App development cost: Why there’s no clear answer

Discombobulation:

The feeling you’re probably experiencing right now after consuming content about app development costs.

And you’re not alone. Getting a straight answer on the topic has been like searching for pots of gold at the end of rainbows or unicorns in enchanted forests.

Until now.

In this blog, we’re going to reveal how you can guarantee costs beforeyou start building an app and (hopefully) clear up any confusion you have.

But before that, we’ll take a deep dive into the price differences associated with various types of apps and development routes, while revealing the hidden costs no one else talks about.

Just so you know it’s worth sticking around, Builder.ai has created hundreds of apps with an exceptionally high success rate compared to the industry standard of 78%. And everything I say will draw on that expertise.

To get started, either use the contents to flick through or get scrolling 👇

How much does it cost to develop an app?

While apps can be free or available at very low prices, it’s generally accepted that the average cost ranges between $5,000-$500,000. The price range is so wide because three key factors have a huge influence on your cost estimate, including:

1. The type of platform you’re building on; this could be Android, iOS or Progressive Web App (PWA)
2. The complexity of your app; depending on the roles you want your app to perform, you may or may not need custom app features
3. The development route you choose; you can create an app yourself or hire someone to build it for you

Lower-cost apps are typically associated with shorter development cycles and can be ready in a matter of weeks. By contrast, more sophisticated apps can take several months or even years to create.

Now, let’s explore each of these factors in more detail…

App development platforms: Costs to consider

When you’re developing an app, there are three major platforms to choose from, including Android, iOS and web development. Each of these have slightly different associated costs, as we’ll explore below.

Android app development

Android is the operating system (OS) with the largest market share and is especially popular in India, China, Australia, Africa and Eastern Europe. Android apps are built using Kotlin and Java, plus, they have a low barrier to entry and unlimited personalisation options.

However, the performance of your app may vary, given the sheer number of Android devices on the market. And optimising your app for a wide range of devices can easily drive up development costs.

iOS app development

iOS is hugely popular in North America and Western Europe, offering a sleeker environment to develop apps. The operating system is also compatible with older devices, resulting in better performance.

However, iOS apps are written in Swift, which has higher development costs than Java, its Android counterpart.

Web development

Web development is used for making both web apps and websites. Developing web apps is harder than developing a website, but easier than building mobile applications.

Web apps are also cheaper to develop than Android or iOS apps because they don't require platform-specific special coding skills.

HTML, JavaScript, PHP, Python, Ruby and CSS are popular programming languages for web development. It's highly flexible and versatile, considering there are no strict rules for hosting an app.

That said, mobile applications are more popular in comparison to web apps. Moreover, mobile apps work seamlessly on their respective platforms, providing a much better user experience than web apps.

App types: Costs to consider

Although multiple factors influence your mobile app development cost, the type of app you create dictates the core features you'll need, the mobile app development process you follow and the length of your project. Here's an analysis of the three main app categories…

Off-the-shelf apps

Off-the-shelf apps are light, easy-to-use, functional apps with template-based user interfaces (UI). They're typically used for a single purpose and can be created with platforms like Microsoft Power Apps or Google Appsheet. Calculators, trackers and surveys are good examples of them.

They also provide you access to a dashboard, which includes top-level data and basic usage statistics. Off-the-shelf apps can be accessed for free or via subscription services.

Development time: < 1 week

Development cost: Free/available via subscription

Development process: Off-the-shelf

Developer: No-code app builder

Examples:Calculators, trackers, cameras, surveys, notes, clocks

Drag-and-drop apps

Drag-and-drop apps allow users to add and subtract certain pre-coded features via a no-code interface. By comparison to off-the-shelf apps, they include:

• Social features – make it easy for target users to share on social media
• Activity feeds – users get real-time updates and see new and personalised content
• Ecommerce solutions – allow users to buy and sell items within the app
• In-app communications – engage users with contextual messages as they use the app
• Device features – request permission to use contact list and location to get access to more user data; with this, you’ll be able to leverage data to run targeted campaigns and add further personalisation to your users’ experience

They may also include integrations with APIs, databases and third-party services. But drag-and-drop apps are not custom apps.

They're a convenient way to get your business online, but they may lack the scalability rapidly growing businesses need.

The cost of off-the-shelf apps can range from a few thousand to tens of thousands of dollars.

Development time: 2-8 weeks

Development cost: $5,000 - $20,000

Development process: Pre-coded; DIY drag-and-drop

Developer: No-code app builder

Examples:Ecommerce, travel, e-learning, gym, salon, loyalty

Custom apps

These are secure, flexible, customisable and scalable apps with advanced features and sophisticated back-end infrastructure. They're developed for unique business use cases and created by expert app development companies, either from scratch or with the help of a low-code app builder.

Uber is a good example of a custom app. It uses location data and sophisticated algorithms to pair drivers and passengers. It also includes extra security features such as “verify your trips," meaning passengers must share a code with the driver before their trip starts. Innovations like these are what make Uber a custom app.

