Written by Marc Alringer
Overview
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How much does it cost to build an app?
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Average cost is $150k, however it depends on several factors including the complexity of the app, desired platforms, user interface design, intended functionality, and the size/location of the development team.
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What's included in the cost of building an app?
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The entire cost of building an app can be broken down into design costs, development costs, launch/marketing costs, and maintenance/updates costs.
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What are some ways to maintain cost efficiency during the development process?
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There are numerous ways to maintain cost efficiency, namely prioritizing a minimum viable product (MVP), choosing the right development approach for your needs, and negotiating with development teams and partners.
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The Cost to Build an App
How much does it cost to build an app? This is a million-dollar question! There is no single answer to this question because the development cost will vary significantly based on your project requirements. To get an idea of the original development cost, a study was conducted, which involved emailing out a request for proposals (RFP) to 100 firms. The results were reassuring, for us at least. The study found that the cost to start an app ranged from about $93,000 to $214,000. Although, it could be much more depending on the scope of the project.
The varying costs associated with app design and development are influenced by costs, timelines, complexity, native vs cross-platform, customization, and UI features. It's always a good idea to compare your expectations with existing solutions and their associated budgets. You should decide which features are the most complex and challenging, then prioritize your feature list to create a ballpark estimate.
Who are We? Mobile App Development Masters
- At Seamgen, we develop groundbreaking mobile apps for a variety of healthcare, entertainment, and Fortune 500 clients, including federal and state governments.
- Over a decade of experience in agile software development methodologies leads to robust, innovative apps with a multitude of use cases.
- Several teams collaborate to deliver bug-free mobile apps.
- USA Design Led Development Agency based in San Diego, CA.
- We invite you to call us for a free project consulation.
Prioritizing your Development Approach
When developing an app, there are different approaches one can take that will have an effect on the overall cost of the project. Understanding these development approaches is crucial. The two primary types of projects are Budget/Timeline Backwards and Feature Forward.
Budget/Timeline Backwards Mobile Development
In the Budget/Timeline Backwards approach, a maximum budget or strict timeline is set first, and the project manager or team then works backward to determine what can realistically be achieved within these constraints. This method often leads to trade-offs, with potential sacrifices in features or overall quality to align with a preset budget or delivery schedule.
If you are a healthcare provider and taking a Budget Backwards approach, allowing users to schedule an appointment through your app might be mission critical functionality needed for the success of the app while allowing customer service video chat is a "nice-to-have" feature. In this approach, if you do not have enough budget for both features, you may need to remove the video chat from the project plan.
Feature-Forward Mobile Development
On the other hand, the Feature-Forward approach prioritizes the scope and features of the app, working forward to establish a timeline and then budgeting the app development cost based on the desired functionalities. This strategy allows for flexibility, as the app development team often is willing to invest more to receive a more feature-rich application.
The choice between these approaches has a significance impact on mobile app development costs, influences project outcomes, and shapes the overall success of the effort.
Marc Alringer
President/Founder, Seamgen
Marc Alringer, the visionary President and Founder of Seamgen, has been at the forefront of digital transformations, specializing in web and mobile app design and development. A proud alumnus of the University of Southern California (USC) with a background in Biomedical and Electrical Engineering, Marc has been instrumental in establishing Seamgen as San Diego's top custom application development company. With a rich history of partnering with Fortune 500 companies, startups, and fast-growth midsize firms, Marc's leadership has seen Seamgen receive accolades such as the Inc 5000 and San Diego Business Journal’s “Fastest Growing Private Companies”. His expertise spans a wide range of technologies, from cloud architecture with partners like Microsoft and Amazon AWS, to mobile app development across platforms like iOS and Android. Marc's dedication to excellence is evident in Seamgen's impressive clientele, which includes giants like Kia, Viasat, Coca Cola, and Oracle.
Factors Influencing App Development Costs
The level of customization and the uniqueness of your app's design significantly contribute to the overall price tag. Let's explore the factors influencing development costs to ensure you are making informed decisions about your mobile app project.
The equation for calculating mobile app development cost is pretty simple at a high level. However, as with everything else, the devil is in the details.
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Features = The number of features your mobile app has planned.
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Time = The complexity of the functionality of each feature planned.
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Hourly Rate = The rate your development team charges per hour.
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Cost = Total cost to develop your mobile app.
Understanding the details of the equation will help you minimize your mobile app development cost. Let's dive in!
