Low-Code vs Traditional Development: Cost Comparison Guide

Explore the cost differences between low-code and traditional development, including initial expenses, maintenance, and ROI insights.

Mar 25, 2025

When deciding between low-code and traditional development, cost is a key factor. Here's a quick breakdown:

Low-code platforms use drag-and-drop tools and start at $3,000/month, with faster development timelines (1–3 months). They require less expertise and have lower maintenance costs, but may involve hidden fees like vendor lock-in.
Traditional development involves manual coding, with upfront costs ranging from $20,000–$50,000 per app and timelines of 6–12 months. It offers more customization but requires a skilled team and higher long-term maintenance costs.

Quick Comparison

Factor	Low-Code	Traditional Development
Initial Cost	Medium to low ($3,000/month)	High ($20,000–$50,000 per app)
Development Speed	1–3 months	6–12 months
Expertise Needed	Basic coding knowledge	Advanced programming skills
Maintenance	Managed by platform	Dedicated team required
Scalability	Built-in capabilities	Additional development needed
ROI	84% report positive ROI	15–17% report positive ROI

Key Takeaways:

Low-code is great for small-to-medium projects with limited budgets and tight timelines.
Traditional development is better for large, complex projects needing full customization.

Choose based on your budget, timeline, and project complexity.

No Code vs Low Code vs Traditional Development: Which One Is Best?

1. Low-Code Platform Costs

Low-code platforms come with a variety of pricing structures, making it essential to understand the costs involved when choosing the right solution for your needs.

Licensing Models and Pricing Tiers

Here’s a breakdown of common pricing models for low-code platforms:

Pricing Model	Best For	Typical Cost Range
Per User	Developing multiple apps	$15–60/month per user
Per App	Building a few apps	$500–2,500/month
Enterprise	Large-scale solutions	$60,000–100,000/year

For instance, OutSystems starts at $36,300 annually, while Mendix offers plans starting at €50/month for basic use, scaling up to enterprise-level options. Studio Creatio charges $30/month per user for team licenses and $60/month per user for enterprise plans.

Platform-Specific Pricing Examples

Here’s what some popular platforms charge:

Microsoft PowerApps: $20/month per user
Kissflow: Starts at $15/month per user for small teams
QuickBase: Team plans begin at $35/month per user

Keep in mind that licensing fees are just one part of the overall cost equation.

Hidden Operational Costs

Beyond the upfront costs, there are additional operational expenses to consider, such as:

Annual maintenance: 12–35% of initial development costs
Platform updates and support
Extra features: Can add 20–50% to the original budget
Developer maintenance: $50,000–$150,000 annually per full-time developer

These hidden costs can significantly impact your budget over time.

Cost-Saving Options

Some platforms offer free versions or trial periods to help you evaluate their tools. For example, UI Bakery provides a standard plan at just $6/month per user.

"Growth in digital data, low-code development tools and artificial intelligence (AI)-assisted development are among the many factors that enable the democratization of technology development beyond IT professionals."
– Rajesh Kandaswamy, research vice president at Gartner

With the global low-code market expected to grow from $13.2 billion to $45.5 billion by 2025, businesses can expect increased competition and more affordable options. This makes low-code platforms a worthwhile investment for companies looking to streamline their development processes.

2. Standard Development Costs

Building software the traditional way comes with hefty upfront and recurring expenses. These include salaries for the development team, costs tied to creating features, infrastructure expenses, and ongoing maintenance.

Development Team Expenses

The biggest chunk of the budget goes toward paying your development team. In the United States, developer salaries vary based on experience:

Developer Level	Hourly Rate	Annual Salary Range
Junior	$34–41	$70,720–85,280
Mid-level	$43–52	$89,440–108,160
Senior	$60–77	$124,800–160,160

On top of these salaries, benefits packages can add another 20–30% to the total cost. If you're providing a dedicated workspace, expect to spend an additional $5,000–$20,000 per year. And that’s just the start - costs for developing features and maintaining infrastructure pile on quickly.

Feature Development Costs

Once you’ve got your team, building features adds its own expenses. Here’s an idea of what some common features might cost:

Feature	Development Hours	Cost Range
Login System	30–45	$750–1,100
Profile Management	50–60	$1,120–1,500
Push Notifications	25–30	$600–800
Search Functionality	20	$300–500

These figures depend on the complexity of the project and the specific requirements.

