17 July 2024

18 min

How much does it cost to build an app and what is your budget spent on?

Discover the average costs of mobile app development and see how your final budget is formed in our detailed breakdown.

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Every great product begins as a mere thought. Often, what stands between you and creating a tangible solution is simply not knowing how to bring it to life.

How do you allocate the budget, including hidden fees? How do you assemble a technical team? And most importantly, how do you ensure the app meets the actual user needs and industry standards?

When clients approach us for mobile app development, the first question inevitably is “How much does it cost to create an app?” The reality is, providing you with a precise quote right away without learning your requirements is a mission impossible.

However, there are ways to gauge the pricing beforehand. In this blog post, we’ll help you estimate your app development cost, understand the key factors that impact your budget, explore ways to cut costs, and know what to expect during the process.

If you’re looking for a detailed quote, contact us and tell us your needs.

How much does it cost to build an app?

The cost of developing an app starts from $10,000 and goes up to $500,000+. These estimates are based on our experience and recent surveys from platforms like Clutch and GoodFirms.

We understand that this range might leave you bewildered — after all, there’s a wide gap between $10,000 and half a million dollars. To give you a precise estimate, companies need a clearer picture of your requirements, as the development budget depends on the hourly rates of developers and the scope of work required.

Now, let’s break down how the app development prices are formed.

Companies typically charge an hourly rate of $25 – $49, as stated by Clutch. No need to look far — so does Brainence. The scope of work, in turn, depends on your app’s complexity: features and functionalities, the complexity of the UX design, and the backend development process.

But here’s the tricky moment. Even with a clear scope of work and an understanding of the provider’s hourly rates, initial estimates for app development prices can still differ from the final budget due to evolving project scopes.

Before development begins, your vendor will provide you with a preliminary cost estimate, based on your project description and requirements. These will then form a feature list summarized in a product backlog. A product backlog includes all the features, changes, bug fixes, and other activities the team needs to deliver.

To estimate the cost of making an app, companies use:

  • Concepts: the total required features
  • Stories: detailed features needed for each concept
  • Story points: to gauge the development pace and complexity

Next, you may be charged based on two primary collaboration models: Fixed Price and Time and Material.

  • The Fixed Price model means paying the full agreed cost upfront for a set scope of work and timeline. Any changes or additional tasks are billed separately. This model is ideal for small projects (or basic apps) with a clear and well-defined scope of work.For tighter budgets, you have two options: stick to specific features or prepare for additional costs with extra functionalities.
  • With the Time and Material option, you pay for the actual time and resources used. As your project evolves, changes in tasks, requirements, and priorities are incorporated iteratively. You’ll also pay iteratively, usually on a monthly basis or as agreed (e.g., mid-month, milestone-based).Even if the Time and Material model makes you anxious at first, it’s likely to work best for you. It allows for scope changes, offering flexibility in managing your app development budget.

Now that you have a general idea of how the budget is formed, let’s dig deeper into the factors that impact the cost of building an app.

Looking to launch your app with a predictable budget?

Brainence is your go-to software development partner, bringing over 7 years of expertise in creating and deploying custom cross-platform mobile solutions on time and within budget.

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Rich

Top factors influencing the average cost of app development

The biggest factors that will influence the overall cost of developing an app are vendor’s rates, features and functionalities, the complexity of the UX design, and the backend development process. Let’s dive into each factor in greater detail.

Development provider experience, rates, and location

One of the main factors influencing the app development cost is the developers themselves.

Experience
High quality often comes with a higher price tag, and this applies to mobile app development as well. Suppose you want your development team to have extensive technical experience, be well-versed in the latest technologies, and have a proven track record in your field. In that case, you’ll likely need to invest more.

Rates
Rates range from $15 to $150 per hour or more. When estimating the total app developer cost, consider development hours and services like design, testing, deployment, and ongoing maintenance (which we’ll discuss below).

Your initial strategy should be researching a number of agencies, comparing their offerings, and requesting a custom quote to find a partner that fits your budget without sacrificing quality.

Location
The geographic location of your development team also affects the rates. Basically, app developer costs are higher in regions with higher labor costs, like North America and Western Europe, and more affordable in regions with lower labor costs, such as Asia and Eastern Europe.

  • Generally, the highest hourly rates for app development are in North America and Western Europe.
  • In Eastern Europe teams tend to have lower hourly rates compared to North America and Western Europe.
  • Development teams in Asia, primarily India, China, and the Philippines, usually offer the lowest hourly rates.