Seamgen Pro Tip: We take the three core aspects (Features, Time, and Cost) and visualize them in the ‘Magic Triangle’ to communicate how the core aspects work together. You cannot expand one aspect of a project without affecting others. Time, cost, and features are not mutually exclusive.
If you’re seeking to develop a robust application with many features you’ll need a larger timeline and budget and vice versa. Employing this methodology ensures you receive optimal and successful agile development services.
Simple Apps (Basic) vs. Feature-rich Apps (Complex)
The complexity of app functionality directly impacts app development and costs. Simple apps with fewer features typically require less time and resources for development. Conversely, feature-rich and complex apps with complex functionalities, like real-time chat or an augmented reality app, demand specialized skills and extended timelines, leading to higher development costs. The level of complexity of each feature has an effect on app development cost as well.
Number of Features
The number of features will affect how much it costs to build your app. Simple Apps have a low number of features while Complex Apps have a high number of features.
In order to minimize your mobile app development cost, you should narrow down your list of features to the must-haves. Do you need access to the camera within your app (i.e. Snapchat), does it need to have Bluetooth capabilities, or do you want to incorporate augmented reality similar to Pokemon GO? Ask yourself similar questions to decide which features you need and which would just be nice to have. Initially, you should just focus on the features that serve the basic purpose.
There's a big difference between the features you need and the features you want. By taking the time to really define the features your app requires versus nice-to-haves, you can cut down on or delay costs.
Complexity of Features (Time)
Even after narrowing your features, your app could still require a lot of work. If the level of complexity for a specific feature is high (i.e. video chat) you can expect to pay a premium price for that feature. If you aspire to create the next Snapchat or Instagram, the budget required would be substantially higher because of the complexity of innovative features like video chat.
Consider Facebook, who is known for the complexity of their features and customization options. With features like chat, news feeds, and video calls, these complex features and customizations, Ben Schippers says it’d take approximately $500,000 and nine months of development and design time to create such an application.
Mobile Platforms (iOS, Android, Cross-platform)
To determine which operating system (OS) you should use for your app, you should research your end users and identify which OS is most popular amongst them. In addition to the different design guidelines, technical implementations will vary between platforms.
iOS |
Android |
Cross Platform |
Cost doesn't differ drastically between an iOS only app versus an Android only app, however, if you choose to develop a native app for both iOS and Android, costs will increase and could potentially double due to the requirement of building the app to work on two different platforms.
Different Development Environments and Tools
Choosing the development environment and tools significantly impacts an app's complexity and development costs. Each platform, be it iOS, Android, or cross-platform, has its unique set of tools, languages, and guidelines.
Developing for iOS often involves using Swift or Objective-C, while most Android app development relies on Java or Kotlin. Cross-platform solutions like React Native or Flutter aim to simplify development for both platforms but may require additional optimization.
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Considering the target platforms at the outset is crucial for managing costs during the app development stages, as adapting an app for multiple platforms introduces complexities that influence the overall app development cost and budget.
Considerations When Targeting Multiple Platforms
Targeting multiple platforms, such as iOS and Android, introduces additional considerations in app development. While cross-platform frameworks like React Native or Flutter offer a unified codebase, adjustments may still be needed for platform-specific optimizations.
This duality can impact development time and costs of complex app projects, highlighting the need for strategic planning. Factors like user experience consistency and performance on each platform must be carefully addressed, affecting the overall budget. Here is a list of some requirements that we have run across in the past that required platform specific programming and increased costs.
- Performance Optimization
- Access to Platform Features
- UI Responsiveness
- Better Memory Management
- Optimized Graphics Performance
Examples of apps that might have these types of requirements are:
- Gaming Apps: Games like "PUBG Mobile" and "Asphalt 9" require optimized performance for smooth gameplay and quick response times.
- AR Apps: Augmented reality apps like "Pokémon GO" leverage platform-specific AR capabilities for immersive experiences.
- Social Media Apps: Apps like "Instagram" and "Twitter" need responsive UIs for seamless user interaction.
- Streaming Apps: Video streaming apps like "Netflix" and "YouTube" require efficient memory management to handle high-quality video playback.
- Photo/Video Editing Apps: Apps like "Adobe Photoshop Express" and "LumaFusion" need high-performance graphics for rendering and editing media smoothly.
Balancing the benefits of cross-platform development with the need for platform-specific enhancements is crucial. This way, you optimize costs while ensuring a seamless user experience across hybrid apps on several devices.
