How much will an App Development Cost?

Quick Summary: Having a mobile app for your business is becoming a necessity with a constant surge in the usage of mobile apps with no signs of slowing down in the future. An average American checks his phone every 5.5 minutes; that is 262 times a day. They spend 88% of their mobile time on apps.

So, if you do not own a mobile app, you may lose many opportunities to reach out to customers who are on mobile.

Key Statistics On Mobile App Usage

• China, India, and the United States have the highest number of smartphone users reaching over 6.3 billion.
• The number of smartphone users will reach 7.6 billion by 2027.
• In 2023, mobile apps will generate over $935 billion in revenue.
• There are 1.96 million apps available for download on the Apple App Store and 2.87 million on the Google Play Store.
• An individual uses 10 apps daily, and 30 apps monthly. 49% of people open an app more than 11 times, while 21% of millennials open an app over 50 times.

With the statistics, it is clear that investing in a mobile app is profitable. Again the question arises, how much does the app development cost ?

The app development cost may cost anywhere between $50,000 and $1,000,000. It may take around two months to build an app (simple app) to even nine months (complex app). There is a variation in cost and time because the app development cost depends on many factors.

There cannot be a straight answer to the question- how much will it cost to develop an app? So, this blog answers this question with a complete breakdown of the factors that impact the app development cost. So, let’s dive in.

What type of App do You Want to Build?

If you are creating a simple app, then it will cost you a few thousand dollars, and it will be ready for launch in just 2 or 3 months. For example, functionality apps like a calculator, stopwatch, etc. For such apps, developers need to write the basic codes, and the app is ready. So, you don’t need to worry much about the investment cost.

But, if your business needs are much more than a basic app, you will need a higher budget. The app complexity increases the app budget in a direct proportion. Adding new features, third-party integrations, complex design, etc., contributes to the cost of developing an app.

Some examples of complex apps are social media apps, gaming apps, etc., that require complex design, higher security, a strong database, and more.

So, the first step in building an app for your business is to decide which type of app will be apt and will align with your business goals.

It will give you a clear idea of what features and third-party integrations your app needs. Too many features in a single app may be overwhelming and confusing for users, so choose the features for your app wisely.

Each step of the app development process impacts the cost of developing an application.

Simple Applications

The simple apps offering the basic functionalities require basic coding and design. They don’t require much expertise from developers and time to develop. You can hire an independent developer with basic knowledge to get your app developed. Thus, the cost of developing such apps is less.

• Examples of Simple Apps: Calculator, Camera, Local games, SMS apps, etc.
• App Development Cost: $5000- $10,000
• Duration: 4-5 weeks

Data-Based Applications

Data-based apps are developed on a specific domain. For example, Weather apps. Such apps require back-end development work and also API integrations, so they cost more than simple apps.

• Examples of Data-based apps: Calendar, Weather, Maps, Stocks, etc.
• Duration: 4-6 weeks
• App Cost: $15,000 -$20,000

Social Media Apps

Social media apps like Instagram, Twitter, and Facebook are hugely in demand in the world. From ordinary individuals to big brands and celebrities all are well aware of the power of social media. So, investing in creating a social media app is growth-enhancing.

The cost of building a social media app involves massive investment as the app requires a dynamic backend, a huge database to store and manage millions of user’s data, and many third-party integrations to support extra functionalities.

• App Cost: $50,000 – $240,000
• Duration: 5 to 9 months
• Examples of Social Media Apps: Instagram, Facebook, LinkedIn, Twitter

eCommerce Apps

eCommerce applications like Amazon, Myntra, and eBay are the first choice for entrepreneurs who want to establish and expand their online business. E-commerce applications are complex as they offer a variety of features for their customers including user registration, in-app payments, product catalogs, etc. 

The eCommerce application development process is complicated as it includes developing an extensive backend, a robust admin panel, payment gateway integrations, and more.

You need an experienced team of mobile app developers to build an eCommerce app. Thus, your app development cost will be higher. 

• App Cost: $60,000 to $240,000
• Duration: 3 to 9 months
• Examples: Amazon, eBay, Myntra, Alibaba, ASOS

On-Demand Apps

On-demand apps like Uber, Zomato, and Carvo are helping people meet their day-to-day needs quickly when they need. On-demand apps are complex and offer multiple features for users. They involve ordering, delivery, and online payment features. 

Moreover, on-demand applications offer separate panels for users, business owners, and delivery agents. Thus, it requires a highly proficient app development team to build an on-demand app. If you want to build a native app for each platform (Android and iOS), the cost will rise even more.

• App Cost: $70,000 to $80,000 
• Duration: 5 to 7 months or more
• Examples of On-demand apps: are Uber, Uber Eats, Swiggy, and Postmates.

Marketplace App Development

Marketplace apps are hugely in demand as they offer eCommerce features with On-demand functionalities. Users can choose from various vendors to order the products & services they want online. The app offers complex coding for the front end and back end with the integration of APIs and third-party libraries. 

• App Cost: $240,000 or more (web platform)
• Duration: 9 months or more
• Examples of the Project: TripAdvisor, Booking.com

Factors of App Development Process that Add to The Cost

The app development process and its various steps form the cost of building an app. So, let us understand the app development process in detail.

