App Development Costs - Current Market Prices & Comprehensive Guide 2024

Cost factors in app development

Developing an app is a complex process with many factors influencing the overall cost. It is crucial to understand and evaluate these cost factors in order to find the right compromise . By doing so, you can ensure that you achieve the best possible outcome for your business goals while staying on time and on budget.

In this chapter, we provide you with the following overview of the most important factors that determine the costs of app development:

• Location and experience of the app developers
• Planning, conception and design
• Implementation, quality assurance & troubleshooting
• Platforms (Andoird, iOS, WebApp)
• Maintenance and updates
• Marketing and user acquisition
• Server and hosting costs
• Security and data protection requirements
• Types of contract for app development projects

Important: A large budget for the development and marketing of an app does not automatically guarantee its success on the market.

There are examples of apps that have not achieved the desired results despite high investments in development and marketing. In contrast, there are apps that became very successful and profitable with a more efficient approach.

Examples of failed apps despite high investments:

• Yik Yak: This anonymous, location-based messaging app was once valued at 400 million dollars, but failed to survive due to problems such as cyberbullying and a lack of a business model and was shut down in 2017.

• Quibi: A short-lived video streaming service that failed despite a $2 billion investment because it didn't offer enough engaging content and lacked device compatibility beyond cell phones.

• Hailo: This British cab app failed in North America, particularly in New York City, due to incorrect assumptions about the market and competition from Uber.

Examples of successful apps with efficient strategies:

• Instagram: Originally launched with a limited budget, Instagram focused on an MVP and achieved rapid market penetration. The app was later acquired by Facebook for 1 billion dollars.

• WhatsApp: With a focus on simple, cost-effective development and minimal marketing, WhatsApp achieved massive user numbers and was eventually bought by Facebook for 19 billion dollars.

These examples show that the commercial success of an app depends not only on the resources invested, but also on how well the resources are used. Gross misconceptions about the market and the needs of users can have fatal consequences.

Tight budget?

If the budget is tight, it might make sense to consider English-speaking developers from lower-cost regions such as Eastern Europe or Asia. These regions often offer high-quality services at a much lower cost. An agency in India or Eastern Europe could therefore be an excellent choice if you are committed to English as the project language.

Short on time?

If time is of the essence, for example because an investor needs to be secured, it is advisable to focus on a Minimum Viable Product (MVP) in order to bring the app idea to market as quickly as possible. An MVP makes it possible to develop the core functions of the app and test them on the market in order to obtain valuable feedback from real users or potential customers as quickly as possible, make any necessary adjustments and, if necessary, confirm the business case.

We often receive project inquiries from founders who are looking for comparative offers for their app ideas in order to take them into account when approaching investors.

High quality?

However, if you have sufficient budget and time available, it can make sense to work with a renowned app development agency. Such app agencies are able to develop complex applications, understand the needs of the target group and challenge the app idea. They also often have extensive marketing expertise, which can be crucial to the success of the app.

Butter to the fish, what does the fun cost?

To give you an idea of what you can expect financially, we've put together some sample costs for different levels of complexity. These estimates are based on hundreds of quotes that app development agencies have submitted to Feedbax in response to open project requests:

• Simple MVP (Minimum Viable Product): $10,000 - $30,000

• App of medium complexity: $30,000 - $70,000

• App with high complexity: $ 70,000 - $ 150,000+

For those with a smaller budget, there are various approaches to developing a complex app for under $25,000, for example.

In the following sections, we will look at these factors in detail and help you make an informed decision for your app development project.

You can find a great video that describes the cost development of apps very well here:

Developer location and experience are a strong cost factor

The experience level of the developers is a decisive factor that significantly influences the development costs and the quality of the work.

Junior developers

Junior developers generally have a lower hourly rate, but have less experience, which can lead to longer development times. There is also a higher risk of fundamental technical aspects being overlooked, which can lead to problems with scalability, security and stability.

Senior developers

Senior developers, on the other hand, have extensive experience and expertise, work more efficiently and can solve complex problems more quickly. However, this higher quality of work and the lower risk of technical errors come at a price, as the hourly rates are significantly higher.

Recommendation: Experience shows that we recommend a good mix of experienced developers or application architects and junior developers to achieve a cost-effective and high-quality solution. Experienced developers can take on the complex and critical aspects of the project, while junior developers perform supporting tasks to save costs.

