{"id":7794,"date":"2020-09-15T09:15:34","date_gmt":"2020-09-15T09:15:34","guid":{"rendered":"https:\/\/www.miquido.com\/blog\/?p=1441"},"modified":"2023-07-28T13:20:10","modified_gmt":"2023-07-28T11:20:10","slug":"how-much-does-it-cost-to-develop-an-app","status":"publish","type":"post","link":"https:\/\/www.miquido.com\/blog\/how-much-does-it-cost-to-develop-an-app\/","title":{"rendered":"How much does it cost to make an app in 2023?"},"content":{"rendered":"\n

So, you\u2019re thinking about creating an app \u2014 smart move! Having that great app idea shaped and framed in your head is an inspiring moment. However, after some time you might have to come back down to Earth and start the planning process. There are a lot of questions to be answered before you choose your app development agency. Among them, there is one crucial matter: how much does it cost to make an app?  <\/strong><\/p>\n\n\n\n

We\u2019re here to help you estimate the possible costs of app development. Ready? Let\u2019s dive in! <\/p>\n\n\n\n

What is there to know about the cost of app development? <\/h2>\n\n\n\n

To understand a bit more about the specifics of app development cost estimation, let\u2019s grab a nice metaphor first. Imagine that you\u2019re planning to go on a two-day mountain hike with your family. As an added feature, you decide that you want to reconnect with mother nature and camp in the wilderness. Sounds exciting, doesn\u2019t it? The kids are going to be thrilled! There is just one thing left before you embark on your adventure. You need to buy a nice tent. This should be a piece of cake! <\/p>\n\n\n\n

The second you walk into the store, the sheer number of options to choose from overwhelms you. Here comes the shop clerk, nice and ready to help. Would you like a tent that\u2019s waterproof? How many people is it supposed to house? Do you maybe need one that can be attached to your backpack? You start getting impatient and decide to get the most expensive one, just to get it over with. <\/p>\n\n\n\n

Unlike hiking gear, there are no price tags when it comes to the app development process. Especially when we\u2019re talking about custom-made apps. Also, in both cases, identifying your needs and expectations should be your first step. Why? Because it helps you avoid additional costs, delays, and other types of hiccups in the process.<\/p>\n\n\n\n

In-house or outsourcing app development: Which one to choose<\/strong><\/h3>\n\n\n\n

Choosing the right solution depends on the project’s size, duration, and your needs. Having your own development team gives you more insight into the team’s work, which can make communication easier. You also have much more control over the various stages of the project. However, this solution is significantly more costly, as the budget for producing the app is based on monthly payments to employees rather than a fixed price or time and materials model. In addition, you take on the entire responsibility for creating the application and developing the employees’ skills. It is also worth noting that creating digital products is much more challenging if you have never done it before. Therefore, if you have little experience in application development and want to avoid taking responsibility for the subsequent phases of the project, it is much better to choose a custom software development company<\/a>.<\/p>\n\n\n

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Popular models of app development pricing<\/h2>\n\n\n\n

To help you get a grasp on what it costs to develop an app, let’s take a look at some background info first. Most software houses use one of the following two software pricing models. <\/p>\n\n\n\n

Fixed Price Model <\/strong><\/h3>\n\n\n\n

In this payment model, the budget of the project is fixed at the beginning. It doesn\u2019t depend on the time or resources spent by the vendor on developing your app. In this price model, your budget dictates the timeline and the process of app development, and not the other way around. <\/p>\n\n\n\n

Advantages of the Fixed Price Model<\/strong><\/h4>\n\n\n\n

One of the advantages of this model is predictability in the design. You know precisely how much the various stages will cost and what budget you need to have prepared for your software development project. In addition, everything is highly transparent, which means that nothing will surprise you. With the Fixed Price Model, it is easier to manage the entire project, as all requirements are discussed at the start of the service.<\/p>\n\n\n\n

When to choose the Fixed Price Model<\/strong><\/h4>\n\n\n\n

This model will work perfectly if you have a predetermined budget and prefer to stay within it. It is also worth using the Fixed Price Model if you know your requirements and they will not change during the project. This type of project pricing is also ideal for small or medium-sized companies. The Fixed Price Model will also be a good choice if your goal is to build an MVP in your app development process.<\/p>\n\n\n\n

