Average Price to Develop an App: 2023 Trends & Tips

In today's digital age, mobile apps have become essential tools for businesses and individuals alike. Whether you're an entrepreneur looking to disrupt the market with a groundbreaking idea or a business seeking to connect with your audience on a deeper level, developing an app is likely on your radar. But what's the average price to develop an app in 2023? What trends and tips should you be aware of to make the most out of your investment?

Embarking on an app development journey can be both exciting and intimidating, especially if you're not well-versed in the ins and outs of the process. The cost to develop an app can vary significantly, influenced by factors such as features, platform, and level of complexity. That's why it's crucial to have a clear understanding of the costs involved before diving headfirst into app development.

In this article, we'll shed light on the average price to develop an app in 2023, uncover the latest trends and share practical tips to help you make informed decisions. Our aim is to guide you through the process, so you can build an app that not only meets your expectations but also provides excellent value for your investment. So relax, and let's explore the world of app development together!

App Development Budget per Phase

Understanding the various phases involved in app development is essential for estimating the overall budget accurately. In this section, we'll delve into each phase, discuss the costs involved, and provide examples to help you grasp the financial implications better.

Cost of Business Analysis in App Development Budget

Before diving into the development process, it's essential to conduct a thorough business analysis. This phase involves understanding your target audience, identifying their pain points, and defining the app's core features to address these needs. A comprehensive business analysis will also help you determine the potential return on investment and market opportunities.

The cost of business analysis can range from $1,200 to $11,000, depending on the complexity of the project and the depth of research required. For instance, if you're developing a simple app with a clear target market, the cost of business analysis might be on the lower end. However, if you're developing a complex app catering to a niche audience, the analysis may require additional research and expertise, which could result in higher costs.

Cost of Design and Clickable Prototype in App Development Budget

A well-designed app can significantly impact user experience and engagement. In this phase, designers will create an appealing user interface and a seamless user flow to ensure a pleasant experience for your app users. A clickable prototype is also developed, allowing you to visualize how your app will function and receive feedback from potential users or stakeholders.

The cost of design and creating a clickable prototype can range from $2,500 to $10,000, depending on factors such as the complexity of the app, the level of customization, and the expertise of the design team. For example, a basic app with minimal design elements may cost less than an app with intricate graphics and animations.

Cost of App Coding per SDK

App coding is where your app idea transforms into reality. This phase involves writing the source code using Software Development Kits (SDKs) for the desired platforms (iOS, Android, or both). The cost of app coding depends on the number of features, app complexity, and the SDKs used. Additionally, the choice between native and cross-platform development can influence the costs.

The cost of app coding per SDK can range from $2,000 to $60,000. For example, a simple app with basic features developed natively for iOS may cost around $2,000, while a complex app with multiple features developed natively for both iOS and Android can go up to $60,000 or more.

Cost of Project Management in App Development Budget

Effective project management is vital to ensure that your app development process stays on track and within budget. A project manager will oversee the entire process, coordinating with various team members, and ensuring that the project is delivered on time and to your specifications.

Project management costs typically range from $1,200 to $12,000, depending on the app's complexity, development timeline, and the project manager's experience. For instance, a smaller project with a shorter timeline and a less experienced project manager might incur lower costs, while a more complex, long-term project with an experienced project manager could be on the higher end of the cost spectrum.

By breaking down the app development budget into phases, you can better understand the costs involved and allocate resources more effectively. Keep in mind that these figures can vary depending on your specific project requirements and the expertise of your development team.

Cost of Making an App Based on Feature Set

The cost of developing an app can vary significantly based on the features you choose to include. In this section, we'll discuss the impact of various feature sets on the overall cost of your app, helping you make more informed decisions when deciding which features to prioritize.

1.  UI Optimization for Tablets

Optimizing your app's UI for tablets can enhance the user experience for tablet users and increase your app's reach. The cost of UI optimization can range from $500 to $3,000, depending on the complexity of the design and the level of customization required.

2. Landscape & Portrait Mode

Supporting both landscape and portrait modes ensures a seamless user experience regardless of device orientation. This feature may add $300 to $1,500 to your development budget, depending on the complexity of your app's layout and design elements.

3. Mobile OS Versions and Device Models Support

Supporting multiple OS versions and device models increases the compatibility of your app, making it accessible to a broader audience. The cost of adding support for various versions and models can range from $1,000 to $5,000, depending on the number of devices and the complexity of the app.

