App Development Cost in 2022

How to evaluate your app development cost properly?

Developing an app for your company or a startup is a risky but thrilling enterprise. Well, you probably know that it's impossible to provide an accurate as it’s impossible to provide an accurate estimate of the app cost development without exact and detailed data about your company, business goals, your app functionality, user processes, financial restrictions, and much more. Follow the article to examine the useful insights into the app development and cost minimization hints.

01
Features
02
Time
03
Hourly rate
04
Cost

How much does it cost to develop an app in 2022?

As the Clutch states, to create an app today costs $171,4k, whereas you can build a Minimum Viable Product for $10k to $20k. This preliminary estimation is based on a number of parameters. The huge app costs’ discrepancy is dependent on the product complexity, number of features to be included, the vendor location, the functional platform and OS, and other important factors.

Create an app today costs $171,4k Create an app today costs $171,4k Create an app today costs $171,4k

7 steps of mobile app development process

The stages are: Software requests identification - Prototyping - UX/UI design - Development stage - QA - Launch - Support and Backup. Having each stage of your app developed with the full comprehension of the process and expert support, you can order a highly qualified team to realize your boldest dreams.

Steps of mobile app development process Steps of mobile app development process

App development cost depends on:

Complexity Level of App Development

Basic app:

do not require a network connection or backend development
Cost: $10k – 15k (clocks, calculators, and small games)
Time: a month
Example: a classic To-Do

Data-driven app:

receive big amount of information to be shared with users but are now launched as byproducts
Cost: $15k – $20k (maps, calendars, weather forecast apps)
Example: a simple calendar app

Apps with user authentication and personalized data:

these are loyalty apps that store customer data and share information across devices. This app type is more complicated and expensive, thus, demanding user control
Cost: $40k – $80k
Example: McDonald’s Loyalty app

Social network app:

managing millions of everyday interactions, chats and allowing users to share data, this app types demand a sturdy backend functional with amplified cost
Cost: $60k – $300k
Example: Facebook, Instagram, LinkedIn

E-commerce app:

this marketplace apps require a lengthy list of parameters (user registration, catalogs, social interactions, product pages and descriptions, payment options
Small app cost: $60k – $300k
Example: Amazon, Alibaba, EastBay

On-demand service app:

bridging the gap between service providers and users, so, complying with the demand, this type of apps combines the social network and eCommerce app components, compelling for significant funding
Small app cost: $80k – $150k
Example: Grubhub, Uber

Marketplace app:

these marketplace platforms combine eCommerce and on-demand apps’ features. They propose a plurality of different services and provide swift access to the customer’s service provider
Small app cost: $150k – $300k
Example: Booking, Tripadvisor
Concealed app development to think about are various side factors that can significantly influence your budget:
- with every little factor bearing its own cost
- examples - quality assurance, administrative and functional services, infrastructure, and IT support services
Vendor Type and Location

Depending on a developer team’s type:

01
Small independent firms: consist of freelancers capable of developing an app but unable to deliver complex solutions, while offering the lowest mobile app development costs.
02
Specialized companies: concentrate on developing software and propose more expensive services with optimized results.
03
Big agencies: offer an excellent product with the sophisticated staff and wide services’ range, yet, are generally less flexible and ask the highest price for the app development.

Depending on the service type:

Thinking about developing an app afresh, regard end-to-end mobile development

Portfolio

If you haven’t decided yet on the exact app needs and scopes, and want to remain agile, make a bet on qualified development teams swiftly incorporating in your in-house crews in the project course.

Team

Depending on a developer team’s location:

So, hiring a remote team from Eastern Europe or some Asian countries may be a good budget-saving option.

diagram

India

20 - 30 USD / hour

In Eastern Europe

40 – 60 USD / hour

In Western Europe

65 – 100 USD / hour

In the US

100 – 150 USD / hour

App features and their compoundness:

The number of features and their performance complexity increases the development apps cost, yet, enriching your software project with uniqueness. Basic app characteristics (login and subscription) - 20-25 hours to develop; More advanced functionalities (integrating payment systems and visual analytics) - 150 - 250 hours, is more expensive to develop; Incorporated API, upgraded with ML and AI technologies, also with geolocation, increases the cost.

UX/UI design complexity :

While choosing between your solution’s elaborated design, or user-friendly navigation, not to forget effective capacity, take a step towards building customized UI/UX design (icons, buttons, and fonts), with highly-qualified design experts will make your app look exquisite and provide fabulous UX.

