Custom Computer Programming Services Revenue Benchmarks
The average custom computer programming services business in the United States generates $3.9M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 62,402 custom computer programming services businesses in the U.S., employing 944,630 workers with an average profit margin of 22.0%. The average employee in this industry earns $164K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Custom Computer Programming Business Actually Do?
Software development shops that build custom applications for clients — mobile apps, web platforms, enterprise systems, IoT products. Include freelancers, boutiques, and large offshore firms.
Who buys: Businesses that need custom software (not off-the-shelf SaaS) — corporations, startups, government agencies.
Average Revenue
$3.9M
per year
Profit Margin
22.0%
industry average
Revenue / Employee
$257K
per year
Total Businesses
62,402
in the US
Est. Owner Income
$856K
small business avg
Labor Cost
50.0%
of revenue
Avg Employee Wage
$164K
per year (BLS)
Market Saturation
18.8
firms per 100K people
How Much Do Custom Computer Programming Services Charge?
Custom software development is priced hourly, per project, or on retainer.
| Service | Typical range |
|---|---|
Freelance developer (US) | $75–200/hour |
Offshore developer | $25–75/hour |
Boutique agency rate | $150–350/hour |
Large agency / enterprise | $200–500/hour |
MVP project (typical) | $25,000–150,000 |
Enterprise implementation | $100,000–2,000,000+ |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete custom computer programming business plan
A 12-section data-backed business plan for a custom computer programming services business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the custom computer programming services industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Client-related expenses | $4 | $164K | Software licenses, subscriptions, printing, filing fees, travel billed to clients. |
Wages & benefits | $50 | $1.9M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $6 | $218K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $4 | $164K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $14 | $545K | Professional liability insurance, continuing education, tech, admin support. |
Net profit | $22 | $856K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
14.38%
openings/year
Closure Rate
13.25%
closings/year
Net Job Growth
-0.02%
annual
Businesses Closed
12,731
in 2023
Firm Count Trend
Should You Start a Custom Computer Programming Business?
Startup Cost
$10K – $75K
Break-Even
1 months
5-Year Survival Rate
60.0%
Related Industries
Frequently Asked Questions
- What does a custom computer programming services business do?
- Software development shops that build custom applications for clients — mobile apps, web platforms, enterprise systems, IoT products. Include freelancers, boutiques, and large offshore firms. Businesses that need custom software (not off-the-shelf SaaS) — corporations, startups, government agencies.
- How much do custom computer programming services charge?
- Custom software development is priced hourly, per project, or on retainer. See the pricing table above for typical rates by service type.
- How much does the average custom computer programming services make per year?
- The average custom computer programming services business generates $3.9M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $856K per year at a 22.0% profit margin.
- How many custom computer programming services businesses are there in the US?
- There are 62,402 custom computer programming services businesses operating in the United States, employing a total of 944,630 workers.
- How much does it cost to start a custom computer programming services business?
- Startup costs for a custom computer programming services business typically range from $10K to $75K, with a 5-year survival rate of 60.0%.
- What is the average salary in the custom computer programming services industry?
- The average employee in the custom computer programming services industry earns $164K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The custom computer programming services industry is relatively stable — with a net job growth rate of -0.0%. Entry and exit rates are balanced at 14.4% and 13.3% respectively.
Approximately 49% of custom computer programming services businesses survive their first 5 years. This is near the national average (~50%), with typical business risk. In 2023, 12,731 firms in this industry closed permanently.
Employment & Wages
The average employee in the custom computer programming services industry earns $164,018/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 194,035 establishments employing 1,109,609 people, the typical business has about 6 employees.
Industry Trend (2000–2023)
The custom computer programming services industry has grown 45% since 2000 (from 73,182 to 106,280 firms).
See full historical statistics →Compare Custom Computer Programming Services revenue with other industries: