How Much Does It Really Cost to Build an App in 2024?

Ready to drop $100K on building your app, or can you make it happen for $30K? Get the real numbers with our app cost calculator.

Your startup’s ready to take off, but here’s the real question: how much is that app gonna cost you? Spoiler alert: without a solid plan, it’s gonna cost a lot more than you think. And we’re not talking about a few extra bucks—it’s the kind of budget overrun that keeps you up at night.

Why Estimating Software Costs Early is Crucial for Your App Success

What you need is clarity—what’s realistic, what’s extra, and how to avoid those “whoops, we didn’t budget for that” moments. Here's why it's a must-do:

1. Smart Resource Allocation

Knowing the cost means you can plan where to spend your money and energy—developers, designers, testers, or marketing. No more guessing games; just clear steps forward, making sure you're not pouring cash into one phase and leaving the others high and dry.

2. Real Expectations, Zero Drama

When everyone knows what's possible within the budget, you avoid those awkward moments where someone asks, "Can we add this one little feature?" Spoiler: It's never just a "little" feature. This is especially crucial for startups where every dollar counts.

3. Impressing Investors with Valuation & Tech Plans

When it's time to pitch, having a solid app cost estimate makes you look like the real deal. It shows investors you're serious, with a clear tech plan and realistic numbers that back up your app's valuation.

4. Future-Proofing Your App

The app launch isn't the finish line—it's the starting gun. Updates, bug fixes, and new features are coming, and they all cost. Plan so your app doesn't become obsolete or a money pit.

5. Faster Market Entry

A solid budget helps you decide which features are must-haves for launch and what can wait for later. This means you get to market faster with the essentials that set you apart from the competition.

6. Better Negotiation Power

When you know your numbers, you can haggle with confidence. Negotiate for the features and timelines that work for you without getting pushed into unnecessary extras.

7. Avoiding Budget Blindsides

Feature creep is real, and it's a budget killer. With a clear cost estimate (hello, app cost calculator!), you can see those hidden costs before they bite. No one likes surprises in the form of extra invoices.

Key Factors That Impact App Development Costs in 2024

Breaking down the stages of app development is essential for estimating the development cost.

1. App Type: Native, Cross-Platform, or Hybrid?

1. Native Apps: Developed separately for iOS and Android, native apps are ideal for performance-focused projects like gaming or finance apps. However, they come with a higher price tag since you're building two separate apps. Expect premium speed and smooth functionality.
2. Cross-Platform Apps: Using a single codebase for both iOS and Android, cross-platform app development (Flutter) is about 30% cheaper than native. It's perfect for startups that need speed and budget control but beware—sometimes, performance can take a small hit.
3. Hybrid Apps: These blend native and web technologies, offering a fast, cost-effective option for startups wanting to get to market quickly. They're great for an MVP launch, but you might need to upgrade later for a more polished experience.

2. Choosing Platforms: iOS vs. Android

Wondering whether to develop for iOS or Android? Here's the lowdown:

• Android development takes more time (and money) due to the wide range of devices you need to test.
• iOS is more predictable but can be pricier in Western markets like the U.S.
• A cross-platform app is a sweet spot for most startups, saving you both time and resources. Just keep in mind that some advanced features might be limited.

3. Hidden Costs that Can Sneak Up

1. App Complexity: More features = more money. A simple MVP might start at $20,000, but if you add real-time chat, AR capabilities, or complex databases, you're looking at $100,000+.
2. Design & UX: User experience is everything. Don't skimp on UI/UX design—a well-designed app will keep users returning. Quality UI/UX typically adds $5,000 to $25,000 to your development cost but is worth the investment.
3. Third-Party Integrations: Need payment gateways, GPS functionality, or other integrations? Expect these features to impact your budget. API integrations and backend complexity can quickly eat into your costs.

To learn more about how e-commerce app costs compare, check out our detailed guide on estimating e-commerce app development and maintenance costs.

Step-by-Step Guide to Estimating Your App Development Costs

When planning your app development, it’s crucial to break down the major stages and associated costs. Here’s what to expect:

Designing Your App: What Are the UI/UX Costs?

Wondering how much it costs to design an app? It varies widely depending on the complexity and style. For basic design, you’re looking at $2,000 to $10,000. But if you’re aiming for custom animations, sleek interactive elements, or a more premium experience, costs can exceed $25,000.

• Outsourcing app design to countries like Eastern Europe or India can save you significant money, with rates starting around $6,000.
• Don’t forget to factor in extras like usability testing or style guides, which could add a few thousand to your budget.

Investing in great design upfront ensures a smooth user experience (UX) and fewer problems. Good design isn’t just about looking good—it’s about building an intuitive, enjoyable user journey that engages people.

Looking for more details on app design costs? Check out the pricing insights and a full breakdown by country and complexity here.

Development and Testing: The Biggest Costs in App Creation

App development costs can consume a huge chunk of your budget, so plan carefully. Typically, coding will take 50-70% of your total costs.

• Expect to spend around $50,000 on basic app development, but for complex projects (think real-time features or AR), this can easily hit $200,000+.
• App testing costs are another important consideration, consuming 15-20% of the budget. Proper testing ensures everything runs smoothly before your launch.

Where you hire your developers matters, too:

• In North America, hourly rates range from $100 to $250.
• Looking to save? Eastern European or Indian developers charge between $30 and $70 per hour, making outsourcing a more cost-effective option for many startups.

For a more detailed breakdown of app development costs in different coun, check out our comprehensive article on the app development and maintenance cost estimator.

Fixed-Price vs. Time & Materials Contracts: Which Saves You More?

You know the feeling—wondering if we’d burn through our cash before hitting those critical milestones. When the team isn’t fully in your control, it’s hard to know if your partner will play straight with the numbers.

At first glance, going with a fixed-price contract seems like a no-brainer.

But imagine this: you pick a fixed-price deal, the project's rolling, and then—bam!—you realize you need changes. Classic scenario: "Oh, that wasn't in the specs," "We didn't discuss that." Now you're stuck renegotiating and paying extra for every tweak. Time's ticking, money's burning, nerves are fraying.

T&M (Time and Materials) contracts take the pain out of unpredictable budgets. Here’s why they’re perfect for startups:

1. Pay for What’s Done

You only pay for completed work at the end of the month—no cash burn on unfinished tasks.

2. Test the Team Without Risk

You can test IT team’s performance and control costs before committing to the full budget.

3. No Bureaucracy

Forget endless approvals. Adjust as you go without expensive renegotiations or delays.

4. Transparent Costs

You get clear task estimates and fixed hourly rates upfront. No hidden fees.

5. Max Cost Clarity

You get a maximum cost range, ensuring there are no surprises. You know the cap while still keeping the project flexible.

T&M gives you full control, budget clarity, and real flexibility—everything a startup needs to keep projects on track without nasty surprises.

How Our App Cost Calculator Works: Get Accurate Estimates

We break down your project estimate into key areas like design, budget, and development. Each part gets its own specialized treatment, powered by advanced AI models like GPT-4o-mini and GPT-4o. The more complex your project, the more we lean on GPT-4o to dive deep and give you rock-solid analysis.

But we don’t leave it all to the bots. Every section of your estimate goes through a hands-on review by our team of pros. We've set up custom workflows and systems to make sure everything meets our high standards. We cover six core areas, and each one has its own process that combines smart tech and real teamwork.

For design estimates, we roll out DALLE-3, an AI tool that helps us nail down visuals that match your project's vibe. We've fine-tuned our prompts to make sure the generated designs not only look slick but also hit the mark for what you're after.

Why Our Approach Stands Out:

• Automated Pipelines: These systems handle the heavy lifting, making sure each part of your project gets analyzed thoroughly.
• Custom AI Prompts: We craft specific instructions for the AI so the output is laser-focused on your project's needs.
• Proven Methods: We use tried-and-true approaches to ensure the estimates are sharp and match what you really need.
• Advanced AI Models: GPT-4o-mini and GPT-4o give us the detail and depth to get your project estimates right.
• Team Involvement: Our crew reviews and adjusts everything to make sure the estimates are not just accurate but also actionable.

By blending cutting-edge AI with human expertise, our App Cost Calculator and Project Planner give you accurate, no-nonsense estimates that make project planning a breeze.

Check out the Top Free AI Tools for App Development to streamline your project and save costs here.

Maximize Accuracy: Using Our App Cost Calculator Effectively

Our app cost estimator cuts through the noise and helps you quickly map out your app development costs. Here’s how to make the most out of it.

1. Select AI Creativity Level in the App Development Process

In the technical plan generated by our app cost calculator, the level of creativity you choose shapes the final plan for your project. Here's what to expect:

• Clear and Formal: Offers a well-organized technical plan with a focus on the core features and a straightforward timeline.

"We're developing a fitness app with workout tracking, user authentication, and progress reports. The app will be available on iOS and Android platforms. The estimated timeline is 5 months, with a projected cost of $75,000."

• Let's See What AI Can Offer: It mixes fresh ideas with real-world practicality, bringing in new features without going off the rails.

"Create a fitness app with goal-based workouts, progress tracking, and community challenges. Platforms: iOS and Android. Estimated timeline: 5.5 months. Cost: $80,000."

• Creativity is All I Need: Zeroes in on cutting-edge solutions, pitching advanced features that push the envelope.

"Develop a fitness app with AI coaching and AR-enhanced workouts. Platforms: iOS, Android, and AR devices. Estimated timeline: 6.5 months. Cost: $90,000."

• Fantastic Creativity!!!: Delivers highly creative, futuristic ideas, incorporating cutting-edge tech.

"Build a VR fitness app with immersive environments, real-time AI coaching, and interactive group sessions. Platforms: iOS, Android, and VR devices. Estimated timeline: 8 months. Cost: $120,000."

Each level ensures your technical plan is tailored to your goals, from basic functionality to innovative ways to develop your app.

