I'd like to know what is the approximate cost of a software department (Product + R&D) in a typical startup (20 employees)?

For example, considering the others departments are sales, accounting, marketing, human resources.

closed as too localized by Kennethvr, Thomas Owens, Pawel Brodzinski, jmort253 Jan 22 '12 at 2:27

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  • 1
    This question, impossibly could be answered with this information, I would recommend to close the question. – Kennethvr Jan 20 '12 at 14:03
  • More information is needed, e.g. what country, what level skill set, how much R&D, etc. – Mark Phillips Jan 20 '12 at 14:23
  • You are a software company, if you are still developing the core software the cost of the software department could be most of your costs. – mhoran_psprep Jan 20 '12 at 16:54

The answer depends mainly on the average salaries of the employees.

The average salaries of the employees depends on the EXACT location (the city), the level of skills and experience required, the domain of the project (i.e. does the project require domain knowledge that is hard to find or that is in high demand).

Startups are less stable - higher risk, so if you require average or above skills or experience the salaries should be higher than in most stable companies.

Also you did not mention - out of the 20 employees how many are R&D (minus management, marketing, sales, tech-support and etc.).

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