If you’ve reached a point where you’re ready to proceed with that big idea of yours for an app, the first thing on your mind is: how much does app development cost?! It is the number 1 question from founders, product managers and business owners on their digital journey.
A simple app could cost as little as $20,000 to develop, and complex software with advanced functionality can climb up toward $300,000. Why such a broad range? And so, since there’s no magic formula for figuring out how much development will cost — it all depends on the features you want, your design complexity and what user experience you need.
It helps to have the estimate broken down into understandable categories in order to keep you budget realistic and free of surprises.
What are the Factors Affecting the Price of App Development?
It should be understood that apps development is like building a house. Could be a mansion, could be a shanty. The price is determined by:
- Features and complexity
- Design specifications
- Platform (Android, iOS or Cross Platform)
- Location and size of the team
- Integrations and the tech stack
Say you want to create an app for food delivery service. However, if it is going to just take orders, user login, and simple menus, it will be cheaper.
The price, however, takes a hefty increase when you include GPS tracking, in-app chat, driver management, loyalty programs, and payment gateways.
Cost analysis based on the complexity of the app
The minimal app ($20,000–$60,000+). This includes apps with a sparse set of functionality (like a to-do list, calculator, or general-purpose utility) that make up a core set of mobile apps. Generally, the construction time for such works lasts from one month to three months.
Mid-level apps ($60,000–$150,000+). Applications such as e-commerce platforms, health tracking apps, etc. That is a custom UI, a database and user accounts. Timelines can be anywhere from three to six months.
Enterprise applications (will set you back anywhere between $150,000 — $300,000+). These applications offer scalability, complex interactions, media and image processing, real-time and multiple user roles support for largescale databases. These are things like marketplaces, social networks, or Uber-like apps, for instance. Similar to this case: when you search for how to make app like Tinder, it fits into this category as well as it requires features like sophisticated matching algorithms, chat and instant response nature.
Cross-platform vs. native development
Since iPhone and Android app are actually two apps, native development usually has a higher price tag. Cross platform development (with Flutter or React Native) saves dollars and seconds by creating a shared codebase for both platforms.
Keep in mind, however, that while cross-platform saves on dollars in the front-end, in the back-end some performance hiccups might appear, especially with the more complex programs.
To better understand where your budget goes, it’s useful to break down costs by development phase. The chart below shows how expenses are typically distributed between planning, design, development, QA, and project management in a mobile app project.
Design expenses are important too
Having a well-structured, seamless design is extremely important. The cost for design can be anywhere from $5,000 to $50,000+ depending on:
- Personalized animations
- Research on UI/UX
- Components of branding
- Standards for accessibility
A budgeting application with basic graphs and clean panels might cost much lower to create than a streaming app with a lot of animations, complex navigation, and micro-interactions.
Remember to include backend development
The backend of your app: server logic, APIs, user management, and database, keeps your app up and running. Without it, your front-end would be nothing more than eye candy.
A scalable cloud-based backend (think AWS or Firebase) can set you back anywhere between $10,000 to $100,000 depending on how sophisticated your business model is.
Location’s impact on prices
The geographical location of your development team affects your budget significantly:
- USA and Canada : $100 to $200/hour
- Across Western Europe: $60 — $120/hour
- Central and Northern Europe: $50 — $80/hour
- Asia: $20 to $40/hour
Let’s say it takes you 1,000 hours to develop your software. That’s $30,000+ for the same scale project in Estonia and $150,000+ for the same scale project across the border in California.
Considerations for Post-Launch Costs
The budget continues even after the app is live.
- Cloud and hosting services
- Promotion and acquiring users
- Tools for analytics
- Customer service
Maintenance costs in the post-launch years are typically 15% to 20% of the original build cost, annually. So, if it costs $100,000+ to develop your app, you need to allocate another $15,000 to $20,000+ on an annual basis to maintain it.
Concluding Remarks
When it comes to budgeting for your app, it means more than the cost of building your app. It means thinking through the entire lifecycle — from idea to built, from built to scaling.
Start small but sizable, once the Minimum Viable Product (MVP) is clear. Differentiate between what you require and what you wish to possess. Pick your team carefully. And as your app grows, be ready to adjust that budget, adjust your spend.
An application is not a one off cost but an ongoing expense. If those details are hammered out ahead of time, though, it can be the smart thing to do.
Yuliya Melnik is a technical writer at Cleveroad, a software development company that offers android development services. She is passionate about innovative technologies that make the world a better place and loves creating content that evokes vivid emotions.