4. Offline Mode

Enabling offline functionality allows users to access your app even without an internet connection. This feature can add between $1,000 and $4,000 to the development costs, depending on the app's complexity and the extent of offline functionality required.

5. Push Notifications

Push notifications are essential for engaging and retaining users. Implementing this feature may cost $500 to $2,000, depending on the complexity of the notification system and the integration with third-party services.

6. User Profile & Social Login

User profiles and social logins simplify the registration process and enhance the user experience. Including these features may add $1,500 to $5,000 to your development budget, depending on the extent of customization and the number of social platforms supported.

7. Localization and Multi-Language Support

Localization allows your app to cater to a global audience by supporting multiple languages. This feature can add $500 to $2,000 per language, depending on the amount of content and the translation process.

8. Chat

In-app chat functionality enhances user engagement and can be crucial for some app types. The cost of integrating chat features can range from $2,000 to $10,000, depending on the complexity of the chat system and the need for real-time communication.

9. Adding Mobile Ads

Incorporating mobile ads is a common way to monetize your app. The cost of implementing mobile ads can range from $500 to $2,000, depending on the ad formats and the integration with ad networks.

10. App Analytics and Usage Tracking

App analytics provide valuable insights into user behavior and app performance. Integrating analytics and usage tracking can cost $500 to $3,000, depending on the complexity of the tracking system and the desired level of data granularity.

11. Intelligent Product Feedback

Gathering user feedback helps improve your app and fosters user satisfaction. Implementing intelligent product feedback features can add $1,000 to $5,000 to your development costs, depending on the extent of customization and the integration with third-party services.

12. Integrating Payments, QR Codes, Navigation, OCR, and More

Adding features like payment processing, QR code scanning, navigation, and OCR can enhance your app's functionality and user experience. The cost of integrating these features can range from $2,000 to $10,000 or more, depending on the complexity of the features and the integration process.

NOTE: When planning your app development budget, consider which features are essential for your app's success and prioritize them accordingly. Keep in mind that adding more features

Behind-the-Scenes App Development Costs

While the cost of app development can be influenced by features and design, there are also behind-the-scenes costs that should not be overlooked. In this section, we'll discuss some of these hidden costs that you should consider when planning your app development budget.

Factor Development of Backend into Your Mobile App Budget

The backend is the foundation of your app, handling essential tasks such as data storage, user authentication, and server-side logic. Developing a robust backend is crucial for the smooth functioning of your app, but it can also add to your development costs. Backend development can range from $5,000 to $20,000 or more, depending on the complexity and scalability requirements. Be sure to account for this cost when planning your app development budget.

App Patenting Cost

App patenting is a way to protect your app's unique features and intellectual property. While not always necessary, securing a patent can provide a competitive advantage and help protect your investment. The cost of patenting an app can vary greatly depending on factors like the complexity of the invention and the geographic scope of the patent. On average, you can expect to spend $5,000 to $15,000 on app patenting. Consult with a patent attorney to determine if patenting is necessary for your app and to get an accurate estimate of the costs involved.

App Marketing Budget

Developing a great app is only half the battle; getting it noticed and downloaded by users is the other half. Marketing is crucial for the success of your app, and you should allocate a portion of your budget for marketing efforts. App marketing costs can vary greatly depending on the strategies you choose, such as social media advertising, influencer marketing, or app store optimization. A good rule of thumb is to allocate 20% to 30% of your overall app development budget for marketing. For example, if your app development costs $50,000, you should set aside $10,000 to $15,000 for marketing efforts.

By considering these behind-the-scenes costs, you can better plan your app development budget and avoid surprises down the line. Remember, a successful app is not just about the features and design but also the infrastructure and marketing efforts that support it.

How Much Time Does it Take to Develop an App

The time it takes to develop an app can vary significantly depending on several factors, such as the complexity of the project and the resources available. In this section, we'll discuss how the type of app project and the development timeline can impact the overall app development process.

Type of an app project

The type of app project plays a crucial role in determining the development timeline. Generally, app projects can be categorized into three types:

1. Simple apps: These apps have basic features and a straightforward user interface. Examples include simple to-do lists, calculators, or note-taking apps. Development time for simple apps can range from 1 to 3 months.
2. Medium complexity apps: These apps have more advanced features and require integration with external APIs or databases. Examples include social networking apps, e-commerce apps, or productivity apps with multiple features. Development time for medium complexity apps can range from 3 to 6 months.
3. High complexity apps: These apps have complex features, require significant backend development, and often involve real-time processing or advanced algorithms. Examples include apps with augmented reality, machine learning, or large-scale enterprise apps. Development time for high complexity apps can range from 6 to 12 months or more.

Time to Develop an App

The actual time to develop an app can depend on various factors, including the size and experience of the development team, the development methodology used (such as Agile or Waterfall), and the availability of resources. Here are some general guidelines for app development timelines:

1. Pre-development phase: This phase includes initial planning, market research, and defining the app's features and functionality. Depending on the project's complexity, this phase can take from 2 to 4 weeks.
2. Design phase: This phase involves creating wireframes, mockups, and the final user interface design. Depending on the app's complexity and the designer's experience, this phase can take from 2 to 8 weeks.
3. Development phase: This phase includes writing the actual code for the app, integrating APIs, and setting up the backend infrastructure. The development phase can take anywhere from 1 to 9 months or more, depending on the app's complexity and the development team's expertise.
4. Testing and quality assurance: This phase involves identifying and fixing bugs, ensuring the app works as intended, and optimizing performance. Depending on the project's complexity and the testing approach, this phase can take from 2 to 6 weeks.
5. Deployment and launch: This phase includes submitting the app to the app stores, marketing efforts, and addressing any issues that arise after launch. This phase can take anywhere from a few weeks to a few months, depending on the marketing strategy and the app's performance.

By understanding the factors that impact app development timelines, you can better plan your project and set realistic expectations for your app's launch. Keep in mind that development timelines can vary greatly based on the project's unique requirements and circumstances.

How to Cut Mobile App Development Cost

Developing a mobile app can be expensive, but there are ways to minimize costs without sacrificing quality. In this section, we'll explore five strategies for reducing mobile app development costs while still delivering a successful and engaging app.

1. Cross-Platform Development

Cross-platform development enables you to create a single app that runs on multiple platforms, such as iOS and Android, using a shared codebase. This approach can significantly reduce development time and costs by eliminating the need to create separate versions of your app for each platform. Frameworks like React Native and Flutter make it easier to develop cross-platform apps without compromising on performance or user experience.

2. MVP First

Developing a Minimum Viable Product (MVP) is a strategy that focuses on building an app with only the essential features to validate its concept and gather user feedback. By launching an MVP first, you can test your app's core functionality and make improvements based on real-world usage data before investing in additional features. This approach can save both time and money by helping you prioritize the most valuable features and avoid unnecessary development costs.

3. Design and Development by the Same Agency

Hiring a single agency to handle both the design and development of your app can lead to better communication and streamlined processes. This approach can reduce the chances of misunderstandings and design revisions, resulting in a more efficient development process and lower overall costs. Additionally, an agency with expertise in both areas can provide valuable insights and suggestions to optimize your app for both user experience and technical performance.

4. Use Off-the-Shelf Solutions

Leveraging existing tools and technologies can help you save on development costs by reducing the need for custom development. Many off-the-shelf solutions, such as pre-built UI components, third-party APIs, and ready-to-use backend services, can be easily integrated into your app to provide functionality without the need for extensive development work. This approach can also speed up the development process, allowing you to launch your app more quickly.

5. Avoid Supporting Legacy OSes and Device Models

Supporting older operating systems and device models can increase development and testing costs, as well as ongoing maintenance expenses. By focusing on the most recent versions of iOS and Android and the most popular device models, you can simplify your app's development process and reduce compatibility issues. Keep in mind that it's essential to balance the need to support a broad user base with the costs and complexities of supporting legacy platforms.

By employing these cost-cutting strategies, you can minimize your mobile app development expenses while still delivering a high-quality, engaging app that meets your users' needs and expectations.

Hidden App Development Costs You Need to Know

Marketing Cost

A well-designed and functional app is only half the battle; getting users to discover and download your app is equally important. Marketing your app effectively can make all the difference in its success, but it comes with its own set of costs. Some key marketing expenses to consider include:

1. App Store Optimization (ASO): Optimizing your app's title, description, keywords, and visuals can help improve its visibility in app store search results, driving more organic downloads. ASO tools and services can be an investment but offer valuable insights to help you stand out in a crowded marketplace.
2. Paid Advertising: Running ads on platforms like Google Ads, Facebook, and Instagram can help you reach a broader audience and drive more downloads. Be prepared to allocate a budget for ad spend and continually monitor and optimize your campaigns to maximize return on investment.
3. Influencer Marketing: Partnering with influencers or bloggers in your app's niche can help increase awareness and credibility. This strategy may involve monetary compensation, product giveaways, or revenue sharing agreements.
4. Public Relations (PR): Hiring a PR agency or professional can help you secure media coverage, app reviews, and guest posting opportunities, increasing your app's visibility and credibility. PR efforts can be time-consuming and costly, but the potential payoff in terms of user acquisition makes it a worthy investment.

App Maintenance Cost

App development doesn't end with the initial launch. Maintaining and updating your app is essential for ensuring its ongoing success, and these tasks come with their own set of costs. Some key app maintenance expenses include:

1. Bug Fixes and Updates: As users interact with your app, you may discover bugs or areas for improvement. Regularly updating your app to fix issues and enhance its functionality can help keep users engaged and maintain a positive reputation in the app store.
2. Operating System and Device Compatibility: As new versions of iOS and Android are released, you'll need to update your app to ensure it remains compatible and functional. This may involve updating your code, fixing compatibility issues, and retesting your app on various devices and OS versions.
3. Server and Infrastructure Costs: If your app relies on a backend server, you'll need to cover the ongoing costs of hosting, database management, and server maintenance. These expenses can vary depending on the size and complexity of your app, as well as the hosting provider you choose.
4. Security Updates: Protecting your users' data and maintaining the security of your app is essential. Regularly monitoring and updating your app's security measures can help prevent data breaches and maintain user trust.

By understanding and accounting for these hidden app development costs, you can better plan your budget and ensure your app's long-term success.

Your Options When It Comes to App Development

When planning your app development project, it's essential to consider the various options available for executing the work. Each approach has its pros and cons, and the best choice will depend on your specific needs, budget, and timeline. In this section, we'll explore four common app development options: hiring a local agency, building an in-house team, working with freelancers, and outsourcing the development process.

1. Hire a local agency

Hiring a local agency is an excellent option for businesses looking for a comprehensive, streamlined app development process. Local agencies often have a team of experts who can handle all aspects of app development, from design to coding and marketing. One such agency is Xmethod, a Berlin-based no-code MVP development agency specializing in helping SMEs and startups build MVPs in 2-3 months using advanced no-code/low-code solutions.

Working with a local agency like Xmethod offers several benefits, including clear communication, in-person meetings, and a deep understanding of the local market. Additionally, the agency's experience with no-code/low-code tools can accelerate the development process, saving you time and money. Get in touch with Xmethod to discuss your app development needs and discover how they can help bring your vision to life.

2. Build an in-house team

Building an in-house team is an option for companies that prefer to have full control over the app development process. This approach involves recruiting, hiring, and training your own team of developers, designers, and project managers. While assembling an in-house team can be time-consuming and expensive, it provides the advantage of having dedicated resources who are fully aligned with your company's goals and culture.

An in-house team also allows for easier collaboration and more effective communication since everyone is working under the same roof. However, the cost of salaries, benefits, and office space can make this approach less attractive for smaller businesses or startups with limited budgets.

3. Work with freelancers

Hiring freelancers can be a cost-effective solution for app development, particularly for smaller projects or those with a limited budget. Freelancers often have specialized skills and experience, and they can be brought on board as needed to complete specific tasks. 

However, managing multiple freelancers can be challenging, as communication and collaboration may be less streamlined than with an in-house team or agency. Furthermore, the quality of work can vary, so it's essential to thoroughly vet freelancers before hiring them.

4. Outsource app development

Outsourcing app development to an offshore team can offer significant cost savings, as labor rates are often lower in other countries. This approach can also grant you access to a diverse pool of talent and expertise. However, working with an offshore team can present challenges in terms of communication, time zone differences, and potential cultural misunderstandings. To mitigate these risks, it's crucial to choose a reputable outsourcing partner and establish clear expectations and communication channels from the outset.

Each of these options has its own set of advantages and drawbacks. By carefully considering your project's specific needs, budget, and timeline, you can make an informed decision about the best approach for your app development journey.

App Development Cost Statistics

Understanding the various factors that influence app development costs is crucial when planning your project. In this section, we'll dive into app development cost statistics, focusing on the cost differences by app type and by region.

Cost of App Development by Type

The type of app you're developing plays a significant role in determining its overall cost. Here are some general cost ranges for different app types:

1. Simple apps: $8,000 - $15,000

These apps have basic functionality and a limited number of features, such as a calculator or a to-do list app.

