How Much Does an App Cost: A Massive Review of Pricing and other Budget Considerations?

How Much Does an App Cost: A Massive Review of Pricing and other Budget Considerations?

Whenever any of the clients looks for the app development for their business, the very first question arises that “how much does an app cost?” and “how could one decide the cost for their apps development and maintenance?” Today, in this article, we will provide a massive review on app development price and other budget consideration.

While deciding the app cost, there are many things to consider such as:

  • What is the project about?
  • Features & API included in apps
  • Data Management
  • App design
  • One time mobile app development or on-going business relationship
  • Do you want to live out of your app?
  • What is a customer base of the company & where do you live?

App Cost

Apart from these considerations, there are many other things to consider for providing cost structure of the app. Suppose, you visit the real estate property dealer and asks for 2-3 BHK flat without asking their properties then dealer can’t provide you the direct quotes. Costing of any flat matters on the material used, how big is property and rooms, interiors, exteriors, nearby schools, hospitals etc. Same is the case with app development. Let’s talk about features of apps which ultimately decide the cost:

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Worth considering features of the app to acknowledge or analyze the cost:

     1. App Development Platform:

Mainly, there is 4 platforms which is worth considering to develop any app:

Together, Android and iOS holds the 96% of the market so these are recommended platform to develop any app. developing an app on iOS cost higher than the android and other platforms.

     2. Size of your app:

To examine the cost of your app, you need to tell these 2 things:

  • How many screens are included into your app design?
  • What is the backend functionality of your app?

     3. Data Storage:

If your app is including images, videos, and gifs along with the text, then your app needs more data storage and to increase the efficiency of the app, you required to build compression into your app. This will cost you high.

     4. Data Integration:

Third party integration, crawling the data, social integration is the few others features which decide the cost of the overall app.  Do you want location data of your user? Do you want to incorporate your data along with other company data?

If yes, you need to setup your Application Programming Interface (API) and that will increase your cost drastically.

     5. Security:

The level of app encryption is very-2 important. If you are accessing data of your users, clients and if you are integrating payment gateway in your app, it is very necessary to encrypt your data so that no one can copy, hack or threat your app.

Again, your level of security decides the overall cost of the app.

     6. App Analytics:

Just having the report of downloads and money making of your app is not enough, you should know your user base, what kind of users they are, why do they like your app, how could you provide the better experience.

Based on this app analytics, you could decide or improve your revenue monetization methods.

     7. Scalability:

Is your app scalable? What if your app becomes popular? You could decide it along with your app developer.

     8. User Management Portal:

Just think about Facebook, Instagram, and other social media networks, what if they won’t have the user management portal? That would be drastic for them – Probably, no one should take this level of interest but now, these are one of the most using apps.

     9. Monetization:

What do you want to offer inside your app? Are you offering In-app purchases, for sale, complimentary services or the user data monetization inside your app?

     10. Support:

Is there any support required inside your app? How will you support your users for using this app? App costing is also depending on support system of the apps.

Further, Estimate cost of app includes the UX and Technical designs, mobile and back end development, building new API, integrating API, testing and development of your app.

Along with these 10 important considerations of the app, one should focus on these 3 basic points:

  • What is the customer base of App Development Company?
  • What is your own expectation from your app?
  • Economic Analysis

What is the customer base of App Development Company?

If your app development company is old enough and has the great portfolio or customer base, then it’s for sure that App Development Company will cost you higher than the normal ones. Savvy apps start their app costing from $10,000 and almost goes up to $1,000,000 based on the app size and activities.

I will recommend you to choose the company which is already experienced because they exactly know the thing required inside your app and design it accordingly. That could cost you little higher but it’s worthwhile to pick this option.

What is your own expectation from your app?

Do you want to make living out of your app? Do you have the economic and technical blueprint of your app? What is revenue monetization method? Are you serious about building your app or not? If yes, just take the decision wisely. Don’t look for the cheap option; just go through the best options.

“Apps built by the largest app companies, the “big boys”, likely cost anywhere between $500,000 to $1,000,000.   “a v1.0 app should cost anywhere between $140,000 to $210,000.”

 Few popular examples of app with their development cost:

To understand the cost estimation of any app, let’s check out the example of some popular apps with their development cost.

“Here are some apps, and what they cost:

Angry Birds $140k (Wired)
Instagram $144K – 500K (Quora)
Twitterific  $250,000 (Stack Overflow)
Obama App  $50 – $150K (StackOverflow)

Average Corporate App (in my experience) $200K

Source: Bluefletch

If your app is something similar to Flashlight app, Bubble Level, Coin Flip, then these types of app will cost you less than $10K.

Yo app, simple sleep cycle alarm clock, Banana republic app, Tasker types of the app costs in between the $10K – $100K. These apps have little more complex UI structure and are integrated into data systems.

If your app requires synchronization, real-time update, security controls and other advanced features, then it will cost more than $100K. Slack, Nest Mobile, Beyond Pod, are known as the best IOT (Internet-Of-Things), costs in between $100,000 – $500,000.

Do you want to know the costing of Netflix app, AmEx Mobile app, Fitbit app? These apps are based on data interaction in addition to a complex UI functionality.

Google +, Messenger, Instagram is the million dollar apps with the ton of hidden features.

Economic Analysis:

While deciding about the cost of your app, it is very necessary to analyze the economic point of the app. There are many apps available online for the costing as low as $2000 and as high as $5000k. It’s you who will decide the value of your app.

If you want quantity of the users inside your app, you should go for android version and if you want the quality of paid users, then go for iOS platform. Firstly, test your app with 1 platform and then improve or scale it accordingly.

A great app gives the great user experience and if your app is good enough in providing your user experience, you could monetize your app in many ways such as in-app purchases, sponsorship or google ads etc.

Inside the Neil Davidson eBook entitled “Don’t Just Roll the Dice”, if your product is significantly higher valuable than your competitor’s product, you could charge more than your competitors and surely, they will accept it.

Try to create the “Economic Curve” for your users and implement the cost-revenue method for your app.

Finally, I hope I have given you the exact things which impact on the cost budget of any app. We also tried to provide you the estimated development cost of historic the app. You could interpret your economic data with the examples and considerations of the app to get an estimated budget.

If you are an app developer or a client, we will be more than happy to share your experience with our readers. If you have any question, let us know in a comment box and we will get back to you as soon as possible. Your suggestions are also appreciated.

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