Expert Guide Series

How Much Does It Cost to Build a Mobile App?

  
Welcome

Introduction

One of the most asked questions we get at Glance is "How much it will cost to develop my mobile app idea?" and the short answer is "It depends.". It's a pretty common question and for good reason. With our lives increasingly dependent on mobile technology, turning a brilliant app idea into reality can be both exciting and daunting with the financial aspect being a fundamental concern. The cost of developing a mobile app can vary dramatically (and we do mean dramatically) and is influenced by a wide range of factors from complexity and team location through to overall approach and design. 

To help you out, we've put together this guide covering the main aspects of an app development project that can either put the price up or help bring it down. By the end of this guide, you'll not only understand the most typical cost breakdown but also how to balance cost with quality to ensure you maximise your return on investment (ROI).

As the saying goes: 

Good, fast, and cheap: pick two.

Understanding any potential trade-offs you take will arm you with the knowledge to make the most informed decisions during the app development process and ultimately achieve your dream of bringing your app idea to life.

  
The Basics

Understanding the Key Cost Drivers in Mobile App Development

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Several key factors significantly affect the cost of developing a mobile app. The most obvious one is the complexity of the app itself, its features and the overall size of the project. An app with basic features, such as a simple login, basic user interface, and minimal functionality, will be less expensive than an app full of intricate features like real-time updates, messaging, complex data processing, or integration with third-party services. 

The intended platform for your app is another key cost driver. Developing for iOS, Android, or both (whether natively or cross-platform) can have a varying impact on your budget. Generally, developing for a single platform is less costly than creating an app that is released on multiple ones due to differing codebases and testing requirements of each platform. 

The nature, and location, of the development team can also influence cost. Hiring an in-house team might offer more control and better project communication but often comes at a higher cost due to salaries, benefits, and company overheads. Conversely, outsourcing to a specialist agency or working directly with freelancers might save you money but can also introduce challenges related to coordination, effectiveness and quality control

Integration with third-party APIs and cloud services is another aspect that can increase costs. Backend services (APIs) allow different software systems and services to communicate, enhancing your app's functionality, but they often come with their own set of fees, whether a one-time cost or subscription-based. 

The user experience (UX) and user interface (UI) design also play a fundamental role in cost. Creating an app with a polished, fluid, user-friendly design can often be more expensive due to the increased time and expertise required. However, investing in good design can lead to better user retention and satisfaction, offsetting initial development costs. Taking a shortcut here can save costs but you need to ensure your app will achieve the results you want to have a positive ROI.

One of the most overlooked costs is that of maintenance and app updates. A successful app requires continued support in terms of server maintenance, bug fixes, and regular updates to keep user interest alive and ensure compatibility with new OS versions and devices as they are released. 

Understanding these key cost factors can help you make the most informed decisions as you allocate a budget for your mobile app development project, setting realistic expectations and optimising resources effectively in order to achieve your goals.

  
Factor 1

The Role of App Complexity on Price

App complexity is one of the most significant factors influencing the cost of a mobile app development project. When we refer to complexity, we are talking about the range of features, the intricacy of functionality, and the overall architecture/scale of the app. The more complex and feature-rich your app is, the more resources and time are required to develop it, which in turn drives up the costs. 

Basic Apps include simple functionality with limited features, such as a simple user interface without too many screens. Often, you’re looking at straightforward navigation, basic information display, and standard animations. These types of apps are generally the least expensive to develop because they require fewer development hours and simpler coding approaches. You can expect these types of apps to range from £15,000 to £30,000. 

Moderately Complex Apps, on the other hand, bring in more advanced features like API integration, user authentication, real-time synchronisation, and more detailed UI/UX elements and animations. This requires more extensive design and coding as well as thorough testing to ensure your app runs smoothly across all of the different devices and platforms. As a result, the development timeline increases, and so does the cost, usually landing somewhere between £30,000 and £60,000. 

