. Without it, the cheapest quote tends to grow.
3. Ask when you pay. Advance payment moves the risk to you. Under 2good.dev you pay after you accept each output.
4. Ask who owns the code. It should be yours on payment, with access to the repository from the first week.
5. Ask what is included. Senior review, testing and project management are often billed separately elsewhere. At Code Colonies they are included in the hourly rate.

Questions and answers

Is a lower hourly rate a sign of lower quality?

Quality comes from the process: a signed specification, senior review of every change, automated tests and an acceptance step before payment. Check those, and check work samples, before you judge a rate.

Why is there a 150 hour minimum?

Meaningful software is rarely built in a handful of hours. A minimum block lets the team commit a strategist, engineers and a reviewer to your work.

Is GST charged?

Indian clients pay GST on top of the quoted price. Services exported to clients outside India are usually zero rated, so no Indian GST is charged on those invoices.

How accurate is an online estimate?

It is a range, confirmed after a short discovery. The Instant Estimate is built on the same hours model as this guide, and a delivery lead reviews it with you before anything is signed.

Sources

• 2good.dev published rate: USD 2 or INR 199 an hour, minimum 150 hours, taxes as applicable.
• Code Colonies estimating model, as used in the Instant Estimate tool (October 2026).