The Cost of an App Development in 2023

The Cost of an App Development in 2023

The issue of cost is one of the most common topics when discussing app development. The response to this question hinges on various factors that influence the overall price. Let’s delve into these factors to gain a better understanding of how much financial investment may be required for app development.

Time and Money Issues

According to GoodFirms, the price depends on the time spent on the feature development, and the time varies due to features complexity.

 Let’s classify applications according to the ratio of complexity and development time:

  • A plain app with laconic functionality: 500- 800 hours / 3- 6 months
  • An app of medium complexity: 800-1200 hours / 5- 9 months
  • A complex app with diverse features: 1200 hours+ / 8 months+

A rough estimate made according to the average hourly rate ($40) shows the

subsequent results:

  • Simple: $90.000
  • Average: $160.000
  • High complexity: $240.000

Also, let’s overview the price based on hourly rates of various countries: 

RegioniOS ($ / hour)Android ($ / hour)Varies
North America$150$150$50- $150
Australia$92$92$35- $150
UK$71$71$71
South America$43$37$22- $55
Eastern Europe$40$40$25- $50
India $25$26$25 
Indonesia$35$35$35 

App Specifications Impacting on The Cost

The following vital points affect the price and allow the vendor to make a rough estimate:

  • Project type (CRM, marketplace, LMS, EHR, etc.)
  • Features and functional
  • Design (template/ from scratch)
  • Platform (iOS / Android)
  • Backend infrastructure, app operation
  • Team location and structure
  • App maintenance; extra services
  • In-house/outsourcing companies Vendors hourly rates

Let’s dive into some of the points:

Application Features

Solutions complexity defines if the developer will use third-party API or code from scratch. Native features and initial tools are used for elementary solutions. 

FeatureDetailsTimeAverage cost with back-end ($40/h)
Signing inLog in with email/ social media
Forgot password option
Log out
28 – 42 hours1,120-1,680
Profile creatingSet area
Add personal info/ photo
23 – 29 hours920-1,160
SearchBasic search;
suggestions
13 – 18 hours520-729
ChatOnline/offline 
Typing 
Read/sent 
160 – 170 hours6,400-6,800
Push-notificationsCustomization25 – 32 hours25 – 32 hours
User managementList of users
Delete/block user
66 – 90 hours2,640-3,600
Payment managementPayments
Refund 
23 – 44 hours920-1,760

User engagement

User involvement can be realized in the platform in many aspects like networking, signing up process, push notifications, etc. For example, the signing up process can incorporate such functions as password recovery and saving, refined design, or signing in via other social accounts. Another widely used feature is linking social media accounts to an app for various interactions or enabling in-app purchases and chats. Implementing these features requires applying third-party frameworks or libraries.

Payments and Geolocation services

Implementing each method of the popular payment systems like Google Wallet/Apple pay/PayPal requires additional development time. If you want to utilize location data, basic tracking and mapping are accessible, but implementing emerging technology, such as iBeacon and geofencing, will take more time.

Native Features Integration

Nowadays, complex device software requires dealing with NFC (near field communication) chips and payment systems. Platform-specific APIs are used to develop apps with access to device functionality. Fresh features require new APIs, which consume more time since developers haven’t dealt with them yet. 

Let’s overview the complex features mentioned above:

FeatureDetailsTimeAverage cost with back-end ($40/h)
MapTrack user’s location
Searching
75 – 111 hours3,000-4,440
PaymentsCheck the  balanceand transactions
Link payment methods
60 – 78 hours2,400-3,120
StreamingStart/stop broadcast
View/switch broadcast
90 – 140 hours3,600-5,600
CallsAudio calls
Video calls
Contacts list
257 – 365 hours10,280-14,600

Cost Influencing Factors

  • Design

Developing a sophisticated design for the app requires a sufficient amount of time. OS-supplied items offer economical options by developing screens with basic elements.

  • Platform

To define the suitable platform, startuppers mainly think over the iOS and Android market share, device fragmentation, and predominance. In addition, each platform requires specific programming languages, SDKs (Software development kit), and instruments.

  • Backend Operating and Administrative Tools

The embedded analytics provide data on user activity. Accordingly, the more monitored parameters, the higher the price.

The administration panel allows you to operate in-app content and track users’ statistics.

Outsourcing Vs. Local companies

Applying to outsourcing companies will significantly save your outgoings for mobile app development services. In doing so, the performance quality doesn’t suffer and often even increases.

There are some basic steps to find suitable vendors:

  1. Suitable options exploration
  2. Rates and expertise research
  3. Portfolio overview
  4. Feedback comparison
  5. Meeting and negotiation arrangement

You can contact former customers or check credible reviews on services like Clutch or GoodFirms.

Application maintenance

Another point worth considering is maintaining the application. Its annual cost ranges from 15% to 20% of the initial development cost.

App maintenance comprises the following:

  • Regular bug fixing
  • Better functioning
  • Code optimization
  • Newest OS support
  • Fresh features implementing
  • Recent third-party services versions support

Total Cost Calculation

Now, let’s find answer how much does it cost to make an app by all the development flow stages:

  • Plan
  • Design
  • Building
  • Features
  • Testing
  • Deploy
  • Maintenance

Each project may need extra steps like app advertising, maintenance, features and administration tools development, or infrastructure adjustment.

SpecificationBasic appMedium appComplex app
Time4 months6 months10 months
Developers$39,200$67,200$112,000
UI/UX Designer$4,200$7,200$12,000
Project Manager$7,350$12,600$21,000
Business Analyst$3,500$6,000$10,000
QA Specialist$10,500$18,000$30,000
Solution Architect$3,150$5,400$9,000
DevOps$2,450$4,200$7,000
Total$70,350$120,600$201,000

To summarize all the info, check the infographic below:

Wrapping Up

The main suggestion to make proper calculations is conducting all the estimations carefully. If you can’t cope with this on your own you should apply to an expert for a consultation.

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