Building an app is like buying a car—except nobody tells you about the petrol, insurance, and MOT costs until after you've signed on the dotted line! I've been working with businesses for years helping them understand the true cost of app ownership, and honestly, the conversation about ongoing expenses always comes as a shock. Most people think once they've paid for development, they're done. That couldn't be further from the truth.
The reality is that your app maintenance cost and ongoing app costs will likely exceed your initial development budget within two to three years. We're talking about server hosting, security updates, bug fixes, new feature development, marketing campaigns, and compliance requirements that never really end. Your mobile app TCO—that's Total Cost of Ownership for those keeping track—includes everything from the moment you decide to build an app until the day you decide to shut it down.
The most expensive app isn't the one that costs the most to build—it's the one that fails because the owner didn't budget for what comes next
This guide will walk you through every aspect of app ownership cost so you can plan properly and avoid nasty surprises down the road. Trust me, your future self will thank you for reading this.
Understanding the Real Cost of App Ownership
When people come to me with their brilliant app idea, they're usually focused on one thing—the development cost. How much will it cost to build? Can we do it for £10,000? £50,000? I get it, that upfront number feels like the big scary one. But here's what I always tell them: building your app is just the beginning of your financial journey.
Think of app ownership like buying a car. You wouldn't just budget for the purchase price and forget about petrol, insurance, and MOTs, would you? Apps work the same way. The development cost is your deposit, not your total investment.
The Hidden Ongoing Expenses
After eight years in this business, I've watched clients get caught off guard by the ongoing costs time and time again. Your app needs regular updates to work with new phone operating systems—Apple and Google release new versions every year. Your servers need paying for monthly. Your app store fees keep coming. Security patches can't wait.
Planning for the Long Game
The most successful app owners I work with budget for at least 20% of their development cost annually for maintenance alone. That's before we talk about new features, marketing, or scaling up. It sounds like a lot, but when you plan for it from day one, it becomes manageable. The ones who don't plan? Well, let's just say their apps don't usually make it past year two.
Development Costs vs Ongoing Expenses
Here's something that catches many app owners off guard—the upfront development cost is just the beginning. I've watched countless clients celebrate launching their app, only to look stunned when the first monthly hosting bill arrives. The reality is that building your app is like buying a car; you wouldn't expect to never pay for petrol, insurance, or servicing again, would you?
Development costs are your one-time expenses: design, coding, testing, and getting your app live on the app stores. These are substantial—often ranging from £10,000 to £100,000+ depending on complexity. But here's what many people don't realise: your ongoing app costs typically run between 15-20% of your original development budget every year.
The Monthly Reality Check
Your app maintenance cost includes server hosting, security updates, bug fixes, and keeping up with new iOS and Android versions. Then there's user acquisition, customer support, and feature improvements. These aren't optional extras—they're the price of staying competitive.
Budget at least £1,000-£3,000 monthly for ongoing expenses during your first year. This covers basic hosting, maintenance, and modest marketing efforts for most apps.
The mobile app TCO (total cost of ownership) over three years often doubles your initial investment. Smart app owners plan for this from day one rather than scrambling when reality hits.
App Maintenance and Technical Updates
Here's something that catches nearly everyone off guard—your app needs constant care after launch. I'm talking about technical maintenance, bug fixes, and keeping up with operating system changes. Think of it this way: your phone gets updates regularly, right? Well, your app needs to work perfectly with each new version of iOS or Android that gets released.
The numbers might surprise you. Most apps require around 15-20% of their original development cost each year just for maintenance. So if your app cost £50,000 to build, you're looking at roughly £7,500-£10,000 annually just to keep things running smoothly. That's before adding any new features.
What Maintenance Actually Includes
- Bug fixes and performance improvements
- Compatibility updates for new iOS and Android versions
- Security patches and vulnerability fixes
- Third-party integration updates (payment systems, social media APIs)
- Database maintenance and optimisation
- App store compliance updates
The reality is that Apple and Google release major updates twice a year, plus smaller updates throughout. Each one can potentially break something in your app. I've seen apps disappear from app stores simply because they weren't maintained properly—and getting back in can be a nightmare involving weeks of work and resubmission processes.
Hosting, Infrastructure and Server Costs
Here's something many app owners don't see coming—your app maintenance cost includes a hefty chunk for keeping the lights on behind the scenes. I'm talking about hosting, servers, and all that technical infrastructure that makes your app actually work. These ongoing app costs can be surprisingly sneaky; they start small but grow as your app becomes more popular.
