How much does an app cost: A 2024 Guide
Navigating the App Pricing Labyrinth
Costing an app can be like building a house. The cost can vary wildly depending on a number of factors. Who is the house being built for? What are their needs? How many rooms do you want? Landscaping? Smart home functionality? Underground bunker to house your Yeezy collection? The list goes on… and so do the costs.
If you know what you want, costing can be a smooth process, but apps differ from houses in that you likely don’t know what your user really wants. You might have an idea, but you need to test and change your app and features over time. So don’t think that apps are a one-off cost, they require continuous investment.
That being said, there are common factors which can determine how an app is costed. With over a decade’s experience in building high quality, enterprise-level applications we know what those factors are, and in this article we’re going to demystify them for you.
Before We Start… Some Basic Ranges.
All that being said, there are some basic cost ranges you can expect to pay depending on complexity.
An app with simple functionality built as a proof of concept could cost between $30,000 and $50,000.
A complete app with simple screens and no complex functionality could cost between $50,000 and $150,000
An app with some complex features could cost between $150,000 and $500,000
And a large scale enterprise app could cost $500,000 to $1,000,000 or more
It’s worth noting that apps you regularly use can cost companies millions per year to continuously maintain and update.
Right, with that out of the way… let’s talk about costing approaches.
App Costing Approaches Explained: How does an app developer cost an app?
There’s a plethora of ways that an app development team can estimate your app. The approach boils down to the complexity of the app and the team's experience. As a general rule, unless you have a very simple app, a fixed price cost is not likely to be the right way and below we’ll detail why.
One helpful mental model for determining the cost of an app is to think of the end product like an iceberg:
A small portion of the considerations needed for app development
What you see is a small portion of the overall effort. Lurking below the surface is a host of decisions to make, and an array of work to complete – all just to create an app to display what a user sees, and work how they expect.
Ok, let’s break down some project delivery methodologies to help you understand the costing methods for app development in 2024. First up - Agile.
Continuous evolution with Agile
App requirements are rarely static. They’re sometimes overwhelmingly complex, and capturing all the functionality upfront is nigh on impossible. If an app developer costs an app with reasonable complexity at fixed cost, there is a high chance that your experience as a customer will be less than ideal as they approach the budget. Things get rushed, cut, overlooked to deliver the app ‘on-time and on-budget’. This adds incredible risk for both parties. You will potentially receive an app with bugs, or worse, not what you were ‘sold’ and the developer may lose any margin on the project, causing a strained relationship. So what’s the solution? Enter Agile.
Agile is a continuous process which allows you and your development team to adjust the focus of requirements as you go. In a nutshell, you are provided with a team that can achieve a certain amount of effort in a given time, usually a fortnight - called a ‘sprint’. Here’s what it looks like:
Agile works well with continuous, smaller release cycles
Before each sprint begins your product manager works with you to determine what the most important work to complete in that time will be. It’s then broken down into tasks and the team gets to work. At the completion of the sprint, the process repeats. Each sprint, given the fixed amount of effort from the team, can be controlled from a cost point of view.
So with Agile the cost of your app relies on:
The size of your team
The rate they work at
How much you want to continue development
That’s it! We cover more on rates later in this article.
But, sure, that can sound a little daunting. An ‘endless’ process with no end in sight? So why can’t I just see the cost and timeframes for set phases like a house? Well, let’s cover that.
Costing in strict, clear phases. Let’s go chasing waterfalls.
Waterfall project methodology, unlike Agile, involves splitting a project into distinct phases, each phase dependent on the previous in order to proceed. Think of it like building a house. You determine requirements, design the house with an architect, then build it. Within the build there are trades that are reliant on the previous trades, so everything flows down from one piece of work to the next… like a waterfall:
Waterfall relies on a more strict, phased approach.
With a project deliverable like a house, waterfall can make sense. You can imagine how expensive it can get moving walls after the bricks have been laid… But for software, code can be continually refactored to accommodate new features. It’s not no cost, but it’s far easier to adjust and deploy code than it is to build a basement after the house is built.
Some pros and cons for waterfall methodology in costing an app in 2024:
Pros
You can see clear phases of delivery, each with an invoice instalment which can be gated to exit if you are not happy
You can have an overall understanding of delivery timeframes
You will see everything before its built within the design phase
Cons
Doing all design upfront can cause issues in development, apps are complex and require a team advising in all stages
Timeframes are rarely accurate leading to poor customer experience
Costs can blow out as requirements change throughout
Those are the two primary methodologies for delivering an app project. But how does an app developer cost using these? Two methods: Fixed cost and time and materials.
The dream. Fixed cost app development.
Fixed cost sounds like a fantastic approach. Surely an app developer, with years of experience, should know how much an app will cost? Well, it depends. Think of an app like Headspace. You would tell the developer what you wanted: defined meditation modules, user meditation tracking, a mindfulness knowledgebase. All very clear and documented.