Highly Complex Apps are where we see the highest development costs and for good reason. These apps might incorporate augmented reality (AR), artificial intelligence (AI), high-level security protocols, advanced back-end server support, and integration with multiple third-party platforms and services. The sophistication of these features requires a higher level of expertise and a much longer timeline, making these projects substantially pricier—sometimes exceeding £100,000. 

Type of App Complexity Level Estimated Cost
Simple Apps Low £15,000-£30,000
Data-Driven Apps Medium £30,000-£70,000
eCommerce Apps Medium to High £30,000-£120,000
Social Networking Apps High £50,000-£150,000
Gaming Apps Very High £50,000-£200,000
Enterprise Apps Very High £50,000-£200,000
Highly Complex Apps Extremely High £150,000+

It's essential to consider that while increasing complexity does increase your costs, it also boosts the potential value of your app both in terms of revenue as well as an investment for individuals or investors looking to invest in a high-growth digital product. A more sophisticated app with advanced features can offer a much better user experience and added feature set,  potentially leading to increased user engagement and ultimately a higher return on investment. 

However, complexity isn't solely defined by the number of features. Even a simple app with a single, yet extremely refined feature might require intricate engineering and extensive testing. Therefore, understanding the role of app complexity is crucial in accurately estimating your budget.

  
Factor 2

Choosing Between Native, Hybrid, and Web Apps: Cost Implications

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The choice between native, hybrid, and web apps significantly impacts the overall development cost and each has its ideal place in the market. Each approach comes with its own set of pros and cons, which you need to look at carefully if you want to make an informed decision. 

Native Apps are built specifically for a single platform, such as iOS or Android, using platform-specific languages like Swift for iOS and Kotlin or Java for Android. The primary advantage of native apps is their high performance and seamless integration with the device's hardware and OS features. However, this comes at a higher cost due to the need for separate developers for each platform (working as a single team usually). Furthermore, maintaining these apps can be more expensive because updates and bug fixes have to be carried out individually for each platform. 

Hybrid Apps blend elements of native and web technologies. They are essentially web apps wrapped in a native shell, allowing them to be distributed via app stores. Developed using frameworks like React Native and Flutter, hybrid apps share a single codebase, making them a cost-effective solution compared to native apps. They offer moderate performance and can operate across multiple platforms with reduced development time, which can significantly lower overall costs. A typical hybrid app can reduce your overall budget by up to 35%, but this can vary based on complexity and features. Whilst the cost saving is attractive, you must balance this with the lower quality compared to native and ensure that you can achieve your business objectives with this approach.

Web Apps are accessible via web browsers and are developed using standard web technologies like HTML, CSS, and JavaScript. They are the most economical option since they bypass app store distribution and require no installation. However, web apps offer limited access to device features and generally provide lower performance compared to native or hybrid apps. While web apps are easier and cheaper to maintain, they may not provide the best user experience, especially if advanced functionalities are required. 

Ultimately, the choice hinges on your budget, target audience, and the specific features you want to implement. Native apps tend to be the most expensive yet deliver superior performance, making them ideal for high-quality, feature-rich applications where a high ROI is required. Hybrid apps offer a balanced approach, making sense for those looking to minimise costs while reaching a broad audience. Web apps, while the least expensive, are best suited for simple applications where user experience and performance are less critical or where asking people to download an app just doesn't make any sense.

    
Factor 3

Outsourcing vs In-House Development: A Cost Comparison

Deciding whether to outsource your mobile app development or keep it in-house comes down to several key factors including expertise, cost, and desired project timeline. Let's see how each option stacks up. 

Outsourcing Development: This route offers a multitude of benefits, especially if you're looking to develop a Minimum Viable Product (MVP). By outsourcing, you leave the technical heavy lifting to seasoned professionals, allowing you to focus on your core business activities. Outsourcing can often be more cost-effective, particularly when you partner with companies that have experience developing apps in line with your app idea as they have already done a lot of the research and groundwork to see what works and what doesn't, saving you valuable time during the process. 

