How much does it cost to create a Mobile App?
There is no magic number instead there are multiple factors at play to determine the cost of a mobile app. Entrepreneurs have spent anywhere from five thousand to five hundred thousand in order to build a mobile app that they want. But don't worry not all mobile apps are created equal. Some are simple costing less and others are more complex.
How do companies calculate the cost of a mobile app?
Here is the typical way used by companies to calculate how much your mobile app is going to cost. And let's take a look at that right now.
Mobile app development companies will look at the cost and they look at the hourly effort and multiply that with the hourly cost, so, this is the formula that is typically used by most Mobile app development agencies. One is how many hours are they going to be spending on that specific feature in order to complete it, and then multiply that by their hourly cost.
Let's take an example to break this down even further. Let's think that you have an app which has five core features in it. You know this is what the companies would think of is that, how much time, how many hours would they be spending on each feature.
So let's say that it's gonna take 40 hours to do the first feature and it's gonna take 50 hours for the second one, 70 hours for the third one, 90 hours to do the fourth feature. Let's consider 100 hours to do the fifth feature. So that's roughly around let's say 350 hours.
Cost variation between two Mobile App Development Companies
Now if we take two different companies and two kinds of hourly rates into account then this is how much your app would cost to make Let's take a look. So the company one is gonna be charging let's say $40 an hour, and the company two is gonna be charging $140 an hour.
Now considering that it's gonna take 350 hours for your app to be built, let's take a quick look at that. So, 350 * 40 it would cost you $14000 if you go with the company number one considering that their hourly rate is $40 but not saying that cheaper is always the best option but we're just taking that as an example.
Let's take a look at the company number two, 350*140 it would cost you $49000. So that's the company number one is gonna charge you $14000 dollars to build your app, the company number two is gonna charge you $49000 dollars and the reason for that is because their hourly rate, the hourly cost is substantially different.
They're charging at $40 per hour and they're charging at $140 per hour. This is behind the scenes how they typically calculate the cost of your app.
Right, so this is for a simple app which has five features a complex app might take roughly around let's say 1500 hours for the mobile app development and the cost for that would be let's take a quick look at that as well. So 1500 with 40 that's $60k, wow that's a really bad writing but anyways gets the message across right.
So if we look at it for the second company 1500 into 140 that's gonna be $210K right so that's the difference for two kinds of apps, two kinds of companies, these are the numbers that you come up with.
So with a complex app it's gonna cost you $60,000 with company one and with Company two it's gonna cost you $210k.
How do these mobile app development companies define their hourly rates?
So why is the company 1 charging $40 while Company 2 is charging $140. All right so let's talk about some of the factors that impact the hourly rates. The clearest distinction between the hourly rates difference is going to be based on location.
The cost will vary greatly if you go out to a company which is based out of USA versus a mobile app development company which is based out of Ukraine or India.
You know the average cost of a company is roughly around $140 an hour. If you go to Europe that's gonna cost roughly around $100 an hour. If you go to Australia another $120 to $150 an hour range and in India it is starting anywhere from $20 to $80 depending on the quality.
So a basic app in India might start at let's say $10k and a similar app in the US might be roughly at around you $50K or $70K.
The second factor which will impact the cost of your app is going to be the platform. The number of platforms that you're considering for your product. If you're going with just Android or iOS the cost would be different but if you're going for both the platforms the cost will differentiate. It also differentiates from going with a native app versus a hybrid application.
Mobile App Features:
The third most important factor would be the number of features like we took a look at this example is that one two three four and five features all of them had a different hourly effort based on which we calculate the total hourly effort.
So the features like… Do you want people to sign up using a social platform or just an email or phone number or all of those factors? And then do you want to add any location-based services? Do you want to integrate a payment gateway? Would your app involve streaming, multiple languages, ads, chatting or offline mode.
All of those factors will play a huge role in defining what's going to be the cost of your app. You know the number of features, the complexity, the number of integrations they all play a major role in defining how much effort would be spent in building your app and then in turn will actually impact the cost of your application.
Mobile Application Design:
The fourth factor which plays a huge role is the design aspect of your application do you want a bare-bones design or do you want amazing beautiful modern premium designs?
The user interface and user experience driven apps they definitely stand out but they come at a price tag. The visual complexity leads to more effort both from back-end and front-end hence leads to your mobile app being more expensive.
Mobile App Development Company Team & Experience:
The fifth factor is team and experience. The Mobile app development agencies usually have different hourly rates based on different skill sets. Each member like a mobile app developers, a tester, a designer, or a solution architect will have different hourly rates.
In a decent sized company, you'll typically have anywhere around four five up to eight people working on a single project.
These are the five major factors that impact the cost of your app but you should also consider other factors like maintenance cost, infrastructure cost, you know it's important to make sure that you have a maintenance contract post release so that your app is future proof against any new updates by the operating systems which might just leave your app useless if not handled properly.
In terms of infrastructure your consideration towards the server selections and database selection or any major integrations with ERP or CRM all of these will actually add up to the cost of your app.
Cost-effective ways to build mobile application:
Alright now let's talk about the two cost-effective ways to build and launch your app.
The number one is MVP which is Minimum Viable Product. Start with a limited set of features.
Your core competency what is that one feature that provides the maximum value to your users. Start with that and then build slowly. Apps like Amazon, Uber, Facebook, Instagram they all started as an MVP with a limited set of features and look at those brands today and the number of features that they have. So start with an MVP.
The second approach is the SAAS approach. Now you may not find a SAAS option for all kinds of apps out there but there are plenty of subscription-based platforms out there today.
In a SAAS environment the service provider will basically host the mobile app for you they will run it host it maintain it and update it and all you have to do is pay a small fee to set up your account or a small monthly fee whatever their monetization strategy is. So explore a few options to see what works best for you based on your research and then take action. Do not get stuck in the research loop.