Infrastructure and Hosting

Hosting costs vary widely. Cloud hosting can range from $50 to $1,000 per month, while SaaS hosting typically costs $1,000–$10,000 annually.

Maintenance and Long-term Costs

Maintenance is another major expense. It usually accounts for 15–20% of the original development costs, but for embedded systems, it can spike to 65–80%. Quality assurance and testing also take up 15–20% of the budget, with most of it going toward updates and system improvements. These ongoing costs are key when weighing traditional development against low-code alternatives.

Hidden Cost Factors

Other costs often fly under the radar. These include documentation, meeting security standards, system integration, team training, and project management. When you add it all up, the total cost of ownership for traditional development includes not just the initial investment but also long-term financial commitments.

Direct Cost Comparison

This section breaks down the financial impact of traditional development versus low-code platforms, focusing on key cost areas.

Initial Investment Comparison

Traditional development demands a hefty upfront investment, ranging from $70,000 to $100,000. For specific projects, a traditional MVP might cost between $30,000 and $45,000, small business solutions can hit $70,000 to $100,000, and enterprise-level projects often surpass $500,000. In contrast, low-code platforms operate on a subscription model, starting at around $3,000 per month. While low-code solutions reduce initial costs, the total expenses depend on the project's duration. Next, let’s look at how long-term costs and maintenance differ between the two.

Long-term Cost Analysis

Traditional development typically incurs yearly maintenance costs of 15–20% of the initial investment. On the other hand, low-code solutions, especially cloud-hosted ones, combine lower maintenance fees with subscription costs. Cloud-based low-code platforms often offer better total cost of ownership (TCO). For example, traditional on-premises software may allocate 70–90% of TCO to maintenance, while cloud-based applications usually require only 30–60%.

ROI and Hidden Costs

Lower upfront and ongoing costs give low-code projects a clear edge in terms of ROI. However, there are potential hidden costs to consider, such as vendor lock-in. Migrating away from a low-code platform can cost anywhere from $100,000 to over $1,000,000.

"What's crucial to understand is the total cost of delivery and ownership - focusing solely on resources and hourly rates can be misleading. A higher-quality team might appear more expensive initially but often delivers better outcomes with fewer overruns, resulting in lower total project costs."
– Humberto Moreira, Principal Solutions Engineer at Gigster

Trends in the market highlight the financial appeal of low-code platforms. For instance, projections show the market will hit $26.9 billion in 2023, marking a 19.6% increase from the previous year.

Summary and Recommendations

Based on the cost comparisons provided, here are some practical guidelines to help you decide between low-code and traditional development approaches:

For Small to Medium Projects (Under $50,000)

Low-code platforms are a great fit for smaller projects. They can reduce development time and deliver a quicker return on investment. These platforms work well for rapid prototypes, internal business tools, projects with minimal technical expertise, and solutions that need regular updates.

For Large Enterprise Projects ($100,000+)

For enterprise-level projects that require extensive customization, traditional development is often the better choice. While upfront costs can exceed $100,000, this approach delivers highly customized and robust solutions tailored to meet specific business needs.

Decision Framework

Project Aspect	When to Choose Low-Code	When to Choose Traditional Development
Budget	Initial budget is under $50,000	Budget exceeds $100,000
Timeline	Deployment is needed within 1–3 months	A timeline of 6+ months is acceptable
Maintenance	Limited IT resources are available	A dedicated development team is in place
Customization	Standard functionality suffices	Deep, tailored customization is necessary
Scalability	Growth is predictable	Scaling involves complex requirements

Choosing the right development method is just the first step. Managing costs effectively throughout the project is equally important.

Cost Optimization Tips

To keep expenses under control while planning your project, consider these strategies:

Combine Approaches

Start with low-code for rapid prototyping and basic features, then add traditional development for more advanced and complex functionalities.
Plan Resources Wisely

Account for all costs, including initial development or subscription fees, training, ongoing maintenance, infrastructure, and integration.
Think Long-Term

Ensure your project aligns with future needs. With Gartner forecasting that 75% of new applications will use low-code tools by 2026, it's crucial to adopt a technology strategy that supports your long-term goals and scalability requirements.