They say the final cost of software development is only known once the project is finished. While there’s some truth to this, the complexity of app development makes it difficult to define an exact price upfront. However, understanding the factors influencing the price can help you set a more precise budget.
In this article, we’ll explore the factors affecting mobile app development cost.
Type of app
When deciding on mobile app development, you should pick sides between native or cross-platform development. This is the milestone that will shape the pricing range for your project.
Native apps
Native app development means designing software programmes solely for a particular operating system, such as iOS or Android. Native applications are compiled directly into the device’s machine code. Furthermore, they have direct access to hardware components like the GPS, camera, and microphone, resulting in richer and more immersive user experiences.
The pricing for native app development
Native development isn’t budget-friendly. In most cases, costs are greater than cross-platform solutions since each platform requires a unique construction. Code languages, development and testing speed, and development specifics all vary by platform. This discrepancy means that if you want an app for several operational systems, you’ll hire separate teams and pay twice. Testing and bug fixing take twice as long.
The smallest iOS app development cost is approximately $50,000 for simple applications. The starting Android app development cost is slightly higher as applications run on devices from multiple manufacturers, resulting in more compatibility challenges. If speed, lower cost, and simultaneous development across platforms are crucial, cross-platform development may be a better choice.
Cross-platform development
Cross-platform development involves creating a single application that runs on multiple operating systems (like iOS and Android). This is achieved using universal coding languages such as JavaScript, HTML, and CSS, paired with frameworks like React Native, Flutter, or Xamarin. For small to medium-sized businesses (SMBs), cross-platform development is often the ideal choice due to its availability.
The pricing for cross-platform app building
Pricing is lower than for native development. On average, you should budget between $30,000 and $50,000 for a basic app with limited features. The price can increase from $75,000 to $150,000 for more sophisticated apps that need advanced features like real-time updates, interaction with outside services, and stronger security measures.
Functions and technologies used
The functions you choose can significantly alter the price of your app. Newer or less common technologies might incur higher costs due to the limited number of experienced developers.
Here’s a cost breakdown for app development based on the type of app and the most commonly used key functions:
| Type of app | Costs averagely start from | Key features |
| Basic fintech app | From $59,000 | Card integration, payment processing, fundamental transactions, enhanced encryption, robust security, and personalised alerts. |
| Marketplace app | From $80,000 | User accounts, item listings, search and filter options, order monitoring, payment systems, ratings, and feedback. |
| Social media app | From $56,000 | User registration, profile customisation, chat features, content creation tools, and push alerts. |
| IoT apps | From $45,000 | User dashboards, notification systems, user onboarding, and security measures. |
| EdTech app | From $40,000 | Course offerings, user progress tracking, multimedia support, assessments, and certification issuance. |
| Healthcare app | From $45,000 | Patient management, appointment bookings, virtual consultations, e-prescriptions, and health monitoring. |
| Real estate app | From $60,000 | Property search, filtering options, user profiles, booking systems, virtual tours, and payment solutions. |
| Logistics app | From $55,000 | Fleet management, route planning, tracking capabilities, delivery scheduling, and notifications. |
| Travel app | From $48,000 | Travel search and booking, user profiles, itinerary organisation, payment processing, reviews, and suggestions. |
Maintenance costs
Expenses remain after the app is launched. You should also consider the cost of app maintenance, which might exceed $30,000 per year (as per GoodFirm). Research also shows that 50% of the development cost will be spent on maintenance in the first year, 25% in the second year, and 15%–25% each year thereafter.
source: innomids.com
Location of developers
The general economic environment in a country affects living standards and, thereby, the cost of labour. Hiring app developers from less costly areas significantly cuts spending.
Because of their higher living standards and operating expenditures, North America and Western Europe are often the most costly places to build mobile apps. The hourly cost for developers might range from $100 to $250. Eastern European development teams are less expensive to recruit, with fees often ranging from $50 to $100 per hour. Locals in Asia and India are also popular for outsourcing due to significantly lower rates.
source: agiletech.vn
Type of employment
Freelance development is typically cheaper and more flexible, making it ideal for smaller or less complex projects. In-house teams are more expensive but provide better collaboration and consistent availability, making them perfect for ongoing projects or enterprise needs. Outsourcing companies offer a good balance between cost and reliability, particularly for medium- to large-scale projects. For the best results, assess your project’s complexity and long-term needs before choosing the most suitable development option.
Pricing model
At first glance, you may think that a pricing model cannot alter the final price for the project (why should it be altered if the work scope stays the same?). However, it does have an impact on the app development budget, as some payment models are more revision-friendly than others.
Here is the table describing the three most popular pricing models and cases when they are cost-effective:
| Pricing method | Description | When opting for |
| Fixed pricing | A predetermined, fixed sum is paid for the project, regardless of the time or resources used. | The project scope is well-defined and unlikely to change, and the project is small to medium-sized with minimal revisions expected. |
| Milestone payment | Payments are made incrementally upon the completion of predefined project phases or milestones. | The project is large and complex, allowing the client to manage cash flow effectively and ensuring that the contractor is incentivised to meet specific deliverables before receiving payment. |
| Time and Material | Charges are based on the actual time spent and materials used during the project. | The project scope is uncertain or likely to change, requiring flexibility, and the client is comfortable with potentially variable costs. |
Cost-saving strategies for app development
Below are practical tips to help you save money during the development process.
- Gather detailed requirements. Engage in comprehensive requirement gathering before initiating the development process. This involves understanding the user needs, market demands, and functional requirements of the application. This will help reduce the risk of costly revisions.
- Prioritise MVP (Minimum Viable Product). Develop an MVP version of the application first. This approach focuses on building an app with enough features to satisfy early users and provide feedback for future development cycles.
- Use outsourcing services. Consider outsourcing development to regions with lower labour costs without compromising on quality.
- Use pre-built solutions and frameworks. Utilise existing frameworks, libraries, and tools. These resources can significantly reduce the time and effort required to write code from scratch.
- Conduct regular and wise testing. Begin quality assurance as early as possible to identify and fix issues sooner. The app development estimates for correcting errors during the requirements phase are significantly lower than during production.
Wrapping up
Despite the seemingly erratic nature of mobile app development pricing, knowing the factors influencing app development costs can help you better control your spending and understand the final cost elements.
To know the exact pricing for your project, consult a reliable development agency that can translate your goals into technical specifications and clarify the expenses involved.