Design and User Interface
The app development cost to design and develop an app, is also influenced by the number of screens required to be designed. More screens correlate to more UX design and average app development cost hours. To minimize costs, only create screens that are critical to the user experience.
If the screens are relatively similar, then including additional screens won't have much of an impact on your budget. However, if you want screens with pop-up items, toolbars and other design features, you can expect a larger price tag. As the number and complexity of the screens grow, so will the cost.
Importance of a User-Friendly Design
The importance of a user-friendly design cannot be overstated in app development. A well-crafted UI/UX enhances user satisfaction, engagement, and overall app success. Additionally, clear and intuitive designs reduce the learning curve for users, reducing potential support and training costs.
How Design Complexity Affects Development Costs
Design complexity plays a crucial role in determining development costs. A straightforward and streamlined design often results in quicker app development cycles and reduced costs. On the other hand, intricate and elaborate designs require more time and resources, leading to a higher app development cost.
The number of features, animations, and interactive elements integrated into the design directly influences the workload for the mobile app developers and designers. Striking a balance between a visually appealing interface and cost-efficiency is essential to ensure a successful, budget-conscious mobile app design and development process.
Hybrid Agile Software Development Process
At Seamgen, we have adopted a Hybrid Agile Development Process for managing our projects. One of the most important benefits of this process is that we invest early in planning and design to minimize changes in direction and strategy later in our workflow. Doing this cuts down on costs, both in terms of budget and time without compromising on team communications or client satisfaction.
In our process we have four development phases: Discovery & Strategy, Design & Architecture, Agile Development, and lastly, Final UAT & Deployment.
Two of the phases, Discovery & Strategy and Design & Architecture, both consist largely of planning work.
In Discovery & Strategy, we collaborate with stakeholders on branding and long-term vision, coupled with user research to create a roadmap to deliver value and ROI to the client.
In Design & Architecture, we break down each feature and feature-level discovery as needed to best understand user needs and business requirements for each feature. We delivery Design Mockups and Technical Designs for the programming and system architecture.
Integration of Third-Party APIs and Services
Integrating third-party APIs and services can significantly impact mobile app development costs. Using existing APIs for functionalities like payment processing or location services can save time and resources. While third-party integrations may reduce your mobile app development cost, and efforts, it's essential to consider associated subscription costs and potential limitations.
Careful selection and vetting of third-party services are necessary for advanced apps to ensure compatibility, security, and a seamless user experience. Balancing in-house development with third-party integrations can optimize costs without compromising the app's overall performance and functionality.
Development Team and Location
One of the largest influences on cost is which software development company you choose to hire.
Here are your options:
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Onshore (USA):
$100-$150/hour and you should have a budget of about $150K+
Pros: Easy communication, same time zone, cultural alignment.
Cons: Higher costs compared to offshore options. -
Offshore (Southeast Asia):
usually around $20-$35/hour
Pros: Cost savings, access to a large talent pool.
Cons: Time zone differences, potential communication challenges, cultural differences. -
Nearshore(neighboring country) & Eastern Europe:
usually around $30-$65/ hour
Pros: Similar time zones(not Eastern Europe), moderate cost savings, easier communication than offshore.
Cons: Can still have some cultural and communication challenges. -
Hybrid (onshore with offshore/nearshore development):
usually less than $100/hour
Pros: Combines benefits of onshore and offshore, flexibility.
Cons: Management complexity, potential integration issues.
Onshore resources will typically result in a higher quality product, but will also cost more. Offshore resources are much more affordable, but you'll lose some of the benefits that come with an onshore software development company. You have to find the right balance between the pros and cons of each type of company. This decision will heavily influence the outcome of your project.
Cost Breakdown
Costs can be categorized into several different types of costs:- Design Costs
- UX/UI Design Expenses
- Graphic Assets and Multimedia Elements
- Development Costs
- Programming and Coding Expenses
- Testing and Debugging
- Marketing & Launch Costs
- Pre-launch Marketing Expenses
- App Launch Strategies and Associated Costs
- Maintenance & Updates Costs
- Ongoing Support and Bug Fixes
- Regular Updates and Feature Enhancements
Design Costs
Design costs constitute another significant aspect of the budget breakdown. UI/UX design expenses cover the creation of a user-friendly interface and overall design aesthetics. Graphic assets and multimedia elements, such as images, videos, and animations, contribute to the visual appeal of the app. Allocating resources for a well-designed and visually engaging interface is crucial for user satisfaction and therefore, the overall success of the app.
