TechJury informs that “people spend nearly 90% of their mobile time using applications.”. That is why custom app development seems like a promising idea that is definitely worth investments.
Currently, there are millions of apps on the market (and it’s claimed that, by 2026, the mobile app market will grow up to 18.4%) which makes it harder to create something that could interest your customers. Not all applications can justify the funds spent on them. In order to make your app stand out from the crowd of competitors, it’s important to make sure that it really solves the problems of your consumers. To do so, you will need a team of dedicated developers, time, and, of course, money.
From the next paragraphs, you will find out how much it will cost to build a custom app and how to calculate the budget. So, if you are sure that your business needs a custom app, keep on reading to find out how much it will cost to create the app that meets your needs.
Factors That Affect Custom App Development Cost
There are 4 main points that have a direct impact on how much it will cost to build a custom app.
- Your development team location
To a great extent, the price depends on your workers’ location. Here are the approximate prices for app development in different countries and regions:
- USA, Canada, Australia – from $50 to $250 per hour
- Western Europe – from $30 to $175
- Eastern Europe – from $20 to $150
- India – from $10 to $80
It also should be noted that the services of a custom app development company located in the region will be less expensive than the services of a company located in the capital.
- The app’s complexity
The cost of mobile app development depends on the app’s complexity, its type, and amount of time required to create it. The more features an app has, the more it will cost to develop it. For example, an app that allows creating lists of shows and episodes that the user has watched or wants to watch in the future will cost much less than the same app with a system of recommendations and the ability to stream these shows.
The price for a simple application starts at $15,000 (1 – 2 months for development). Such apps contain from 1 to 3 core functions. For example, an app with culinary recipes that allows the users to search for recipes and add the selected ones to favorites.
The app of medium complexity will cost minimally $30,000 dollars (3 – 4 months for development). It has from 3 to 5 functions, provides the ability to create a personal account, supports authorization through social networks, can be integrated with payment systems, has a feedback function, etc. For example, chatbots, booking apps, etc.
The minimal price for development of a complicated app starts from $50,000 (takes more than 4 months). Such apps are loaded with functions, contain complex animations and can be integrated with various third-party services. For example, video and image editors, 3D games, etc.
- The platform
There are native and cross-platform apps. Native apps are platform-dependent and are developed for a certain operating system (according to Statista, by 2021, there are around 2.9 million apps in Google Play Store and around 4.4 million in Apple App Store). Cross-platform apps are universal for all platforms. You don’t need to create them separately for each platform which allows reducing the costs by 15% – 20%. However, such apps are usually somewhat limited in terms of functionality and convenience.
- Volume of work
It’s an obvious fact that the volume of work has a direct impact on the development price. So let’s take a look at some of the development process parts and the amount of money required to complete them:
4.1 Discovery phase
The project’s discovery phase allows you to find out if there is a market for your future app. At this stage, the development team should conduct a market research, define the target audience, and determine all the details of the future development. In fact, it’s the cheapest part of the process. Moreover, it allows you to save both time and money by eliminating problems that could occur during the app creation process. Depending on the country, it can cost you from $6000.
4.2 Prototype
If you want to have a visual representation of how your app will look like, you may want to build a prototype. Prototyping is not necessary for all the apps, but if you want to attract inhestors to your project, or if your app offers a completely new service, creating a prototype will be a beneficial decision.
A prototype is, in fact, a model of an app that will let you see how it can be implemented and improved. As usual, it pictures 1 – 3 core features, has clickable buttons, and a few screens. Each feature increases the costs. You can test the prototype among the concerned audience and receive valuable feedback that will allow you to make the necessary improvements. It will cost you around $4000 minimum and about $20,000 at its max.
4.3 MVP
The vast majority of startups benefit from MVP (Minimum Viable Product) development. MVP is the first version of a product that allows testing the potentially profitable idea among the app’s target audience. It implies the development of the app’s core features. So, it’s a ready-to-use product that will most likely cost between $10,000 and $50,000. Still, it’s much cheaper than a full-featured product. Moreover, if you launch a successful MVP, you can start monetizing it to gather money for further development.
4.4 App’s design
The design of an MVP app may be simple or complex, requiring a lot of time and money from your development budget. It may include such elements:
- Branding and logo are two visual components that will make your app unique and recognizable. Depending on complexity, it may cost from $600 to $1000.
- User Experience (UX) and User Interface (UI) highly depend on the type and difficulty of the project, so the price varies greatly: from $1500 to $6000.
- Animations aren’t obligatory elements, but they can make an app more eye-catching, memorable, and attract more customers. The addition of simple animations costs from $500 to $1000.
- Promo materials like banners for advertising, app stores, press kits for the media, and presentations add from $500 to $1000 to the overall cost.
This way, on the average, the development of a simple app design will cost you $2000 at the very least.
How Does The Process of Estimating Custom Mobile App Development Cost Go?
As usual, the developers take two days to make a cursory estimation of the development cost (for free, in most cases). If the client agrees to all terms, the exact price with a detailed app development cost breakdown will be covered in the contract. The price, however, may be increased if it’s decided to add new functions during the development process.
You also can calculate how much it will cost to build your app before you put your plan into practice. For this, multiply the number of hours needed for the development by the cost of one hour of development. Add the costs required for advertising and extra needs (analytics, management, research, etc.).
The Most Expensive Components Of App Development
- Backend
This is the most difficult part of the development process. Projects for large and medium businesses can’t do without proper app architecture, which is also a part of backend development..
- Implementation of high technologies
Any technologies based on artificial intelligence, virtual or augmented reality, or blockchain require significant investments and add a lot to the overall app development cost.
How To Create An App For A Moderate Price?
- Don’t waste your money trying to impress the users with fancy features (you can implement them later when the app gets popular enough). In order to create a popular and beneficial app that will bring you income, it just has to meet the needs of your audience. If an app doesn’t solve any of the user’s problems, it is doomed to failure.
- Before hiring a certain development team, compare prices and study all the portfolios. A high price doesn’t always guarantee high quality.
- Prior to beginning of the development process, ask the team to conduct discovery and estimate the potential success of an application.
- Discuss all the details with the team and insist on creating a prototype. Decide on the app’s design and functionality. You must clearly understand what you need and what you don’t. Then, the costs may be reduced if you find some features to be superfluous.
Conclusion
The statistics say that a third of small businesses get started with less than $5000. This means that you don’t have to invest dozens of thousands of dollars in a simple yet quality app. However, if you are not very limited in terms of budget, you can invest smartly in a feature-rich app. The costs should be calculated by the development company, but you can perform approximate calculations by yourself as well.