However, it's essential to select your outsourcing partner carefully. The right team will not only deliver a polished product but will also help you navigate technical challenges during the project and ensure timely updates and delivery. Be cautious of hidden costs, such as future maintenance or the need for updates, which could emerge as your user base grows. 

In-House Development: Keeping development within your team can offer unique advantages, primarily in terms of control and direct communication during the project. You get to oversee each step, ensuring that the app aligns perfectly with your vision. Initially, in-house development might appear cheaper, especially if you already have a skilled team in place. 

Aspect In-House Development Outsourcing
Cost Potentially lower initial cost, but may increase if bugs and issues arise Higher initial cost, but potentially fewer issues and rework
Control High, direct oversight and communication Moderate, relies on effective communication
Expertise Dependent on the existing team’s skills Access to specialised skills and experience
Time to Market Variable, based on the team’s availability and workload Usually faster, with dedicated resources
Scalability Limited by in-house team capacity Can scale rapidly with added resources
Maintenance Ongoing, handled by the internal team Often included in service agreements

However, this method comes with its own set of challenges. The lack of real-world commercial app experience can lead to numerous bugs and setbacks as well as a steeper learning curve for the team, necessitating additional time and resources to address these issues. In the long run, in-house development might end up being just as costly, if not more so, than outsourcing so ensure you factor education into the process when working with an internal team. 

Ultimately, the decision boils down to your specific needs, the complexity of the app, and your long-term vision. If your project demands specialised skills and fast deployment, outsourcing could be your best bet. Conversely, if you require complete oversight and have a capable team ready to tackle the project, in-house development might be more suitable. 

Remember: Whether outsourcing or developing in-house, the goal is to strike a balance between cost and quality to ensure the successful launch and maintenance of your mobile app over the long run.

    
Factor 4

How Design and User Experience Impact Development Costs

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User interface design (UI) and user experience design (UX) are crucial elements in the development of a successful mobile app, often serving as significant cost drivers. The design phase typically covers visual design, user interface (UI) creation, and UX optimisations. These processes are comprehensive and involve everything from wireframes to prototypes, which ensure that the app is both aesthetically pleasing and functional for your customers. 

On average, the design phase can account for around 20% of the total mobile app development cost. This investment is essential, as the first impression is often built through the design interface. A well-designed app can significantly enhance user engagement and retention, which are critical for the app’s success.

Remember: it's not just about how your app looks but how it feels. Ensure you focus on the UX as much as the UI when designing your mobile app.

Complex designs with high visual objects and intricate user interactions can further drive up costs. For instance, incorporating animations or custom illustrations adds time and effort, which translates into higher expenses. Similarly, the choice of branding elements, such as custom logos and icons, along with the app’s overall look and feel, play a pivotal role in cost determination but have a direct impact on the effectiveness of your app and the results you will see. 

Quality is not an act, it is a habit.Aristotle

Understanding your target audience is equally vital for an effective UI/UX design. Conducting user research, creating user personas, and performing usability testing are all phases that can add to the overall expense but are necessary for a user-friendly design that resonates with users. A poor user experience can lead to high abandonment rates, killing any potential Return on Investment (ROI). It is counterproductive to skimp on this critical aspect of development given the impact it has on the result. 

The design choices made at this stage can either bolster or undermine the overall app experience; consulting with experienced designers and investing in quality design and UX are pivotal steps toward developing a successful and cost-effective mobile application.

      
Some Examples

Breaking Down the Types of Mobile Apps and Their Costs

When it comes to mobile app development, not all apps are created equal. The type of app you wish to develop significantly influences the cost. Understanding the primary categories can provide a clearer picture of the potential financial outlay. 

Simple Apps 

Simple apps typically have minimal features, such as basic information display or a few interactive elements. These are often suitable for small businesses or startups looking for an affordable entry into the mobile space. Development costs for simple apps can range from £15,000 to £30,000 and usually take around 1-2 months to develop. 

