Factors Affecting Cost for Mobile App Development

Cost of a Mobile App Development

Cost of a Mobile App Development

Did you know that the alone iOS App Store generated $89.3 billion in revenue in 2023? Furthermore, projections suggest that the mobile app market will reach approximately $567.19 billion across various segments by 2030. This underscores the significant profitability for businesses in this space. 

As of now, there are around 3.5 million Android apps available on the Google Play Store, while the Apple App Store offers about 2.5 million apps. Keep in mind, the longer you wait to launch your app, the more opportunities your competitors will have to capture the market. 

So, what are the costs associated with mobile app development?  

In this article, we’ll explore everything you need to know about app development cost, including the factors that influence the cost, different monetization strategies and the app development process. 

What to Expect: Average Costs for Mobile App Development 

In summary, the estimated cost to develop a mobile app typically ranges from $25,000 to $150,000, with highly customized, complex apps potentially exceeding $300,000. The total cost depends on various factors, including the app’s complexity, features, functionalities, and the chosen development approach. 

To estimate your app’s development costs, consider calculating the total hours needed for each phase of the development process and multiplying that by the hourly rates of the resources involved. 

Assessing the Development Costs of Top Mobile Apps 

Here are some well-known apps that have revolutionized customer experience and dominate the app market. The following descriptions provide insights into how app development costs vary based on functionality, complexity, and design. 

Popular Apps Description Average Cost 
Uber A widely used ride-sharing platform that connects drivers with passengers around the globe $40,000-$120,000 
Netflix The leading media streaming service that enables users to watch shows and movies at their convenience $35,000-$200,000 
WhatsApp A messaging app that allows users to send texts, make voice and video calls, and share photos and videos $35,000-$90,000 
Snapchat A social media app that has transformed online communication, boasting over 300 million daily active users $40,000 to $150,000 for one platform and up to $200,000 for both platforms. 
Tik-Tok A popular video-sharing platform that has made a notable impact in the entertainment industry $50,000-$120,000 and $150,000 for Hybrid development 
Airbnb A platform for booking accommodations and experiences, offering features like user reviews, maps, and secure payment options $65,000-$150,000 
Spotify An innovative e-SIM application that provides seamless global connectivity for travellers $45,000 to $300,000 or more 

Category-Based Estimation of App Development Costs 

Category Average Cost [$] Approx. Timeline [Hours] 
eCommerce App $50,000 – $150,000 More than 1,200 
Social media App $50,000 – $300,000 More than 1,200 
Learning App (Duolingo) $60,000 – $225,000 More than 1,000 
Dating App (Tinder) $50,000 – $350,000 More than 1,400 
Gaming App $60,000 – $400,000 More than 1,800 
Fitness App $30,000 – $100,000 More than 600 
News App $20,000 – $80,000 More than 500 
Travel App $50,000 – $200,000 More than 1,000 
Utility App $20,000 – $70,000 More than 400 
Health App $40,000 – $150,000 More than 800 

While we’ve outlined the estimated costs for some of the top mobile apps in the market, it’s equally important to consider the key development factors that influence the overall cost of mobile app development. 

Factors Affecting Mobile App Development Costs 

The cost of developing a mobile app depends on various significant factors. By understanding these elements, you can make more cost-effective decisions and maximize your return on investment. Additionally, this knowledge will help you stay within your budget. 

  1. Mobile App Complexity 

The complexity of a mobile app directly impacts its development cost. Apps with more features require additional time and resources, making them more expensive to create whereas simple apps with basic functionalities, such as login, profile management, dashboards, and limited admin features, are generally more affordable due to their reduced complexity. 

In contrast, moderately complex apps include features like user engagement and monetization along with basic functionalities. 

Highly complex apps can range from $50,000 to over $200,000. These applications often incorporate advanced technologies such as augmented reality (AR), virtual reality (VR), artificial intelligence (AI), and machine learning. They may also feature multi-language support, real-time data synchronization, sophisticated data logic, social media integrations, payment gateways, and audio/video streaming capabilities, along with strong user privacy measures.  

Applications such as core banking solutions, blockchain apps, and cryptocurrency trading platforms fall into the very complex category and typically cost between $100,000 and $500,000 or more. 