2. Select Platforms for Your App Development

To choose the right platform for your app, you’ll need to think about your target audience, budget, and project goals. Here’s what to keep in mind:

1. App Purpose and Audience: Consider who will be using your app and what it needs to accomplish. If your users are split between Android and iOS, or you need to hit the market fast, cross-platform is probably your best bet. But if you’re all about that top-tier performance, native apps usually give a smoother ride—just know it might bump up your dev costs.
2. Features and Performance: Native development might be better if your app needs high performance or access to device-specific features (like camera or GPS). For simpler apps, cross-platform solutions can be more cost-effective and quicker to develop with a single codebase.
3. Planning and Budget: Here's where you get the support you need. Use an app development planning tool to break down costs early. Mobile app developers can provide insights into cost-saving measures, such as starting with an MVP or opting for cross-platform development if you need both iOS and Android.

By focusing on these essentials, you can choose the platform that matches your goals without unnecessary complexity.

3. Choose Features That Affect Your App Development Costs

To choose the right features and manage the app development timeline, follow these steps:

1. Focus on Core Features: Start with the essential functions that solve your app’s main problem.

For a food delivery app, prioritize restaurant listings and order tracking. Skip extra features like customer reviews until later.

2. Prioritize Must-Have Features: Select the critical features for your app to function.

In a fitness app, user profiles and workout tracking are must-haves. Features like social media sharing can wait.

3. Watch the Timeline: Avoid features that will unnecessarily extend the development time.

Instead of adding complex AI recommendations, start with basic manual suggestions to launch sooner.

4. Plan for Future Growth: Choose features that allow easy updates and scaling later.

A language learning app could start with quizzes and add gamification features as the user base grows.

Want more tips and real examples? Check out our guide to the App Cost Calculator for detailed advice and instant estimates tailored to your project.

4. Describe Your App Idea for Precise Cost Estimates

To explain your app idea clearly and get an accurate estimate, focus on these:

1. Problem and Solution: Identify the core issue your app solves and how it improves the user's experience. This will give the AI a clear idea of the app's purpose without unnecessary details.
2. Main Objective: Clearly state the app's key goal, such as simplifying tasks or enhancing convenience, which helps guide the development team.
3. User Flow: Describe how users interact with your app in real-life scenarios to help the AI understand the core features.

"My app helps users find parking in crowded areas by offering real-time availability. The goal is to save time. Users input their destination, and available spots are shown instantly."

Explore more AI tools for your business here.

Case Study: MVP Fitness App - Managing Costs from $38K Estimate to $41K Launch

A startup founder came to us with a straightforward idea for a fitness app MVP—something lean to test the market. They used our app cost calculator and got an estimated $38,000 for a 3-month development window. The initial plan was to include core features like workout tracking, user profiles, and progress graphs—just enough to get it out there and start gathering feedback.

Halfway through, we all realized push notifications were going to be a game-changer for keeping users engaged. It wasn’t in the original plan, but it was crucial to making the app sticky, so we added it for another $3,000.

Ultimately, the app launched on schedule, spending $41,000 under a Time & Materials contract. This setup allowed us to stay agile, adapt to the product's needs, and avoid annoying back-and-forth renegotiations. The result? A product ready to shine in the market, with real value added without breaking the bank or delaying launch.

The Importance of Post-Launch App Maintenance

Post-launch app maintenance is crucial because it ensures your app stays functional, secure, and up-to-date, keeping users happy and your business running smoothly. Neglecting maintenance can lead to costly problems later, like performance issues or security vulnerabilities that drive users away. You’ll typically spend 15-20% of your initial development cost annually on bug fixes, updates, server fees, and third-party integrations. For example, if your app costs $100K to build, plan to invest $15K to $20K each year to keep it running at peak performance.

Why Outsourcing App Development Saves Time and Money for Startups

Outsourcing saves you cash and speeds things up, plain and simple. Unlike building an in-house team—dealing with salaries, benefits, and hiring headaches—you pay for what you need when needed. There is no overhead, no drama. And while local agencies might be convenient, their costs are higher because of local operational expenses, which ultimately fall on you.

Outsourcing also gives you global access to top talent. You’re not stuck with whoever’s available locally—you can hire developers who are pros in exactly what you need, ready to start now. Plus, flexibility is a huge perk. Need to scale up? Easy. Want to dial it back for a bit? No problem. That’s something neither in-house teams nor agencies can offer. It’s all about getting the best work done fast, without the extra baggage.

Check out our list of top outsourcing partners here: 17 Proven IT Outstaffing Companies for Startups.

Final Thoughts: Plan Your App Budget with Confidence Using Cost Estimations

Planning your app budget without a clear estimate is like flying blind. That’s where an app cost calculator comes in—it helps you break down costs, prioritize features, and avoid overspending. Instead of guessing, you get a realistic snapshot of what your project will actually take, from development to launch and beyond.

Originally published on Ptolemay: How Much Does It Really Cost to Build an App in 2024. For detailed pricing information, please refer to the full article.