What is app development cost in practice?
How much does it cost to develop a mobile application? From simple apps costing around $5,000 to advanced application systems reaching a price tag of $200,000 and more. In this article, you’ll find a guide to the factors influencing the price, the stages of the app development process and ways to optimize costs.
Key Information
The cost of developing a mobile app is variable and depends on many factors, such as its size, complexity, type, the platforms on which it is to run and the mobile app development company.
The choice between native, hybrid and multi-platform applications has a significant impact on development costs — native applications are pricier but provide a better user experience, while hybrid and multi-platform offer faster and cheaper deployment.
Minimum Viable Product (MVP) is an effective cost-control strategy that allows you to focus on key functionalities and scale your application incrementally.
- If you need your app development cost estimate, feel free to contact our mobile app development team.
Understanding the mobile app development costs
How much does it cost to develop a mobile app? This is the question that goes through our minds when the idea of creating an app comes up. The answer to it is as complex as the app itself. The cost of creating a mobile app depends on numerous factors regarding both the app itself and the project. Examples of factors that affect the cost of developing an app:
the app complexity and size,
business goals and business model,
the platforms on which the app is to operate,
the type of app (native, cross-platform, hybrid),
application security,
third-party integrations (APIs, external services),
the company developing the mobile application and its location.
When considering how much a mobile app costs, it’s worth considering these factors, as they affect the time it takes to develop an app and the size of the team. We’ll take a closer look at them so you can consciously manage your project’s budget.
App's complexity and business goals
The labor intensity of an application consists of its size and complexity. The size of a mobile application can be roughly estimated by the number of its screens (on a mockup, or in a scope document). The degree of complexity, on the other hand, depends on the number of functionalities, the use of advanced features, the complexity of the data and the sophistication of the user interface resulting from the graphic design. The complexity of an application obviously translates into the time needed to design, build, and test it.
The business objectives of a mobile application affect not only the complexity of the functionality, but also the cost of continued maintenance of the application, the need for future modifications, the implementation of additional functionality. It is worth discussing the cost of such modifications with the selected mobile application development company.
Mobile application platforms and types
It’s also useful to understand what types of mobile apps there are and the implications for the project budget. Choosing between native, hybrid and cross-platform apps may seem like a mere technical decision, but it has a significant impact on project development costs.
Native apps, developed separately for Android and separately for iOS, offer unparalleled performance and access to the latest hardware features. However, they tend to be pricier to produce and require separate development teams for each platform, which is typical for native apps. So, if you dream of creating a native app that runs smoothly on all devices and operating systems, be prepared to spend more. Developing a native app will be the most expensive, but it will provide the best possible experience for the user.
On the other hand, if your goal is to get to market quickly and reach a wide audience, a hybrid app can be a solution that will save you not only money, but also time on app development. However, this option is only good for simple apps, as such an app is essentially a web app with lower performance and lesser compliance with Google Play and Apple’s App Store requirements. Thus, it may involve hidden costs associated with the need to adapt the app to the changing requirements of these stores.
Multi-platform (cross-platform) applications based on the popular Flutter or React Native technology are a particularly interesting option because we can create a mobile application for multiple platforms based on a single source code. From the user’s perspective, such apps are comparable to native ones.
We used to only develop native applications. But nowadays, we rely on Flutter. It allows us to create mobile apps that closely mimic native apps, while being more cost-effective for our clients.
Read more: PWA vs. Flutter mobile apps
Mobile application environment: APIs and integrations
Simple mobile applications do not communicate with the outside world, so they do not require anything besides the device to function. They are therefore cheaper to create.
But already applications of medium complexity or size, where we have user account management, data exchange, communication between users, or user and administrator, require the existence of an API for data exchange. Usually, too, a central administration panel (web application) is created, the cost of which also has to be added to the price of the mobile application itself. These factors, of course, increase the size and time of the development team. It is worth considering that a future update of the external API will result in the need to adjust the mobile application, and therefore will cause additional costs.
