Reasons Why App Development Budget Vary In 2023

Reasons Why App Development Budget Vary In 2023

What is the average cost to develop an app? It is the most common question when you decide to build a mobile application. 

To plan your budget wisely, you have to know the components that form the app development cost. Thanks to this article, you will get an understanding of what influences the app price and how to correctly form your app development budget. Keep reading to learn how to reduce your development costs.

Factors That Determine The App Development Cost

Application Type

There are two main types of applications: 

  • Native apps work with only one specific platform – iOS or Android. Examples are Spotify, WhatsApp, and Waze.
  • Cross-platform apps are accessible from multiple operating systems. Instagram, Uber, and Gmail are all cross-platform applications.

Generally, the development of Native apps is more expensive and time-consuming because there is a need to build two applications separately for iOS and Android. 

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Vendor Type And Location

Depending on the vendor type, the cost to develop a mobile app may be different. There are three main options: 

  1. Internal team. The app development budget will be high since you have to pay salaries to employees, regardless of whether they have completed a certain amount of work or not.
  2. Outsource. The discovery stage can take a lot of time, but there is a chance of reducing costs for the development of your app.
  3. Freelance. This is the cheapest option, but there are risks of getting low-quality work or not meeting deadlines. 

The developers’ location also influences app development costs. For example, developers from North America charge about $100 per hour, while Eastern European devs are reasonable at $40 per hour.

Complexity And The Number Of App Features

According to Business of Apps, for a simple app, you have to invest from $10,000 to $32,000, the medium project costs about $50,000, and for a complex application, an app development budget starts from $72,000.

The complexity of the project depends on the number of features you want to see in your application. To reduce the average cost of app development, consider an MVP creation and only essential functions implementation.

The Complexity Of UX/UI Design

The more animated the design you want to implement, the more expensive the total cost of the application will be. For a simple app, you can use standard elements that don’t require much time for implementation.

If you want your design to be unique and attractive, you have to invest more money and time.

Tech Stack

Choosing cross-platform app development can take between 25-35% less time and money than a separate solution for the two platforms. You can hire Flutter or React Native developers for this development: Doit Software Services Staff-Augmentation.

 If you want to develop native apps, you may choose Objective-C or Swift for iOS and Java or Kotlin for Android.

Ongoing Maintenance And Support

While you are building an application, you should take into account the maintenance cost, which takes about 20% of the initial price for each year. After-launch support is essential to keep the application updated, fix bugs, and add new features.

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How To Save On Your Budget For App Development

Although the app development budget is individual for each project, there are a few tips to minimize costs.

  • Perform the discovery phase. Business goals determinations, product architecture building, and possible risk assessment may save you up to 50% of your app development cost. 
  • Outsource. When you use this model, there is no point in wasting time and money on hiring and training employees. 
  • MVP (Minimum Viable Product). An MVP will help you to reach a market quickly and analyze users’ behavior.

These tips will help you reduce your development costs and understand how well your idea works with minimum resources involved.


To build an app on budget, you should consider your application type, vendor location and engagement model, number of features, the complexity of the UX/UI design, tech stack, and the required funds for ongoing support.

Running a discovery phase, choosing an outsourcing model, and creating an MVP first can save your app development assets.

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How Much Does It Cost To Create A Mobile App For An SME?

The price to make a mobile application for a small business will vary from $10,000 to $40,000. 

How Long Does It Take To Develop An App?

A simple app will take about 4 months; for a medium project, you should count on 6 months, and for complex development, you must invest 10-12 months.

How To Develop An App Within A Tight Budget?

  1. Set clear goals.
  2. Consider the discovery stage.
  3. Develop an MVP.
  4. Implement simple functionality.
  5. Choose the right application type.
Written by Alan Taylor
I’m Alan, a technology writer with a decade of experience testing and reviewing software. I’m passionate about providing honest and unbiased reviews to help consumers make informed decisions. With a background in computer science and a talent for simplifying complex concepts, I enjoy exploring new technology trends.