Aiming to create a solid online presence? Why not consider building an app? Ah! You don’t know about the real perks of creating an app, right? Well, an incredible app can be a cherry-on-the-top in 2024! How?
A well-designed app can showcase your brand’s products, comply with industry standards, draw users, and enhance your business growth. For instance, a well-known application like Netflix provides a mobile-like experience across various gadgets and platforms. According to Statista, the Google Play Store is said to power approximately 3.5 million mobile apps worldwide as of the second quarter of 2022, while the Apple App Store is close behind with 2.2 million mobile apps.
Also, the Statista Digital Market Outlook predicts that by 2025, income from mobile apps will expand and total about $613 billion across all market industries. This shows that investing in a mobile application to flourish your business is a smart gimmick! However, the question often strikes, “What can be the cost of creating an app?”
Thus, in the article, we will take you on the journey of cost estimation breakdown to help you understand the factors that are influential in the app creation process.
At times, the cost of an app varies from country to country. For instance, when someone asks how much does it cost to create an app? The rough answer is usually $50 per hour, which means a basic mobile application can cost around $80,000, while an app with medium complexities may cost approximately $160,000. On the contrary, the cost of a complex app with exceptional features can exceed $400,000.
| Area | Android ($) | iOS ($) |
|---|---|---|
| North America | 120-150 | 120-150 |
| Australia | 100-120 | 100-120 |
| South America | 35-40 | 40-45 |
| India | 21-26 | 20-25 |
| UK | 21-26 | 20-25 |
| Indonesia | 30-35 | 30-35 |
| Central/North Europe | 45-60 | 45-60 |
Let’s say the app development time for one platform is approximately 1600 hours, including development and non-development time. So, how do you calculate the final development cost? You can simply multiply the time by the company’s hourly rate.
Now that you understand how much apps cost based on the country, it’s time to delve deeper into the cost breakdown depending on different app types.
As mentioned, the average price for designing a mobile app is between $30,000 and over $400,000. Another crucial aspect that must take into account is the type of application. The most popular app categories are listed below, along with an estimate of their typical development costs:
| App Type | Cost Estimation | Time |
|---|---|---|
| Android App | $50,000-$300,000 | 1200h |
| iOS App | $55,000-$300,000 | 1200h |
| Gaming App | $60,000-$250,000 | 1600h |
| Retail App | $50,000-$150,000 | 1200h |
| Taxi App (Uber) | $50,000-$400,000 | 1600h |
| Business App | $50,000-$200,000 | 1200h |
| Web App | $60,000-$300,000 | 1200h |
| Augmented Reality App (AR) | $100,000-$250,000 | 1600h |
| Community App | $18,000-$150,000 | 900h |
| E-Commerce App | $60,000-$250,000 | 1600h |
| Dating App | $50,000-$350,000 | 1400h |
| Restaurant App | $40,000-$150,000 | 900h |
| Healthcare App | $55,000-$300,000 | 1200h |
| Food Delivery App | $40,000-$150,000 | 900h |
| Video Streaming App | $80,000-$300,000 | 1600h |
| Social Media App | $50,000-$300,000 | 1200h |
| Learning App (Duolingo) | $60,000-$225,000 | 900h |
| Shopify App | $30,000-$180,000 | 900h |
| CRM Software | $30,000-$350,000 | 1600h |
| Educational App (Coursera) | $60,000-$300,000 | 1200h |
| Hotel Booking App | $60,000-$200,000 | 1600h |
| Telehealth App | $75,000-$300,000 | 1600h |
| Banking App | $60,000-$200,000+ | 1600h |
| Travel App | $60,000-$200,000 | 1600h |
| Wearable App | $40,000-$150,000 | 900h |
The application type is one key element affecting the average mobile app development cost. Here is a summary of the top three mobile app categories, along with their respective development costs:
| App Type | Cost |
|---|---|
| Android | $50,000-$500,000 |
| iOS | $75,000-$500,000 |
| Hybrid | $90,000-$700,000 |
Do you still have difficulty comprehending the average cost to develop an app based on types? Here is a detailed explanation:
These are mobile applications explicitly created for Google’s Android operating system, as their name suggests. The experts integrate OS components to ensure users have the best experience possible. These apps are made with Java and Kotlin. Depending on the app’s complexity, legal requirements, and other intricacies, the price to create an Android mobile application may range from $70,000 to $500,000.
