How to Estimate the Cost of Creating an APP in 2024?

by Yulyia Melnik Technical Writer

If you ever planned to make an app, you were interested in its cost and what would influence the outlay. Many factors suggest delivery costs may deviate from $40,000 to $300,000+. Most experts give these figures, but what makes up such a sum?

This article explains what causes such dispersal and how the expense of making an app is estimated.

App Delivery Budget Template

First, let's consider what aspects impact on the outlay of app building and which options you should assume at the budget planning stage:

Technical partner

Team subordination (outsourcing company, in-house team, or freelance)
Software provider's location
Preferred cooperation model

Designing process

Required features
Security requirements
Overall app's complicity

Extra expenses

Marketplace fees
Third-party integrations
Promotion expenses
Technical support costs

Next, let's explore how developers' location can impact spending.

App Building Costs Around the Globe

App's complexity has a massive influence on its cost. So, calculating the price at an hourly rate of $50, which is the standard rate for development in the CEE region, creating the most straightforward application will be about $80,000, the average complexity will be about $160,000, and the most complex cost can cost more than $250,000.

However, hourly pay varies greatly depending on the region, so when thinking about where to find app developers, you should take this into account. Consider the prices in the most popular offshore areas:

An hour of developers' work in North America will cost about $60-$150
Australian companies estimate work at $50-$150 per hour.
South America claims an hourly rate of $40-$55.
UK-based companies demand $71+ per hour.
Development in Central Europe will cost between $40 and $60 per hour
The lowest prices are offered by India ($30 per hour) and Indonesia ($35 per hour)

It may be surprising, but a higher price doesn't mean better quality in this case. Therefore, when choosing a technical partner to develop your app, it is more reasonable to concentrate on the company's experience and customer reviews.

App Creation Timeline

From the previous paragraph, we can conclude that the app's cost relies on its development duration. As we already noted, the intricacy of the software impacts its price and building terms. Thus, let's explore the time frame:

An app with a few batch of features will take roughly 500-800 hours to create, which is 3-6 months
The middle complexity app takes 800-1200 hours, which is equivalent to 5-9 months of development
Complex application development time with many features and integrations surpasses 1200 hours or 9 months

Pricing Calculator

Estimating the exact price of services for each company can be pretty tricky. As a result, many advanced software providers today offer potential customers a rough pricing calculator.

This tool allows you to get an approximate estimate for your app building. All you have to do is to specify your project's details on the website, and the calculator will deliver you the approximate term and cost for development.

Factors Affecting Apps' Costs

Let's resemble some results and list the points that influence app building costs:

Type of software. Different software requires a different approach and team size. Thus, the cost of creating CRM or ERP will differ from the cost of designing a marketplace or a video-on-demand platform.

Required features. The cost also changes depending on the number of features and their advancement. The more complicated the app is, the longer it will take to deliver.

Design complexity. Your application can be templated for the selected OS, reducing the time and effort spent on its development. If your idea is more complex, the design will be developed from scratch, raising the product's cost but positively affecting your application's competitiveness.

Selected platform. A development team will be selected according to chosen OS: iOS or Android, or both at once if you set a cross-platform app, regarding building it on Flutter, as this will create a universal code suitable for both OSes. Such a method helps to spare time and money.

Servers and administration. The backend is the app's server part, allowing it to exchange data with the database. Higher complexity implies higher costs. As for the admin panel, this is quite an important part that enables you to manage app content conveniently.

Development team. We have already mentioned that the app's cost varies significantly according to the developers' location. Therefore, the most profitable option in this option is to find an offshore software provider in Central European countries that will provide you with high quality at a reasonable price.

Technical support and service. After the application is released, you may need minor fixes, adding functionality, optimization for new OS versions, and technical updates. Typically, maintenance costs about 15-20% of the cost of the application each year. Hence, it is crucial to find a technical partner with whom you will continue to cooperate in the future so that he provides high-level technical support.

App Development Cost Estimation

Now it's time to consider the funds spent on developing the application. Each software goes through certain phases and many specialists before being available to the public. So let's get acquainted with the anatomy of the application price.

So, it starts with the initial stage, moving into the Discovery phase. Then, you discuss your project details with business analysts to get a clear plan and a detailed estimate for your application.

Next, the designers develop an application prototype, after which the design is worked out in detail screen by screen. Finally, the developers bring this project to life, combining a thoughtful design with all the required features and creating a working application.

Before the application is released to the sites, it must undergo thorough testing by engineers. They must ensure that everything works as it should and that there are no bugs and errors.

And, after the deployment, technical support, updates, and administration of applications continues. Finally, the team provides full post-release support.

At each stage, you may need different experts. The core development team includes:

Business Analysts
UI/UX designers
Project Manager
Developers
QA engineers
DevOps

How Much Did Well-Known Startups Cost?

Let's consider how much the development of some well-known startups costs. If you are planning to create a similar application, this information will help you understand the approximate cost of your project.

Uber cost the creators $ 20,000
$500,000 was spent on creating Instagram
The development cost of Tinder was $485,000
An initial investment in Postmates was $750,000
Snapchat was initially developed for $485,000 in 2012

Summarizing

Application development is an exciting and challenging process. The price of creating your startup may vary depending on its type and complexity. However, do not forget that all investments pay off many times over, and the benefits of creating your application are enormous. Find an experienced software developer who will help you create a great product, and strive for success.

Author’s bio

Yuliya Melnik is a technical writer at Cleveroad. It is a web and mobile app development company in Ukraine. She is passionate about innovative technologies that make the world a better place and loves creating content that evokes vivid emotions.