If you’re trying to hire a software developer now, you’ve probably realized one thing: the market has changed dramatically.
Developers are no longer bound by borders, salaries are no longer defined by location alone, and hiring the right talent has become as strategic as it is expensive.
The world’s best startups now build their teams across time zones. But the big question remains: how much does it really cost to hire a software developer?
The answer depends on several factors, and this guide breaks it all down for you.
By the end, you’ll know exactly what to expect to pay, where you’ll get the best value, and how to make your next technical hire smarter, not just cheaper.
Key Takeaways
- Freelance developers offer flexibility and lower short-term costs.
- Full-time developers bring stability and long-term product ownership.
- Hiring globally helps startups access top talent at 40–70% lower rates.
- Betternship simplifies global hiring with pre-vetted African developers.
- Clear goals and structured hiring save time, money, and risk.
What Does It Mean to Hire a Software Developer?
To hire a software developer today means more than just finding someone who can code. It’s about bringing in a problem-solver who understands your product, scales with your team, and adds long-term value.
But the hiring model has evolved. Now, startups typically hire in three main ways:
- Full-time (in-house or remote): You employ the developer as a permanent part of your team, usually with a fixed salary, benefits, and long-term commitment.
- Freelance/contract-based: You engage developers on a project or hourly basis, with flexibility but less control over long-term availability.
- Through hiring platforms: You use trusted intermediaries like Betternship, which connect you with pre-vetted developers, handle contracts and payments, and ensure smooth onboarding.
The right choice depends on what you’re building.
Early-stage startups often prefer freelance developers for speed and affordability. As you grow, moving to dedicated full-time engineers becomes essential for stability and continuity.
And here’s the truth: you get what you pay for, but that doesn’t mean you have to overpay.
With the rise of skilled remote developers in Africa and other emerging markets, startups now access world-class engineering at a fraction of traditional costs.
Freelance Developers vs Full-Time Developers
Before deciding how much to budget, it’s crucial to understand the difference between hiring freelance developers and full-time employees. Both come with distinct advantages and trade-offs.
| Factor | Freelance Developer | Full-Time Developer |
| Cost | Lower upfront cost; hourly/project rates | Higher annual salary, benefits, and overhead |
| Flexibility | High; hire as needed | Lower; fixed commitment |
| Availability | Often part-time or project-limited | Fully dedicated to your team |
| Ownership | May juggle multiple clients | Exclusive focus on your company |
| Scalability | Easy to scale up or down | Better for long-term product building |
| Communication | May vary based on time zone/project load | More consistent and integrated |
If you’re building your MVP or testing product-market fit, freelancers can be cost-effective.
But for ongoing product development, maintenance, and scaling, having full-time developers ensures reliability and institutional knowledge.
Many startups are now blending both: keeping a lean full-time core team while hiring freelancers or remote contractors through Betternship Projects for rapid feature delivery or short-term work.
Average Cost to Hire a Software Developer in 2025/2026
Now for the numbers, because that’s what really matters when budgeting your next hire.
The cost to hire a software developer varies widely by region, experience level, and engagement model. Below is a global overview based on 2025 market data:
| Region | Full-Time (Annual) | Freelance (Hourly) |
| United States | $90,000 – $150,000 | $70 – $120 |
| United Kingdom | £60,000 – £100,000 | £50 – £90 |
| Western Europe (Germany, France, Netherlands) | €60,000 – €90,000 | €40 – €70 |
| Eastern Europe (Poland, Ukraine, Romania) | $40,000 – $70,000 | $30 – $60 |
| Asia (India, Philippines) | $25,000 – $45,000 | $15 – $35 |
| Africa (Betternship Talent Pool) | $20,000 – $50,000 | $10 – $40 |
Hiring through emerging markets like Africa provides the best cost-to-quality ratio.
Developers from countries like Nigeria, Kenya, South Africa, and Ghana are not only fluent in English and familiar with global workflows, but they’ve also been battle-tested working with startups in the US, UK, and Europe.
Platforms like Betternship vet these developers for both technical and cultural fit, ensuring that you get top-tier performance without paying Silicon Valley prices.
Key Factors That Affect the Cost to Hire a Software Developer
When you plan to hire a software developer, the price you pay depends on a mix of technical, regional, and market factors.
Understanding these helps you budget realistically and avoid surprise costs later.
Here are the main ones:
1. Experience and Skill Level
Junior developers (0–2 years) are ideal for simple tasks or MVPs. Mid-level developers (3–5 years) balance cost and independence. Senior developers (6+ years) drive architecture, product stability, and mentorship, but cost significantly more.
In 2025, average rates have risen by about 10% globally for skilled senior developers due to demand outpacing supply.