A mobile app designed primarily for the iPhone operating system and meant to interface natively with the device’s basic functionality is known as an iOS application. Swift, Objective-C, XCode, etc., are all used in developing these apps. The cost to design an iOS app can range from $75,000 to $500,000, depending on how complicated each idea is and the integrated features.
A hybrid app is a mobile application developed using a single codebase that functions well on iOS and Android devices. React Native, Ionic, Flutter, Native Script, and other technologies are used to make these applications. The cost to make a cross-platform app can range from $90,000 and $700,000.
It is crucial to pick a country when you decide to outsource an app development project; some of the options are:
Nearshore outsourcing: Working with an agency from your country or a nearby country. There is only a 2- to 4-hour time difference.
Offshore outsourcing: Working with a corporation remotely. The time difference crosses four time zones.
The latter choice has a lot of challenges, such as the time difference that makes it difficult for you to communicate with your scattered development team. Nevertheless, the financial benefits of this kind of collaboration influence many business decisions. You can still choose a nation for outsourcing app development with a few hours of overlap if you can communicate with your team and finish everything on schedule.
Here we have shown the pricing based on different locations and the structure of the development team.
| Employee Title | North America | Central Europe | Eastern Europe | Latin America | South Asia | Southeast Asia |
|---|---|---|---|---|---|---|
| Business Analyst | $72 – $85 | $50 – $80 | $30 – 67 | $23 – $40 | $20 – $45 | $25 – $35 |
| Software Architect | $110 – $125 | $60 – $100 | $45 – $67 | $45 – $75 | $35 – $80 | $30 – $50 |
| Project Manager | $88 – $95 | $50 – $70 | $25 – $62 | $41 – $68 | $30 – $50 | $24 – $50 |
| Graphic Designer | $65 – $85 | $55 – $70 | $25 – $57 | $44 – $70 | $20 – $45 | $24 – $50 |
| Junior Developer | $55 – $80 | $32 – $50 | $22 – $31 | $28 – $55 | $21 – $30 | $20 – $25 |
| Middle Developer | $65 – $90 | $36 – $70 | $27 – $40 | $27 – $60 | $22 – $35 | $25 – $30 |
| Senior Developer | $78 – $125 | $45 – $80 | $30 – $59 | $32 – $65 | $25 – $50 | $24 – $33 |
| Lead Developer | $85 – $125 | $50 – $100 | $35 – $65 | $28 – $70 | $32 – $65 | $24 – $35 |
| Junior QA | $60 – $80 | $26 – $70 | $18 – $30 | $35 – $45 | $15 – $30 | $20 – $26 |
| Senior QA | $85 – $125 | $40 – $80 | $34 – $55 | $41 – $60 | $22 – $44 | $24 – $33 |
The well-known apps are now dominating the app market and have redefined and revolutionized customer experience. Below, we’ve explained some famous application development and their costs.
Uber is a cab service that links passengers with drivers nearby. The platform received $510,000 as its first investment but has now raised more than $25 billion. At the moment, the app has more than 118 million users.
Do you want to build anything similar? The cost of developing an app, like Uber, typically is $80,000, and it takes almost 1200 hours to complete. Uber is one of the most valuable businesses in the world, with a valuation of over $91 billion.
The primary features of Uber are:
WhatsApp is a messaging service that enables users to send messages, make video and voice conversations, upload photos and videos, and more. A messaging service similar to WhatsApp would typically cost between $30,000 and $70,000 to develop.
Key features of WhatsApp are:
Launched in 1997, the Netflix app provides its users with a streaming service that requires a membership. The Netflix app is accessible in practically every nation in the world, with more than 200 million subscribers. Netflix has dramatically aided the advancement and promotion of independent film distribution.
This app allows users to stream television episodes and films whenever they want. A mobile app development cost, similar to Netflix, is typically between $25,000 and $200,000.
