What is the cost of mobile app development? This question is one of the most frequently asked ones in today’s growing customer needs and changing digital environment.
However, the answer to this question is not so simple even for mobile app developers.Why? Because there is no fixed development cost of a mobile application. It depends on numerous factors such as:
- Features and functionalities of the app
- Vendor type and their geolocation
- Complexity of UX/UI design
- Inclusion of additional branded visual elements
- Backend infrastructure
- Development approach (mobile web, native, hybrid, etc)
- Number of platforms to be developed (Android, iOS, web, etc)
With the increasing number of smartphone users, entrepreneurs are keen on developing a mobile application for their business. Smartphone users will surpass six billion in 2021 and according to the forecast it is going to grow by several hundred million in the next few years. That’s a lot of numbers!!
Did you know that mobile app revenues are increasing constantly? Here is a fact check to clear any confusion. Global mobile app revenue was 365 billion U.S. dollars in 2018. Mobile apps are projected to generate more than 935 billion U.S. dollars in revenues via paid downloads and in-app advertising in 2023.
In a nutshell, users download 30 apps each month. It is safe to say that investing in app development budgets is the need of the hour irrespective of the size of your business.
Keeping the above two factors in mind, in this article we will discuss:
- Cost of developing an app: ballpark figures
- Ways to find out your app development cost estimate
- Build your app in budget by understanding your app type
Cost Of Developing An App: Ballpark Figures
As you already know, the cost of developing an app with a mobile app development agency depends on the app’s complexity, features, and the type of firm hired to do the job.
Clutch surveyed 102 app development companies to determine the cost of building a mobile app. Below is the average minimum app development project size and cost survey.
According to the survey, the average minimum app development project is between $5,000 to $10,000. However, the typical cost to create an app is likely to be far higher. Let’s look into mobile app development cost estimate figures:
- The cost of developing a simple app for one platform is approx $60,000.
- Mobile app development budget for a basic app like Dominos varies from $60,000 to $150,000 per platform.
- Cost of mobile app development for a complex and multi-feature app like Instagram, Facebook, Uber, etc starts from $300,000.
You must be wondering about the timeline to build an app. According to a report by Outsystems survey, over 80% of mobile apps take 3 plus months to develop an app. However, 40% of apps are built in 6 plus months as they are more complex.
Ways To Find Out Your App Development Cost Estimate
While figuring out the cost of mobile app development you have to understand that mobile app development companies charge their clients using these two methods:
- Fixed charge
This approach can be used when the scope of work is absolutely clear and works well with smaller projects. The biggest advantage of this option is that the cost of mobile app development is fixed with the client before the development process begins.
- Time and effort based charge
This approach highly depends on the time and effort that is needed for a particular project. Hence, the cost estimate is calculated based on an hourly rate. The advantage of this approach provides flexibility during the app development process and is more suited for more complex and ongoing projects.
We highly recommend the time and effort based approach. We understand that this may leave you a bit uncertain and anxious but, by using this method you will have more flexibility. Not only will you have an initial project estimate, but also the ability to change the scope during the development process. This will help you to control the app budget and build an app that your target audience resonates with the most.
Also, there is a simple formula that one can use in order to find out the mobile app development cost estimate. All you have to know is the hourly rate and total app development time. The formula for calculating app development cost is as follows:
We can conclude that the development cost of a mobile application and its timeline is influenced by your app idea along with business and functional necessities. It also depends on the industry for which the app is developed. For example, the development cost for the banking or finance industry is different from other industries like automotive industry development cost or home services apps and so forth.
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