Introduction
In 2025, businesses of all sizes—from startups to enterprise-level organizations—are investing in custom software to meet their unique operational needs. But one major question remains: how much does it cost to build custom software in Canada? The answer isn’t one-size-fits-all. In this blog, we break down current development rates, cost influencers, and tips to plan your software budget effectively.
Average Custom Software Development Cost in Canada
In Canada, the average cost for a custom software solution typically ranges between:
- Small Apps (MVP or Basic CRM): CAD $10,000 – $40,000
- Mid-Level Applications (ERP, Booking Systems): CAD $40,000 – $120,000
- Enterprise Software / SaaS Platforms: CAD $120,000 – $500,000+
Keep in mind, these numbers vary depending on scope, complexity, team size, and tech stack.
Key Factors That Influence Custom Software Pricing
1. Project Complexity
The more features, integrations, or AI-based tools involved, the more development time and resources you’ll need—raising costs.
2. Tech Stack and Tools
![Software Development Costs in 2025 [Get a Quote]](https://doit.software/wp-content/uploads/2021/10/software-development-costs-with-doit-software.png "Custom Software Development Cost in Canada: 2025 Guide 3")
Using advanced technologies like React Native, Python, or cloud-native development on AWS or Azure adds costs due to specialist skills.
3. UI/UX Design
A sleek, user-centric design tailored for web and mobile increases engagement but also involves dedicated design and prototyping hours.
4. Development Team Location
Hiring Canadian developers costs more than outsourcing offshore, but the quality, communication, and data security are usually superior. Average Canadian hourly rate:
- Freelancers: CAD $60 – $100/hour
- Agencies: CAD $100 – $200/hour
5. Maintenance & Support
Post-launch maintenance may add 15–20% annually to your development cost. Be sure to factor in future upgrades, bug fixes, and server costs.
Popular Software Types and Their Costs in Canada
- eCommerce Platforms: CAD $30,000 – $100,000
- Mobile Applications: CAD $50,000 – $200,000
- Custom ERP/CRM: CAD $70,000 – $250,000
- Healthcare Systems: CAD $100,000+
Learn more about SaaS vs custom software options here.
Top Canadian Cities for Software Development
The cost also varies based on city. Here’s a quick overview:
- Toronto & Vancouver: Higher pricing due to demand (avg. $120/hr)
- Calgary & Montreal: Slightly lower rates (avg. $80–$100/hr)
- Smaller cities: Competitive pricing, ideal for startups
How to Reduce Software Development Costs
- Start with a clear MVP
- Use open-source frameworks
- Hire hybrid teams (Canada + offshore)
- Use agile development to stay lean and flexible
Conclusion
Whether you’re building a web platform, a mobile app, or a business management tool, the cost of custom software in Canada will depend on your goals and scope. Budgeting smartly, choosing the right tech partners, and starting lean can help you launch successfully without overspending.
Need help selecting a development partner? Check out our post on IT outsourcing trends for 2025 in Canada and beyond.