Because of the design, development and project management involved, custom apps cost from tens of thousands to hundreds of thousands of dollars.

Development time: 3-12+ months

Development cost: $50,000-$500,000

Development process: From scratch/assisted by low-code app builder

Developer: Development agency/Builder.ai

Examples: Order management system, logistics services, financial services, custom voting app, etc.

App development routes: Costs to consider

To explain how the development route you take influences your app cost, let’s use a simple example.

Say you fancy eating some cake.

On the one hand, you could bake the cake yourself. Of course, you risk the cake being inedible, even if you do save some money.

On the other hand, you could buy one from a local bakery. Here, the cake has a good chance of being delicious, but the price will be significantly higher.

The same principle can be applied to app development.

Creating your own app is certainly more cost-effective, but it’ll drain your time, and the outcome will be more rustic.

Meanwhile, onboarding a development agency or Builder.ai will give you a more polished end product, but the price will reflect that.

Here’s a rundown of each of the difficulties, timelines and costs involved in the most popular app development routes:

1 - DIY

If you’re comfortable with Android Studio or Xcode IDE, then you can make your own apps from scratch. Technically this option is the cheapest, as you won’t have to pay anyone other than a few bucks to upload your app to Google Play Store or submit it to the Apple App Store. Of course, it'll also take a long time to develop and you might have to pay for external help if you get stuck.

But you also have to consider the opportunity cost.

How much will this project drain your time and resources? Would hiring an expert to help allow you to focus on running your business? And how much external help might you require to finish the project?

Project difficulty: 💪🏼💪🏼💪🏼💪🏼💪🏼

Project length: ⏰⏰⏰⏰⏰

Project cost: 💰

2- No-code app builders

No-code app builders allow you to create your app without writing code. They provide you with drag-and-drop templates and some personalisation options for your app. Using a templated approach allows no-code app builders to keep up-front costs low and, at the same time, reduce the delivery timelines.

While it's relatively quick and easy to create apps with no-code app builders, there are potential pitfalls you need to consider.

For instance, you may need to complete training courses to use these platforms and because templates are rigid, the customisation options on offer are minimal.

In other words, you're restricted to the features in their library - and if these aren't sufficient, you may need to switch providers.

But doing so is challenging because of the vendor lock-in models no-code app builders operate on. As a result, you may need to start your project from scratch, skyrocketing the lifetime costs of your development project.

Project difficulty: 💪🏼💪🏼💪🏼

Project length: ⏰⏰⏰

Project cost: 💰💰

3 - Freelancer

Sites like Upwork and Fivver make it easy to find freelancers with the skillset you’re looking for. These marketplaces allow previous customers to rate the freelancer, which means you have an idea of their skill level. You can calculate the cost of developing an app by looking up developers' hourly rates in your country and the total development time.

App Development Cost = Total Development Time X Hourly Rate

Cost of app development in the UK

Hiring app developers in the UK can cost anywhere between $30–$60 per hour.

Cost of app development in North America

It's relatively expensive to develop an app in North America. For example, hiring app developers in the USA can range from $40-$80 an hour. In Canada, the hourly rates of app developers range between $29-$60 per hour.

Cost of app development in Eastern Europe

The hourly rates of app developers in Eastern Europe are relatively lower than in Western Europe and can range anywhere from $20 to $40.

Cost of app development in India

Developing an app in India is the most cost-effective option, given you can work out in different time zones. Hourly rates in India range between $8 to $30, with an average cost being $19 per hour.

As stated above, the average developer salary in the US is significantly higher than in most parts of the world. Although that doesn’t mean they’re better. Video chat means you can work with developers worldwide and find a team you trust. You want someone who understands your ideas and can convey your business's personality.

But there are a few concerns with this approach. Firstly, there are a lot of poor-quality freelancers and to find the right fit, some trial and error will be involved.

Secondly, freelancers typically juggle multiple clients. This means their resources may be stretched and your project could fall by the wayside.

If you’re lucky, you’ll find a skilled, hard-working freelancer who wants to see your idea succeed. More likely, you’ll get a quickly completed, mediocre app or an app that runs way over time and budget.

Because of their specialised skillset, freelancers likely won't offer to help you with design or maintenance, so you'll need to make other arrangements.

App maintenance services are also unlikely to be included, so you’ll need to make other arrangements.

Project difficulty: 💪🏼💪🏼💪🏼💪🏼

Project length: ⏰⏰⏰⏰⏰

Project cost: 💰💰

4 - Development agencies

Dev agencies typically have years of experience and create high-quality, custom software.

They may also deploy Quality Assurance teams to test your app and complete bug fixes, while offering a fully managed service and code access.

Although mobile app development companies offer several advantages, they do generally cost more. Also, there are potential risks you need to be aware of, including unclear pricing and delivery dates.

Unclear pricing can appear in a few ways. The most common is when a company gives you a quote and then surprises you a few months in with another invoice. They’ll claim that the feature was harder to implement than they anticipated or that your requirements weren’t communicated clearly.