External integrations with online payment systems, ERP systems, services (e.g., speech-to-text transcription, video storage, artificial intelligence, SMS gateways) are often the most labor-intensive, so they make the project more expensive.
Understanding these factors is crucial, as it allows you to better budget and avoid unpleasant surprises. So before proceeding, it’s a good idea to think carefully about which features are essential for your application and which can be postponed or eliminated altogether. Remember that each additional advanced feature means more developer hours, and therefore higher costs.
Mobile application security as a valuation element
In the digital age, mobile app security is not only a requirement, but also an important part of project pricing. Growing cyber threats and attackers’ focus on mobile apps make security investments critical to protecting user data and maintaining customer trust.
Implementing standard security measures, such as data encryption, user session authorization or secure communication standards, involves additional costs that should be taken into account early on in budget planning. These aspects should not be underestimated, as they can affect not only the company’s image, but also the future costs associated with possible security breaches.
Application business model vs. development costs
The business model behind a mobile app is not only the foundation for its functionality, but also for its cost structure. How the app is expected to generate revenue influences design decisions, feature selection and marketing strategy, which together shape development costs. Will the app offer in-app purchases, subscriptions, or will it be free with the option of paid extensions? Each of these choices has financial implications for both developers and owners.
In addition, the costs associated with attracting and retaining users, as well as processing and protecting their data, must be considered. Data-driven business models may require sophisticated analytics and security systems, which in turn can increase application development costs. Understanding the relationship between the business model and costs is key to ensuring that the application is not only functional, but also profitable eventually.
Mobile app development company and its location
The location of app developers can have a significant impact on the total cost of a mobile app. App development companies located in the United States or Western Europe typically charge rates in the $100 to $300 per hour range. Developers in Eastern Europe are known for more affordable rates, usually starting at $40 per hour, while offering high-quality and cultural similarities to Western societies. Incidentally, Polish app development companies that work only for Western clients often have hourly rates comparable to American and European companies. Developers in India are the cheapest (starting at $12 per hour), but cultural differences and communication difficulties pose a risk when hiring them.
Offering an hourly rate of $60, our Polish company provides a balanced compromise between affordability and quality service.
Whether you hire an in-house application development team or choose to outsource can significantly affect your budget. Maintaining an in-house development team involves additional expenses such as salaries, employee benefits, office maintenance and equipment purchases, making it more expensive compared to outsourcing mobile app development.
External factors affecting the cost of a mobile app
When considering the cost of developing a mobile app, we cannot ignore external factors that affect the IT industry. The labor costs of developers, which vary from country to country and region to region, can significantly affect the project budget. In addition, global events such as pandemics or political conflicts can introduce uncertainty and lead companies to take a more cautious approach to IT development investments.
Changes in the financial market and other global phenomena such as exchange rates, inflation and regulation also play a role in shaping costs. Companies need to be ready to adapt to these changes and incorporate them into their financial strategies to effectively manage their mobile application development budgets.
App development cost breakdown: app development stages
The mobile app development process from initial concept to product release is a process that can be compared to building a house — it requires a detailed plan, a series of execution stages and of course — financing. Each stage has its place in the budget. Regardless of the approach, be it Agile or Waterfall methodology, there are many common steps involved in the app development process.
We will analyze the different stages — from idea to prototype, through development and testing, to maintaining and updating the application. Each of these carries specific costs that are worth considering when planning your budget. Did you know that the first steps can determine later savings or unforeseen expenses?
From idea to prototype
The beginning is always the hardest part — coming up with an app that isn’t there yet, but could change the market. The project planning phase is not only about brainstorming and creative thinking, but also the first costs, which can account for 10 to 15% of the total mobile app development budget. It is during this time that we define the key elements and features of the final product, which will later translate into the construction of a prototype.
An integral part of this stage is market research, which is important especially for larger (more expensive) applications intended for the mass market. Such a study can cost up to several thousand USD. Allocating funds for comprehensive pre-development activities can ultimately save costs over time, confirming that the application is in line with consumer needs and has a solid base on which to continue development.
