If you have an app idea that you want to sell on the market, one of the first questions to ask is “How much does it cost to build an app?” Development costs can vary widely – from a few thousand dollars to millions. How do you know what your project will cost? In this comprehensive guide, we’ll cover the real costs of design and development so you can budget accordingly.
How much does it cost to build an app? When I first started my business, a friend of mine asked me this very question. At that time, I didn’t have a good answer because there are so many factors that can influence the cost of developing a mobile app. From the features and functionality included to the design and user experience, several things need to be taken into consideration when coming up with an estimate for an app development project.
Let’s explore some of these key considerations so that you can get a better understanding of what goes into calculating the cost of building an app.
How Much Does It Cost to Build an App?
The costs of creating mobile apps can vary greatly. A simple mobile app can be created for $80,000, while a more complex one could cost $250,000.
App development costs depend on the type of application you’re looking to build.
A single-function, non-database mobile app will cost between $80,000 and $100,000.
A multi-function, data-driven mobile application could cost between $100,000 and $150,000.
A mobile game, on the other hand, could range from $100,000 to $250,000+, depending on the quality, complexity, and number of features.
The amount of time it takes to create an app depends on the complexity of the app. Simple, single-function apps are completed in just a few weeks, while more complex, feature-rich applications can take several months.
How Much Does It Cost to Hire a Mobile App Developer?
If you are not a coder, you will need to hire a developer to build your app. This will increase the cost of bringing your app idea to fruition. The more developers you have working on the project, the higher the price will be.
Hiring a mobile app developer can be expensive, and it largely depends on the developer’s location. One factor that affects the cost is the country the developer is from. For example, hiring a mobile app developer in the United States is usually more expensive than hiring a mobile app developer in India.
If you want to build an app for less than $1,000 then your best option is to hire app developers in India. This will ensure you get a quality application without going over budget.
Building a simple app in the US can still cost a few grand. But it has to be simple and only do one or two things. You can prototype or launch an MVP for under $10,000.
When hiring an outside company for app development, make sure you consider all of the risks. While you may save money by going with a less expensive developer, you run the risk of compromising the quality of your product.
Working with overseas developers can be a bit tricky, as there can be a language barrier between you.
If you’re working with a developer who’s not local, it can be tough to stay on top of their progress and ensure they’re meeting deadlines.
Being able to have direct contact with the person you’re working with on a project makes everything go much more smoothly.
If the process of app development costs more than expected, the price may be adjusted.
The more time that goes into developing your app, the more money it’s going to cost.
The graphic displays how the pricing for different types of apps changes over time.
Now, let’s not forget about the costs involved with developing, testing, and optimizing your app.
Think about the time it would take to make an app and how many opportunities you would lose if you spent that time on something else.
A six-month delay in the development of your mobile app can cost you more than just money. Your competitors will have time to gain traction with your target audience, and you could miss out on valuable opportunities.
Six months is a long time for competitors to swoop in and steal your spot in the App Store.
If you want to launch an app quickly, you need to understand the mobile app development process and what you can do to keep development costs and time down.
What complexities increase the cost of app development?
The complexity of an app determines how much it will cost to build. A simple app with few features will cost less than a complex one, which may have many functions, a database, or an API.
Enterprise or multi-feature applications are also more expensive as they need a bespoke design and a lot of complex code.
Finally, games, which need high-quality graphics and gameplay, are very expensive to create.
Some other features that may affect the cost of developing mobile applications include email login, geolocation tracking, and push notifications. These features can add to the complexity of the app and therefore increase the development time and cost.
Below is a list of examples and their corresponding prices.
The costs of adding features like social media integration and user profiling to an app can range anywhere from $3000 to $15000. More advanced features such as geolocation can cost upwards of $7500.
App Development Cost Benchmarks
The cost of developing apps for iOS versus Android has varied significantly over the years.
As of 2022, the mobile app development prices for Android and iOS apps are nearly identical, based on research done by various app developing firms. The factors that determine the development cost of an app are its complexity, which is defined as simple, medium, or complex.
The development time for an app typically depends on its complexity. A simple app can take 2-4 months, a mid-complexity app 4-6 months, and a complex app 9 months or more.
These estimates are based on the quality of coordination and productivity of the app development team members. The actual timeline for developing an app may vary depending on these factors.
How Much Does It Cost to Develop an App in the US?
According to current hourly rates for app development, a basic app with a simple user interface and set of features would cost between $16,000 and $32,000. A medium complexity app would fall between $32,000 and $48,000, while a complex app would require an investment of at least $72,000.
Again, these numbers are just a guideline, and the actual amount of time it takes to develop an app depends on several factors.
These calculators are meant to give you an idea of how much your app would cost to develop.
These numbers don’t include the costs associated with updating an app, which is necessary as apps grow and evolve. These app costs can vary greatly based on the type of the app and the significance of an update.
App Pricing Models
Developers usually provide an estimate of the work that needs to be done or charge by the hour on a pay-as-you-go model.
The fixed-price model is our preferred pricing model. We put together a quote based on your concept and will only deviate if the project’s requirements change. This makes it easy for you to budget for your app and ensures that there are no unpleasant financial shocks.
We bill weekly or monthly, depending on the project. The actual time it takes to complete the work, however, varies.
This option is great for projects where the scope and requirements aren’t entirely clear. That way, we can create a custom solution that perfectly meets your needs.
How to Estimate App Development Costs
We start by understanding the features of the app. This gives us an idea of how complex it is and allows us to estimate how many resources it will take to build it. This represents the bulk of the cost of building an app.
There are three reasons why an app may cost more than originally quoted.