UX/UI Design Expenses
UI/UX design expenses are integral to creating an appealing and user-friendly mobile app interface. Skilled designers work on crafting intuitive user experiences and aesthetically pleasing interfaces. The complexity of design elements, such as interactive features or custom animations, influences these expenses.
Investing in a well-thought-out UI/UX design is crucial for attracting and retaining users, enhancing overall user satisfaction. While design expenses contribute to the upfront costs, they play a vital role in the app's success and its ability to stand out in a competitive market.
Graphic Assets and Multimedia Elements
Graphic assets and multimedia elements add visual appeal and engagement to an app, making up a significant portion of design costs. These elements include images, videos, animations, and other visual components that enhance the overall user experience.
The complexity and uniqueness of these assets can influence design expenses. Investing in high-quality graphic assets contributes to the app's professionalism and market competitiveness. While these elements contribute to initial expenses, they are instrumental in creating a visually compelling and memorable app that users love.
Development Costs
Breaking down the costs of app development is essential for straightforward budgeting for app development companies. Development costs include expenses related to programming, coding, and the overall creation of the app.
This involves the time and expertise spent by developers, making it a fundamental part of the app development cost and company's overall budget. Additionally, testing and debugging costs are critical to ensure the app's functionality and performance, signaling an investment in quality assurance to prevent post-launch issues.
Programming and Coding Expenses
Programming and coding expenses make up a significant portion of app development costs. Skilled app developers translate design concepts into functional code, ensuring the app's core features operate properly. The complexity of the app's functionalities, the chosen programming language, and the level of expertise required impact these costs.
Investing in experienced developers is important for efficient coding, minimizing the likelihood of errors, and reducing the need for extensive debugging. These expenses are part of the development process, directly impacting the overall quality and performance of the final product.
Testing and Debugging
Testing and debugging are critical phases in the mobile app development process, representing important parts of the overall app development cost breakdown. Rigorous testing ensures that the app functions correctly, identifying and solving any issues or bugs.
Quality assurance efforts involve both manual and automated testing processes, with the goal of delivering a seamless user experience. Comprehensive testing helps prevent post-launch problems and enhances the overall reliability of the app. While app testing often incurs additional expenses, it is a crucial aspect of an app development project that contributes to user satisfaction and the will develop an app's long-term success.
Marketing and Launch
Pre-launch marketing expenses are vital for creating awareness and anticipation before an app's release. These costs cover promotional activities such as social media campaigns, influencer collaborations, and teaser content. The effectiveness of pre-launch marketing efforts impacts the initial user base and overall success of the app.
App launch strategies, including promotional events, press releases, and paid advertising, incur additional costs but are essential for garnering attention and driving initial downloads. Allocating a budget for strategic marketing initiatives is important to give the app visibility and achieve a successful launch.
Pre-launch Marketing Expenses
Pre-launch marketing expenses are essential for building anticipation and creating awareness before an app is released. This phase involves the development team crafting a comprehensive marketing strategy, encompassing activities such as social media campaigns, teaser videos, and engaging with potential users through various channels.
Budgeting for these pre-launch efforts ensures effective communication of the app's value proposition and generates initial interest. Collaborations with influencers, early access promotions, and targeted advertisements contribute to a successful pre-launch phase, hopefully setting the stage for a positive reception upon the mobile app's official release. Investing in strategic pre-launch marketing activities is crucial to provide visibility and attract a substantial user base from the outset.
App Launch Strategies and Associated Costs
App launch strategies involve a combination of carefully planned activities to ensure a successful introduction to the market. This includes organizing promotional events, writing compelling press releases, and using paid advertising channels. The effectiveness of these strategies directly influences the initial user acquisition and app visibility.
Associated costs encompass promotional materials, event coordination, and advertising expenses. While these costs contribute to the overall launch budget, they are crucial investments in establishing a strong market presence and getting attention from the target audience.
Maintenance and Updates
Beyond the initial development phase, ongoing maintenance and updates are essential considerations. Ongoing support, including bug fixes and addressing issues, is critical for maintaining the app's functionality.
Regular updates, incorporating feature enhancements and improvements, contribute to user engagement and long-term success. Allocating a portion of the app development budget to post-launch app maintenance ensures the app remains secure, functional, and aligned with changing user expectations.
Ongoing Support and Bug Fixes
Ongoing support and bug fixes are crucial components of post-launch app maintenance. Allocating resources to address user-reported issues and bugs ensures the app remains functional and reliable. The cost associated with ongoing support depends on the complexity of the app and the frequency of reported issues.