However, keep in mind that compatibility in language, time zones, and work values is more likely to bring successful project outcomes.

Team composition
You have several options to expand your development capabilities: assemble an in-house tech team, partner with an outsourced company, engage freelancers, or hire a dedicated team.

Regardless of your hiring approach, here’s who you’ll need on board:

  • Mobile App Developer
  • Frontend Developer
  • Backend Developer
  • UI/UX Designer
  • Quality Assurance Engineer
  • DevOps Engineer
  • Project Manager

Below, you can find the average hourly app developer costs based on location:

Hourly rates based on position and location

Additionally, but not necessarily, you might consider hiring:

  • Business Analyst
  • Technical Architect
  • Full-Stack Developer
  • Scrum Master
  • Content Specialist
  • Support and maintenance team

At Brainence, we also assign an account manager to ensure that everyone is satisfied with our collaboration.

Technology stack

The technologies used to build and run your mobile app, including frameworks, programming languages, and UX/UI design tools, influence the cost to develop an app and the timeline.

The tech stack to build an app for your business can be divided into four categories:

  • Backend. This handles data storage, organization, and server-side operations. It ensures features like user login or online shopping work by responding to requests, accessing the database, and performing create/read/update/delete operations.
  • Frontend. While the backend handles server-side code, the frontend focuses on what users interact with. These are the technologies used to build the user interface, including buttons, animations, business logic, and links.
  • Platform. This includes the operating system and development tools needed to build and run the app, such as iOS SDK, Android SDK, and programming languages like Objective-C, Swift, Java, or Kotlin.
  • Hosting. This ensures that server-side code runs and the app is available to users. Common hosting environments include Linux, Apache, and Amazon Web Services (AWS).

The right technological stack can streamline the development process and, consequently, impact your budget.

Operating system

As you know, two operating systems dominate the smartphone market:

  • Android (~ 71% market share)
  • iOS (~ 28% market share)

Before developing a mobile app, many businesses struggle to decide which operating system to target. Does it really matter in terms of the budget?

iOS app developers often charge more than Android developers, but the difference is not typically significant.

Developing a native iOS app usually involves higher initial costs due to the need for specialized tools and adhering to Apple’s strict guidelines. Hourly rates for iOS developers usually range from $35 to $150, with mid-level developers typically charging $50 per hour.

Meanwhile, Android development may require more testing across various devices, impacting the overall cost. The average Android app developer’s cost varies from $30 to $120, depending on their experience level and location. You can expect to pay around $45 per hour for a mid-level specialist.

Remember that creating separate native iOS and Android apps will double your development costs. Alternatively, we recommend opting for cross-platform development, which uses a single codebase deployable across multiple platforms, saving you time and money.

Application type

Apps across industries and markets don’t cost the same. Here’s a rough estimate of mobile app development cost based on our experience in various domains:

Application types, their examples and average costs

As you can see, the pricing range is still quite vague, primarily because the next defining aspect you should consider is the app’s features.

Features set

​​If you’re googling the cost of making an app, you likely already have an idea of what type of app you want to build and what features you want to include. Here’s the list of the most common app features that impact your final budget:

User authentification
Do you need users to register and log in to use your app? If so, this feature is essential. Popular options include sign-up via social profiles like Facebook or email. Social logins are user-friendly, allowing users to grant your app access to their social account information easily.

In-app purchases
If you want to sell products or services within your app, you need to integrate payment gateways. This feature is common and relatively quick to implement, allowing users to purchase products, courses, premium features, or subscriptions directly from the app.

Push notifications
Keep your users engaged and drive sales. Unlike emails, push notifications are visible instantly and less likely to get lost in spam folders. They can blend graphics with text, maximizing user engagement effectively.

Navigation
Seamless user flow requires well-designed navigation. It determines how users move through different screens and access features. Thoughtful user flows and UI architecture are the foundations of any mobile app and should be planned before development starts.

Security and data encryption
Over 80% of mobile app vulnerabilities can be exploited using malware, so securing user data is paramount. Implementing robust data encryption can prevent unauthorized access and protect sensitive information.

App analytics
Want to track and analyze user behavior? You need the app analytics feature to collect crucial details and monitor app performance, enabling quick improvements.

Location management
Deliver personalized notifications based on your users’ locations. For example, when your users visit local grocery stores or corner banks, the app will send them relevant notifications.

