How much does a custom application cost for an SME in 2025?

« We want a custom business app to save time… but how much does it actually cost? »

That is the question every SME asks, and very few providers answer clearly.

Spoiler: a custom business application rarely costs €5,000 and does not automatically cost €60,000 either. It depends on the scope, the level of complexity and how the project is run.

In this article, we will talk about real numbers, realistic ranges and levers you can use to control the budget.

1. What Is a Custom Business Application for an SME?

Before talking about price, we need to clarify what we are talking about.

A custom business application is a solution developed specifically for your company, to support your internal processes. For example:

Internal portal for teams (HR, purchasing, quality, operations)
Mobile app for sales reps or field technicians
Unified interface between several tools (ERP, CRM, Excel, legacy tools)

Compared with a standard SaaS:

It follows your processes instead of forcing you to adapt to it.
It integrates with your existing systems (ERP, CRM, accounting, production).
You control how it evolves over time.

In exchange, you pay a higher initial investment than for a simple SaaS subscription.

2. Typical Price Ranges for Custom Business Apps in 2025

Here are realistic price ranges for an SME in 2025 in France / Europe:

These ranges are indicative, of course. But they give a useful framework to start thinking about your budget.

a) Small Scope MVP – Simple Internal Business App

Internal web application, a few screens, moderate business logic, little or no integration with complex systems.

Example: simple management of internal requests (leave, equipment, incidents), basic case tracking.
Price range: €10,000 to €30,000 excl. VAT

b) Core Business Application – Structured SME Processes

Several user profiles, business workflows, advanced business rules, integrations (ERP, CRM, existing tools).

Example: full field service management, planning, reports, photos, validation, accounting export.
Price range: €30,000 to €80,000 excl. VAT

c) Full Application Ecosystem – Web And Mobile Platforms

Web app plus mobile app, real time sync, high data volume, enhanced security, multiple integrations, advanced reporting.

Example: client portal + internal portal + mobile app for technicians, all connected to the ERP and billing system.
Price range: €60,000 to XXX € excl. VAT

Below €5,000, you are usually looking at light no-code / quick hacks or an improved script, not a real structured business application.

3. What Really Drives the Cost of a Custom Business Application?

More than the tech stack itself, the price is driven by these seven factors.

3.1. Functional Scope – Features And Business Rules

The more you have:

screens
types of users
different business rules

… the higher the cost.

Good practice: aim for a useful MVP (the version that already generates operational gains), then plan future iterations. We wrote a full article on that topic: https://www.fenxi.fr/blog/concevoir-un-bon-produit-digital/

3.2. Integrations With Existing Tools – ERP, CRM And Legacy Systems

Every connection to:

an ERP
a CRM
an old legacy tool
an accounting system

… comes with a cost: API or data exchange analysis, development, testing, error handling.

The more « legacy » it is (old, poorly documented, no API), the more expensive it becomes.

3.3. Web App, Mobile App, Or Both?

Web application only (responsive): the most cost effective way to start.
Native mobile application (iOS + Android): you at least double the front end work.
Hybrid approach / PWA: a good compromise in some cases, but not always suitable for strong offline use or very advanced mobile features.

If your priority is to test the concept, or first equip office users, start with the web.

3.4. UX/UI And Level Of Finish

You can:

Go for a basic but clean design, with standard components → cheaper and faster.
Or invest in a very polished user experience: optimised flows, micro interactions, highly custom design → more expensive and longer.

For an internal business application, the most important things are:

speed of use
clarity of the screens
reduction of errors

The « wow effect » has less value than for a consumer facing product.

3.5. Security, Compliance And Technical Audit

Some sectors (healthcare, finance, sensitive data) require:

stronger encryption
detailed logging and traceability
fine grained access rights
security audits
specific hosting

All of this means time for design, development and testing, so extra budget.

3.6. The Team And Collaboration Model

The cost also depends on:

the type of provider (solo freelancer, small agency, large IT services firm)
location (France, Eastern Europe, offshore, mixed team)
product maturity (do they challenge you, or just execute a specification?)