2. No-code apps: $15,000 - $40,000

These apps combine high complexity and cost-effectiveness. As a result, you can build MVP of your IT product in just 2-3 months. Have an idea? Let’s discuss with Xmethod team.

3. Database-driven apps: $40,000 - $150,000

These apps require more complex functionality, such as user authentication and data storage, like e-commerce or social networking apps.

4. Enterprise apps: $150,000 - $500,000

These large-scale apps typically involve integration with existing systems, advanced security features, and custom functionality tailored to specific business processes.

Please note that these cost ranges are approximate and can vary depending on factors such as complexity, features, and development approach.

Cost of App Development by Region

The cost of app development can vary significantly by region due to differences in labor rates and market dynamics. Here's a breakdown of average hourly rates for app development in some key European regions:

1. Germany: $50 - $150 per hour
2. Switzerland: $75 - $175 per hour
3. United Kingdom: $60 - $150 per hour

These rates are indicative, and actual costs can vary depending on factors such as the size and complexity of your project and the specific expertise required. Keep in mind that while higher hourly rates may seem more expensive initially, they can result in a higher-quality app and a more efficient development process.

Examples of App Development Cost

To give you a better understanding of app development costs, let's take a look at some real-life examples from well-known apps. Keep in mind that these cost estimates are based on available data and may not be entirely accurate, but they can still provide valuable insight into the potential expenses involved in creating popular apps.

Example #1: Tinder

Tinder, the popular dating app, is estimated to have cost around $100,000 to $150,000 for its initial development. This includes the creation of the app's unique swipe feature, user authentication, location-based matching, and chat functionality.

Example #2: Ikea

The Ikea Place app, which uses augmented reality to help users visualize furniture in their homes, is estimated to have cost around $200,000 to $250,000 for its initial development. This includes the development of AR functionality, product catalog integration, and user interface design.

Example #3: Uber

Uber, the ride-hailing giant, is estimated to have cost between $1 million and $1.5 million for its initial app development. This includes the development of core features like real-time location tracking, payment integration, and driver and passenger matching.

Example #4: TikTok

TikTok, the short-form video-sharing app, is estimated to have cost around $500,000 to $750,000 for its initial development. This includes the development of video editing and sharing features, social integration, and user discovery algorithms.

Example #5: Airbnb

Airbnb, the popular home-sharing platform, is estimated to have cost between $500,000 and $1 million for its initial app development. This includes the development of features like listing management, booking and payment integration, and user reviews.

Example #6: Twitter

Twitter, the well-known social media platform, is estimated to have cost around $250,000 to $500,000 for its initial app development. This includes the development of core features like tweet creation, timeline management, and user discovery.

These examples illustrate the wide range of costs associated with developing popular apps, which can vary greatly depending on factors like functionality, complexity, and development approach. By understanding these examples, you can better anticipate the potential costs involved in bringing your own app idea to life.

Conclusion

As we reach the end of our comprehensive guide on the average price to develop an app in 2023, let's take a moment to recap the key points and highlight the importance of planning and research when it comes to setting an app development budget.

Recap of key points

1. App development costs vary depending on factors like complexity, features, and region.
2. Breaking down the budget into different phases, such as business analysis, design, coding, and project management, can help you allocate resources effectively.
3. The feature set of your app will significantly impact the overall cost, so prioritize essential features and consider the value added by each additional feature.
4. Don't forget to factor in hidden costs, such as marketing, maintenance, and patenting.
5. Time taken to develop an app can vary based on the project type and requirements.
6. Employ cost-cutting strategies like cross-platform development, MVPs, and off-the-shelf solutions to maximize your budget.
7. Be aware of your options when it comes to app development, such as hiring a local agency, building an in-house team, working with freelancers, or outsourcing the project.

Importance of planning and research for app development budget

Thorough planning and research are essential when it comes to setting a realistic app development budget. By understanding the different cost factors and exploring various development options, you can make informed decisions and allocate resources more effectively.

Conducting market research, competitor analysis, and user surveys can help you identify the most valuable features for your target audience, allowing you to prioritize those and make the most of your budget. Additionally, staying updated on the latest app development trends and technologies can help you leverage cost-effective solutions and achieve better results within your budget constraints.

In conclusion, the average price to develop an app can vary significantly based on numerous factors. By understanding these factors and conducting thorough planning and research, you can set a realistic budget, maximize the return on investment, and successfully bring your app idea to life.