Having a clear vision of the application and its functions before the first consultation with a software house not only saves time, but also money. A clickable prototype allows you to test the overall user experience and is the initial step in testing interactive user interfaces and key parts of the code, which translates into more accurate pricing for development work.
We, for our part, do not require you to have a prototype, but it is certainly useful to have a clear vision and goals for the application. We will take care of the rest.
Mobile app design
The success of any mobile app depends largely on the quality of the mobile app design and user experience. The amount of money spent on app design can fluctuate widely, with some companies spending as much as $50,000, but many companies have much lower expenses. A solid investment in an attractive user interface is essential to ensure a good user experience.
Expenses related to UX (user experience) and UI design are estimated at 10-20% of the total costs associated with application development. An app made with excellent design not only attracts users, but is also critical to keeping them engaged over time, fostering both the lasting success and financial gain of the app.
Programming and testing applications
Programming is usually the most labor-intensive part of the application development process. It is in this phase that programmers code features. Complex application functionality, integrations with external services and APIs, especially complex user interfaces, can significantly increase the cost of this stage. Deciding whether the app will run only on mobile devices or communicate with an external API and database (which stores data from the app and, for example, mediates communication between app users) has a direct impact on costs — the second option usually leads to higher expenses. The cost of developing a mobile application can account for more than 50% of the total budget.
Testing an application isn’t just a job for machines — it’s also the job of QA experts to ensure that the application is free of bugs and defects. Testing performance on different devices, operating systems and network conditions, usability testing, is essential for quality assurance and bug detection and removal. This is why postproduction can account for a significant portion of project costs. Our estimates suggest that 20-30% of total development time should be spent on both testing and project management. To reduce resource expenses and avoid lengthy post-release debugging, we recommend adopting continuous integration and deployment practices. This approach promotes a more efficient development process while improving the quality of the delivered final product.
Maintaining and updating the application
A mobile app that hits the market is not the end of the project — it’s just the beginning of its life. Maintaining a mobile app is a key part of the product lifecycle, requiring maintenance and regular updates to remain attractive and competitive. The continuous development of the Android and iOS operating systems and the increasing demands of the Google Play and App Store make app updates a necessity. The ongoing maintenance costs can be surprising, especially if you don’t include them in your financial plan from the very beginning of the project.
Adding support for the latest versions of operating systems, developing and implementing new features, and updating third-party services are just some of the activities that affect costs after application deployment. Continuous app maintenance is crucial not only to maintain the interest of the target audience, but also to avoid various errors or problems that can affect the long-term success of the application.
Key roles in the app development team and their impact on costs
Developing a mobile app is not only a matter of technology, but also of the people behind it. Each person on the development team brings his or her skills and experience to the project, which has a direct impact on the cost of developing the app. So it’s worth taking a closer look at what roles are key and how their skills translate into project pricing.
IT professionals such as:
analysts,
mobile application developers,
web application developers (APIs),
UX/UI designers,
project managers,
testers — QA engineers
are professionals who demand appropriate salaries depending on their skills and experience. High salary expectations and the still high demand for IT professionals can escalate the cost of developing applications. Therefore, selecting a team and understanding the role of each team member in the development process is not only a project management issue, but also a key element in mobile app budgeting.
We always provide the client with a spreadsheet with estimated hourly pricing for each element of his mobile application and the work of each person employed on the project.
How to reduce a mobile app development cost?
Reducing a mobile app development costs does not necessarily mean reducing its quality. There are several strategies that can help reduce expenses without affecting the functionality or usability of the final product. Using no-code and low-code approaches allows you to use off-the-shelf components and minimize the need for coding, which can significantly reduce costs.
Limiting an application’s features to those most necessary, or creating a version for only one platform, are other ways to reduce financial outlays. Prototyping, especially paper prototypes, is a low-cost solution for the early stage of requirements gathering, which can help better understand customer needs and thus reduce the cost of application development. By choosing these methods, you can effectively manage your budget and avoid spending on unnecessary features.