The main features of this app are:
Jack Dorsey founded the social media and microblogging site Twitter in 2006. At a valuation of $20 million, the app’s first round of fundraising totaled $5 million. Its estimated value is $44 billion right now, with a projected net income of $1.2 billion in the second quarter of 2022. An app like Twitter is expected to cost $500,000.
The following features are essential for the app to run:
TikTok is a well-known social media platform for sharing videos. The number of features and functionality an app like TikTok offers can affect how much it costs to build. A similar application might cost $70,000 and take 1,200 hours to complete.
Features of the TikTok:
Using a mobile application called Airbnb, renters and individuals in need of temporary housing can connect. Airbnb increased from having a $20,000 seed fund to having a $30 billion valuation.
The business generates income by imposing a platform tax; customers pay a booking fee of 5% to 15%, while hosts pay 3%.
In 2021, this business strategy brought in $6 billion, a 78% year-over-year increase. Do you have the desire to design a comparable app? A mobile application for Airbnb can cost up to $100,000 to develop and take up to 1000 hours to complete.
The Airbnb app has the following features:
Now that you have a rough idea of the cost of an enterprise mobile application or a hotel booking app, it’s time to dig into the cost breakdown of app development based on different factors.
When clients come in for a consultation on an app idea, they frequently don’t know how to create a mobile app or how much it costs. Due to this, they inquire about the pricing to have a general idea of the app development and its cost. Sadly, without a thorough comprehension of the app’s functioning and extensive research, finding the right cost estimation is pretty challenging. Thus, below we have given an app development cost breakdown for a better understanding:
A simple response to this query might be provided by calculating the following factors or by getting a fixed charge, a fixed payment that denotes the price for a specific project and time.
The type of application, platform, complexity, timeframe, and more are some variables that might affect application development costs. The app development cost factors are highlighted below:
Costs associated with developing an application might vary greatly depending on its type and platform. For instance, developing mobile apps often involves creating versions for both the iOS and Android operating systems, which can increase complexity and cost. However, the cost of cross-platform app development may allow you to cut the overall app cost. Typically, apps can be divided into the following categories:
Thus, the cost to create an e-commerce mobile app will definitely differ from the educational app based on platform or type.
Apps require less time to develop and are less expensive. However, the development time and cost will grow if you aim to incorporate more sophisticated mobile app features. So, it’s essential to ask yourself these questions:
Furthermore, a simple app typically costs $5,000 to $50,000 to develop. Usually, an app has a few standard features, including a login system, user profile, dashboard, and restricted administration.
A medium-complexity app can cost between $50,000 to $120,000. Plenty of options for user interaction and app monetization are included in a medium-complex app. These apps include payment gateways, social media integrations, audio/video streaming, user privacy, and other capabilities, in addition to the fundamental ones.
A complex app may cost between $100,000 and $300,000 or more. The most recent technology, including machine learning, AI, and AR/VR, is incorporated into these apps. These apps also have features like advanced data logic, multi-language support, and many others.
Creating user flows, establishing how users will interact with your application, and the interface’s appearance is the exclusive focus of this stage of mobile app development. This stage is crucial for building a user-friendly solution.
An app’s design can cost anywhere between $5,000 and $50,000. The cost to develop an app will differ based on how many screens need to be built and how complicated your application is overall.
The app is created during this stage. Coding, fixing bugs, and incorporating other features are all part of creating the application. The number of features, the platforms it will be built for, such as Native vs. Hybrid, and the development team’s level of experience can all affect how much time and cost this stage will require. An approximate estimate for the development phase is 60% of the overall cost of developing an app.
Moreover, the most crucial aspect of this stage is whether you aim to go for an in-house app development or outsource your project to a development agency – the cost may also vary based on your choice.
The entire team’s work is coordinated by the project manager, who also ensures that the product will be completed in a given timeframe, following all specifications. A project manager is necessary to oversee the workflow and ensure effective communication. The appropriate management strategy significantly influences the costs associated with developing mobile applications. The cost of project management in app creation can go in between $1000-$12000.
Remember that the development team structure can change based on how complex your project is. The number of developers and designers, admin panel designers, and backend engineers are all highly negotiable and flexible.