Western Europe

Hourly rates: Developers in Western Europe, including countries such as Germany, the UK, the Netherlands and France, often charge between $80 and $150 per hour.

Professional expertise: This region offers highly skilled professionals with extensive experience in various areas of app development. Advantages include strong regulatory frameworks, high standards for data protection and data security, and cultural and linguistic proximity.

Disadvantages:

• High costs: hourly rates are significantly higher compared to other regions.

• Availability: It can be more difficult to find available developers as demand is high.

Example: A German development company could provide a team of experts who specialize in developing complex enterprise software and have experience with the latest technologies such as AI and blockchain.

Here you can find excellent app agencies in Western Europe incl. DACH region:

https://feedbax.io/app-development/western-europe 

Eastern Europe

Hourly rates: In Eastern Europe, which includes countries such as Poland, Romania and Ukraine, hourly rates are typically between $25 and $75 per hour.

Technical expertise: This region is known for its qualified IT specialists and offers excellent value for money. Developers from Eastern Europe are often well educated, speak several languages and have experience with international projects.

Disadvantages:

• Communication: language barriers can occasionally be a problem, although many developers speak English.

• Local expertise: If local or national guidelines and specifications are important for the project, providers from certain regions often cannot deliver the desired quality in relation to these specific requirements.

Forexample, a Polish agency might provide a team of developers who specialize in mobile app development and have extensive experience with API integrations and e-commerce solutions.

Here you can find our best app agencies from Eastern Europe:

https://feedbax.io/app-development/eastern-europe 

Asia

Hourly rates: In Asian countries such as India, China and the Philippines, hourly rates vary greatly, but are often between $10 and $40 per hour.

Specialist expertise: Asia offers a large number of IT specialists who work at competitive prices. Developers from this region have experience with a wide range of technologies and projects, although quality can vary greatly.

Disadvantages:

• Communication barriers: Language and cultural differences can make communication difficult.

• Quality differences: The quality of work can vary greatly, so careful selection is necessary.

• Time difference: The large time difference can affect collaboration and project coordination.

Example: An Indian development company might offer a team of developers who specialize in cost-effective Android and iOS app development and have experience with extensive backend integrations and scalable cloud solutions.

Important: If you are working with an agency from Asia, e.g. from India, it is advisable to plan for predominantly experienced developers and architects in your project team. A highly experienced app developer from India will bring outstanding expertise to the table and will be significantly more attractive in terms of price compared to domestic developers.

Here is our top selection of app development agencies based in Asia:

https://feedbax.io/app-development/asia 

Costs for planning, conception and design

The planning, conception and design phases of app development projects are crucial to the success of the project. In this early phase, the foundations are laid that not only determine the functionality and user-friendliness of the app, but also influence the costs of development. Here are the most important activities and their costs that can arise in these phases.

Planning phase

Requirements analysis: In this phase, the goals and requirements of the app are defined. This includes discussions with stakeholders, the collection of requirements and the creation of a specification sheet. This can take between 20 and 40 hours, depending on the complexity of the project.

Project management: A project manager coordinates the activities, plans milestones and ensures that the project stays on track. They also maintain continuous contact with the customer in order to receive feedback and ensure transparency in the course of the project. Depending on the complexity of the project and the size of the project team, this can take around 5 to 20 hours per week.

Market analysis: In order to understand the market opportunities and competitive conditions, a precise market analysis is recommended. This includes analyzing competitor apps and identifying the target group. This takes around 15 to 30 hours.

Conception

Prototyping: Initial drafts and mock-ups of the app are created here to visualize the concept and obtain feedback. This process can take between 30 and 60 hours, depending on the level of detail and number of iterations.

User stories and Use cases: These documents describe the user interactions with the app and help to clearly define the requirements. This takes around 20 to 40 hours.

Technical specifications: The technical architecture and specifications are defined to ensure that the app meets the requirements. This can take between 25 and 50 hours.

Design phase

UI/UX design: The user interface (UI) and user experience (UX) of the app are designed to create an appealing and intuitive user interface. This process can take between 50 and 100 hours, depending on the complexity, number of screens and specific design requirements.