Search feature
While a hierarchical app navigation structure helps users find products and services, many prefer the efficiency of an in-app search feature. Advanced search capabilities, such as auto-suggestions, auto-correction, and displaying cached keywords, enhance usability by making content easily accessible and improving overall user experience.

Reviews and feedback
Ask your users for feedback to improve your operations and make your customers feel valued. 93% of users are open to providing feedback if asked, and 97% are more likely to stay loyal if their input is acknowledged.

API integrations
API integrations are necessary to access external services, enhance functionality, synchronize data, and streamline development, ultimately improving user experience and app efficiency.

See how we’ve implemented these features in our recent product, a healthcare social network for corporate employees.

Looking to build a mobile app that fits your unique goals?

Rely on our mobile design and development expertise to get a secure and scalable solution aligned with your specific business needs.

Contact us
Rich

What is the cost spent on? The app development process in a nutshell

If the question “How to build an app for my business” is on your agenda, here’s the breakdown of the development process. Whatever your app is, it goes through key stages that everyone, including us at Brainence, adheres to. The final project cost is the sum of all the development and additional components.

Stage 1. Discovery and planning

You may have a promising mobile app idea. However, before diving into development, it’s crucial to conduct market analysis (including competitor analysis), verify the app concept, and document both functional and non-functional requirements. This stage also involves consolidating all features, establishing priorities, and determining the most suitable architecture and technology stack for your project to accurately estimate the cost of building an app.

Deliverables:

  • Market and user analysis
  • Idea viability assessment
  • Sitemap and information architecture
  • Strategic development plan
  • Optimal tech stack and architecture
  • Finalized project estimation

Estimated cost of the discovery stage:
The business analysis phase can range from $2000 to $11,000 (or approximately 10% of the total app development budget), taking 2–4 weeks to complete.

Stage 2. UX/UI design

Once your app’s requirements specifications are defined, it’s time to design a clickable prototype. The design stage encompasses wireframing, prototyping, visual design, and the creation of assets that contribute to an aesthetically pleasing and user-friendly app.

Deliverables:

  • Wireframes
  • Interactive prototype
  • Style guide
  • UI design mockups
  • Identity design

Estimated cost of the UX/UI design stage:
On average, mobile app design costs range from $5,000 to $15,000.

Stage 3. Development

This is a critical stage that significantly impacts the overall app development cost. The complexity of features, choice of platforms (iOS, Android, or cross-platform), and the technologies used directly influence the development hours and, consequently, the cost.

Coding costs often exceed those of other phases in the app development process. Typically, a coding team consists of two to five members, requiring extensive collaboration.

Deliverables:

  • Back-end code
  • Optimized databases
  • Tailored APIs

Estimated cost of the development stage:
Expenses for app architecture and functionality development range from $20,000 to $200,000.

Stage 4. Testing and deployment

Ensuring the app functions seamlessly across devices and platforms is vital. Testing and quality assurance involve rigorous testing for functionality, performance, security, and compatibility. This phase guarantees a polished and error-free end product.

Deliverables:

  • Automated testing framework
  • User experience testing
  • Custom test scripts
  • Comprehensive security assessment

Estimated cost of the testing and deployment stage:
Roughly 15% of the whole cost of building an app goes into testing and deployment. There is usually a timeframe of 2 – 4 weeks and the phase costs under $10,000.

After successful testing, it’s time to launch and deploy your application on platforms like the Apple App Store and Google Play Store to reach your users. App store fees also add to your budget:

  • Apple App Store: 30% commission on apps and in-app purchases of digital goods and services, reducing to 15% after one year for subscriptions.
  • Google Play: 30% standard commission fee on app purchases and in-app transactions. The subscription commission also drops to 15% after one year.

Stage 5. Ongoing support and updates

The development doesn’t end with the app’s launch. Post-launch support, bug fixes, and updates are ongoing responsibilities. Allocating a budget for continuous improvement ensures your app remains relevant, secure, and aligned with evolving user expectations.

Deliverables:

  • Software source code and build files
  • Evaluation of the product’s functionality and performance
  • User feedback
  • Maintenance and support

Estimated cost of the support and updates stage:
Based on our experience in supporting and maintaining mobile applications, this stage typically costs around 10-20% of the development expenses, which equates to approximately $15,000.