But what if midway you wanted to integrate wearable connectivity? What if the app store requirements change half way through your project? Or you find out within development that users want shorter meditations with custom produced music and not longer, simple meditations? You’re stuck with the original scope otherwise costs need to change. Enter variations.
Variations are not ideal for you or app developers. Why? For a developer they need to manage the shifting requirements, estimate for the change (which slows things down) and then get your approval - for all of them. This leads to a slower process and one with constant additional costs for you. Not a great experience.
It’s not all doom and gloom however. Fixed cost can shine for simple, repeatable apps that the app developer excels in. For example, if your app is something very straight forward, with several screens with little to no backend or service requirements, or it is an ‘out of the box’ app with little to no modification, then a fixed cost might work for both parties. Just be wary of teams quoting you fixed costs on larger projects.
Ok, what’s the alternative? Time…. And other stuff.
Pay as you go with time and materials
We’ve covered the reasons why fixed cost pricing can work (and why it cannot), so what’s the alternative? Paying as you go with time and materials.
‘Time and materials’ (T&M) is just that. You pay for the time that your team spends by the hour and any required materials for your app (think fonts, licences, etc.).
The benefit of this, when combined with Agile, is that you have a max upper limit per sprint for your cost, and what will likely be achieved given the known total hours your team can work.
Additionally, ‘variations’ are baked into Agile when charging T&M. It’s welcomed as fluctuating requirements are often needed.
Great! So now we know a little more about how an app developer approaches costing and working with you to deliver your app. But the question remains:
How much will it cost to release my app?
Let’s dive deeper into what takes up the most time in any estimate.
1. How does app functionality impact cost?
Let’s lift the veil, peek behind the curtain, stare behind the screen? Bad analogy, but you know what we mean. There are a few high level things an app developer will consider when breaking down time estimates whether it be fixed cost or an agile, per sprint approach.
Simple functionality: Consider a simple 'Flashlight' app – basic, direct, with a straightforward cost structure. Known scope with little to no hidden unknowns. The cost is lower, the work easier.
Complex integrations: Have you ever opened an app like Transperth and wondered where all the data comes from? Just how does it know where the buses are? Well it’s… not simple. Each piece of data might come from a different system which needs to be integrated into the app. This can take hundreds of hours to implement, and there is never an off-the-shelf approach to this.
Licensing costs: Thinking of building a real estate app with Google Maps integration? Or a music app using Spotify’s library? Integrations elevate user experience but come with licensing costs– which vary wildly. Some are based on API (application programming interface) calls, some on flat rate annual costs. These need to be taken into consideration.
2. How does an app framework impact app development cost?
The frameworks chosen for your app impacts its stability, performance, and user experience. As well as initial and ongoing costs. How so? Read on.
Cross-platform frameworks
Tools like Flutter (a Google product) and React Native (a Meta product) aim to enable write once, run everywhere. You develop an app and seamlessly deploy it across iOS, Android, and even web. It’s economical and efficient, but sometimes might not offer the finesse of native apps. React native app development trades off these benefits with requiring extra work to support bleeding edge device features.
Native apps
Using Swift for iOS or Kotlin for Android, native apps are built like tailored suits – a perfect fit. They leverage platform-specific features ensuring a stellar performance. Think of Apple's own 'Maps' or Google's 'Google Earth' – they offer a user experience that’s hard to replicate on cross-platform tools. This is because there is no additional layer between the code and the device. If you’re interested in learning more, see our page on Native app development.
Out of the box solutions
Services like Softr or Glide for mobile apps allow low code or no code out of the box apps. They're predefined, require minimal customisation, and are pocket-friendly. However, they might not offer the uniqueness or scalability of custom-developed apps, and require a learning curve to use. It’s worth mentioning that with these service’s you often lack control of the code itself, and sometimes even ownership. So there’s a tradeoff between ease of use, cost and control.
If you need complex functionality, it’s always best to speak with a professional app developer.
3. How does app design impact cost?
We’d argue an app’s soul lies in its design – the perfect coalescing of user experience requirements and user interface design. And yes, the design itself can largely impact the overall cost depending on your requirements, even a very simple design can have high cost. It all comes down to a few simple factors:
UX (User experience) flows
A great user experience designer won’t make your app look good, but it will make navigating it a breeze. There’s a lot that goes into it! When designing UX flows, all options need to be considered. What if the user validation fails here? What if they go offline? What if they need to use a different payment option? UX designers consider everything and distil it down into a simple, pleasurable experience.
And in terms of cost, it comes down to how many flows you need. The number of flows can increase or decrease based on the user requirements and integrations needed.