Portfolio

App development approach to the functionality and the platform :

To avoid inexact costs and save your money and time, get a consultation on the app type you choose, so that you better understand the important details and then take the final decision. App development costs start from 40$ per hour. So, to have an approximate evaluation of your app project, you may contact the developer. Whether you want to build up an app on iOS or Android (a native platform app), or make it run on both platforms equally smoothly (a cross-platform app), estimate your budget carefully:

Basic functionality app - it takes 1200 hours (2 to 4 months) to develop whereas a hybrid app development team can build a product with primary components, low-tech screens and the essential UI features.

$72k

In Western Europe

1200 hours (2 to 4 months)

$96k+

In the USA

1200 hours (2 to 4 months)

Complex app with intricate features - 2500 hours (8 months to 1 year or more); a native platform with labor-intensive features (audio/video streaming), multifunctional apps with complicated design and advanced features such as real-time synchronization, and post-production support.

$150k

In Western Europe

2000 hours (6 to 10 months)

$200k+

In the USA

2000 hours (6 to 10 months)

Platform to run your app on:

01

Hybrid or cross-platform app running either on Android or iOS platforms. Need extra libraries or coding to realize such a solution. Think about the market share, your device fragmentation, and the dominance. Benefits of smooth compatibility and operation, using platform-specific features to create a better UX.

02

Native platform apps are supported only on a single platform, iOS or Android. 2 special development teams. The cost is two times higher due to creating actually two apps for both platforms and, subsequently, doubling your money, time and development efforts.

Constant software backup and maintenance

Ongoing support of your app software is required, therefore, constant support and adjustment, fixing defects and adding new functionality takes about 15% to 20% of your whole app development.

App for changing the Apple Watch wallpaper
Mobile app for changing the screens of Apple Watch. The app allows to customize the time position, add stickers and text.

5 crucial points to evaluate your project cost:

Ongoing support of your app software is required, therefore, constant support and adjustment, fixing defects and adding new functionality takes about 15% to 20% of your whole app development.

1
Define a project`s complexity
2
Give ballpark estimates
3
Build and estimate the scope of work
4
Add a risk buffer
5
Make room for “time eaters”
Identify the compoundness of your project, divide it into smaller and realizable tasks to distribute them between team members, estimate time span of each task and your team’s hourly rate.
Plan your resources, providing enough qualified staff and capacity (e.g., complete hiring several developers and QA experts with freelancers)
Choose an estimation method: ballpark estimation giving a rough cost amount, parameter-based evaluation containing historical data and actual calculations, and three-point method. Take the previously calculated duration of each task and multiply it by the team member’s hourly rate (it’s more time-consuming and with much more accurate results.)
Three-point method incorporates risk analysis, beyond all, so that your IT partner constructs 3 average mobile app development projections: optimistic, pessimistic, and realistic one, whereas the optimistic design presents the scenario that runs smoothly, whereas the realistic scenario is somewhere in the middle.
Think about employing a sophisticated software development company
Build and evaluate the scope of work
Monitor budget spending

Mobile App Development Cost in 2022:

The hourly rates of the developers’ average salary in Eastern Europe are $40 per hour, with the app development cost in the USA, Australia, and Western Europe, etc. being much higher.

Components
Length
Cost
Search engine
10 hours
$500 - $600
Payment gateways
50 hours
$2,000 - $2,600
User registration
20 hours
$800 - $1,000
Geolocation
50 hours
$1,500 - $2,000
Integrating Google Maps
20 hours
$1,300 - $1,600
Video/audio streaming
30 hours
$2,300 - $3,000
Payment gateways
50 hours
$2,000 - $2,600
Chat
80 hours
$2,500 - $3,200
Offline regime
40 hours
$3,500

Costs of the world-renowned apps components development:

Uber App Elements

Passenger app

Driver app

Admin panel

Analitics

Modular Approach

Sign app

Aggregation

Scheduler

Promo

Matching

Notification

Tracking

Payment

Review

Tinder app:

  • Profile and user registrations - $3k
  • Push notices - $3,5k
  • Parameters - $3k
  • Geolocation - $2k
  • Communication - $6,2k
  • Matching components - $4,5k
  • UI/UX designer - $4,5k
  • Incorporated third-party solutions - $1,5k
  • QA team - $7,1k
  • Project manager - $3,5k

Total: $38,9k - a basic Android or iOS app similar to Tinder.