Time and Materials<\/strong><\/h3>\n\n\n\n

In the time and materials model, the rules are opposite \u2013 the budget and development timeline are tailored to your project.<\/strong> In even simpler words, you\u2019re paying your vendor based upon the time they spend working for you. That gives you the ability to adjust the app development budget as the project unfolds.  <\/p>\n\n\n\n

Advantages of the Time and materials Model<\/strong><\/h4>\n\n\n\n

This model allows you to remain completely flexible as you develop your product and modify your requirements. With the Time and Materials model, you can maintain better dynamism and control in your design work. In addition, you do not have to wait months to approve requirements and budgets, as you do with the Fixed Price Model. This means that the project team can get straight down to work. The Time and Materials Model significantly reduces working time and you don’t have to stand still with your product.<\/p>\n\n\n\n

When to choose the Time and Materials Model<\/strong><\/h4>\n\n\n\n

This model will work if the solution you want to create is time-consuming and complex or if your scope is not entirely set. The Time and Materials Model is also a good choice if you want to remain flexible and all the product requirements are unknown. Choose this type of pricing if you want to have flexibility, complete control over expenses, and only pay for the actual project work time. It will work particularly well for larger projects or enterprise software development<\/a>.<\/p>\n\n\n\n

Still not sure which pricing model will work perfectly for your software project?
Check our detailed Time and Material vs Fixed Price<\/a> comparison and make the right decision!<\/p>\n\n\n\n

What is an MVP and why is it crucial in app development? <\/strong><\/h2>\n\n\n\n

Let\u2019s come back to the hiking story once more. As soon as you know what you\u2019re expecting from your product, you might end up buying a smaller tent for starters. Then, you can decide to expand on your hiking gear as you get more advanced. <\/p>\n\n\n\n

The same goes for app development. If you decide to develop a large, complex application all at once, you are going to face a lengthy development process, and end up with a broad set of features your users never needed (remember that big, expensive tent?). On the other hand, you can decide to take a step-by-step approach and start by identifying the core features<\/strong> \u2014 that is, ones that your app absolutely needs to be functional. After that, you can release it, and start expanding from there on, as your audience and needs grow. <\/p>\n\n\n\n

And that\u2019s how we arrive at the concept of creating an MVP. A Minimum Viable Product<\/a> is a fully-functioning app, ready for a market release. An MVP can be implemented fast and has just enough features to serve its purpose to users. That way, you can save the initial effort and budget for further improvements once you\u2019re sure that your customers need them. It\u2019s a win-win situation. <\/p>\n\n\n

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Choosing an MVP development first will allow you to adjust your budget to the project and scale the product development as your needs grow. <\/figcaption><\/figure><\/div>\n\n\n

Why is it smart to develop an MVP first? <\/h3>\n\n\n\n

When it comes to business, time-to-market is one of the most crucial factors, often weighing in on the success of the project. The sooner you release your digital product to the market, the sooner you\u2019ll be able to test it and give your users the features and upgrades they actually want.  On the other hand, addressing your needs and expectations at the very beginning helps you avoid unnecessary costs and delays.<\/strong> <\/p>\n\n\n\n

Building the full-vision product from the very beginning will most likely take months, if not years. While you keep on perfecting your application, your competition is probably working on their own solution. In the meantime, they may end up releasing it before you and gaining most of the users\u2019 attention. Instead of building the full-vision product from the start, you can choose the iterative approach, adjusting the budget and scope of the project as you go.<\/p>\n\n\n\n

How much does it cost to develop an app? <\/h2>\n\n\n\n

A large number of software houses, including InfoSys Development, estimate their work in man-days<\/strong> (using the time and materials model). One man-day equals one day\u2019s worth of app developers, project managers, product owners, or designers work.<\/p>\n\n\n\n

If the budget is flexible and we\u2019re billing the work by the day, is it really possible to estimate the costs beforehand?<\/strong> In fact, it is. As soon as your vendor identifies the scope of your app and points out its core features, they are able to predict the number of man-days required to build it. <\/p>\n\n\n\n

What is the average man-day rate for app development? <\/h3>\n\n\n\n

If you\u2019re searching for an acclaimed software agency in Central Europe, it\u2019s safe to assume an average rate for one man-day of development will be about 360 GBP – 450 GBP<\/strong>. <\/p>\n\n\n\n

At the same time, note that a fully functional MVP takes approximately three months (around 100 man-days) to develop for one platform (Android or iOS). <\/p>\n\n\n\n

For example, producing an MVP by the typical team needed for a medium-sized project on a time & materials basis for one month involves the work of:<\/p>\n\n\n\n