An example of all the required screens and flows for one button in an app
UI (User interface) designs
Yes, yes, we know. UI, UX–it’s all a bit jargony. But bear with us. UI is commonly thought of as what you see, not how it works (that’s UX). Within UI design there’s a lot to consider too. For example, all elements (buttons, cards, forms, etc.) may need multiple states, screens transition from view to view with animation, icons need to be designed, and common ‘components’ need to be set up. There’s a lot there.
And the number of unique components and screens is largely what determines cost, as well as the level of animation you might require.
Continuous effort
Don’t think about your app as a short project with a clear start and end date and then you’re done. In our over 12 years experience we can confidently say that this does not work. You need to consider your app as a live service that requires ongoing maintenance and improvement to stay modern and up-to-date. Which is why design costs should be considered as an ongoing thing.
This iterative, ongoing process is baked into Agile, and simply means ongoing design costs.
Design systems
When you enter the world of large scale applications (think Real Estate’s app) with hundreds, if not thousands, of views and interactions, you need to start thinking about a design system.
A design system is a tool for a design team to create new functionality and update existing functionality in an efficient, measured way. It’s also critical for development teams at scale to know exactly what to build. It requires an initial investment, but is well worth it in the long run.
It’s a lot of work! A screenshot of a portion Google’s own design system for Material 3.
4. How does developer location impact app development cost?
Your choice of developers is crucial in ensuring your app is built professionally and delivers on your requirements. It’s a tempting idea to ‘outsource’ your app development to a more affordable option in other parts of the world, but let’s cover those factors and what that would mean for your app.
Does developer location matter in determining app cost?
Yes, absolutely. Location can have a huge impact on the final cost of your app. For instance, Silicon Valley developers come with a wealth of resources, experience, and networking opportunities for you, but you pay for this–sometimes in excess of $300 to $400 per hour.
In contrast, emerging locations for development such as the Philippines or Vietnam might offer competitive rates. However, it’s worth mentioning that you will require an additional management layer for that team with someone you trust. If that works, then it could be a viable option. But, will you get the quality? It depends on experience.
How does developer experience impact app development cost?
You always pay for experience. Wrapped up in that price is not just the cost of living of the locale of that developer, but also the years of experience building apps and knowing exactly what to look out for. An experienced developer means less hiccups, ability to develop more complexity, quicker turnaround times, less bugs, guidance to you for what to do (and crucially what not to do) and many more benefits.
Remember, price is what you pay, value is what you get. A higher-priced developer often delivers higher value.
At Adapptor we proudly employ 100% local app developers. We enjoy working side by side with our team and ensuring our clients can see first hand the app development process.
So we’ve covered pricing approach, functionality, frameworks, app design and locale. What’s next? Well, what happens when you launch an app? Ongoing evolution.
5. What are the costs to maintain and improve an app?
An app isn't a one-time affair. Think of it as a critical piece of software infrastructure for your business. It’s a living entity that needs to grow, evolve and adapt. So what factors impact the cost of this improvement?
Technology is not static. It changes over time.
New phones with new capabilities, smart watches, IoT devices, VR headsets. The list goes on. Technology is always changing and apps are not exempt from this. At the bare minimum, your app will need to be updated regularly to comply with changing app store requirements. There might be new laws which change how privacy is handled or deprecated features which need to be changed. Things like this are mandatory alterations which, if not actioned, will see your app delisted.
Beyond that, there are changes in consumer usage habits. New UX trends emerge and UIs become more modern overtime. You’ll need to continue to update your app to stay current and maintain performance.
An example of a ‘nearby’ feature within apps Adapptor have made over the years. Design trends change, apps need to evolve.
There’s a choice. Life support or evolution?
After your initial release, you can choose two paths. Do you simply support the app as it is and only update it to meet the mandatory requirements? Or do you listen to your users and continuously improve your app to grow your user base and usage?
Either way, you need to consider annual costs.
If you put your app on ‘life support’ you may need a minimum of 10 to 50 hours per month from your developer just to manage that.
If you want to continuously improve your app, you would continue the Agile process as mentioned earlier within this article. You can review analytics, gather customer feedback or generate ideas and implement them using a continuous improvement process. The cost of this is mentioned above, but you are in control of this based on the size of the team you employ. The intent is that if your app generates revenue, you are investing back into your app to further increase revenue.
Based on our experience, the evolution approach is the better way to go. You should consider a minimum of three years on this approach in your initial estimations to gauge the real cost of your app development.
In a Nutshell: Piecing Together the App Cost Puzzle
So that’s it. Those are the primary factors in how much an app costs in 2024. As you’ve learnt, the answer is… it depends. But, now that you’re armed with the knowledge of what it takes, when you decide to embark on your app creation journey you’ll understand why your developer estimates costs the way they do.
If you’re interested in discussing your own app idea, give us a call on +61 (0)8 6381 9170 or email us at hello@adapptor.com.au.