Uber app:

  • Payment - $2,6K
  • User registrations & profile - $3k
  • Evaluating a ride cost - $2k
  • Scheduling a ride - $5,5k
  • Geolocation - $2k
  • Push notices - $3,5k
  • Splitting cost - $5,8k
  • Back-end - $6,8k
  • Project manager - $6,5k
  • Integrating libraries and framework for iOS or Android - $6,5k
  • UI/UX design for iOS or Android - $6k
  • QA staff - $13k

Total: $63,2k - an Android or iOS app similar to Uber

Aspects that influence app costs:

01
Level of tech and design complexity
02
Platforms to build your app on
03
Teams, and persons

7 steps to curtail your app development cost and make the development process affordable

01
Research comprehensively, master the technologies and platforms, discovery your competitors and target audience
02
Choose a proper provider: learn the products they have built, and research into the reviews. Don’t be shy to claim for the money objective calculation as competent development teams provide your effective budget expenses and staying within it till the end.
03
Regard subcontracting to Eastern Europe firms.
04
Build your app first with a minimum indispensable number of features (MVP), like a ride only for an Uber-like app.
05
Make plain design with basic laconic elements. If the app is a success and its feature has consoled the target audience pain, later advance to something more complicated.
06
Evaluate costs: begin with a ballpark estimation, and adjust your budget phase by phase.
07
Keep to your app scaling on this first MVP app development stage.

Your Options When It Comes to App Development

Variant 1: Enrolling a resident agency to build your app: local companies' prices will be higher:a the total startup work is for 400 hours and taking an average rate of $100, you are looking to spend $80k:

you maintain constant communication while supporting highest range quality and making permanent changes with the supreme accountability the cost is exorbitant ($40k for an MVP)

Variant 2: Building an in-house unit for a small full-time IT department in a company to manage both support and development of internal information systems, but it’s quite costly as specialists’ salaries are: full stack developer - $98k/year, iOS or Android Developer - $85k/year, designer - $85k/year, yet, working for equity from the beginning, you can halve spending the budget:

pros: permanently communicating ideas and full involvement of all the team, and managing the full app development process.

cons: quality, accountability, financing, and employee well-being are completely your responsibility; narrow pool of candidates, and longer time-to-market to find each task’ specialists.

Variant 3: Developing apps on outsourcing for large-scale multi-stage projects is advantageous if you are a startup and for MVP at a reasonable price and low risks. Qualitative work from China, Easter Europe or India guarantee skillful development and designing teams ensuring creativity and good product quality. Though there’s a large pool of globally spread applicants, it’s shorter time-to-market.
Variant 4: Enrolling freelancers to test a quick hypothesis / implement a small project with a small budget - on a contract basis or on an hourly basis on platforms like Fiverr, Upwork, Toptal, PeoplePerHour. Salaries are profitable: US - $50/hour, Asia - $15 - $25/hour, Latin America - $20/hour, yet, the minus is freelancers’ unreliability.:

Check-list: What to be aware of when choosing your app development company

Hint 1:
Research into the data protection policy and the company privacy, together with intellectual property rights beforehand to guarantee your team’s security and personal data protection.
Hint 2:
Opt to select a full-service software development company with a well-deserved reputation and an impressive portfolio to provide you with all the comprehensive resources at every stage of an app creation.
Hint 3:
Meet the developers face to face to find out their app development portfolio, briefly reveal your app project, and ask their opinion to feel sure about their capacities.
Hint 4:
Discover the team’s portfolio and thoroughly study their app templates to clear up their functionality and usability, not to forget uniqueness.
Hint 5:
Decide on your app requirements and learn global technologies for mobile app development to decide on the company.
Hint 6:
Study the clients’ satisfaction by the company and invite your friends/colleagues to test the product.

App features and their compoundness:

Revealing the app development cost is a multifactor and complicated enterprise as minimizing expenses and considering all the risks together with providing so much info is overwhelming.


Yet, without the complete consideration of all the variables and understanding the specifics of the process, even the most fabulous idea can crumble, either because of the misfitting provider, or due to the miscalculated budget, or the number of features for your MVP overestimated.


The app development cost requires so many aspects to be taken into account, so don't miss the chance to get high-end expertise to have your app development work performed properly and in prompt terms.

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