Interactive prototyping: An interactive prototype is created to test the user guidance and functionalities. This takes around 40 to 80 hours.

Feedback loops: Based on user feedback and internal testing, adjustments are made to the design. These feedback loops can take an additional 20 to 40 hours.

Example costs

Here are some example costs for the planning, conception and design phase based on the above activities and current market data from Feedbax:

Western Europe (100 $/hour)

• Requirements analysis: 20 - 40 hours at 100 $/hour = $2,000 - $4,000

• Project management: 40 - 80 hours at $100/hour = $4,000 - $8,000

• Market analysis: 15 - 30 hours at $100/hour = $1,500 - $3,000

• Prototyping: 30 - 60 hours at $100/hour = $3,000 - $6,000

• User stories and use cases: 20 - 40 hours at 100 $/hour = $2,000 - $4,000

• Technical specifications: 25 - 50 hours at $100/hour = $2,500 - $5,000

• UI/UX design: 50 - 100 hours at $100/hour = $5,000 - $10,000

• Interactive prototyping: 40 - 80 hours at $100/hour = $4,000 - $8,000

• Feedback loops: 20 - 40 hours at 100 $/hour = $2,000 - $4,000

Eastern Europe (40 $/hour)

• Requirements analysis: 20 - 40 hours at 40 $/hour = $800 - $1,600

• Project management: 40 - 80 hours at $40/hour = $1,600 - $3,200

• Market analysis: 15 - 30 hours at 40 $/hour = $600 - $1,200

• Prototyping: 30 - 60 hours at $40/hour = $1,200 - $2,400

• User stories and use cases: 20 - 40 hours at $40/hour = $800 - $1,600

• Technical specifications: 25 - 50 hours at $40/hour = $1,000 - $2,000

• UI/UX design: 50 - 100 hours at $40/hour = $2,000 - $4,000

• Interactive prototyping: 40 - 80 hours at $40/hour = $1,600 - $3,200

• Feedback loops: 20 - 40 hours at $40/hour = $800 - $1,600

Asia (20 $/hour)

• Requirements analysis: 20 - 40 hours at $20/hour = $400 - $800

• Project management: 40 - 80 hours at 20 $/hour = $800 - $1,600

• Market analysis: 15 - 30 hours at 20 $/hour = $300 - $600

• Prototyping: 30 - 60 hours at $20/hour = $600 - $1,200

• User stories and use cases: 20 - 40 hours at $20/hour = $400 - $800

• Technical specifications: 25 - 50 hours at $20/hour = $500 - $1,000

• UI/UX design: 50 - 100 hours at $20/hour = $1,000 - $2,000

• Interactive prototyping: 40 - 80 hours at $20/hour = $800 - $1,600

• Feedback loops: 20 - 40 hours at 20 $/hour = $400 - $800

Must-haves version

If you are unable to implement the full scope of the above activities for budgetary reasons, it is possible to concentrate on the most important aspects, the so-called must-haves. Although this measure can lead to a loss of quality, these losses can often be compensated for by careful prioritization. By focusing on the essential activities and implementing them efficiently, you can still create a solid foundation for your project. For example, you can reduce the scope of activities in the planning phase as follows:

• Requirements analysis: 20 hours

• Project management: 40 hours

• Prototyping: 30 hours

• UI/UX design: 50 hours

Western Europe (100 $/hour)

• Requirementsanalysis: 20 hours at $100/hour = $2,000

• Project management: 40 hours at $100/hour = $4,000

• Prototyping: 30 hours at $100/hour = $3,000

• UI/UX design: 50 hours at $100/hour = $5,000

• Total costs: 14,000 $

Eastern Europe (40 $/hour)

• Requirements analysis: 20 hours at $40/hour = $800

• Project management: 40 hours at $40/hour = $1,600

• Prototyping: 30 hours at $40/hour = $1,200

• UI/UX design: 50 hours at $40/hour = $2,000

• Total costs: 5,600 $

Asia (20 $/hour)

• Requirements analysis: 20 hours at $20/hour = $400

• Project management: 40 hours at $20/hour = $800

• Prototyping: 30 hours at $20/hour = $600

• UI/UX design: 50 hours at $20/hour = $1,000

• Total costs: 2,800 $

Implementation, quality assurance and troubleshooting costs

The implementation phase is one of the most expensive phases of app development, as it involves the most development hours. In this phase, the previously defined requirements and designs are converted into functional code. Implementation requires careful planning and execution to ensure that all functions work as desired and that the user experience is optimal. The associated efforts and costs in this phase are explained below.