Minimum Viable Product (MVP)
Implementing the MVP (minimum viable product, an application of minimal complexity that meets basic requirements) concept is one of the most effective strategies for controlling costs at the mobile application development stage. MVP is a smart approach that allows you to focus on the most important functionalities that are business-critical. It allows you to quickly test your idea in the market and collect invaluable information from users, and gradually scale your app as its popularity and revenue grows.
Such a strategy allows not only to test the idea of the app live, but also to incorporate changes and optimizations in UI/UX and functionalities based on real feedback. This avoids the cost of unnecessary features in the early stages of development, which is especially important for startups and companies with limited budgets.
The use of various feature prioritization strategies, such as the MoSCoW matrix, feature prioritization matrix, Feature Bucket Model, Kano model, RICE scoring system and user story mapping, ensures that developers focus on incorporating core features into the MVP. These approaches are essential for identifying the key attributes to be emphasized during the initial stages of product development.
How do we estimate a mobile app development cost?
After discussions with the client, we create the scope of the application. After it is discussed, refined, and approved, based on it, we provide a quote sheet that includes all screens, application functionality, and estimated number of hours. Typically, the simplest screens, such as a user login screen, are 2 or 4 hours of programming and about 1 hour for design. Screens of medium complexity, are 8 or 16 hours of programming and about 2 hours for design. Complex screens may take more hours. We then add about 30% to the programming quote for testing and project management. Based on the above description, you can already estimate the cost of a mobile application yourself.
Summary
In summary, the cost of developing a mobile app is the result of a complex interaction between various factors, from the choice of the type of app, to the stages of development, to external factors and budget management strategies. Understanding these aspects and taking a conscious approach to financial planning can contribute to the success of the project and prevent unforeseen expenses.
The price of mobile app development is never fixed, and we often hear that “it depends.” Mobile app pricing is contingent and variable, as much depends on the individual needs and requirements of each project. A mobile application that will run on the two most popular operating systems can cost from $5 000 for a basic app to $200,000 for a big, complex app, but this is only an example amount.
Let’s not forget that every design decision, every feature and every technology choice has financial implications. Proper management of these elements, including the use of MVPs, can help optimize costs and contribute to building valuable and profitable mobile applications. Let this guide be a map for you through the meanderings of the financial world of app development to help you make informed decisions at every stage of the project.
Read more: Master iPhone App Development: A Step-by-Step Guide for 2024
Frequently Asked Questions
How much does it usually cost to develop a mobile app?
Developing a mobile app typically costs between $10,000 and $100,000, but simple apps can start at around $5,000, while more complex ones can cost more than $200,000.
It all depends on what you want to create!
What factors have the greatest impact on application development costs?
Application development costs mainly depend on the application’s complexity, functionality, target platforms, location, and development team structure.
Keep this in mind to better plan your budget!
What are the main differences between native, cross-platform and hybrid applications?
Native applications offer high performance and full access to hardware features, but come at a higher cost. Cross-platform applications are developed from a single source code, run on different platforms and are comparable to native ones. Hybrid (web) applications can lower initial costs, but can also result in lower performance and scalability.
Is it worth investing in app prototyping?
Yes, it is worth investing in app prototyping, as it avoids later costs associated with unnecessary features.
Does the security of a mobile app significantly increase its cost?
Yes, investing in mobile app security may increase costs in the short term, but it represents an important investment in protecting user data and corporate image. Implementation of standard security measures is usually included in the pricing.
What are the hidden app development costs?
Hidden costs associated with application development, including maintenance, necessary edits, market analysis, certification and approvals, can get out of hand.
Make sure to include them in your budget to avoid surprises!
What external factors can affect the cost of developing a mobile app?
External factors, such as app integrations with external services, the cost of developers in different countries or changes in the financial market, can significantly affect the cost of developing a mobile app. Global events and regulations can also be taken into account.