How Much Does It Cost to Build an App

The expenses needed to create a successful application vary widely due to many factors, so it's important to be aware of the main elements that influence them.

Did you know that a simple app development price can range from $16,000 to more than $30,000, while a more complex app can exceed $100,000+? These numbers showcase the importance of detailed budgeting and planning.

If you are interested in app development, this article is for you. We will discuss the platform choice, design requirements, and the complexity of features, which hugely impact the overall cost.

This article provides a detailed breakdown of these factors and offers you a clearer picture of the financial part of app development. With this knowledge, you can make informed decisions and better manage your budget throughout the development process!

Factors That Influence App Development Costs

When you plan to develop an app, you have to be aware of the various factors that influence app development costs. These factors affect the overall budget and timeline of your project. In this section, we’ll learn the key elements that determine how much it costs to create an app:

1. App complexity

The complexity of an app is one of the primary determinants of its development cost. Apps can be categorized into three complexity levels: basic, moderate, and complex.

Basic apps come with simple features like calculators, notepads, or basic utility functions. These apps require minimal development time and resources. The average cost to build an app with basic features ranges from $10,000 to $50,000.

Moderate apps include additional features such as user authentication, payment gateways, and integration with third-party services. These apps are more sophisticated and require more development effort. Development of a moderate app typically costs between $50,000 and $100,000.

Complex apps come with advanced features like real-time data synchronization, in-app purchases, augmented reality (AR), virtual reality (VR), and extensive backend services. These apps demand significant development time and resources. The cost of developing a complex app can exceed $100,000 and may go up to $500,000 or more; it all depends on the specific requirements.

2. Platform selection

The choice of platform also settles the app development cost. There are single platforms (iOS and Android), cross-platform, and web apps.?

Development of an app for a single platform is generally less expensive than for multiple platforms. The cost can be from $20,000 to $60,000, which depends on the complexity of the app.

Cross-platform development allows you to build an app that runs on both iOS and Android from a single codebase. For cross-platform, you can use frameworks like Flutter or React Native. This approach can save time and reduce costs. Such apps cost between $40,000 and $80,000. They offer a balance between efficiency and cost.

Web apps are accessible via web browsers and don’t require separate development for different platforms. This can greatly lower the development cost, which can be from $10,000 to $50,000.

3. Design requirements

Design plays a key role in the success of an app and impacts the development cost too.

A well-designed user interface (UI) and user experience (UX) attract and retain users. Good design can differentiate your app in a market. Custom designs are more expensive than standard ones. The cost of UI/UX design can range from $5,000 to $25,000. It depends on the level of customization required.

Prototyping and wireframing help in visualizing the app's layout and functionality before actual development begins. This step can identify potential issues early, which saves time and costs later. The cost of prototyping and wireframing ranges from $1,000 to $10,000, also depending on the app's complexity.

4. Development team

In-house development allows for better control and communication but is often more expensive. Outsourcing can reduce costs but may introduce challenges related to communication and quality control.

In-house development in the US can cost upwards of $100,000 per developer annually while outsourcing to countries like India or Eastern Europe can reduce costs to $25,000 to $50,000 per developer.

A typical development team includes a project manager, developers, designers, and quality assurance (QA) specialists. Obviously, when you hire each role, you add to the overall cost. For example, a project manager might cost $60,000 to $120,000 annually, while a developer might cost $50,000 to $150,000.

The location of your development team also impacts costs. Developers in the US and Western Europe are generally more expensive than those in Eastern Europe or Asia. We suggest partnering with Eastern European countries like Ukraine.

5. Features and functionality

If you add secure user authentication and authorization features, you can pay for this between $1,000 and $5,000. Push notifications typically cost between $1,000 and $5,000.

In-app purchases and payment gateways can add $5,000 to $10,000 to your development budget. Moreover, robust backend infrastructure is essential for apps that handle significant data. Costs for these services can range from $5,000 to $20,000 annually.

What about third-party API integration, it can cost between $1,000 and $10,000, depending on the complexity and number of integrations.

Adding advanced features like artificial intelligence, machine learning, augmented reality, virtual reality, or blockchain also increases costs; it often ranges from $10,000 to $50,000 or more.

6. Maintenance and support

Regular maintenance makes sure that your app remains functional and up-to-date with the latest operating systems and devices. Ongoing maintenance can cost you 15-20% of the initial development cost annually.

Regular updates and upgrades are necessary to add new features and improve performance. These can cost between $5,000 and $20,000 annually. What’s more, when you address bugs and provide user support, you can add $5,000 to $10,000 to your annual budget.