Development of the core functions

1. building the backend structure: The backend forms the backbone of every app. It manages databases, servers and API integrations. The effort required to set up the backend can vary greatly, depending on the complexity of the app. Typically, it takes between 100 and 300 hours. At an average hourly rate of $100/hour in Western Europe, $40/hour in Eastern Europe and $20/hour in Asia, the costs are as follows

• Western Europe: $10,000 - $30,000
• Eastern Europe: $4,000 - $12,000
• Asia: $2,000 - $6,000

2. frontend development: The frontend is what users see and interact with. It includes the development of the user interface and the implementation of the designs. The effort for frontend development is usually between 150 and 400 hours.

• Western Europe: $15,000 - $40,000
• Eastern Europe: $6,000 - $16,000
• Asia: $3,000 - $8,000

Integration of third-party services

Many apps require the integration of third-party services such as payment gateways, social media logins or map services. Each integration requires additional development effort, usually between 50 and 150 hours, depending on the complexity.

• Western Europe: $5,000 - $15,000
• Eastern Europe: $2,000 - $6,000
• Asia: $1,000 - $3,000

Implementation of security measures

Security measures are crucial to protect user data and ensure the operation of the app. This includes the implementation of encryption, authentication and other security protocols. The effort is often between 50 and 100 hours.

• Western Europe: $5,000 - $10,000
• Eastern Europe: $2,000 - $4,000
• Asia: $1,000 - $2,000

Testing and quality assurance

Extensive testing is required to ensure that the app is error-free and user-friendly. This includes unit tests, integration tests, user acceptance tests and performance tests. Testing often takes between 100 and 200 hours.

• Western Europe: $10,000 - $20,000
• Eastern Europe: $4,000 - $8,000
• Asia: $2,000 - $4,000

Example costs for the implementation phase

Here are the estimated costs for the implementation phase based on the above activities:

Western Europe ($100/hour)

• Backend structure: $10.000 - $30.000
• Frontend development: $15,000 - $40,000
• Third-party integration: $5,000 - $15,000
• Security measures: $5,000 - $10,000
• Testing and quality assurance: $10,000 - $20,000
• Total costs: $45,000 - $115,000

Eastern Europe (40 $/hour)

• Backend structure: $4,000 - $12,000
• Frontend development: $6,000 - $16,000
• Third-party integration: $2,000 - $6,000
• Security measures: $2,000 - $4,000
• Testing and quality assurance: $4,000 - $8,000
• Total costs: $18,000 - $46,000

Asia (20 $/hour)

• Backend structure: $2,000 - $6,000
• Frontend development: $3,000 - $8,000
• Third-party integration: $1,000 - $3,000
• Security measures: $1,000 - $2,000
• Testing and quality assurance: $2,000 - $4,000
• Total costs: $9,000 - $23,000

Platform-related costs

Choosing the right platform is a key aspect of app development that has a significant impact on costs and development effort. Different platforms come with different requirements, benefits and challenges that need to be considered when planning and budgeting an app project.

This chapter takes a detailed look at the costs and effort involved in developing on the most important platforms. These include native platforms such as Android and iOS, cross-platform frameworks such as React Native and Flutter as well as Progressive Web Apps (PWA). Each of these platforms offers specific advantages and disadvantages that can impact overall costs and timelines.

Native development for Android and iOS allows for the best performance and user experience, but is often more expensive and time-consuming. Cross-platform development approaches such as React Native and Flutter offer a cost-effective alternative by allowing a single codebase to be used for multiple platforms. PWAs offer a flexible and platform-independent solution that is particularly suitable for less complex applications, but has limitations in the use of native functions and performance.

Please note: If you want to use both native platforms Android and iOS, you usually have double the effort in development and maintenance. This is because Android and iOS use different programming languages and development environments. In addition, separate tests and updates have to be carried out for each platform, which significantly increases the effort and costs for the project.

A comprehensive analysis of the target group, the project requirements and the available budget is essential in order to choose the best platform strategy. In the following sections, the specific costs and efforts for each platform are explained in detail to help you make a decision and ensure that your project is both efficient and successful.