Integrations are only feasible after specific elements of the app have been developed. Integrations must be created, and developers must work on individual API integrations. These substantially impact time and cost because they demand intense collaboration.
API integrations increase the cost of developing a mobile app, and cutting-edge technology like machine learning and artificial intelligence adds to the financial strain. Even features that customers have grown accustomed to, like geolocation, come at an additional expense. Before investing in a feature, you should evaluate its feasibility and necessity – this way, you can know the budgeting for app development.
Quality assurance services are essential in the app development stage because it verifies the product’s quality. The complexity and purpose of the app will affect how long it takes to test. The number of features included in the app, the testing tools employed, and the size of the testing crew can all impact the cost of the testing stage. 10% of the cost of developing an app is an approximate estimate for the design phase.
The QA team’s thorough testing ensures that your user encounters no bugs, errors, or problems. The ideal situation is for your app to be released with as few problems as possible so the user may enjoy using it.
It’s crucial to remember that developing a mobile or web application doesn’t end once it goes live in the app stores or on the internet. Depending on the app’s complexity, the platform it was built on, the number of features and functionalities, and the development team’s size, the app maintenance cost is often between 15% and 20% of the initial development cost per year.
The cost of developing a FinTech app or any gaming app development may vary based on the number of updates and maintenance time.
These expenses may cover things like:
Although you understand how to estimate app development costs, businesses frequently fall short of their allocated spending limits. Many hidden cost factors for mobile app development are frequently ignored, some of which we have discussed below.
Hosting is the first hidden expense in app development. Even if you build the app, users must download it from a server to use it. You can outsource the servers to run your app without any problems with the help of service providers like Amazon, Microsoft, Google, and others. Additionally, you can choose between monthly and yearly payments.
You may believe that your application stores data in a database. Additionally, consumers utilize the app nonstop every day. As a result, daily data collection grows. And to save such data and keep it secure, you need storage. Additionally, the cost of the service is determined by the provider. Google, Amazon, IDrive, and other cloud storage providers are the most often used ones.
Your app’s development team may decide during development that it has to be integrated with a third-party API, CRM, or service. It may drastically lengthen the time it takes to develop an app and, as a result, raise the price.
In such a situation, when hiring an app development team, search for a business with a mobile app architect on staff. These professionals will build the architecture for your application and consider all integrations, including those with third-party services. As a result, you won’t experience unforeseen expenses or changes in the development schedule after you’ve started the project.
Once the first version of an app is released, businesses that choose to start native app development frequently fail to include support for other operating systems.
To determine which platform your target market prefers, conduct thorough market research. Make plans for the app’s initial release on the most used platform. Launch the initial version of your digital product to gauge interest and gather user reviews. Plan the software creation for a different operating system based on the data you have obtained and include all the improvements from the beginning to avoid redeveloping it later. This way, you would have a better idea of how much does app cost.
At times the business owners come up with new requirements in the middle of the development process. The features change over time. They want the app to undergo additional adjustments. The initial estimate changes as a result, raising the price of developing mobile apps.
What costs are included in the response to the query, “How much does it cost to build an app?” Businesses frequently ignore crucial aspects like marketing. You need to work on your app’s advertising before you release it to the market. By offering sneak glimpses of your app, enlisting influencers to serve as beta testers, and having them share their experiences with their audiences, you may start adjusting your audience. Only after the launch does the marketing war really begin.
You can include the following channels in your marketing activities:
Even though most app development pricing is predictable, other expenses, such as continuous development costs and app maintenance, are concealed from the client’s view. Therefore, if you’re considering developing a mobile app, you should keep some money aside for the upkeep and ongoing app development you’ll need to cope with.
Remember that most software development businesses simply estimate the current cost of developing the app, leaving out the cost of maintenance, which is billed separately. The cost of maintenance and support for an app is frequently surprisingly higher than the cost of app development.
You know how much it can cost to create a mobile game app or any grocery delivery app. It’s time to dig into options to pick what’s right for your business.
An in-house team includes developers, designers, and other experts who function as part of your company’s staff, taking daily guidance from your management and receiving fixed monthly payments from your business. Hiring an in-house team is preferred for systems that gather sensitive information.
