Hiring a software developer involves more than just the numbers; it also requires planning for your business's growth, performance, and long-term impact. Whether you're developing your first minimum viable product (MVP) or expanding your business platform, the right developer can have a significant impact. These professionals design, build, and maintain the digital tools that drive your operations.
The cost of hiring a developer varies depending on several factors, such as experience, geographic location, and project complexity. In this blog, we explore how much it costs to hire in Latin America and why this region has become an attractive option for companies around the world.
Why hire a software developer?
A software developer plays a crucial role in the design, development, and maintenance of software applications and computer systems. Specializing in either mobile, web, or enterprise-level systems, developers use a wide array of programming languages—such as Java, Python, C++, or JavaScript—to create functional and efficient software solutions. Their responsibilities encompass writing, testing, and debugging code, ensuring the application performs as intended.
They also work closely with other team members, including designers, project managers, and quality assurance engineers, to collaborate and iterate on user feedback. This teamwork helps ensure that the final product not only functions well but also aligns with user needs and business objectives.
In addition to technical expertise, software developers must possess strong problem-solving skills, as they frequently face challenges related to code optimization, system integration, and scalability. Their work often includes developing algorithms, implementing security measures, and improving performance based on user experience. A developer’s ability to collaborate across teams and adapt to new technologies is key to delivering high-quality software that drives business growth and innovation.
How Much Does It Cost to Hire a Software Developer
The short answer? It depends, but here’s a quick overview.
Depending on their location, experience level, and skill set, hiring a software developer can cost anywhere from $3,500 to $13,000 USD per month. In the U.S., companies pay around $10,000 per month for a mid-level developer, while in Latin America, they pay between $3,900 and $5,900 per month for comparable talent.
In the following sections, we’ll break down these numbers in more detail, covering regional differences, experience levels, and key cost factors to consider.
Cost to Hire in Latin America
Hiring a software developer in Latin America is much more affordable than in the United States. This is one reason many companies are turning to Latin America to build remote development teams. Understanding the cost of hiring a developer is essential when planning your technology budget and evaluating options such as nearshoring. However, note that salaries can vary based on the developer's experience level, country of residence, technology stack, and English proficiency.
Learn about the best Latin American country for finding software development talent.
How much does it cost based on experience level?
When hiring software developers, one of the most important factors that influence the cost is their level of experience. From mid-level professionals who can work independently to senior and expert developers who lead architecture and strategy, the price varies significantly.
Understanding these differences helps companies in the U.S. plan their budgets more accurately and find the right talent for the complexity of their projects—without overspending. Below is a breakdown of the estimated monthly costs in four major technology hubs in Latin America: Brazil, Colombia, Mexico, and Argentina. These estimates may vary depending on factors such as your skill level and the experience of mid-level, senior, and expert developers. For a more accurate estimate tailored to your specific needs, please contact us.
Learn more about hiring software engineers in Colombia vs Argentina.
Cost of Hiring in Latin America vs. the U.S.
When comparing the cost of hiring a software developer in Latin America versus the United States, the difference can be striking. In many cases, companies can reduce hiring costs by 50% or more by nearshoring to Latin America.
When we compare the total monthly cost of hiring a mid-level software developer, Latin America offers a clear financial advantage. In LATAM, you're looking at roughly $3,900–$5,940 per month for similar talent. In contrast,the cost in the United States is approximately $10,000, and once you factor in recruitment expenses spread out monthly, it can reach $13,000 per month.
When we compare the total monthly cost of hiring a mid-level software developer, Latin America offers a clear financial advantage. In LATAM, you're looking at roughly $3,900–$5,940 per month, which translates to approximately $22 to $34 per hour, assuming a full-time schedule of 40 hours per week. In contrast, the cost in the United States is approximately $10,000 per month—or about $58 per hour—and once you factor in recruitment expenses spread out monthly, it can reach $13,000, bringing the hourly estimate closer to $75 per hour.
Our thoughts on the pricing structure of Toptal
While it's not possible for us to find details about how much of what a client pays ultimately goes to a candidate, we believe clients looking for transparent and straightforward pricing may want to look at other alternatives.
Our opinion is that if they are charging a client more than $12,000 monthly for a developer, they should at the very least be giving $9,600 to the candidate, but it's likely that it's even less than that.
What Hiring Managers Should Ask Before Choosing a Talent Partner
Before partnering with any talent provider — whether Toptal, Teilur, or others — hiring managers should consider asking the following key questions:
- What percentage of the fee actually goes to the talent?
- Are replacement or satisfaction guarantees included in the contract?
- How are regional salary benchmarks determined?
- Is there full transparency in how rates are broken down?
- What is the long-term cost difference between hiring directly and through a platform?
These questions can help businesses make informed decisions and ensure that pricing aligns with both market realities and ethical compensation practices.
Why hire software developers with Teilur Talent?
We believe that building a successful tech team means more than just filling a position. It's about finding the right person who fits the company culture and shares the same values. It's about creating long-term collaborations that benefit companies and developers alike.
We believe transparency should be the norm, not the exception. That's why we offer a clear, simple pricing model. We only charge a flat fee of 20%. There are no hidden costs or inflated margins; our prices are transparent so you know exactly where your money is going.
While many companies face high staff turnover, Teilur Talent's clients experience developer retention rates of up to 90%. Hiring the best developers is about more than just finding the right skills on paper; it's about finding the right person for your team, your mission, and your way of working. At Teilur Talent, we don't just match companies with developers. We align based on cultural fit, values, time zone compatibility, and communication style.
Learn more about how Teilur Talent is disrupting the recruiting industry with transparent pricing.
FAQ
How much does it cost to hire a software developer
In Latin America, hiring a software developer typically costs between $3,500 and $6,800 per month, depending on factors like experience level, country, tech stack, and type of contract.
How long does it take to hire a developer?
It typically takes between 2 to 10 weeks, depending on the hiring method and project complexity. Hiring through talent platforms is usually faster—often within 1 to 2 weeks—while traditional recruiting can take longer due to interviews, vetting, and onboarding.
How to hire a software developer?
Start by defining your project needs, required skills, and budget. Then choose your hiring method—freelance platforms, agencies, or talent networks. Review candidates, assess their technical fit, and conduct interviews to ensure alignment with your goals and work culture.
How much does it cost to hire a team of software developers?
Hiring a full team of software developers in Latin America can cost anywhere from $14,000 to $30,000+ per month, depending on the team size, seniority level, and project complexity. This estimate is based on an average monthly cost of $3,500 per developer.
Conclusion
The cost of hiring a software developer can vary significantly depending on experience level, location, and project type. While costs can be high in markets like the United States due to additional benefits and taxes, regions like Latin America offer an excellent alternative with highly qualified developers at much more competitive prices. Understanding these factors allows you to make more informed decisions and optimize your budget for software development projects. If you're ready to find the right developer for your team, explore your options and consider solutions that best suit your needs and budget.
To help you make the best decision, use the calculator below to estimate your costs and potential savings. For more details and personalized advice, please contact us.
