There are certain upfront expenses involved while creating an app that can be very profitable. The major question arise is that what is the price of developing an app, then? The size and complexity of the app being developed can have a significant impact on the development cost. Whilst some apps may be developed for as less as $5,000, others can cost over $1 million!
Of course, the mobile app development cost increases with its complexity and feature set. Prior to making any commitments, it’s a good idea to figure out the project’s budget and schedule as you start to plan the development of your app. You’ll reach your goals and make wiser financial judgments if you do this.
This blog will describe the average expenses incurred in creating an app, from the very beginning to publishing it online or through the App Store. We will also go over the different factors that go into the total mobile app development cost and offer some advice on how to stay within budget while still producing a quality app.
The complexity of the app, the platforms it will run on, and the features and functionalities needed can all affect how much it costs to design an app. Here is a quick glance into the background of it.
The application’s complexity:
1. Developing simple software with basic features, like a flashlight or calculator, will cost between $10,000 and $40,000 or more.
2. More sophisticated apps, like those for social media or eCommerce, can run you anywhere from $30,000 to $500,000 or more.
3. High-end apps, such as banking or healthcare apps, can cost up to $500,000 or even millions of dollars for the most sophisticated ones. These apps include intricate functionality and are designed for enterprise use.
The system on which your application is hosted:
1. Android + iOS hybrids can cost you anywhere from $13,000 to $16,000.
2. The price range for developing a web app is $13,000 to $16,000.
3. The price range for single-platform apps (iOS or Android) is $8,000 to $14,000.
It’s important to remember that mobile app development is an ongoing expense. Additional time and resources will also be required for ongoing updates, maintenance, and enhancements.
- The goal and functionality of an app are what it can truly do for its consumers.
- Supported mobile platforms and gadgets include iOS and Android, depending on whether an app is created specifically for iOS or has both.
Which particular hardware products, such as the Samsung Galaxy S10 Plus, iPhone 13, and iPhone 12 Mini, will it support?
- Integration points: Will an app be combined with other apps to obtain its material from other sources?
- Use of visual objects: An app’s visual object complexity greatly impacts how much it costs.
- Usage of smartphone hardware features: an application’s ability to use features like motion co-processor, NFC, GPS navigation, augmented reality, and other technologies loaded into smartphones or tablet computers.
- Maintenance plan: After an app development project is completed, the developer will undoubtedly need to give technical support for upgrades that fix bugs or add new features.
Having stated that there are some common or average benchmarks for app development project costs that may apply to various app categories. These benchmarks, which are based on information from several businesses that estimated these mobile app development costs based on their customer projects research.
App Type
The kind of application and the intricacy of its features are two of the many variables involved in developing a mobile application. The following are the approximate duration and price for various app types:
The average development period for social media apps is six to twelve months, and the cost is expected to be between $50,000 and $500,000. The average development time for an eCommerce app is 4–12 months, and the price range is $30,000–$500,000.
The development of gaming apps can take anywhere from two to twelve months, and the price tag can go up to five hundred thousand dollars or more. Education apps generally take three to six months to complete, and they can cost anything from $25,000 to $250,000. The average time for health and fitness apps is four to six months, and they can cost anything from $50,000 to $250,000. Apps for travel and hospitality may take three to eight months to design, and they can cost anything from $25,000 to $300,000. The average development period for productivity apps is three to six months, and they cost between $25,000 and $250,000.
On-demand apps take four to eight months to develop and cost $50,000 to $300,000. However, these are only estimates; depending on particular project requirements and extra features, actual time and prices may differ.
Region
The area where the development is occurring may also impact expenses. Comparing regions with lower labor costs, like Asia and Eastern Europe, to those with higher labor costs, such as North America and Western Europe, generally results in higher app development expenses.
1. North America and Western Europe: These regions often have the highest hourly pay for development teams.
2. Eastern Europe: Eastern European development teams generally charge lower hourly rates than Western and North American teams.
3. Asia: The hourly rates of development teams are generally lowest in Asian nations like China, India, and the Philippines.
The average hourly rate for app developers by location is displayed below.
Since the beginning of the major mobile platforms, there has been a huge difference in the app development cost between iOS and Android. As of 2022, the cost of developing an iOS app is almost the same as that of an Android app, according to numerous studies done by reputable app development businesses. Currently, the primary determinant of app development costs is their level of sophistication, which may be broadly classified into three categories: simple, Medium, and Complex.
