The article was updated on March 18, 2025.
Times where having just a website for an online presence and customer retention have long been gone—today, having an app for businesses has become a necessity. Apps make the brand mobile-friendly, accessible, and closer to the end user.
In December 2024, Google Play witnessed a release of 41,000 mobile applications—the number is 38,000 for the App Store.
However, the cost of creating an app from scratch is a cornerstone that moves the project from theory to practice. And the expenditures of a poorly planned development can run extremely high. Understanding app development costs empowers companies seeking to create an app to plan its future steps ahead.
How much does app development cost, and how do we minimize the mobile app development price? This article will dive into answering these questions—stick with us to read more.
How much does it cost to make an app, and what influences its price formation?
The cost to develop a mobile app varies significantly based on factors that affect its complexity and available resources. Although the exact numbers can fluctuate, it’s possible to estimate the approximate range once a company can identify what features it should account for.
To pinpoint the value of a product or service, it is necessary to understand and analyze what exactly drives the costs of this product or service. There are three main drivers of cost in mobile app development—who, what, and where:
- Who will build it (i.e., the development team—how many people will be involved, their hourly rates, and their level of competence).
- What it will be (i.e., what type of app it will be and its level of complexity).
- Where it will actually be built (i.e., location).
To get a clearer picture, let’s also highlight the known costs and initial budgets raised for well-known apps, like Instagram and Uber. Instagram’s initial v1.0 launch for one platform cost them $500,000, while Uber’s initial budget was $1,500,000. These examples show how app costs can vary greatly depending on the app’s features and target market.
Below is the app development cost breakdown that can get you started.
App type
Understandably, the type of the app significantly influences the application development cost. Simple apps that have a specific narrow functionality are cheaper than multi-purpose ones that might require GPS tracking or real-time updates.
The same goes for the type of development: native apps, which are built for a specific platform, like iOS or Android, tend to be more expensive than cross-platform development even though they have their advantages.
Companies should consider how central the app is to their brand and how the price of mobile app development will be affected by the product they make. It will allow them to comprehend whether they want to invest in a more flawless but expensive option or cut costs and direct them elsewhere.
Features and functionality
It’s probably not a secret that the more functions you add to an app, the pricier it gets. Every feature adds to the overall app development cost. Basic apps with limited functions will naturally be more affordable than those requiring real-time data synchronization, payment processing, or AI-powered automation.
That’s why so many companies start with the essential function set and expand as they earn more money, adding more features. The same can work for you: don’t dive straight in with all the details. Start small.
Design complexity
Design is one of the most important elements of app development, but it can also be one of the most expensive elements in the equation.
If you want to make an app with an intuitive design with customizable details and lots of interactive elements, the cost of app development will be higher. A simple interface with minimalist designs will be much more affordable, but it can bore the user if put to an extreme.
Finding the balance between the two is best, but it can take some experimenting.
Develop for Android, iOS, or both?
It is needless to say that developing for multiple platforms at the same time will cost you much more time and money than developing for only one specific platform. As practice shows, it’s more preferable to start building for one platform first.
Read also: Android vs iOS development: Which platform should I develop for first?
Deciding between native or cross-platform development may also affect the cost of a mobile app.
Human factor
When hiring people for your project, you have three main engagement models to choose from: building an in-house team, outsourcing to a development agency (onshore or offshore), or hiring freelancers. Each project typically requires a minimum team of 4–5 people: a project manager to coordinate and oversee development, a designer to create visual content, two or three developers, and a tester.
While hiring an in-house team offers direct control, it is both time-consuming and costly. Beyond salaries, you must consider workplace setup, equipment costs, employment taxes, and insurance. This approach better suits established businesses with long-term development needs rather than startups.
While freelancers can reduce costs, they come with increased risks such as miscommunication, reduced control, availability challenges, and potential confidentiality issues.
A development firm experienced with startups can quickly grasp your requirements and assemble the right team to create your product’s first version efficiently and at a reasonable cost. This option works best for startups, as it helps launch your initial product rapidly.
Now let’s see how much agencies charge for their services based on where they are located.