Prompt and efficient bug resolution improves user satisfaction and helps maintain a positive reputation. While ongoing support incurs expenses, it's an essential investment in sustaining the app's performance and user experience over time.
Regular Updates and Feature Enhancements
Regular updates and feature enhancements play a pivotal role in keeping an app relevant and competitive. Allocating resources for these updates ensures the app remains aligned with changing user expectations and industry trends. The frequency and complexity of updates impact associated costs, with more substantial enhancements requiring additional development efforts.
Investing in regular updates not only enhances the app's functionality but also improves user engagement and loyalty. While these ongoing expenses are part of post-launch app maintenance costs, they are essential for the app's long-term success and sustained user satisfaction.
Case Studies
Exploring case studies offers valuable insights into the landscape of mobile app creation and development costs. These examples showcase the diverse expenses associated with creating mobile applications, highlighting the impact of factors that affect mobile app development and costs such as complexity, features, and development timelines.
By looking at these case studies, we gain a comprehensive understanding of the budgetary considerations that accompany various types of mobile app developer projects. These insights serve as practical guides for businesses and individuals navigating the world of mobile app development, providing valuable benchmarks and lessons learned from successful and challenging mobile app development ventures.
App Development Examples with Varying Costs
Let's delve into specific examples of app development costs.
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Utility App (Low Complexity)
Description: A straightforward utility app with basic functionalities, such as a calculator or note-taking app.
Estimated Cost: $20,000 to $50,000.
Key Considerations: Low complexity and minimal features contribute to a more budget-friendly development process. - Social Media App (Medium Complexity)
Description: Developing a social media platform with features like user profiles, posting, and basic interactions.
Estimated Cost: $50,000 to $150,000.
Key Considerations: Medium complexity due to the inclusion of user interactions and content sharing, impacting overall development costs. - Feature-Rich E-commerce App (High Complexity)
Description: Creating a comprehensive e-commerce app with advanced features like secure payments, product recommendations, and user accounts.
Estimated Cost: $150,000 to $500,000 or more.
Key Considerations: High complexity arises from intricate functionalities, requiring extensive development efforts and impacting overall budget requirements.
These examples showcase the diverse cost range based on the complexity and features of app development projects. Each app development project's unique requirements influence budgetary considerations, emphasizing the need for specific financial planning in the app development process.
Tips for Cost-Effective App Development
Navigating the landscape of mobile app development often requires strategic planning to optimize costs. Here are key tips for cost-effective app development:
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Prioritizing Features based on MVP (Minimum Viable Product)
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Approach: Focus on essential features for the initial release.
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Benefits: Reduces development time and costs, allowing for quicker market entry and user feedback.
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Choosing the Right Development Approach (Native vs. Hybrid)
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Decision: Consider native or hybrid development based on project requirements.
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Benefits: Selecting the most suitable approach minimizes development complexities and associated costs.
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Negotiating with Development Teams and Outsourcing Partners
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Strategy: Seek competitive rates through negotiations.
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Benefits: Cost savings without compromising the quality of development work.
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These tips emphasize the importance of strategic decision-making and proactive measures in the early stages of your app development project, ensuring your hybrid app development project or app idea has a cost-effective and efficient journey from concept to launch.
Wrapping Up
Understanding the costs of app development is vital for anyone embarking on this journey. The complexity involved in determining the cost to build an app, influenced by factors such as features, platforms, and design decisions, highlights the need for informed decision-making.
The importance of mobile apps in our daily lives cannot be overstated. Of course, they're powerful tools for businesses and individuals alike. Recognizing the significance of these digital assets sets the stage for successful and impactful mobile app creation and development.
Navigating the budgetary considerations is a delicate process, from the initial stages of project ideation to the post-launch maintenance and updates. Case studies and real-world examples provide practical insights, offering benchmarks and lessons to guide stakeholders through this complex landscape.
Moreover, adopting a strategic mindset, prioritizing features based on the Minimum Viable Product (MVP), and making informed decisions about development approaches are key to cost-effective app development. Whether negotiating with app development companies, teams or outsourcing partners, the goal is to optimize resources without compromising quality.
In essence, the cost to build an app is a multi-faceted journey that demands attention to detail, strategic planning, and a clear understanding of project goals. By following best practices, learning from case studies, and staying adaptable to industry trends, one can navigate the mobile app development cost landscape successfully and achieve a balance between innovation, functionality, and cost-effectiveness.
THANKS FOR READING!
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