According to SPDLoad, an app development business, a simple app takes 2-4 months to produce, a mid-complexity app takes 4-6 months, and a complex app takes 9 months or more. These are obviously only estimations, as the real-time it takes to develop an app also depends on how well the team of app developers coordinates and how productive they are.
The US app development price range for a basic app with a set of basic features and a user interface is between $16,000 and $32,000; for a medium complexity app, the cost is between $32,000 and $48,000; and for a complex app, the investment would be at least $72,000, if not more, according to Salary.com’s hourly rates, which are currently hovering around $50 per hour.
You can use a few well-known app development cost calculators to get a ballpark estimate of how much your app will cost. These are a few:
App development cost: A free tool that uses a series of questions to provide you with an app development cost estimate. You will receive the entire app development cost right away after responding to these questions, along with a detailed breakdown of the number of development hours required.
Inoxoft: Instantly retrieves the cost of developing your app and calculates the app development cost depending on your selections for platform, design, security, and features.
Litslink: They ask 27 in-depth questions about communication, interactivity, ownership & security, product design, and advertising to determine the cost of developing an app. If you don’t provide your data, the cost is blocked
Buildfire: A cost estimator for app development that provides a plethora of choices and filters. Platform, users, features, hosting & maintenance, revenue, integrations, and Buildfire services are all included.
An approximate idea of the cost of hosting the app infrastructure and data in the cloud can be obtained using cost calculators offered by cloud providers such as AWS, Azure, and GCP.
Making a profitable app is harder than it looks. Planning, Design, Development, Testing, and Deployment are the five primary steps of a well-thought-out and well-executed development process. Every step is necessary and adds to the app’s ultimate success.
The average cost for each stage of a development lifecycle is displayed in the graphic below. As you can see, the most expensive step is development; this will be explained in more detail later.
What enables businesses to effectively distribute the venture capital they are able to raise over the entire cycle of mobile app development is having an approximate idea of how much various stages of app development may cost.
A study carried out in 2017 by the B2B analytics firm Clutch described the information gathered from over 100 app development firms. It gave a percentage of what businesses spend on each of the following app development stages: testing and deployment, design, development, and discovery.
Therefore, 51% of company representatives stated that the expense of coming up with an initial concept and performing research can reach $5,000 when it comes to pre-research. Of those who spent more than $5,000, 22% spent $10,000 or more, and 14% spent between $10,000 and $25,000. Without a doubt, the Discovery stage of app development is the least expensive.
Discovery/Pre-Research stage
At this point, the app’s goal and intended user base are established, and the features, functionalities, and requirements are decided upon. It is crucial to establish an app concept that is clear and simple and easy for all parties involved in the development process to understand.
Finding the app’s distinct value proposition and studying the competitors are other tasks included in the planning stage. Following the completion of the planning phase, the team can proceed to the design phase, with the app’s overall scope and direction determined.
UI/UX Design stage
The majority of the work involved in creating a mobile app is called development, and it involves actually coding each feature that the app is meant to have. Merely 9% of participants reported spending less than $5,000 on the coding of an app, while 33% said they spent between $5k and $10k on this phase.
The complexity of the project, the number of screens, the style of design, and the experience of the design team can all affect the cost of an app’s design phase. An approximate estimate for the design phase is 15% of the total cost of app development.
Development stage
The app is developed at this point. The process of developing an app involves coding, debugging, and feature integration. The amount of time and money this stage will take to complete depends on a few things, including the quantity of features, the platforms it will be built for, and the development team’s level of experience. An approximate estimate for the development stage is 60% of the overall cost of developing an app.
Testing Stage
After the software is developed, it needs to be carefully tested to find any flaws, problems, or bugs. The quantity of features, the type of testing equipment, and the size of the testing crew can all impact the cost of the testing phase. An approximate estimate of 10% of the overall cost of app development for the design phase is 10%.
Deployment Stage
Following a successful testing phase, the software or website is made accessible to the general public or the intended audience. The platforms that will house the application and the deployment plan may impact the price of this stage. Five percent of the overall app development cost is an approximate estimate for the design phase.
The concern of how much it will cost to engage a mobile app developer or developers naturally arises when a business makes that decision. Data from Indeed.com indicates that companies must pay a US-based mobile app developer $120,000 annually (compared to $105k in 2021) in order to hire them.