Location
Let’s take a look at average hourly rates charged by development agencies around the world:
- United States & Canada: $100-250
- UK, Australia and Western Europe: $100-150
- Eastern Europe: $60-90
- India: $20-50
It’s important to remember that a higher rate does not always equate to higher quality and vice versa; a lower rate increases the likelihood that you will pay more in the long run. When you select a business partner for your project, you should always put expertise above hourly rates.
Try to pick those who have experience developing similar products; it can significantly reduce development time and hence the cost.
App development stages
Building an app is a long process, but working on it for too long or too little will each lead to a financial burden. It’s vital to explore the mobile app development cost before going into it. Understanding the stages and planning the development process will help the business predict its budgeting for the following months.
Planning
The first step in the development process, planning, is the determinant for every other stage. During this, business owners should consider the app’s purpose and what issue it will solve for the future audience. While the plan will change in the future, it can still save resources by evaluating the overall cost of mobile app development.
Conduct market research to understand user needs and competitor offerings; once you know what you want to do, create a product scope with must-have features or the ones that are nice to have but not obligatory.
Design and prototyping
Once the concept is clear, designers create wireframes and interactive prototypes to visualize the app’s structure and user flow. The team helps you envision the screen flows and what the app will look like—during this stage, you have a full understanding of all the visual elements of your app.
Testing the prototype with early feedback from real users, partners, and investors will allow the design team to further refine the look and feel of the future app.
Development
Development is where an app’s actual coding takes place and where all those plans come to life. During this stage, developers create the frontend (interface) and backend (server, database, and APIs) based on the design and specifications that were provided before.
Currently, most businesses go for the agile approach that breaks the project into smaller tasks and testing frequently, which minimizes more significant development errors. This step also requires careful consideration of third-party integrations: they save money because the team does not need to develop features from scratch.
Testing
Testing is a good way for the team to observe and fix bugs and performance issues before launching the app to users. This stage includes functional testing, usability testing, and performance evaluation under different conditions to minimize user churn after the launching stage.
Deployment and maintenance
The app never stops evolving. Even after deployment, it goes through continuous updates, improvements, and refinements to meet user needs and stay up to date. The price to create an app is one thing, but the costs of maintenance will never end.
The completed app is submitted to the app stores (for example, Google Play or App Store) and marketed via digital channels preferable for the chosen audience. After launch, ongoing maintenance is needed to fix bugs, release updates, and improve performance with time.
With our expertise, we’ll help you build and launch a scalable, user-friendly app with a long-lasting market presence. Looking for an experienced app development partner?
Hidden costs of app development
When we ask, “How much does it cost to make an app?” we often overlook some factors that influence the cost of development. Building an app seems like a clear-cut thing, but it’s not—not in the slightest. There are always hidden costs that we might forget or don’t acknowledge in time. Below are the most likely culprits that can add to the cost for mobile app development which you will meet along your app creation journey.
Marketing costs
Creating a first-class app isn’t enough; you have to persuade your audience to download and keep it around to recognize its value. Companies optimize their app for better visibility in the app stores and pay for advertising on social media and Google to boost downloads.
Many brands launch collaborations with influencers and celebrities early on, which can take a considerable chunk of the budget. In some painful cases, marketing costs can even exceed development expenditures.
App store fees
Publishing an app on major app stores requires a one-time payment or recurring fees, and most of these platforms take commissions for purchases and subscriptions. A Google Play Developer account requires a one-time developer fee of $25, but the prices for the App Store are higher: it charges $99 every year.
This financial buffer can be pretty significant: Google Play and App Store have many apps that cost less than a dollar (over 20,000 and 1,8 million, respectively), and the commissions can be particularly unpleasant for startups.
Third-party integration costs
When we consider what the cost to build an app is, third-party integrations are cheaper than making a specific feature from scratch, but they still cost money—and these can pile up unnoticeably.
For instance, the ongoing costs for payment processing will take from 2.9% + $0.30 per transaction—this can especially affect new brands only starting to monetize their products. Push notifications with the help of OneSignal or Firebase are also costly—the pricing can reach even $99/month or more.