2. Tech Stack and Specialization
Developers working with newer or niche stacks, like AI, blockchain, React Native, or Rust, typically charge higher rates.
A full-stack developer covering both front-end and back-end is also more expensive than a specialist focused on one side.
3. Location
A developer’s location remains one of the biggest cost differentiators. Hiring locally in the US or UK means paying 2–3x more than hiring equally skilled engineers from Africa or Asia.
For startups in high-cost regions, this global flexibility is a major advantage.
4. Engagement Model
Project-based, hourly, or full-time?
Freelancers often charge more per hour but cost less overall for short projects. Full-time hires are more stable for ongoing work but come with added expenses like insurance, tools, and management overhead.
5. Hiring Platform
Where you source developers also changes the cost.
- Direct job boards (LinkedIn, Indeed): You pay for ads and screening time.
- Freelance marketplaces (Upwork, Fiverr): You handle vetting and management yourself.
- Vetted platforms like Betternship: You pay a transparent flat rate while Betternship handles sourcing, screening, and payroll.
Hidden Costs When Hiring Developers
Most founders underestimate the hidden costs of hiring software developers, especially full-time staff.
Beyond base salary or hourly rate, several indirect expenses can add 25–40% to the total cost.
Here’s what to consider:
| Cost Type | Description |
| Recruitment & Onboarding | Screening, interviews, HR time, and onboarding tools. |
| Benefits & Taxes | Health insurance, paid leave, local compliance fees, and tax withholdings. |
| Tools & Infrastructure | Developer tools (GitHub, Jira, Slack), cloud costs, and equipment. |
| Turnover & Rehiring | Lost time and productivity when a developer leaves. |
| Management Time | Internal team time spent overseeing or retraining hires. |
When you use a platform like Betternship, these hidden costs are absorbed; developers come pre-vetted, payroll and compliance are handled, and you only pay a predictable monthly rate.
That’s the advantage of transparent pricing and managed hiring over traditional recruitment.
How to Hire a Software Developer in 2025/2026
Hiring now looks nothing like it did a few years ago. Speed and accuracy matter more than ever, and your hiring process needs to be structured for both.
Here’s a step-by-step guide:
Step 1: Define Your Needs
Clarify what you need: backend, frontend, full-stack, mobile, or AI/ML developer?
Define project goals, required skills, and expected outcomes.
Step 2: Set Your Budget
Decide if you’re hiring full-time or freelance.
Use regional averages as a guide, but balance cost with reliability and availability.
Step 3: Choose the Right Platform
This is where most startups make or save money.
Instead of wasting time sifting through unverified resumes, work with a vetted talent platform like Betternship.
You’ll get pre-assessed developers matched to your project within days.
Step 4: Test for Technical and Cultural Fit
Even the most skilled developer can fail if they don’t align with your workflow or communication style.
Betternship tests for both, using live coding assessments and collaborative tools that ensure remote compatibility.
Step 5: Streamline Contracts and Payments
Legal compliance is often a headache when hiring across borders. Betternship manages contracts, NDAs, and payroll automatically, so you can focus on your product.
Why More Startups Choose Betternship
Betternship has become the preferred platform for startups looking to hire software developers from Africa, and here’s why:
- Pre-vetted African talent: Every developer is tested for technical expertise, communication, and reliability.
- Cost-effective hiring: Save up to 60% compared to US or UK rates while maintaining world-class standards.
- Time-zone alignment: Ideal overlap for UK and EU teams.
- End-to-end compliance: Betternship handles contracts, payments, and international labor regulations.
- Flexible engagement: Hire for short-term projects or full-time roles with no hidden fees.
Startups from the US, UK, and Europe are now hiring developers through Betternship to build scalable, affordable, and reliable teams, without compromising quality.
Betternship is your best alternative to traditional hiring and expensive global platforms.
FAQ: Hire a Software Developer
- How much does it cost to hire a software developer?
In 2025, hiring costs range from $800–$10,000 per month, depending on skill level, region, and engagement type. - Is it cheaper to hire freelance or full-time developers?
Freelancers are cheaper short term, but full-time developers provide more consistency for long-term projects. - Where can I hire a software developer affordably?
Platforms like Betternship help startups hire pre-vetted African developers at up to 60% less than US or UK rates. - What skills should I look for when hiring a developer?
Strong technical expertise, good communication, reliability, and familiarity with remote collaboration tools. - How can I hire a software developer quickly?
Use vetted hiring platforms like Betternship that match you with skilled developers in days, not weeks.
Conclusion
The cost to hire a software developer depends on how strategically you hire, not just where.
Whether you’re a lean startup or a scaling tech company, the smartest move you can make now is hiring pre-vetted remote developers who combine technical skill, affordability, and cultural alignment.
And where to do that is here at Betternship.
Get started today!