If you have an app idea you will want to bring it to life. If you can code, you can do it yourself. But if you are not a developer, you must look for one.

1. Time to Build an App

The time required to build an app is directly proportional to the app development cost. The more time it takes, the more it will cost you. 

From a business perspective, it is good to launch your app early in the market. The sooner you start, the more time you will get to establish your brand presence online. 

You can reach out to your target audience before your competitors do. Reach out to more and more customers and increase your market share to build trust among your customers. So, don’t miss the opportunity to race ahead in earning higher revenues by dragging or delaying your app development process to longer months.

2. QA & Testing

The next factor that adds to the cost of developing an application is app testing and quality analysis. Once the app is developed, it requires testing against errors and security glitches. You don’t want to launch an app full of bugs for your users, right?

3. Project Management

So, you have hired mobile app developers to develop the apps but who will manage the entire development process? Project Managers. 

The responsibilities of a Project Manager include coordinating with developers and clients, delegating projects, reporting to clients or owners, resolving issues among the development team, answering client queries, etc. 

So, you have to pay the project managers to manage the entire mobile app development process. One more factor adds to the cost of developing an app.

4. Native VS Hybrid App Development

An application that requires platform-specific coding and technologies to develop is a native app. To build native apps (iOS and Android), you need a separate team of developers for each platform. Native apps require separate technologies and platform-specific designs, thus it incurs more cost. 

A hybrid application works with multiple operating systems using a single code. It enables business owners to create their presence on every platform at the cost of one.

5. Design Complexity

Just like the operating system, the design also affects the cost of developing an application. A simple design does not require much detail and implementing the standard, platform-specific elements can do. 

A complex application requires custom elements which raises the cost of designing. If you have a mobile application with a simple design, the cost will be less but a complex design will cost you more.

6. Hire App Development Team

You need to hire a mobile app developer or a dedicated development team to write the codes for your app. This factor adds to the cost of developing an application. The cost will rise with the increase in the number of developers and programmers you hire. 

Now the next question is how much will it cost you to hire a mobile app developer? The cost again depends on a few factors. 

1. Type of Developer or Programmer
2. Location of Developer
3. Experience of Developer

The structure and size of the app development team will depend on the complexity and type of your application. For instance, app platform, number of features, etc.

Ways to Hire an App Development Team

Hire a Freelance Mobile App Developer

If you want to go for an affordable option, hiring a freelancer can be the right pick. You can easily find independent freelancers on a low budget or low cost-per-hour rates to build the app.

However, hiring freelance app developers can be somewhat risky. Freelance developers may not be skilled or experienced enough to match your app development requirements. These developers may not be the best fit to give you the desired results.

Freelancers with higher experience or proficiency may incur a higher charge for their services. Moreover, freelancers work on multiple projects simultaneously. So, your project will not be the only focused thing they will be doing. So, there may be delays in project delivery by them.

If your app development budget is too tight and you are not in a hurry to launch your apps in the market, you can go for this option. But you must know the risks of hiring freelancers before investing. You don’t want to waste your time and money, right?

For example, if you want to build a very basic app requiring standard codes costing you from $10000 to $10,0000, hiring a limited-experience developer will work.

But, if you plan to build a complex app like social media or a gaming app, it will be a big mistake to hire an inexperienced freelancer. Such apps cost a huge amount and time and require a lot of expertise and experience.

It can be a big blunder to trust an inexperienced developer and waste such a huge amount.

Outsource an App Development Team

Outsourcing your app development project can be an affordable as well as a reliable option for your mobile app development needs. It is a frequent practice as it helps business owners save their costs on many factors.

How much does it cost to hire an Outsourcing Agency?

So, how much will it cost to hire an offshore company?

The answer varies depending on a few factors:

1. Size & Experience of the Outsourcing Agency
2. Location of the Outsourcing Agency
3. The number & type of app developers you hire

Small App Development Company

A small or medium-sized offshore app development company may charge you less as compared to a bigger one.

But more than the cost, it is important to verify the work profile of the company. You must check the past projects done by the company and the years of experience they hold. Spare some time to investigate the company information thoroughly and the developers you want to hire to get the best resources for your company.

Large-Scale App Development Company

Large-scale offshore app development companies can cost you more than a freelancer or a small app development company. Such outsourcing agencies have well-qualified and highly experienced developers for hire.

If you look for some of the top talented mobile app developers, you can easily find them with such companies. But you should be willing to spend more dollars to hire experienced mobile app professionals.

You can easily check the past work experience of mobile app developers through white papers, case studies, and customer stories. You can be sure with large-scale app development agencies that your project is in safe hands.

You can be sure to get a high-quality app developed on time within the stipulated time. If you want to launch your apps in the online space quickly, outsourcing your mobile app development project to a large outsourcing company will be a good option.

Since you are not relying on a single freelancer or a small outsourcing agency with limited resources. A freelancer may leave a project in the middle or delay the project for many reasons (other projects, sickness, etc). A small outsourcing agency may lack the resources to work on your mobile app development projects, but this will not be the case with a large outsourcing company.