When your app is new, you might spend £20-50 per month on basic hosting. Seems reasonable, right? But here's where it gets interesting—successful apps need more power, more storage, and better performance. That friendly little hosting bill can balloon to hundreds or even thousands of pounds monthly as your user base grows. The mobile app TCO really starts to show itself here.
Every time someone opens your app, downloads content, or saves data, it costs money somewhere in the background
Cloud Services Add Up Fast
Modern apps rely on cloud services for everything—push notifications, file storage, user authentication, and data processing. Each service charges based on usage, which means your app ownership cost scales directly with success. Amazon Web Services, Google Cloud, or Microsoft Azure might seem cheap at first glance, but those pennies per transaction multiply quickly when you're serving thousands of users daily.
Marketing and User Acquisition Expenses
Right, let's talk about the elephant in the room—getting people to actually download and use your app. I've worked with clients who've built brilliant apps that nobody knows about, and frankly, it breaks my heart every time. Building the app is just the beginning; the real challenge starts when you need to convince people to choose your app over the thousands of others available.
The Never-Ending Marketing Budget
Here's what catches most app owners off guard: marketing isn't a one-time expense. You can't just spend £5,000 on launch day and expect users to keep flowing in forever. User acquisition costs vary wildly depending on your app category—gaming apps might pay £2-5 per install, whilst finance apps could be looking at £20+ per user. And that's just to get them through the door!
Beyond Just Getting Downloads
The tricky bit is that downloads don't equal success. You need engaged users who stick around, which means ongoing social media management, content creation, influencer partnerships, and paid advertising campaigns. Most successful apps spend 20-40% of their revenue on marketing. That's not a typo—nearly half your income might go straight back into finding new users and keeping existing ones happy.
Feature Updates and New Functionality
Here's something I learned the hard way after years in mobile app development—your app is never really finished. Users expect new features, improvements, and fresh functionality on a regular basis. What starts as a simple update request from your users can quickly turn into a significant expense that catches many app owners off guard.
Feature development isn't just about coding new buttons or screens. Each addition requires planning, design work, development time, testing, and often backend infrastructure changes. A seemingly simple feature like adding photo filters might need weeks of development work, especially if you want it to work smoothly across different devices. These costs can range from a few hundred pounds for minor tweaks to tens of thousands for major new functionality.
Budget around 15-25% of your original development cost annually for feature updates and improvements to keep your app competitive and engaging.
The tricky part about ongoing app costs is that user expectations keep rising. What impressed people last year won't cut it today. Your competitors are constantly adding new features, which means you need to keep pace or risk losing users. I've seen apps that stopped evolving completely disappear from app stores within months—not because they were broken, but because they became irrelevant.
Legal, Compliance and Security Costs
Here's something that catches many app owners off guard—the legal side of running an app isn't a one-time setup cost. I've watched clients' faces drop when they realise their privacy policy needs updating again, or when new data protection laws come into effect. The legal landscape shifts constantly, and your app needs to keep up.
Privacy policies, terms of service, and user agreements all need regular reviews. What seemed bulletproof two years ago might leave you exposed today. Then there's data protection compliance—GDPR in Europe, CCPA in California, and whatever new regulations pop up next. Each one brings its own requirements and potential fines if you get it wrong.
Security Isn't Set and Forget
Security costs are ongoing too. Regular penetration testing, security audits, and vulnerability assessments aren't cheap, but they're necessary. I've seen apps get hit with security breaches that cost far more than prevention would have.
- Annual legal review of terms and policies
- Data protection compliance audits
- Security testing and monitoring
- Insurance premiums for cyber liability
- Legal consultation for new features or markets
Budget around £2,000-£8,000 annually for basic legal and security maintenance. Apps handling sensitive data or operating in multiple countries will pay significantly more.
Conclusion
After eight years of building apps for everyone from bedroom startups to FTSE 100 companies, I can tell you that mobile app TCO still catches people off guard. You'd think by now everyone would know that app maintenance cost isn't just a small afterthought—it's the biggest chunk of your budget over time. But here we are, still having these conversations with clients who've budgeted £50k for development and nothing for the years that follow.
The reality is that ongoing app costs will dwarf your initial development spend within two to three years. Server bills, security updates, new iOS versions, bug fixes, feature requests from users—they never stop coming. I've watched brilliant apps die not because they weren't good enough, but because their owners didn't plan for app ownership cost beyond launch day.
My advice? Budget at least 20% of your development cost annually for maintenance alone. Then add marketing, infrastructure scaling, and those inevitable "quick fixes" that turn into month-long projects. It sounds scary, but knowing these numbers upfront means you can plan properly and avoid the panicked phone calls I get from clients whose apps are breaking and budgets are empty.