Hidden Costs in App Development

After factors that directly have an impact on the cost of app development, you also need to prepare for hidden costs to manage your budget effectively. While many people focus on the initial development expenses, several additional costs can arise post-launch, related to legal compliance, and due to unforeseen circumstances.

Here are some key hidden costs to consider:

1. Post-launch costs

One of the hidden costs in app development is marketing and promotion expenses. Once your app is launched, the next step is to attract users, and this often requires a substantial marketing budget.

It all depends on your strategy but approximate monthly marketing expenses can range from $5,000 to $20,000. Additionally, user acquisition costs, which include advertising, social media campaigns, and other promotional activities, can add up as well.

These costs are the main ones to ensure your app reaches its target audience and gains traction in the app market.

2. Legal and compliance costs

Compliance with legal and regulatory requirements is often an overlooked cost. Compliance with regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) involves great expenses.

These regulations require stringent data protection measures, which may necessitate hiring legal experts and investing in secure data storage solutions. This maintenance can reach up to $10,000 or more; it depends on the complexity of your app and the jurisdictions in which it operates.

3. Contingency costs

Budget for unforeseen expenses to avoid financial strain during the app development process. Contingency costs account for unexpected challenges that may arise, such as additional development time, unexpected technical issues, or changes in project scope.

A common recommendation is to set aside an additional 10-20% of the total app development cost to cover these contingencies. For instance, if your initial budget is $100,000, you should allocate an extra $10,000 to $20,000 for a financial buffer that helps manage any surprises without derailing your project.

Conclusion

Overall, various factors influence app development costs. From app complexity and platform selection to design requirements and hidden costs, each aspect has its impact on the final budget. When you are aware of these factors, you can better manage your resources and avoid unexpected expenses.

If you’re ready to take the next step in building your app, reach out to us. We offer free consultations and cost estimation services to help you navigate the app development process!

FAQs on App Development Costs

Are there ways to save money on app development?

Yes, there are several strategies to save money on app development. One approach is to prioritize essential features for the initial version of your app. We recommend focusing on a minimum viable product (MVP) that can be expanded later. Use cross-platform development frameworks to reduce costs.

Outsourcing development to countries with lower labor costs is another effective way to save money, though it requires careful management to maintain quality. Plus, utilize pre-built templates and open-source solutions to reduce development time and expenses.

What is the cheapest way to build an app?

The cheapest way to build an app is to use no-code or low-code development platforms like Appy Pie, Adalo, or Glide. These platforms allow users to create apps without the need for extensive programming knowledge, which hugely reduces development costs.?

Another cost-effective method is to start with a basic version of the app that includes only the most critical features that can be expanded in later updates. Implement open-source libraries and pre-built components to lower development costs. If you need custom development, consider outsourcing to a freelance developer or a development team in regions with lower labor costs.

What should I do next if I'm interested in building an app?

If you're interested in building an app, the first step is to clearly define your app's purpose, target audience, and key features. Conduct market research to understand the competition and identify unique selling points for your app.

Next, create a detailed project plan that outlines the development process; include a timeline and budget. You should then decide whether to hire an in-house team, outsource to a development agency, or use a no-code/low-code platform.

Finally, consult with developers or app development experts to get estimates and refine your plan before starting the development process.

Is it cheaper to build an app or website?

Generally, it’s cheaper to build a website than an app. Websites usually have lower development and maintenance costs because they don't need to be optimized for multiple operating systems or undergo the rigorous approval processes required by app stores.?

Moreover, websites are accessible from any device with a browser, which eliminates the need for separate versions for different platforms. However, the choice between an app and a website depends on your business goals and the functionalities you need, as apps can offer better performance and user engagement for certain use cases.

Is it profitable to make an app?

It can be profitable to create an app, but success depends on several factors like market demand, monetization strategies, and effective marketing. Apps can generate revenue through various models such as in-app purchases, subscription services, advertisements, or a one-time purchase fee.

However, profitability requires a great investment in development, marketing, and continuous updates to retain users. It’s recommended to conduct thorough market research and have a solid business plan that can increase your chances of creating a profitable app.

What is the richest app in the world?

As of now, the richest app in the world is likely TikTok, which has seen enormous growth and substantial revenue from advertising and in-app purchases. TikTok, owned by ByteDance, has become a global sensation with its short-form video content.

The app's innovative algorithm and user engagement strategies have contributed to its massive financial success and generated billions in revenue annually. However, this status can change rapidly as the app market is pretty dynamic.