Here’s a rough cost estimation for mobile apps based on their complexity: 

Complexity Features Average Timeline Estimated Cost 
Simple MVP Functionality Basic UI No API Integration Minimal features 2-3 Months $5,000 – $50,000 
Moderate Custom UI/UX API Integration Mid-level features 3-9 Months $10,000 – $50,000 
Complex Advanced UI/UX Multiple API’s Custom animations Real-time features Two Platforms 6-10 Months $50,000 – $100,000+ 
Very Complex High-end UI/UX Complex integrations Sophisticated backend High-level security Two Platforms 12-15+ Months $100,000 – $500,000+ 
  1. Design Requirements 

“Application design” is another critical factor that impacts development costs. A well-designed app encourages users to engage with it, ultimately driving calls and business. 

When it comes to design choices, we typically have two options: Custom UI and Standard UI. Custom UI/UX, which includes unique animations and brand-specific elements, is more complex to design and implement, leading to higher costs compared to a Standard UI. 

This is to note that, custom designs provide long-term benefits, such as enhanced user experience, improved user interaction, higher conversion rates, and better ROI. For example, Infoventive Technologies redeveloped a real estate mobile app with a new interface & unique feature. This engaging design and animation boosted the app’s conversion rate by an impressive 35%. 

Additional components of mobile app design include: 

  • Wireframing: Developers use wireframing to create effective user experience features and layouts. Tools such as MARVEL, Balsamiq, and Photoshop are commonly used for this purpose. 
  • Animation: Animation has become a popular technique for making certain elements of an app engaging and intuitive. This approach is particularly prevalent in gaming and social media applications, where it enhances user interaction. 

Process Overview for App Development 

App Process Design Tasks Average Dev. Time [Approx.] Average Dev. Cost [Approx.] 
Design Research Market research Competitor analysis Market trend analysis Selecting ideal solutions Based on niche & available resources $100-$350 
UX Design Rough sketches Low fidelity wireframes High fidelity wireframes Simple: 10-14 hrs Medium: 50-60 hrs Complex: 150+ hrs $2,000-$8,000 
UI Design (Visuals) Mood boards UI Mock-up samples Final UI Mock-ups Simple: 14-20 hrs Medium: 80-90 hrs Complex: 100+ hrs $10,000-$40,000 
Branding Creating brand identity Logos, icons, and social media $5,000-$20,000 
Animations & Illustrations Visualizing user and on-screen content Direct manipulation User action visualization Depends on level of animations $1,000-$20,000 
  1. Application Features & Functionalities 

The cost of developing an app largely hinges on the features and functionalities you choose to include. As you add more features, the price will rise accordingly. 

To manage expenses effectively, it’s wise to focus on the essential features for the app’s initial version. This approach allows you to provide an excellent user experience while keeping costs manageable. Developing a Minimum Viable Product (MVP) is often the best route; it includes only the most basic features. An MVP can help you save time and money while also gathering valuable feedback from users. 

Average Cost & Approx. Time based on Basic Features 

Features Functionality Average Dev. Time [Approx.] Average Dev. Cost [Approx.] 
User Login Login with social media Login with email address Forgot password option Log out option 30 – 42 hours $500 – $1,000 
Profiling Add basic info Add photo Set region 30 – 40 hours $900 – $1,000 
Messaging Online/offline status Typing status Send media files and documents Read/sent status 170 – 180 hours $3,000 – $5,000 
Notifications Push notifications and reminders for users 25 – 32 hours $1,000 – $1,200 
Basic Admin Panel – User Management See list of users Delete/block user Create user Edit user 66 – 90 hours $3,500 – $4,000 

Based on Advanced Features 

Features Functionality Average Dev. Time [Approx.] Average Dev. Cost [Approx.] 
Payments Transactions Add debit/credit card Payment gateways 60 – 78 hours $2,500 – $3,000 
Maps Detect user’s location Set pickup & destinations 100 – 120 hours $3,000 – $4,000 
Calls Audio calls List of contacts Video calls 300 – 400 hours $14,000 – $15,000 
  1. Team Composition and Location 

The cost of developing a mobile app varies based on the structure and location of the app development team. Mobile app development companies typically charge according to the team’s experience, skill level, and geographic location. 

Team size is another key factor influencing costs. Larger teams can complete projects faster but often charge higher rates, while smaller teams may offer lower costs but may require more time to finish the project. 

