App Development Cost: How Much Will You Really Pay?

Category:
Startup Growth
Author:
Tamara Joksimovic
Date:
July 5, 2024
App Development Cost: How Much Will You Really Pay?

If you’re planning to hire a full development team to build your app, understanding the factors that drive costs is crucial.

Knowing your budget upfront helps you make smarter decisions and ensures you get a team that can deliver quality results efficiently.

In today’s competitive mobile market, with 3.3 million Android apps on Google Play and 2.2 million iOS apps on the App Store, investing wisely in your app is key. By 2027, the mobile app market is projected to reach $673.8 billion with an annual growth rate of 8.8%, showing the potential rewards for a well-executed app.

Before hiring a development team, it’s essential to break down costs across design, development, testing, and maintenance so you know exactly where your money goes.

5 main factors that affect mobile app development costs

5 main factors that affect mobile app development costs
App development cost

When you’re hiring a full app development team, several factors shape your mobile app development cost. Understanding these factors helps you create a realistic app development budget and avoid unexpected expenses later.


Here’s the app development cost breakdown decision-makers relied on in 2025:

App complexity and functionality

The cost to build an app depends heavily on what you want the product to do.

Simple Apps

Basic features such as utility tools, calculators, or simple editors.
App development cost: $5,000-$30,000

Medium-Complexity Apps

User authentication, dashboards, backend infrastructure, API integrations, and simple real-time features.
App development cost: $30,000-$150,000

Complex Apps

Feature-rich apps with advanced real-time updates, payment systems, AI/ML features, custom backend, or multi-vendor environments.

Cost to develop a complex app: $150,000–$700,000+

MVP vs. Simple App

An MVP includes only the core features needed to validate your idea, not necessarily simple.

A simple app is minimalistic by design, not by validation purpose.
This distinction affects both scope and app development cost.

You can calculate app cost tailored precisely to you project needs.

Platform Choice (iOS, Android, or Cross-Platform)

iOS and Android development

Your platform selection directly impacts your app development pricing.


iOS or Android (Single Platform)

Native development offers the best performance and platform-specific experience.

Cost: $25,000-$180,000 depending on features and complexity.

Cross-Platform (Flutter, Kotlin Multiplatform, React Native)

A modern strategy for reducing your cost to develop an app while speeding up launch.

Cost: $50,000–$280,000

Why cross-platform reduces app development cost:

  • One shared codebase
  • Faster development time
  • Lower long-term maintenance
  • Ideal for teams building both iOS & Android apps at once

Many teams now compare KMP vs React Native, or  CMP vs Flutter to choose the best cross-platform approach based on app complexity, scalability, and native performance needs

Location of the development team

App development cost can vary significantly based on the location of the development team due to differences in labor costs and living expenses. For instance, hiring developers in regions like North America or Western Europe is typically more expensive than in regions like Eastern Europe, India, or Southeast Asia.

These regional cost differences can impact the overall budget for an app development project, affecting both initial development and ongoing app maintenance cost.

North America and Western Europe:

This is the region where developers typically charge between $100 to $250 per hour. Developing a medium-complexity app can range from $100,000 to $500,000 or more.

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Eastern Europe, Asia, and South America:

Some average prices you can expect for building a mobile app in this region are usually between $30 to $100 per hour. Developing a similar app as in the previous region can cost between $40,000 to $200,000.

Development team size:

Small team

A small team (1-3 developers) is suitable for simpler apps, costing from $20,000 to $100,000.

Medium Team

Medium team (4-8 developers) costs ranging from $80,000 to $400,000.

Large Team

Large team (8+ developers) has high hourly rates but is capable of faster development and handling complex projects, costing $150,000 to $500,000 or more.

Depending on the team size, you can get your MVP within a month or gradually build your mobile app if not in a hurry. You can check here the pricing packages tailored precisely to the needs of startups and adapted to their budget.

Mobile app development team
Mobile app development team

UI/UX Design

High-quality design requires skilled professionals and research, which can impact the overall app development budget and lead to higher costs. If you choose to invest in detailed design, it can pay off in having a user-friendly app that increases user satisfaction and retention.

On the other hand, if your choice is to reduce app development cost by cutting corners on UI/UX design, that might save money upfront but can result in a less engaging app, leading to higher costs in the long run due to necessary redesigns and user dissatisfaction.

Basic UI Design:

Simple designs for straightforward apps can range from $5,000 to $15,000.

Advanced UI/UX Design:

Customized designs with user interactions may cost between $15,000 to $50,000 or more.

Broad UI/UX Services:

Including user research, wireframing, prototyping, and usability testing can add $5,000 to $20,000 depending on the scope and complexity.

Maintenance and updates

Higher initial app development costs often reflect coding flexibility and scalability, which can reduce the frequency and complexity of maintenance issues. On the contrary, a lower app development cost may result in a less well-architected app, leading to more frequent and costly maintenance needs. Investing in quality development upfront can thus lead to lower long-term maintenance costs and a more stable app.

Post-launch maintenance is crucial for keeping your app relevant:

Maintenance:

Regular updates, bug fixes, and new feature additions generally cost 15-20% of the initial development cost per year.

Server and Hosting:

Depending on your app's data requirements, server costs can range from $2,000 to $15,000 per year.

App maintenance costs
App maintenance costs

Conclusion

Hiring the right development team is the single most important decision for your app. It impacts your timeline, budget, product quality, and ultimately, your revenue potential. A well-structured team ensures your MVP or full app is delivered efficiently, reducing delays, costly rewrites, and maintenance headaches.

Consider these pillars when planning your app development budget:

  • Team size and expertise: The right talent saves time and prevents expensive mistakes.
  • Platform strategy (native vs. cross-platform): Your tech stack affects cost, speed, and scalability.
  • Design investment: Strong UI/UX increases user retention, satisfaction, and long-term revenue.
  • Maintenance planning: Post-launch care is essential to keep your app secure, fast, and competitive.

An app is more than a product, it’s an investment. While free or no-code tools exist, they’re limited in features, performance, and customization. To build a professional, scalable app that can attract users, generate revenue, and grow your business, investing in a dedicated, skilled development team is crucial.

With the right strategy, a well-built app can start generating revenue, grow your brand, and even become a major business asset. Apps can earn anywhere from a few hundred dollars per month to millions annually, depending on your business model, target audience, and the value your app provides.

Pro Tip: Discuss your budget openly with your development team from the start. Transparent planning ensures your app is delivered on time, within budget, and optimized for success.

Ready to bring your app to life? Contact our expert team today and get a precise cost estimate and guidance on building a scalable app. Don’t leave your investment to chance, let’s build it right from the start!

Frequently Asked Questions

Can I build an app for free?

You can build a basic app for free using no-code tools, but these come with limited features and often show the platform’s branding.If you want a custom app with real users, you’ll likely need to invest some money in development, design, and launching.

Is making an app a good investment?

Yes, making an app can be a great investment if you solve a real problem or meet a market need.A well-built app can help you:

  • Earn revenue (through ads, subscriptions, or in-app purchases)
  • Grow your business
  • Stand out from competitors

However, it’s important to validate your app idea first and work with a trusted development team to get the best results.

How much money can I make if I make an app?

How much money you can make from an app depends on your business model (ads, paid downloads, subscriptions, etc.), your target audience and marketing, and how useful or fun your app is.

Some apps make a few hundred dollars a month, while others earn millions. With the right idea and execution, apps can be highly profitable.

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