Product engineering
How much does custom software development cost in Australia? (2026 pricing guide)
Real budget ranges for MVPs, internal tools, SaaS platforms and AI features, what moves a project up or down the range, and how we price our own work.
Razu Ahammed · Founder, Corexlab
7 min read
"How much will it cost?" is usually the first question on a scoping call, and the honest answer is that it depends on a handful of decisions you can make before anyone writes code. This guide explains those decisions, gives real budget ranges, and shows how we price our own work. We publish our prices, so you can compare.
If you only read one section, read the next one.
The short answer
Most custom software projects we see fall into one of three budget bands:
| What you're building | Typical scope | Our engagement | Price |
|---|---|---|---|
| A plan you can cost and approve: scope, designs or a prototype | 2–3 weeks | Sprint | A$5k–15k fixed |
| A first release in front of real users: an MVP, internal tool, portal or one AI feature | 3–12 weeks | Pilot | A$15k–150k fixed |
| Ongoing development on a live product | Month to month | Engineering Pod | Priced by team size |
The Pilot range is wide on purpose. A focused internal tool with one user role sits near the bottom. A multi-sided platform with payments, integrations and an admin back office sits near the top. The rest of this article explains what moves a project along that range.
What drives the cost
Users and workflows
The biggest driver is how many kinds of user there are and how many distinct things each one needs to do. A dashboard for one internal team is a small build. A marketplace with buyers, sellers, admins and support staff is four products sharing a database.
Integrations and data
Every system you connect to, such as Shopify, Microsoft 365, Xero or a supplier's API, adds work. That includes building the connection, handling its failures, and testing it. Migrating existing data adds more, especially when it's inconsistent. We check integrations early, because an API that can't do what you need is the most common surprise in a project.
Team location
Senior engineering time is most of the cost of any software project, so where the engineers sit matters. An onshore team costs more per hour. An offshore freelancer costs less but usually shifts the project-management and quality risk onto you. Our model sits in between: engineers in Dhaka, a Sydney office, a daily overlap with Australian working hours and one accountable lead. We've written about how our hybrid delivery model works.
Security, compliance and reporting
Audit trails, role-based permissions, specific hosting requirements and industry rules all add scope. So does reporting: a CSV export is quick, while a set of live dashboards is a feature in its own right.
Design depth
A clean, functional interface built from a solid component library costs far less than a fully custom design system. For most first releases, the first option is the right one.
What happens after launch
Software keeps costing money after go-live: hosting, monitoring, security updates, fixes and the features users ask for once they're using it. Budget for it from the start. It's the line item most often left out.
Fixed price, time and materials, or a dedicated team?
- Fixed price suits work with a clear, agreed scope. You know the cost up front, and the supplier carries the risk of estimating it. Our Sprints and Pilots are fixed price.
- Time and materials suits work where the scope is genuinely unknown. It's flexible, but you carry the risk of the estimate.
- A dedicated team suits a live product with a steady stream of work. You pay for capacity and decide what it works on each week. That's our Engineering Pod.
A sensible pattern for a new product is fixed price for the first release, then a dedicated team once real users are giving you a roadmap.
Example budgets
These are illustrations of where typical projects land, not quotes.
An MVP for a new product
One or two user roles, sign-up and billing, the core workflow and an admin view. Usually a Sprint to agree scope and designs, then a Pilot in the lower to middle of the A$15k–150k range.
An internal tool replacing spreadsheets
One team, a handful of workflows, a couple of integrations and some reporting. Often a Sprint followed by a Pilot near the lower end of the range.
A SaaS or marketplace platform
Several user roles, payments, notifications, integrations and an admin back office. A Pilot towards the upper end of the range for the first release, then ongoing development. Our work on U-Send, a dropshipping operations platform, is an example of this shape.
Adding an AI feature
One AI capability, such as search over your documents or document extraction, grounded in your data and evaluated before launch. Usually an AI Opportunity Sprint to prove it works, then a Production Pilot. Running costs (model usage and hosting) come on top, and we estimate them during the Sprint.
How to spend less without cutting quality
- Cut scope, not corners. Launch the one workflow that matters most and leave the rest for version two.
- Use proven building blocks. Authentication, payments and email are solved problems. Use a good service for them instead of building your own.
- Decide quickly. Waiting on decisions costs more than most features do. A named decision-maker on your side keeps the project moving.
- Pay for a plan first. A short, fixed-price Sprint costs far less than building the wrong thing.
FAQ
How much does an MVP cost?
Most MVPs we scope land in the lower to middle part of our Pilot range, A$15k–150k, after a Sprint to agree what's in the first release. The number of user roles and integrations matters more than anything else.
Is offshore development cheaper?
Usually, per hour. Whether it's cheaper overall depends on how much management, rework and risk comes with it. That's why we pair engineers in Dhaka with one accountable lead, weekly demos and code that sits in your repositories.
What's included in maintenance?
Hosting, monitoring, security updates, bug fixes and small improvements. Ongoing feature work is usually scoped separately, or handled by an Engineering Pod.
Should we pay a fixed price or by the hour?
Fixed price when the scope can be written down and agreed. Time and materials, or a dedicated team, when it can't, or once the product is live and the roadmap changes weekly.
How long does a typical build take?
A Sprint takes two to three weeks. A first release usually takes 3–12 weeks, depending on scope.
Want to know where your project sits on these ranges? Book a scoping call and you'll leave with a scope, a rough cost and a suggested first step. You can also browse our services or see how we work.
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