The cost of hiring an in-house team varies depending on where your company is located and how skilled the developer is.
For instance, in an American-based company, the expense of developers of native mobile apps for iOS or Android makes $170,000 annually, $180,000 for full-stack developers, and $160,000 for designers.
Here, the price is even more expensive than using a local agency to complete the service. It’s also important to note that the high development cost in this case also results in maintenance costs that are double as expensive.
When you outsource application development, you hire a company from outside to assist you in developing app concept and overseeing the overall architecture.
It enables you to concentrate on your business objectives while a team of professionals takes care of your technological needs.
In such a situation, the price of development varies from nation to nation. For instance, the cost of employing developers in the USA is 2–3 times higher than in Ukraine. The economies of Eastern Europe offer the ideal balance between price and quality.
Outside companies take a mathematical approach to development and guarantee that their solutions are secure, durable, robust, and scalable. You can hire developers in Ukraine for $40 per hour, compared to hiring the same talent in the US for $100–120 per hour.
A mobile app development outsourcing project can cost anywhere from $30,000 and $500,000, varying the cost for fitness app development or e-commerce app development.
You can engage with an independent freelancer if you need to make an application with fewer features or complete a short project. If you go this route, remember that supervising the project and coordinating with freelancers will require much of your time.
A freelancer might be hired in two different ways.
Several platforms are available for finding freelancers, such as Upwork, Fiverr, PeoplePerHour, Toptal, etc.
Again, the country you are hiring from affects the average freelancer’s hourly rate.
These are the initial prices; the cost goes up as per the experience.
Now that you know how much does it cost to make an app based on different development options. An in-house team and freelancers cost less than outsourcing your application development project.
However, at times, the in-house team and freelancers find it tough to meet the timeframe, or due to a lack of expertise, it becomes challenging to work on an app with extensive features. So, in this case, it is better to hire a top-notch firm like Codment, as the experts of such companies have years of experience and can work on even more complex projects.
When choosing an app development company, there are certain aspects to pay attention to for picking up the best agency. So, have a look!
A potential company needs to be informed of the existing scope of the project and your expectations. Hiding the whole product idea until the contract is signed is one of the most prominent blunders entrepreneurs or businessmen make.
However, this discretion can be explosion during the development phase because the scope and deliverables are specified in the agreement and used as a benchmark by the hired companies. Therefore, be sure to share all the details, like your goal, requirements, budget, types of mobile app development frameworks you want to integrate, and more.
You should start by looking for businesses whose skill in mobile app development is a specialty rather than a sideline. Research companies’ experience and portfolios. By using this strategy, you’ll have a better chance of finding a tech partner with extensive experience creating mobile applications. But keep in mind that due to confidentiality agreements, not all projects are included in the portfolio.
Always look for client reviews of the businesses you’re considering as a prospective partner in mobile app development on websites like Clutch. To learn more about the clients’ experiences working with the agency, you can check out further resources or even ask for client references. You can also contact former customers to learn about their degree of satisfaction, overall experience, and the agency’s ability to live up to their expectations.
This stage can also address various queries and areas where you hesitate or are having trouble coming up with solutions.
Communication is essential when developing apps. Make sure the organization responds to your inquiries and has efficient communication routes. This step will give you a general grasp of their strategy for client communication and some business values. Moreover, you will also know their work hierarchy and how they accommodate you.
The security of your mobile application and the data related to your business must be thoroughly discussed. To guarantee that your information is secure, developers should be prepared to sign a confidentiality and non-disclosure agreement with you.
Furthermore, it’s preferable to have a prior conversation on intellectual rights. Before beginning work on a project, these and other facets of assuring the security of personal data must be discussed.
It is a good idea to have a ballpark estimate of the cost to build an app before reaching out to possible partners. The mobile app development businesses can then use this information to establish whether your budget is reasonable and provide you with an appropriate quote based on it.
You can look up the price of an app comparable to yours to know how much money you should set aside, but this will only give you a fundamental estimate. Share your quote with a few development businesses and compare their offers to learn more. You should contact a mobile application development business if it offers a free quote.