Data-Driven Apps 

Data-driven apps are more complex, often requiring integration with a database to fetch and display data dynamically. Examples include news apps or stock market apps, which need up-to-date information. The development of such apps can cost between £30,000 and £70,000, with a timeframe extending to 3-6 months. 

eCommerce Apps 

For those looking to enter the online retail market, eCommerce apps offer a robust platform for transactions, user accounts, and extensive product listings. Development costs for eCommerce apps might span from £30,000 to £120,000, generally taking 4-8 months to complete. The extensive features included, like payment gateways and user authentication, contribute to these higher costs. 

Social Networking Apps 

Social networking apps, such as those that include user profiles, messaging, and real-time updates, are quite intricate. Development for these can cost from £50,000 to £150,000 and take anywhere from 6-12 months. Such apps often require continuous maintenance and updates, adding to the long-term expenses. 

Gaming Apps 

Gaming apps are in a league of their own regarding complexity and cost. Depending on the complexity, 2D games may range from £20,000 to £70,000, while 3D games can start at £50,000 and go upwards of £200,000. Development time can vary widely, from 2 months for simpler games to over a year for more complex projects. 

Enterprise Apps 

Enterprise applications cater to business needs and often include features like databases, cloud services, and integration with existing enterprise systems. These apps are typically high-stakes, demanding the highest levels of security and feature set. Development costs can start at £50,000 and stretch well beyond £200,000, with development times of 6-12 months or more, depending on the scope. 

Understanding the type of app you need is the first step towards estimating your development costs. The more intricate and feature-rich the application, the higher the investment will be. Being aware of these categories helps you tailor your requirements while keeping your budget in check.

      
The Hidden Costs

Maintenance, Updates, and Support

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Once your mobile app is out in the wild and being used by your target audience, the journey is far from over. In fact, maintenance, updates, and support are critical to ensuring your app remains functional, secure, and relevant. These hidden costs, often overlooked in the initial budgeting, can significantly impact your financial planning over the long term. 

Regular software updates are essential. This includes updating the app to remain compatible with new versions of operating systems like iOS and Android as well as supporting new device features as they are released. It isn't just about keeping up with trends but ensuring your app performs efficiently and securely over the long term. 

Another key aspect is bug fixes and security maintenance. No matter how meticulously your app was developed, bugs are practically inevitable. Understanding this and addressing the issues promptly is crucial to maintaining a smooth user experience and safeguarding sensitive user data. Keeping users retained requires them to feel like you value them so regular updates like this are critical. 

You'll also need to consider hosting costs. Hosting services are not a one-time expense; they require ongoing investment. The cost here varies depending on the size of your user base and the volume of data your app handles, but it can range from £20 to hundreds of dollars per month depending on the number of users. The good thing here is that as the cost goes up so does your user base meaning your app is successful. 

Then there's customer support, which can be both a time and financial drain. Having a dedicated team to handle user inquiries, troubleshoot issues, and provide assistance helps in retaining users and maintaining app ratings, both of which are crucial for your long-term success. 

Lastly, don't forget about app marketing. Continuous efforts to engage your audience, promote new features, and maintain visibility in app stores can incur additional costs. Effective marketing campaigns help in acquiring new users and retaining existing ones, thereby improving your app's overall ROI. 

Ensuring all these elements are well managed typically means setting aside around 15-20% of the original development cost for ongoing maintenance and support. Underestimating these hidden costs can lead to financial strain and potentially compromise the quality and success of your app. 

Overall, while maintenance, updates, and support may not seem as thrilling as the initial development phase, they are essential. Proper planning and budgeting for these ongoing expenses can make a significant difference in the longevity and profitability of your mobile app.

      
How To Do It

Strategies to Reduce Mobile App Development Costs Without Sacrificing Quality

Controlling costs is paramount in a mobile app development project, but it's equally crucial to maintain the app's quality. Implementing effective strategies can help you achieve both. Below, we explore actionable tactics to help you trim costs while preserving the quality and effectiveness of your app. 