That’s why a business should always dedicate a part of its budget to integrations.
Server costs
The average cost to develop an app grows with server expenditures. For apps that rely on cloud-based data storage, real-time processing, or media streaming, server costs can become a major expense. As your app’s traffic increases, you’ll need to put more money toward the server.
Apps that require a significant amount of video and audio content will also require much more server space. Managing these expenses for app development requires careful consideration of resources, and going for scalable cloud hosting is recommended whenever possible.
Remember: bringing your product to market costs more than just the initial v1.0 budget. You’ll need to invest in ongoing maintenance, support, and product improvements based on customer feedback.
Typically, development agencies don’t include post-release maintenance in the initial budget estimate, but rather provide it as an extra service.
That’s why it is important to choose a mobile app development company that’s not only professional and reliable but one you can build a long-term partnership with. This approach ensures your product stays up to date while building a trusted relationship with your development team.
Now that we’ve covered the “How much does it cost to build a mobile app?” question, it’s time to move to solutions.
Tips for cost-effective app development
How much does it cost to develop a mobile app to make it effective? Although every company has its own strategies to avoid overspending, there are some universal practices that can help mitigate risks and losses for most businesses. We’ve highlighted successful ideas below—add them to your list if you find them useful.
Start with an MVP
This step significantly reduces the cost of developing an app at first. Many businesses start with a Minimal Viable Product (MVP)—a very stripped-down version of an app without extra features. An MVP allows companies to cover only the product’s core features without overspending on something that isn’t necessary during the app’s launch.
Instead of investing in a full-scale product immediately, an MVP allows business owners to test the product and the audience’s response to its functionality. Due to immense development opportunities, many go for low-code or no-code app creation to minimize the app development price even more, and it’s pretty easy to do so with an MVP.
Choose an experienced software development company
While younger companies can lower the average cost of app development for their clients, there’s always a risk that something will go wrong. That’s why partnering with a company with experience in developing an app will help avoid costly mistakes and ensure a smooth execution without the risks.
Eastern Peak has plenty of experience developing apps for various industries, from healthcare to finance. We create programs while considering the available costs and focusing on reliable solutions for every client individually.
Cross-platform development
The cost to develop an app with a cross-platform approach is more affordable. Cross-platform development allows companies to build an app without making separate apps for iOS or Android. They don’t require native development, which reduces development time, costs, and maintenance efforts.
Usually, frameworks like Flutter, React Native, or Kotlin Multiplatform are the most often chosen when it comes to cross-development. However, before business owners choose this approach, they should ensure that the final product won’t sacrifice any performance priorities.
Conclusion
Being informed about the costs of developing an app is crucial for the business’s effective resource management. Now that you know the answer to “What is the cost of app development?” you can map out your app development journey and predict your expenditures for every stage of the process. Be ready to start small and expand as you get more users—this will keep your progress organic.
Need help figuring out a custom app development cost and want to create a product that will stay with your audience for a long time? Reach out to us. Our team will arrange a call to discuss your goals, potential solutions, and ideas to make your dream app happen as soon as possible.
Every price varies; it’s impossible to estimate a single specific cost for an app because it depends on many things. However, you can understand the cost of an app by exploring the prices of programs in the field you are interested in. The type of app plays a central role—and the more complex it gets, the more expensive it will be. Every added feature also contributes to the app building cost. All of these can make an app affordable or incredibly expensive to handle. Despite the more evident mobile app development costs, there are many aspects that businesses should be wary of. These are marketing, app store fees, third-party integrations, and server costs, some of which can cost as much as the development itself.Frequently Asked Questions
How much does it cost to build an app?
What factors influence the cost of app development?
What are the hidden costs of app development?
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About the author:
Alexey Shalimov, CEO at Eastern Peak
As CEO at Eastern Peak, a professional software consulting and development company, Alexey ensures top quality and cost-effective services to clients from all over the world. Alexey is also a founder and technology evangelist at several technology companies. Previously, as a CEO of the Gett (GetTaxi) technology company, Alexey was in charge of developing the revolutionary Gett service from ground up and deploying the operation across the globe from New York to London and Tel Aviv.