Native development: Android

Development for Android is usually done using Java or Kotlin. Android has a large user base and a variety of devices to support, which can make the testing phase more extensive and expensive.

Advantages:

• Large user base
• High flexibility in design and functionality
• Easier publication in the Google Play Store

Disadvantages:

• Fragmentation of the device market, which prolongs compatibility tests
• Higher maintenance costs due to the variety of devices and operating system versions

Costs:

• Development: 200 - 400 hours at $100/hour in Western Europe = $20,000 - 40,000
• Testing: 100 - 200 hours at $100/hour in Western Europe = $10,000 - 20,000
• Publication: There is a one-off fee of 25 USD in the Google Play Store.

Native development: iOS

Development for iOS is usually done with Swift or Objective-C. iOS apps are generally easier to test as there are fewer device models, but publication in the App Store is more strictly regulated.

Advantages:

• Homogeneous ecosystem with fewer devices and operating system versions
• Higher monetization opportunities through users willing to pay
• Better performance and user experience through optimized hardware-software integration

Disadvantages:

• Strict guidelines and approval processes in the app store, which can lead to delays
• Higher development costs due to the need for specific hardware

Costs:

• Development: 200 - 400 hours at $100/hour in Western Europe = $20,000 - 40,000
• Testing: 80 - 160 hours at $100/hour in Western Europe = $8,000 - 16,000
• Publication: An annual fee of USD 99 is charged for the Apple App Store.

The following chart illustrates the market shares of the leading mobile operating systems. Android is the clear market leader, while iOS has been steadily catching up since 2018:

Market shares of the leading mobile operating systems in internet usage with cell phones worldwide from January 2011 to May 2024 | Source: Statista

Cross-platform development: React Native

React Native makes it possible to develop an app for iOS and Android at the same time by reusing a large part of the code. This can significantly reduce development costs and times.

Advantages:

• One codebase for both platforms, which simplifies development and maintenance
• Faster development times and cost efficiency through shared components
• Strong community support and regular updates

Disadvantages:

• Performance can be lower than native apps, especially for graphics-intensive applications
• Dependence on third-party libraries that may not always be up to date

Costs:

• Development: 250 - 450 hours at $100/hour in Western Europe = $25,000 - 45,000
• Testing: 120 - 240 hours at $100/hour in Western Europe = $12,000 - 24,000

Cross-platform development: Flutter

Flutter, developed by Google, is another popular cross-platform solution. It offers high performance and enables appealing designs.

Advantages:

• High performance and responsive user interfaces
• Uniform code base for iOS and Android
• Wide range of design options thanks to flexible widgets

Disadvantages:

• Relatively new technology that is still maturing and whose long-term stability needs to be tested
• Smaller developer community compared to React Native

Costs:

• Development: 250 - 450 hours at $100/hour in Western Europe = $25,000 - 45,000
• Testing: 120 - 240 hours at $100/hour in Western Europe = $12,000 - 24,000

Progressive Web Apps (PWA)

PWAs are web applications that work like native apps. They run in the browser, but can work offline and have access to many native functions.

Advantages:

• Platform-independent, which increases reach
• No need for app store releases and approvals
• Faster development times and lower costs

Disadvantages:

• Limited access to native features, which can affect the user experience
• Limited performance compared to native apps

Costs:

• Development: 100 - 250 hours at $100/hour in Western Europe = $10,000 - 25,000
• Testing: 50 - 150 hours at $100/hour in Western Europe = $5,000 - 15,000

Cross-platform approaches are particularly suitable for projects with smaller budgets, as they make it possible to use a single code base for multiple platforms. This significantly reduces both development and maintenance costs. However, you have to do without some exclusive native app features, such as the full use of hardware-specific functions, advanced gesture control and the optimal performance that can only be achieved through native development. Despite these limitations, cross-platform solutions such as React Native and Flutter offer a cost-effective alternative for many applications.

Ongoing and additional costs

When planning and executing an app development project, it is important to consider the other cost factors and hidden costs in addition to the obvious development and implementation costs. These can have a significant impact on the overall budget and the long-term success of the app.