Following the US with $94,000 and $65,000, respectively, are Australia and Germany after converting local currency to USD. Because of the differences in the economies of North America, Europe, Australia, and India, hiring an app development specialist is really far less expensive in places like India, where the average salary is only $4,100 year.
Of course, a company hiring an app development team should consider various factors in addition to the cost of the services; these include feedback from prior clients, technical expertise, the team’s ability to meet deadlines, and more.
The cost of developing a mobile app includes maintenance, just like other programs. Software maintenance costs are typically considered to be between 15% and 20% of the initial cost of development. The costs associated with hosting, monitoring, marketing, engaging, updating, and licensing apps can be divided into the maintenance process costs.
Hosting
The kind of data the mobile app handles—text or media, such as photos, videos, or audio—determines the final figure for backend data storage costs. For a media-rich application, more RAM and disk space would be needed on a web server with a higher CPU. These variables could result in a monthly cost for an app-hosting web server ranging from $70 to $320.
Monitoring
Monitoring mobile apps is crucial to their success. You can register for mobile analytics services, which we have included in this guide, to monitor an app’s performance. It is impossible to estimate a mobile app monitoring cost because each app has a different audience and a highly variable number of users. However, once you contact the companies on the list, make sure you receive a rough estimate of the range of expenses related to the app maintenance cost constituents.
Engagement & Marketing
There are various components that make up a mobile app marketing expense, which includes user engagement efforts. The first step in any mobile app engagement is to install the app; the cost an app marketer pays to do this varies on the nation, the platform (iOS or Android), and the particular ad unit.
The Cost-Per-Install (CPI) for iOS apps was $3.6 in 2021, whereas the CPI for Android apps was only $1.22. We can discuss an average mobile app user acquisition cost as we get more specific, moving from a general app install instance to a desired action the app user is anticipated to take. Globally, the typical app UA expenses in 2020 were as follows:
App Updates
After its release, every mobile app that has ever been made available through an app store—for iOS, Android, Windows Phone, or any other platform—needs to receive updates. While it’s true that developing an ideal app with version 1.0 is not possible, updates afterward are a fantastic way to keep app users engaged. The time it takes to produce an update varies greatly and depends on the app’s complexity. The actual release of an update on an app store may take approximately one hour.
Licenses
A mobile app’s total development cost may rise dramatically if it uses one or more technologies for which the developer must obtain a license. A licensing charge might range from $120k per year for 50 devices, depending on the number of devices and annual payments.
Choose a Suitable Platform
Developing for several platforms might add expenses and time to the development process. To decide which platform to prioritize, take into account your app’s features and intended audience. Because you can reach a larger audience with a single codebase when you build a cross-platform app with a solution like React Native or Flutter, it can be more affordable.
Maintain a Straightforward Design
While having an eye-catching and captivating design is crucial, overly intricate design components can drive up development expenses and time. Make sure your design is clear, simple, and still fits the needs of your intended audience. To save time and money, use pre-made design templates or work with a designer with basic design experience.
Consider Using Third-Party APIs
Rather than creating unique solutions for each feature, think about utilizing third-party services or APIs. These can nonetheless offer strong functionality at a reduced cost and in terms of development time. Examine and investigate third-party solutions to make sure they satisfy your requirements, have a robust developer community for further assistance, and are well-documented.
Optimize for Scalability
Consider scalability when designing your application. Creating an application that is easily scalable to accommodate additional users and features can ultimately save you money by minimizing the need for significant upgrades or rewrites. To support your app’s growth over time, use scalable infrastructure and technologies like micro services architecture and cloud-based solutions.
Collaborate with a Professional Development Team
Skilled developers can offer insightful advice on saving development expenses without compromising quality. Within your budget, look for a company that has a track record of developing successful apps. To save time and money, think about collaborating with a development partner who can offer end-to-end services, including design, maintenance, and upgrades.
Businesses must first account for the location of the development team and the complexity of the app when estimating the cost of app development, as these factors have a significant impact on the total cost of development. Developing an app for both iOS and Android at the same time is a wise move for companies going mobile since both platforms have strong adoption rates.
Given that infrastructure accounts for the largest portion of app development costs, it makes sense for businesses to try and minimize expenditures on things like third-party API integration, data storage and scalability, and so on, if there are multiple possibilities