Stage 6. Project management

Project management isn’t a stage; it’s ongoing throughout the development process. A project manager acts as the glue that holds your project together, overseeing every aspect from start to finish. This role typically accounts for 10-15% of the total app budget.

Deliverables:

  • Project plan
  • Resource allocation
  • Progress reports
  • Budget tracking
  • Risk management plan

Estimated cost of project management:
Budgeting for project management ranges from $5,000 to $30,000.

Stages of app development and their costs

Stages of app development and their costs

The stages of the app development process vary in duration. Depending on the complexity of your solution, it involves weeks or months of brainstorming, iterative communication, development cycles, and testing to finalize and launch a mobile app.

The estimated app development timelines are as follows:

  • Developing a simple app typically takes 3 to 7 weeks, focusing on essential features.
  • Creating a complex app usually requires 8 to 14 weeks, incorporating popular functionalities.
  • Building an advanced app can take 13 to 19 weeks, integrating cutting-edge features.

Hidden costs after launching your app

Building an app for your business isn’t just about the upfront costs. There are extra expenses that add to the final answer of how much it costs to make an app:

Marketing

Once your app is launched, invest in marketing to attract your first users. Budgets can vary: you can start from $1,000 or go all-in with tens of thousands of dollars. Overall, expect to allocate about 40% of the average development cost annually for ongoing marketing expenses.

Licenses

Using licensed technologies significantly adds to the overall app development prices. For example, if your app design requires licenses, such as for fifty devices, annual fees could soar up to $120,000.

Admin or management costs

Managing app updates, content, and tracking statistics is a never-ending process. To handle this efficiently, you’ll need an admin panel.

If adopting an off-the-shelf admin panel doesn’t meet your needs, consider creating a custom one. Depending on your solution’s complexity, adding the admin panel to your functionality may cost you from $5,000 for a basic setup to over $50,000 for a feature-rich system.

Remember, managing an admin panel also involves salaries for content managers.

Third-party services

Developing a custom mobile app from scratch takes a lot of time and effort. That’s why using ready-made tools, libraries, and platforms is a smart move to avoid reinventing the wheel for common features.

However, faster development has its costs. Expect to allocate around $5,000 to $20,000 per year for third-party service fees.

Can you cut the mobile app development cost?

If you’re looking to optimize the cost of developing an app, here are several effective strategies to trip your budget without sacrificing app quality. Keep in mind that you need to balance between an optimal budget and a feature-rich app with potential.

Cross-platform development

Save 10–30% of your budget, compared to native app development, by using Flutter, Xamarin, or a similar framework to speed up your mobile app development. This way you’ll be simultaneously developing versions of the app for both platforms.

Brainence can help you build a cross-platform app, just share your idea with us.

Start with an MVP

The cheapest way to build an app is to create an MVP (Minimum Viable Product). This way, you’ll validate your idea with real users and minimal investment upfront. This allows you to validate your idea with real users while making a minimal upfront investment.

Gathering initial feedback will help you plan a budget effectively for a full-featured app version before proceeding with full-scale development.

Prototyping before development

Consider investing in an interactive prototype first to visualize your app’s functionalities in detail from the outset. Many companies rush to market and skip this step, but avoiding it can lead to costly changes later on.

Testing your prototype early helps catch potential issues and prevents unnecessary expenses down the line. It’s a smart move that saves time and money in the long run.

Full-cycle development by the same vendor

While it might seem cheaper to hire separate vendors for different tasks, managing multiple contracts and coordinating between teams can lead to wasted time and resources.

Opt for a software development company that offers full-cycle services integrating design, development, and testing in a single workflow.

Follow Agile methodologies

Agile methodologies such as Scrum facilitate iterative development and continuous feedback. You’ll adapt quickly and, most importantly, avoid costly rework.

You are one step away from building your mobile app

As you can see, providing an instant reply to “How much does it cost to make an app?” is not a trivial task—there are too many moving parts. It’s a unique story for every app out there.

The app development cost can vary greatly depending on the complexity and features of the app, as well as the experience and location of the development team.

When it comes to turning a brilliant idea into a sleek, easy-to-use product that brings value to your users, you need a team that can handle the complexities of tech. That’s when Brainence comes into play.

With Brainence, you can start your mobile app journey with confidence. We’ve got the skills and know-how to bring your digital solution to life.

Contact us, tell us your needs in a brief intro call, and let’s chat about turning your app idea into reality—no hidden fees, just straightforward guidance and first-class quality from start to finish.

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