  • Choose the Right Development Approach: Opt for a cross-platform approach where it makes sense. Tools like Flutter or React Native allow you to develop a single codebase that runs on both iOS and Android, saving time and money. However, ensure a hybrid approach will deliver the commercial results you need.
  • Start with a Minimum Viable Product (MVP): An MVP includes only the core features necessary to meet your users' needs. This approach helps you enter the market more quickly and gather user feedback, which can guide future development phases.
  • Leverage Third-Party APIs and Services: Instead of building functionalities from scratch, use pre-built APIs for features like payments, authentication, or analytics. This not only speeds up the development process but also cuts costs.
  • Keep the Design Simple: A sophisticated design may look impressive but can significantly add to development costs. Focus on a straightforward, user-friendly design that meets your application's objectives.
  • Plan for Scalability: Your app should be designed to accommodate future growth without substantial revisions. Opting for scalable architecture from the outset can prevent costly reworks later.
  • Work with an Experienced Development Team: An experienced team might come with a higher hourly rate, but their expertise tends to speed up development and reduce the likelihood of costly errors.
  • Utilise No-Code or Low-Code Platforms: For non-complex apps, no-code or low-code platforms can be ideal. They require minimal programming knowledge and can dramatically cut both development time and cost. Just make sure they are appropriate for your particular situation.

By implementing these strategies, you can ensure that your app development process remains cost-effective without sacrificing the quality necessary to succeed in a competitive market.

          
The Results

Calculating Return on Investment for Your Mobile App

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Calculating the Return on Investment (ROI) for your mobile app is essential to determine whether the development costs are justified. To get an accurate picture, you need to consider both the initial expenditure and potential revenue streams. Here's how you can approach it: 

1. Establish Your Cost Baseline 

Start by compiling a comprehensive list of all your costs. This includes development expenses, marketing, and ongoing maintenance. Don't forget additional costs like app store fees and server costs. Online calculators from platforms like Cleveroad or our Pricing Calculator can be highly beneficial in estimating these initial figures. 

2. Identify Revenue Streams 

Next, map out all the ways your app can generate revenue. Consider the following: 

  • In-app Advertising: Placing ads within your app can be a steady income source.
  • In-app Purchases: Offering additional features or virtual goods for a fee can boost revenue.
  • Subscription Models: Recurring payments provide a reliable income stream.
  • Freemium Model: The app is free with basic features, while advanced features come at a price.

3. Calculate Estimated Revenue 

Once you have identified potential income sources, estimate the revenue for each. This step often involves market research. Look at similar apps in your niche to gauge potential earnings and user behaviour. 

4. Perform an ROI Calculation 

With costs and revenues in hand, you can now calculate ROI using the formula: 

ROI = (Net Profit / Total Investment) x 100

For instance, if your app costs £50,000 to develop and you expect to make £150,000 in profit, your ROI would be 200%. 

5. Adjust for Risk and Market Variables 

It's crucial to account for market volatility and the risks associated with app development. Regular updates, quality user experience, and effective marketing can mitigate some of these risks, ensuring a more stable ROI. 

Ultimately, a well-calculated ROI will not only justify your app development costs but also guide your financial strategies moving forward. Investing in high-quality development initially can yield significant returns, ensuring the longevity and success of your mobile app.

            
Summing Up

Conclusion

Developing a mobile app involves several nuanced decisions, each impacting the overall cost and potential success of your project. Understanding the key cost drivers, such as app complexity, design choices, and platform selection, is crucial. Whether you choose to outsource or keep the development in-house, appreciate the hidden costs like maintenance and updates. Practical strategies can help you maintain quality while reducing expenses, ultimately leading to a favourable return on investment. 

We hope these insights help you navigate the intricacies of mobile app development. If you're looking to drive more users to your mobile app and enhance its reach, don't hesitate to reach out to us. We're here to help you achieve your goals.

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