Unclear delivery dates occur when companies don’t know how long the mobile app development process will take – they might give you a quote for 3 months but the project could end up dragging on for much longer. And if you’re paying by the hour or day, costs can easily skyrocket.

Lastly, maintaining and updating your app is likely to come at an added cost.

Project difficulty: 💪🏼💪🏼💪🏼

Project length: ⏰⏰⏰⏰

Project cost: 💰💰💰💰

5 - Work with Builder.ai

Established app development platforms like Builder.ai are one of the safest options for your app project. We have years of experience and have likely worked on large long-term projects.

Our all-in-one solution offers a middle ground between no-code app builders and dev agencies. On the one hand, this means you can create apps cost-effectively and at speed and on the other, templates don’t restrict you; the code is yours to keep and have the ability to level up your app as you scale.

When it comes to cost, the key differentiator of Builder.ai is that our platform provides guaranteed costs and operates on a pay-per-feature model. So, unlike freelancers and dev agencies who penalise clients when projects overrun, any delays are on us.

From a project management perspective, we also assign you a project manager. They’ll take personal responsibility for ensuring your app is exactly how you envision it. The project manager will have an app development team and UI designers working under them. This means you get an app that’s both beautiful and functional.

Where downsides are concerned, if you have technical skills or want to be hands-on in the development process, our platform may not be for you. This is because platforms like this handle all the technical tasks in your app project, making them more suitable for non-technical users or businesses without internal dev resources.

Project difficulty: 💪🏼

Project length: ⏰⏰⏰

Project cost: 💰💰💰

Are there any hidden app development costs I should know about?

It's easy to be enticed by low startup costs, but your total expenditure can soar quickly if you’re not aware of hidden costs.

To make sure your project runs smoothly and you stay within budget, let’s take a look at some of these crucial factors:

1 - Lock-ins

Most no-code app builders don’t let you keep your app's code; you rent it from them instead. That means you may have to continue paying them for as long as your app is in use, while it’ll also be very challenging to migrate to another platform or develop your app independently.

2 - Mobile app stores

Depending on whether you create an Android or iOS app, you'll need to pay a one-time or yearly fee to list your app on mobile app stores. But, more importantly, they'll take a 15% - 30% cut of your annual app revenue.

3 - App maintenance

Developing an app and publishing it to app stores isn't the end of your app development journey. You also need to fix bugs, update your software and resolve security issues when your app is live. App maintenance packages help you do this, but they typically come at an additional cost.

4 - Hosting

To make sure users can access your app, you need to find a third-party to host it. But this isn't the job of app stores.

Instead, you need to invest in the services of Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), or any other cloud platform, which usually operate on pay-as-you-go models.

5 - Adding new features

During or after the development cycle, you may want to add new features to your app. Adding them may change your initial estimations and increase the cost of your app development.

How Builder.ai demystifies app development cost

Now you know about all the key factors impacting app development cost estimates, it’s time to speak more about how Builder.ai helps to mitigate them.

Check out the table all the key pointers at a glance and see a detailed breakdown underneath 👇

See how we compare 👈

Transparent costs

When you choose Builder.ai as your app development platform, you get a guaranteed price for your project before any development starts.

By contrast to hourly rates and retainers, our unique pay-per-feature pricing model doesn’t penalise app owners if developers run behind. In other words, it’s on us if a feature takes longer for us to develop.

Our flexible payment plan also allows you to pay in either weekly or monthly instalments, which typically last around 24 months. As a result, you can avoid hefty up-front payments and accurately project your financials.

Zero revenue sharing

We know the pressure marketplaces put on businesses where they have to pay commissions and share as much as 30% of their revenue.

But with Builder.ai, you get to keep 100% of your profits, no matter how many sales you make. We never ask you to share your revenue or participate in profit-sharing schemes because we understand it's your business, your hard work, and it's yours to keep.

Keep your code

Once your payment plan is complete, you keep your code. That means you’re not reliant on us to scale, customise and iterate on your app, although we’re more than happy to help. Either way, you’re never locked into a lifetime contract.

One year of free app maintenance

Releasing an app is just the beginning, not the end, of your app journey. So while you get your ducks in a row, we give you one year of app maintenance free, ensuring that your software stays fresh and secure.

Leverage human-assisted AI

Our huge library of reusable features means we don’t have to create every component from the ground up. These are seamlessly fitted together by AI, allowing developers to focus on customisations. As a result, we keep the times and costs of your project as efficient as possible.

See our pricing 👈

Conclusion

By now, you know why “it depends” is the only real answer you can give to the question “how much does an app cost?”

With infinite functionalities and integrations, each project is unique and is developed to your business's specific requirements. It also depends on the type of platform you choose, the type of app you want to create and the features you need in your app.

What is clear, though, is that working with Builder.ai is one of the best ways to ensure your project doesn’t run miles over budget – a genuine concern with most other app development routes.

To explore what your project might cost, hit the banner below! 👇