Below is a general estimate of the costs you can expect for mobile app development, including working with an outsourced development team. 

Time & Resources Simple App Medium App Complex App 
Development Time 2-6 months 6-9 months 9-15 months 
Developers $30-40,000 $50-60,000 $100,000+ 
UI/UX Designer $4-5,000 $5-7,000 $10-15,000 
Project Manager $5-7,000 $10-15,000 $10,000+ 
QA Specialist $8-10,000 $15-20,000 $20,000+ 
Business Analyst $2-3,000 $5-8,000 $8-10,000 
DevOps $2-4,000 $5-7,000 $10,000+ 
Solution Architect $1-3,000 $5-8,000 $9,000+ 
Total $20-50,000 $50-100,000 $100,000+ 

Another critical factor that influences the overall cost of app development is the team’s location or region. Below is a table providing the average app development costs across different geographical locations: 

Region Average Development Cost 
United States Region $80-170/hour 
Europe Region $60-180/ hour 
Asia Region $20-40/hour 
Australia Region $80-200/ hour 
  1. Application Platform 

Selecting the right platform is very important to launch any mobile app. Depending on your target audience, you can choose to develop an iOS app, Android app, web app, or a cross-platform application. For startups with a limited budget, it’s often wise to start with a single platform and expand to others as your business grows. 

Below are the most popular app development platform options to consider: 

Platform Description Estimated Cost 
Native Apps (Android & iOS) For iOS app development, Swift and Objective-C are the primary programming languages, while Android apps are typically built using Java and/or Kotlin $50,000 to $100,000 
Web Apps Progressive Web Apps (PWAs) and other web apps offer a more cost-effective solution compared to native apps, as they require less development effort and can be deployed across multiple platforms $15,000 to $50,000 
Cross Platform Apps A growing trend is to develop apps for both iOS & Android simultaneously using cross-platform technologies. This approach is more cost-efficient, as it allows for the use of a single codebase, reducing development time and effort. The two leading frameworks in the cross-platform space are Flutter and React Native. $25,000 to $60,000 
Hybrid Apps Hybrid apps combine features of both native and web apps. They are installed like native apps but run within a WebView component, offering a balance between performance and cost-efficiency. $10,000 to $150,000 
  1. Mobile App Maintenance 

Expenses don’t stop even after the mobile app is completed. It’s important to account the ongoing costs, particularly app maintenance. Maintenance costs are typically calculated annually, ranging between 15-20% of the initial development cost, and cover essentials such as hosting, servers, services, and addressing issues that may arise. 

Businesses must also continually update their apps to keep up with evolving market trends, new device releases, and updated operating systems. Failing to maintain an app can lead to a poor user experience, decreased usage, and potential security vulnerabilities. 

What does app maintenance include? 

  • Design updates: App designs can quickly become outdated, losing their appeal to users. To keep users engaged, it’s crucial for businesses to refresh the app’s design periodically and avoid letting it become obsolete. 
  • Bug fixes: No mobile app is entirely free of bugs. Often, bugs are discovered only after the app has been launched. It’s important to continuously monitor and resolve these issues to maintain a smooth user experience. 
  1. Testing and Quality Assurance 

Testing and Quality Assurance (QA) play a crucial role in identifying and resolving issues before launching an app. This process involves both manual and automated methods, such as unit testing, integration testing, and user acceptance testing, to ensure the app performs as expected. 

Testing typically accounts for 5-20% of the total development cost, though the exact figure may vary based on factors like the app’s complexity, the size of the development team, and the desired quality standards. 

A prime example is Spotify, which places a strong emphasis on testing and QA to deliver a reliable, user-friendly experience across various devices. By using techniques like A/B testing, they continually enhance the user experience, reduce post-launch issues, improve customer satisfaction, and stay ahead in the competitive market. 

Hidden Factors Affecting Mobile App Development Cost 

While the previously mentioned factors influence the overall cost of developing a mobile app, there are hidden costs that are often overlooked. Being aware of these factors can help minimize risks, avoid surprises, and save both time and money during the development process. 