A team that truly works in « product » mode (not only « code ») will spend more time:

understanding your business
challenging your needs
simplifying the scope

Paradoxically, this can reduce the overall cost by avoiding the development of useless features.

4. How Is a Custom Business Application Quote Structured?

Most serious agencies break the budget down into several parts.

4.1. Scoping And Functional Design (Around 10% Of The Budget)

Workshops with business teams
Feature prioritisation

This phase is often neglected, but it is what allows you to:

avoid misunderstandings
secure the timeline
get a realistic cost estimate

4.2. UI Design And UX Work (10 To 15%)

Visual identity for the tool
High fidelity mockups of key screens
Reusable components (design system)

This step gives the client a clear idea of what the application will look like. It is a very effective way to align the tech team and the client.

4.3. Development Phase (40 To 60%)

Front end (interfaces)
Back end (API, business logic)
Integrations with existing systems
Rights and roles management

This is often the most visible part, but it relies on everything that was done before.

4.4. Testing, UAT And Go Live (Around 15%)

Unit tests and integration tests
Bug fixing
Production deployment and infrastructure configuration

Once the code is ready, you need to make sure everything works (tests), and then deploy it to servers (usually in the cloud).

4.5. Maintenance And Continuous Improvements (Monthly Package Or T&M)

Then comes the life of the application:

bug fixes
small continuous improvements
new features
security updates
upgrades of libraries and frameworks

For an SME, a reasonable maintenance budget is often between 10% and 20% of the initial cost per year, depending on how fast the application evolves.

5. Real World Budget Scenarios For SME Business Applications

Scenario 1: 30 Person SME – Field Service Management App

Goal: replace Excel + WhatsApp with a simple app to plan interventions and track reports.

Internal web app + responsive mobile interfaces
Profiles: administrator, planner, technician
Light integration with the billing tool (CSV export)
Simple reporting

Rough budget:

Scoping and design: €6k
Development and tests: €20k to €25k
Tests and go live: €5k
Total: around €30k
Yearly maintenance: about €2k

Scenario 2: Industrial SME – Production Core Application

Goal: follow production in real time, manage non conformity, track batches.

Internal web application
Profiles: operator, team leader, quality, management
Strong integration with ERP
Complex business rules, advanced rights management
Real time indicators

Rough budget:

Scoping and functional design: €8k
UI and UX design: €10k
Development and tests: €40k to €60k
Total: €60k to €80k excl. VAT
Maintenance: €6k to €10k per year

Scenario 3: Full Ecosystem – Client Portal And Mobile App

Goal: allow clients to track their orders, technicians to input data in the field, and internal teams to manage overall activity.

Client web portal
Internal web application
Mobile app (or advanced PWA) for technicians
Multiple integrations (ERP, CRM, billing, document storage)
Enhanced security and detailed logs

Rough budget:

Total project: around €150k excl. VAT
Maintenance: around €15k per year

6. How To Avoid Blowing Your Custom App Budget

A few simple principles can save you a lot of money.

6.1. Prioritise Features For Your MVP

Sort your features into three categories:

Must have: without them, the app has no value
Nice to have: useful, but can wait for version 2
Later: ideas to keep for the future

Your MVP should be made almost entirely of must have features.

6.2. Reuse Existing Technical Components

A good provider does not « reinvent the wheel » on every project. Anything that can be reused should be reused. That lets you focus the budget on your business logic, not on standard technical foundations.

6.3. Clarify Collaboration And Maintenance From Day One

Ask simple questions:

What is included in the quote?
How are out of scope requests managed?
How does maintenance work?

These points have a direct impact on the real total cost of ownership.

7. So How Much Should Your SME Budget For a Custom Application?

In 2025, if you are an SME and you want a custom business application, plan roughly:

A realistic minimum: around €10k to €20k excl. VAT for a focused, useful MVP
A structuring project: most often between €25k and €80k excl. VAT
A full ecosystem: starting from €70k excl. VAT, depending on the scope

The goal is not to pay as little as possible, but to invest a budget that makes sense given:

the expected operational gains (time, fewer errors, comfort, revenue)
the lifespan of the application
the strategic importance of the project for your company