The main reason that app development costs more than expected is that the scope of a project can increase as the development process progresses. This is typically due to dishonest developers giving you a low price estimate to get your business, then tacking on extra charges for each additional feature.
The entrepreneur begins to build the product and as they work on it, they share it with friends. This feedback helps the founder improve the product and makes it more useful.
One of the best things about app development is that you are constantly coming up with new ideas and ways to improve your product. However, this can also be one of the most challenging aspects of the job, as it can be difficult to know when to stop tinkering and call your app finished.
If during a project, you decide that you want to add or subtract some feature, you have a few options. You can swap them out for other features, pay us to add them, or remove them entirely.
4 Ways to Build a Mobile App
While a cheaper, simpler, and easier-to-develop MVP may be good for app development, you should be careful when choosing an app development partner. A cheap, simple, and easy-to-develop solution may end up costing more in the long run.
While cheaper isn’t always the best option, sometimes it’s necessary.
There are several options for building apps, each with pros and cons.
1. Offshore firms
Hiring an offshore team is the cheapest option because they typically charge less than US or UK workers.
Although the price may be low, there is a risk of receiving poor-quality work.
You rarely see the people who will be working on your app, and these firms often have very little in their portfolios, as the apps that have made millions are often very different from the approach these agencies take.
What you’ll get is the app development team. What you won’t get are all the other roles that come with a full-fledged team.
2. Freelancers
Hiring a freelance developer from an online freelancing website is one of the best ways to get quality work without dealing with offshore firms.
Hiring a good developer is not inexpensive, but their work will be much faster and of higher quality than if you hired someone less experienced.
3. Technical co-founder
If you’re already a successful businessperson, having a technical co-founder is a great way to attract top talent and have them join your team.
These guys get approached by a lot of “ideas” people who usually offer something like “I don’t really know anything about this but I just had an idea for a new social media site. I will pay you 5% of the profits that this project makes.”
Technical co-founders are also a good bet if you’re looking for a high-quality product. Cofounders can be incredible assets, but they can also be a liability.
4. Established app development company
If you’re looking for the most expensive option, app development companies are it. However, you’re also almost guaranteed to end up with a great product if you go this route.
Some development firms have a successful track record of developing and launching popular applications. They can provide your team with experience, resources, and a proven process.
Some app developers may know how to sell, but don’t have a solid track record of delivering.
The company’s positive reputation, great reviews, and a long list of accolades speak for themselves. Talk to past clients and meet the staff to get a feel for their culture.
See how much they care about your business. It’s an important choice, so you shouldn’t just hire the first web developer you come across.
Product Comes First
While it’s true that how much you’re willing to spend on your product is important, it’s more important that you focus on building a great product.
In less than 12 months, Facebook bought Instagram for one billion. They paid about $250,000 to build the prototype.
No matter the cost, whether it was $50,000 or $500,000, it is insignificant when compared to the exit value.
Your product must be of the highest quality possible. You can save money by skimping on quality, but what’s the point if it means that you’re selling an inferior product? It’s always better to invest in a higher quality product or service.
Basically, yes, money is important, but the product is more important.
The Real Cost of Design
It’s not just what it looks like and feels like. Design is how it works.
Design isn’t just about making things look good; it’s about making them work well too. Too often, people think of design as simply a matter of aesthetics, when in reality it’s so much more than that. Good design takes into account function and form to create something that’s both beautiful and effective.
Your app’s design is just as important, if not more important than its technical features. It’s what your users interact with, so it must be well designed.
It’s what convinces people to download and use your application. A good user interface is key to keeping customers coming back.
Design is key to solving the user’s problem. A well-designed app can be profitable, while a poorly designed app will likely fail. Therefore, it is important to put as much effort into the design of your app as you do the technical aspects of development.
Don’t Forget the Marketing
“If you build it, they will come” does not work for apps.
While this phrase gained popularity during the dot-com bubble, it is a fallacy.
Even if you have a great app, it still needs marketing.
In fact, the majority of apps don’t make enough money to cover their development costs.
About 12% of app developers make over $50,000 in annual revenue from the App Store. The overwhelming majority of revenue goes to the top 1% of app publishers.
The main difference between the money makers and their money-losing counterparts is that the former spends more on marketing than the latter. They also spend more time on marketing and sales than their counterparts.
In the app world, you need a lot of people to download your app in a short amount of time to make it into the top 100 lists. Almost always, paid advertising is necessary to accomplish this.
Don’t expect to just toss money at Facebook ads. You’ll end up wasting most of it.
Finding the best business model for an app that delivers a good return on investment is a science.
Start testing out which channel works best for you.
If you’re going to release an app, make sure you have a lot of people waiting to download it.
It takes a lot of time and money to grow your user base.
Finding out the best model for your business can be very expensive, ranging from $35,000 to much higher. No matter what, though, you should still set aside funds for your marketing and sales activities.
Making money off an app requires more than just sales and marketing. You’ll also need to factor in the App Store and Google Play Store fees and the cost of servers, back-end support, and development, customer service, accounting, legal, office, and app maintenance.
App Development Influential Factors
App development cost is significantly influenced by the app functionality and purpose, mobile platforms and devices supported, integration points, use of visual objects, use of smartphone hardware features, and maintenance plan.
However, there are some common or standard metrics for app development projects that we can apply across various types of applications.
These benchmark ranges are quite broad, based on the data of multiple companies that researched their average mobile app development cost by surveying their customers.
Conclusion
How much does it cost to build an app? As you can see, many factors can influence the cost of developing mobile applications. From the features and functionality to the design and user experience, each element needs to be carefully considered when coming up with an estimate for an app development project. By taking all of these factors into account, you can get a better understanding of what goes into calculating the cost of building an app.