Furthermore, to avoid unpleasant surprises, you should also visit the company’s website to see what price structure they offer and how much you can spend on future app maintenance.
Mobile app development is quite costly; we understand! Therefore, here we have discussed a few ways to cut the cost and save more.
Multiple platform development can extend the duration and expense of development. To decide which platform to prioritize, consider your target market and the features of your app. It can be more affordable to create a cross-platform app using a solution like React Native or Flutter because you can appeal to more people with a single codebase.
When it comes to mobile app development, simplifying the app design not only reduces expenses but may also result in a better overall experience and higher return on investment.
Too complicated or intricate designs may demand additional time and resources from the development team, increasing the cost. However, a simple design may be created more quickly and with fewer resources, resulting in considerable cost savings.
A simple and user-friendly design can enhance the user experience and save money. Users are more satisfied and engaged with the app since they can rapidly navigate it and locate whatever they want.
Agile development methodology is a good strategy for cutting app development costs. This technique provides increased flexibility and adaptation throughout the project by breaking the development process into manageable, small pieces. Modifications can be easily made before the project is completed.
Overall, agile can also help streamline the development process, boost productivity, and foster teamwork and communication.
A Minimum Viable Product (MVP) is a product that has just enough features to meet the needs of early adopters and solicit input for upcoming product improvements. This approach focuses on creating and launching a version of the app with only the essential features and is highly beneficial to consumers.
Before additional time and money are spent on developing more sophisticated features, it enables a quicker market release and the gathering of user feedback. This allows the focus to be on what matters most to the users instead of trying to anticipate every feature that might cross the product owner’s mind.
The product owner’s ability to prioritize features over the course of the project depends on this approach. A notable benefit and ability of an MVP strategy to dramatically reduce mobile app development expenses with proper management.
It can be expensive to create separate apps for iOS and Android, so another way to cut app development costs is to build on cross-platforms. Developers can write code once and utilize it for both platforms by using cross-platform technologies like Flutter or React Native. This not only shortens the development process but also saves a lot of money.
Advanced project planning can help you save time and money in the long run and adds to your project management. It is essential to have a thorough understanding of your target market, the function of the app, and its essential requirements. As a result, cost overruns are avoided by avoiding pointless changes or feature additions in later phases.
Think about scalability while you create your app. You can save money in the long term by avoiding the need for extensive rewrites or updates by creating an app that can scale quickly to handle more users and features.
To help your app grow over time, use scalable technologies and infrastructure, such as cloud-based solutions or microservices design.
Use third-party APIs or services instead of creating custom solutions for every feature. These can provide robust functionality while helping you save time and money on development. To ensure that third-party solutions are appropriate for your objectives, well-documented, and have a strong developer community for continuous support, conduct research and evaluation on each one.
Early testing reduces costs by spotting bugs and other issues with the app’s functioning and design before they become serious difficulties. It is simpler and less expensive to solve these issues while the app is still under process instead of in the later phases or after it has been released.
Early testing also reveals technical debt, which is the price of rework brought on by less-than-ideal technical choices made during development.
Other advantages of testing frequently and early during the development of mobile applications include the following:
The initial stage is only creating the app. To keep your app functioning properly, you’ll also need to set a budget aside for continuing upgrades and maintenance. To reduce the expense of future upgrades, use a modular development strategy whereby individual features can be changed or replaced without affecting the program as a whole. Think about developing your own skills or partnering with a development company that can offer appropriate ongoing support.
Developing a mobile app involves careful planning and consideration of numerous factors to keep costs in check. The type of app, the features, the location, the size of the development team, the security level, and the app interface are all significant variables that might affect the price of app development – based on such aspects; the healthcare app development cost may vary from the restaurant app cost. Thus, it’s crucial to research and pick the solutions that best suit your requirements and financial constraints.
You can also use app development calculators, which can provide you with a breakdown of the cost of each feature, to help you estimate the cost of app development.
Furthermore, you can contact Codment for your app development project. The experts here can guide you according to your app idea. Let us know what’s on your mind and get your dream app at the best prices! Talk to us today.