Maintenance and updates

Once an app has been published, the costs do not end. Regular maintenance and updates are required to ensure that the app runs smoothly, remains secure and is compatible with the latest operating system versions. This includes fixing bugs, adding new features and adapting to changing user requirements. Maintenance costs can be up to 20% of the original development costs per year.

Marketing and user acquisition

A well-developed app is useless if it is not discovered and used by users. Therefore, marketing and user acquisition are crucial. This includes spending on advertising (e.g. Google Ads, Facebook Ads), content marketing,influencer marketing and app store optimization (ASO). Marketing campaign costs can vary, but it is often recommended to allocate at least 30% of the total development budget to marketing.

Server and hosting costs

Apps, especially those with backend components, require server and hosting services to store and manage data. These costs depend on the size and complexity of the app, the number of users and the storage space required. Cloud services such as AWS, Google Cloud or Microsoft Azure offer scalable solutions whose monthly costs can vary depending on usage. A small project can get by on $50 - $200 per month, while larger applications can cost several thousand euros.

Security and data protection requirements

The protection of user data is crucial and must comply with legal requirements. This includes the implementation of encryption protocols, compliance with data protection regulations (such as the GDPR in Europe) and regular security checks. Security measures increase development and maintenance costs, but are essential to gain user trust and avoid legal issues. Security and privacy requirements can account for up to 10% of total development costs.

Contract types for app development projects and their impact on costs

The choice of contract type plays a significant role in the cost development of an app development project. The most common contract types include time and material (T&M) and fixed-price projects. Both models have specific advantages and disadvantages and are suitable for different project types and requirements.

Time and Material (T&M)

With the Time and Material (T&M) model, costs are calculated based on the actual hours and materials used. This offers a high degree of flexibility, as adjustments and changes can be made to the project at any time. In addition, the detailed billing of the hours and materials used ensures transparency. The disadvantage, however, is the cost uncertainty, as the final costs are difficult to predict and depend heavily on the efficiency of the development team.

An example: a project with 400 hours of development at $100/hour, 100 hours of design at $80/hour and 50 hours of testing at $70/hour would cost a total of $51,500.

Fixed price projects

With fixed-price projects, the total costs are determined in advance. This provides cost certainty and clear budget control, as there are no cost surprises. However, this model limits flexibility, as changes and adjustments can be difficult and expensive. In addition, providers often calculate higher costs to cover risks, which can make the project more expensive overall.

For example, a project with a defined scope and deliverables could be estimated at a fixed amount of $60,000, regardless of the actual effort involved.

Please note: Clients who have to keep a strict eye on their budget are better off with the fixed price option, as the cost risk in this model usually lies with the service provider.

Tips for reducing costs

Developing an app can be expensive, but there are various strategies to reduce costs without compromising quality. Here are some best practices:

Prioritize features

A clear prioritization of functions helps to focus on the essential aspects of the app and avoid unnecessary features. Start with the most important functions that bring the greatest benefit and add further functions step by step. This not only reduces development costs, but also complexity and time.

Use open source tools and libraries

Open source tools and libraries offer a cost-effective way of implementing frequently required functions. Many open source projects are well documented and widely used, making integration and maintenance easier. By using these resources, you can save development time and avoid license costs.

MVP approach (Minimum Viable Product)

The MVP approach focuses on developing a basic version of the app with the most important functions. This allows you to bring the app to market quickly, collect user feedback and further develop the app based on this feedback. An MVP reduces the initial investment and minimizes risk by testing market acceptance early on.

Offshore and nearshore development

Working with development agencies or freelancers from lower-cost regions can bring significant savings. Offshore development refers to outsourcing to distant countries with lower labor costs, while nearshore development involves working with neighboring countries. Both approaches offer access to skilled labor at lower prices, but require careful communication and project management.

Choosing the right platforms

Choosing the right platform can have a significant impact on development costs. Cross-platform development approaches such as React Native or Flutter make it possible to use a single code base for multiple platforms. This significantly reduces both development and maintenance costs compared to native development for Android and iOS. PWAs offer a flexible and cost-effective alternative, but are limited in their features.