Factors Description 
Quality Depending on the size and complexity of your app, you may also need to hire additional resources, such as a Quality Assurance (QA) agent or a project manager, to ensure smooth development. Business analysts can also play a key role in optimizing processes and helping to keep the app development within budget. 
Infrastructure Infrastructure costs are another hidden factor that can add to the overall cost and complexity of the project. These costs typically include expenses related to data storage, data delivery, and app hosting. Examples of infrastructure-related items are servers, cloud storage, development tools, and libraries required to support the app’s functionality. 
Publishing Costs  iOS App Store App Publishing Cost for Developer Program – $99 per Year App Publishing Cost for The Enterprise Version – $299 per Year In-app Payment Commission – 30% for apps and 15% for subscriptions after 1 year App Publishing Timeline – Within 24 hours 
Google Play Store App Publishing Cost – $25 registration fee (One time) In-app Payment Commission – 30% for apps and 15% for subscriptions after 1 year App Publishing Timeline – 2 to 3 days (up to 7 days) 
Security  App security is a critical aspect of development, as users need to trust your app with their sensitive information. It’s important to have a comprehensive security plan from the start, including time for security checks and thorough testing. Failing to prioritize security early on can lead to higher costs later, along with potential financial and reputational losses. 
IT Support  In addition, ongoing IT support services are necessary to maintain a high-quality app. Continuous technical support is crucial for tasks such as iOS and Android updates, bug fixing, and API maintenance. While these costs are essential, they may increase over time as the app evolves and requires more upkeep. 
Marketing  Marketing costs also play a vital role in an app’s success. These can include App Store Optimization (ASO), paid advertising, influencer partnerships, and public relations campaigns. The average Cost Per Install (CPI) for iOS apps globally is approximately $3.61, but the overall marketing budget will vary depending on the app’s size, audience, and goals. A well-structured marketing budget is crucial for ensuring both immediate visibility and long-term success. 
Legal & Compliance  Legal and compliance costs encompass data protection, privacy, intellectual property, and accessibility standards. Compliance may require licenses and certifications, particularly for healthcare or finance apps. Seeking professional legal advice can help navigate these complexities and mitigate risks. While these costs can be significant, they are essential for protecting your app from potential legal issues. 
Unexpected Changes  Delays and changes can affect timelines and budgets, often resulting from client requests, technical issues, or external factors. For instance, updates to third-party tools may cause delays, while client-initiated design changes can prolong the development process. To manage these situations effectively, maintaining flexibility in the project plan and budget is vital. It’s advisable to set aside a reserve fund of about 10-20% of the total budget, though the exact amount may vary based on the project’s complexity and associated risks. 

Mobile App Development Cost [Phase Wise] 

Understanding the costs involved in app development is important for proper planning and budgeting. The total amount you’ll need can vary greatly based on how complex the app is and the different stages of development. Here’s a simple breakdown of the usual cost ranges and what to expect at each stage: 