Large-scale agencies have enough resources to back up the tasks in any situation. You will have seasoned app designers, app programmers, quality analysts, and consultants. You can get the best advice on your mobile app development project from them.

Location of the Outsourcing Agency

The geographic location of the outsourcing agency plays a significant role in the app development cost. The developers’ rate per hour varies in each country.

For instance, an app developer in the USA may charge you nearly $100/hr to $150/hr. While in Ukraine, you can hire a mobile app developer for $20/hr to $30/hr with no compromise in skills and expertise.

One of the major reasons why business owners prefer to outsource their app development projects that they can save huge costs on app development by hiring top-rated developers at affordable hourly rates.

For instance, business owners in the USA can hire mobile app developers from India or Ukraine to develop their applications under their limited budget.

Asian countries are one of the prime choices among global countries to hire dedicated mobile app developers. Countries in Asia like China, and India offer affordable hourly rates.

Cost to Build an App Based on Development Stages

The five stages of a mobile app development process also impact the total cost of developing a mobile app.

• Pre-development (Discovery or Research)
• UX/UI design
• App development
• App testing and deployment
• Ongoing support and maintenance

The first step of the mobile app development process is the research and discovery stage. The research of the target audience and competitors helps in planning the design, features, and technologies for the app properly. The research helps in creating a plan for the app effectively.

A well-planned mobile app benefits business owners in many ways:

• Create Clear App Development steps.
• Validate Requirements
• Save Time & Costs
• Save from Risk
• Help in Prioritizing Tasks

The discovery stage helps discover the exact answer to the question- “how much does it cost to build an app?”

An accurate estimate of features, design, and development technologies, and the development team is finalized during the discovery stage.

Discovery Stage

The discovery stage of an average app range costs between $10K to $15K and requires a timeline of 2-4 weeks. For a more complex app with more platforms and functionalities, the cost of the discovery stage may go up to $50K or even higher.

App Design Cost

The app design stage costs around $5K for an average of 11-20 app screens. The cost of designing a mobile application directly depends on the number of screens, design complexity, and other visual elements.

Development Stage

The number and complexity of features impact the total cost of app development. The basic features like logging in or registering, push notifications, etc., cost less. Apps like video and audio streaming, CMS, and payment gateways are complex and involve API integrations.

The more complex features you have in your app, the higher the time and cost it will require you to invest.

QA & Testing Stage

The quality analysis and testing stage involves testing each element of the mobile application in different environments. The mobile app should be compatible with all platforms with no errors or bugs. The mobile app developers perform various automated and manual tests to check the performance of each aspect of the mobile application.

Deployment

Once the app is ready and tested, it is time to bring your mobile application out on the market. You can first launch an MVP to get feedback from your target audience and then scale the application gradually.

Post-launch

The cost to keep your apps up and running smoothly on the app stores also affects the overall cost of building a mobile application. The cost of upgrading mobile applications to the newest versions, performance optimization, etc.

Hidden App Development Cost Drivers

Some elements of the development process may sometimes be unestimated or remain unnoticed by the clients. This may raise confusion and dissatisfaction among clients.

Below is a list of elements influencing the app cost:

1. Infrastructure Services (Servers, hosting, domains)
2. Databases used for data storage
3. Backend infrastructure
4. API and third-party service integration (e.g. payments, maps, analytics, etc.)
5. App administration
6. Development tools and libraries
7. Data encryption for data transfer
8. Regular app updates and bug fixes
9. Images, Video, and audio data

While calculating the cost of developing an app, also consider ongoing app costs. This involves app support and app maintenance costs. Support and app maintenance costs around $5,000 – $10,000 annually.

How is App Development Cost Estimated?

The features and complexity of your app directly correlate with the cost of building an app.

A quick formula to evaluate your mobile app development cost:

Total Development Hours * Hourly Rate= App Development Cost

The development hours and hourly rate are required to calculate the total app development cost.

A better approach to investigating the app development cost is to consider the costs of the apps worldwide. You will get an estimate of the costs of developing an app similar to the app that you want to build.

Consider the below table to get an idea of various development rates globally:

The Total Investment:

The total amount of investment that goes into app development depends largely on the complexity of an app. A basic app, with no back-end database, API functionality, or social media integration costs around $2000 to $10000.

The usual development costs are as follows:

India – $20-$40 per hour

The US – $150-$200 per hour

There is a major difference in development rates in India and the US. It is more expensive to develop in the US around $40k to $80k. It may also cost over $100k. In India, the same version of the app may cost $35k.

The cost of paying a development team for the app is a major part of the app development cost. Have a look at their hourly rates:

Conclusion

It is quite tricky to figure out exactly- How Much an App Development costs? 

A long list of elements and factors directly involve and influence the app development cost.

The best approach is to consult with a reliable app development company. 

We at Valuetree can help you figure out how much it costs to develop an app. Our experienced developers listen to your mobile app development needs carefully and suggest a quote accordingly. We also resolve all possible queries to help you start the development process confidently. Email us on sales@valuetree.io for more information or book a free consultation.