To illustrate how much you can save through the chosen approach and prioritization, we give you the following example calculations:

Sample calculation: Full feature (developer from Germany)

Activities and cost breakdown:

Android and iOS development (full feature)

• Requirements analysis: 40 hours at $100/hour = $4,000
• Project management: 80 hours at $100/hour = $8,000
• UI/UX design: 100 hours at $100/hour = $10,000
• Backend development: 300 hours at $100/hour = $30,000
• Android development: 400 hours at $100/hour = $40,000
• iOS development: 400 hours at $100/hour = $40,000
• Integration of third-party services: 100 hours at $100/hour = $10,000
• Security measures: 100 hours at $100/hour = $10,000
• Testing and quality assurance: 200 hours at $100/hour = $20,000
• Marketing and user acquisition: 30% of the development budget = $52,800
• Server and hosting costs: 1 year at $300/month = $3,600
• Maintenance and updates: 20% of the development costs per year = $41,600

Total costs: 270,000 $

Example calculation: MVP approach (developers from Eastern Europe)

Activities and cost breakdown:

MVP with nearshore development and PWA approach

• Requirements analysis: 20 hours at $40/hour = $800
• Project management: 40 hours at $40/hour = $1,600
• Basic UI/UX design: 50 hours at $40/hour = $2,000
• Backend development: 150 hours at $40/hour = $6,000
• PWA development: 200 hours at $40/hour = $8,000
• Integration of third-party services: 50 hours at $40/hour = $2,000
• Security measures: 50 hours at $40/hour = $2,000
• Testing and quality assurance: 100 hours at $40/hour = $4,000
• Marketing and user acquisition: 30% of the development budget = $7,380
• Server and hosting costs: 1 year at $150/month = $1,800
• Maintenance and updates: 20% of the development costs per year = $ 6,360

Total costs: 42,940 $

Practical examples from our project exchange

The complexity of an app and the number of features implemented are decisive factors that significantly influence the development costs and time required. The complexity of an app can range from simple, basic applications to highly complex systems with a wide range of functions. In general, apps can be divided into three complexity classes:

Simple apps

Simple apps have basic functions and a simple user interface. They are generally cheaper and quicker to develop. Examples of simple apps are calculators, note-taking apps or to-do lists. These apps do not require extensive backend integration or complex features and can often be created by a small team or even a single developer.

You can find an example of a simple app here in our project exchange:

https://feedbax.io/project-inquiries?project=PJ-2461-620  

The most cost-effective quote we obtained for this client was $12,000 from an app agency in Eastern Europe.

Medium complexity

Apps of medium complexity offer more functions and a more sophisticated user interface. They can include database integration, interface connections and additional user interactions. Examples of medium complexity apps are social media apps, simple e-commerce applications or scheduling apps. These apps usually require a larger team and a longer development time.

You can find an example of a more complex app here in our project exchange:

https://feedbax.io/project-inquiries?project=PJ-23298-901 

The average of the offers we received for this client was $20,000.

High complexity

Highly complex apps have a large number of functions, a complex user interface and often also extensive back-end integration. Examples include on-demand apps such as Uber, extensive e-commerce platforms or business solutions with numerous modules and interfaces. These apps require an experienced team, extensive planning and test phases as well as considerably more resources.

You can find an example of a more complex app here in our project exchange:

https://feedbax.io/project-inquiries?project=PJ-23208-187 

The average bid amount here was $77,000.

Conclusion

The development of an app is a multi-layered process that involves numerous cost factors and hidden expenses. From the choice of platform and implementation to maintenance, marketing and security - every step requires careful planning and budgeting. Native platforms such as Android and iOS offer a first-class user experience, but are more costly and time-consuming. Cross-platform solutions such as React Native and Flutter allow for more efficient development, while PWAs are a cost-effective alternative, but with functional limitations.

Maintenance and regular updates are essential to keep the app functional and secure. Marketing and user acquisition are crucial to reach a broad user base. Server and hosting costs as well as security measures must also be considered to ensure a reliable and secure application.

To save costs, you can prioritize features, use open source tools, apply the MVP approach and consider nearshore or offshore development. These strategies allow you to work more efficiently and make the best use of resources to develop a high-quality app that both meets user requirements and stays within budget.

Ultimately, thoughtful planning and efficient resource management is crucial to developing a successful app that delivers the desired value and can be operated sustainably. By carefully analyzing the target audience, requirements and budgets, as well as strategically selecting development approaches and platforms, you can lay a solid foundation for the long-term success of your app