Phases Description of Activities Estimated Value of Budget [%] 
Concept & Planning [Discovery Phase] 
Competitive Analysis Researching competitor apps, analysing features, UX, user reviews, and identifying market gaps 5-10% 
User Research Gathering user feedback and creating user profiles to inform app design 
Feature Definition & Prioritization Understanding user needs & requirements, creating plans and layouts, and prioritizing essential elements 
Project Scope & Timeline Setting project goals, timelines, and limits, defining target audience, app functionality, and project plan details 
Application Designing 
User Interface (UI) Design Creating detailed designs for app screens, including mock-ups, style guide development, and collaboration for design improvements 12-15% 
User Experience (UX) Design Focusing on user-friendly navigation, layouts, and testing to ensure smooth experiences, accessibility, and prototype testing 
Design System Development Creating reusable design elements for consistency and seamless handover to developers, including defining reusable pieces, documenting design details, and collaborating with developers 
Animation & Motion Design Creating engaging animations to boost user interactions and improve time spent on the app 
Application Development [longest & most expensive phase] 
Backend Development Handling server-side logic, APIs, database integration, and user authentication. Key activities include scalable architecture, API development, and database integration 55-60% 
Frontend Development Implementing UI, app functionality, backend integration, and data persistence. The tasks include backend integration, data storage implementation, and offline capabilities 
Quality & Testing Involves testing, bug fixing, and compliance with App Store guidelines. Key activities include manual and automated testing, bug identification and reporting, and adherence to App Store quality standards 
Project Management It’s all about team coordination, progress communication, and project management. Tasks include development planning, progress monitoring, facilitating communication, and managing risks and issues 
DevOps & Deployment Deals with CI/CD setup, app signing, and updates/releases management 
Testing & Quality Assurance 
Test Planning & Strategy Defining testing goals, strategies, and directions based on app requirements, identifying high-priority features and risk areas, and creating a comprehensive test plan and cases 10-15% 
Manual Testing Thoroughly testing app functionality, usability, and performance, reporting bugs, and verifying fixes 
Automated Testing Developing and maintaining test scripts, setting up continuous integration and testing pipelines, running automated tests for regressions and app stability 
Performance & Security Testing Conducting performance testing, optimizing speed, performing security testing, and ensuring data protection 
User Acceptance Testing (UAT) Facilitating sessions with target users, gathering feedback, and verifying app compliance with requirements to improve usability and user experience 
Deployment Phase 
App Store Submission Preparing app metadata, screenshots, and materials, ensuring compliance, submitting for review, and addressing feedback for optimal App Store presence 10-15% 
Server Setup & Deployment Configuring servers, deploying backend services and APIs, implementing monitoring and scaling strategies for security, scalability, and performance 
Continuous Integration & Deployment (CI/CD) Automating deployment, configuring pipelines, managing app signing and distribution for streamlined development and faster releases 
Monitoring & Analytics Setup Integrating analytics SDKs, configuring tracking, setting up performance monitoring and crash reporting for app usage, user behaviour, and performance insights 
Documentation & App Handover Creating documentation, conducting knowledge transfer, providing post-launch support for app installation, maintenance, and transition to the client’s team 
Application Post Release Phase 
App Store Optimization (ASO) Improving app visibility and appeal through keyword optimization, competitor analysis, metadata updates, and user review monitoring 5-10% 
User Support & Maintenance Providing ongoing support, addressing inquiries, performing app maintenance, monitoring performance, and delivering updates for optimal functionality and satisfaction 
Feature Updates & Enhancements Gathering feedback, analysing usage data, prioritizing new features, and releasing regular updates for functionality and user engagement 
Server Maintenance & Scaling Monitoring server performance, optimizing resources, implementing security measures, and performing maintenance for app performance and data security 

How Do Mobile Apps Make Money? 

There are several ways to monetize a mobile app. In this section, we’ll explore some of the most popular revenue channels that you can choose to implement individually or in combination to maximize earnings and enhance customer value. 

Mode of Earning Description 
Advertising This is one of the most popular ways to monetize an app. In this model, you promote third-party services or products within your app and receive payment for each referral or sale made through your promotion. 
Freemium Users can access basic features of the app for free, but they must pay for premium features. This model also allows for additional revenue through in-app advertising, enhancing overall earnings. 
Subscriptions Users pay for a subscription to access the app’s core features. Subscription options can vary, including monthly, yearly, or daily plans. Major platforms like Google and Apple provide tools for users to manage their subscriptions easily. 
Sponsorships This involves partnering with a sponsor relevant to your niche and establishing a compensation agreement. In exchange for financial support, the app can showcase the sponsor’s brand, promote its products, or direct users to its website. 

Conclusion – How Infoventive Can Assist You with Mobile App Development Cost Estimation 

So, how much does it cost to create an app? Unfortunately, there’s no straightforward answer to this question. By considering all the influencing factors, you can arrive at a nearly accurate estimate for turning your innovative app idea into reality. While the initial investment may appear significant, the long-term return on investment (ROI) of a well-designed mobile app can be substantial. 

If you find it challenging to calculate the final cost of mobile app development in Dubai, US, UK, or Australia, consulting a reliable app development company like Infoventive can provide valuable assistance. Our team specializes in building and launching innovative, scalable apps equipped with next-gen features and functionalities. Infoventive has successfully designed and developed transformational apps for some of the world’s leading brands. 

If you’re looking to create such innovative mobile apps or want a rough estimate for your business app, reach out to our experts to get started. 

We’ll collaborate closely with you to understand your business needs and develop a plan to maximize your investment. 

Don’t let the competition get ahead. Contact us today, and let’s build a powerful mobile app for your business! 

error: Content is protected !!
Open chat
Scan the code
Chat with ITPL
Hey 👋
How can we help you ?