Mobile App Development Cost: What You Need to Know

As people use mobile applications for just about any activity nowadays, aspiring businesses strive to develop great digital products to attract and retain customers. But to create something that will find its audience, you must be fully aware of how much you need to invest in such a solution.

So, how much does mobile app development cost? If you want to build an app that will be both efficient and popular, we’ll tell you what kind of price tag to expect.

Cost of mobile app development: factors worth your attention

The cost of developing an app varies depending on the business case. Certain scenarios are typical, though, and various companies base their estimates on them. Andersen’s experts have also analyzed the latest trends and included the key factors to pay attention to:

• Scope and functionality: The rule is quite simple—the more complex the solution, the more you invest in it.
• Platforms and devices: When building your software, you’ll need to choose between native, hybrid, or cross-platform mobile applications. This choice will influence the end cost.
• Project scope alterations: If you introduce changes frequently, you’ll pay for extra work.
• Deadlines: If these are tight, you might need to attract more resources (both human and tech), which will result in increased expenses.
• Backend requirements: Solutions with complex server-side logic, large databases, or high security standards traditionally cost more.
• Integrations and API connections: Integration with third-party APIs or services is quite costly, too.

Let’s take a look at the vital stages (the entire process is roughly depicted here):

In addition to the app cost factors mentioned above, you should consider the type of solution you are building. You will deal with one of these:

Next, think about the audience you are targeting. Are these typical users of Apple products? Or, perhaps, those having Android phones? By the way, developing solutions for both of these groups can require significant investment—tailor-made iOS and Android apps generally cost much more than their hybrid or web counterparts. That’s why Android mobile app development cost will differ significantly from that of a cross-platform solution.

So, analyze this factor thoroughly. Of course, native apps show impressive performance, but they are quite pricey, too. Hybrid ones would be a much more budget-friendly option. And you won’t even have to cut down on important features, which is a great advantage as well.

One useful tip: If development time matters in your case, we suggest you opt for cross-platform frameworks.

Potential cost of app development: typical scenarios to choose from

Another vital thing to consider is the business objective itself. Various solutions enjoy different demand and, consequently, imply different investments. Thus, eCommerce mobile app development cost is high in comparison to the price tag for an MVP.

We have drafted a reference range for you, taking into account the most popular software types. Based on it, you can roughly estimate what an app like Spotify could cost you. Or if you have a cool gaming idea, take a look at the typical app development price in this area.

Building a complex mobile solution will definitely take more effort—your app development budget cannot be moderate in such a case.

How location impacts mobile app development costs

Talent can be found everywhere, but salaries differ considerably. Rates are higher in the United States than in South America (approximately $120/hour against $50). So, your app development team could be located in a country with moderate salaries.

Annual salaries are not the same, either. A mobile app developer in the US earns around $110,000, whereas in India, the salary is closer to $12,000. In some regions, there are additional taxes, insurance contributions, or employee benefits—they also influence the cost of hiring. Moreover, the availability of professionals skilled in specific technologies varies by region. A particular expertise could be in short supply, and specialists with those skills will command higher salaries.

Another consideration is time zone differences when engaging an overseas development team. If managing communication becomes challenging, it could slow down development and require extra project management efforts.

But you shouldn’t be guided by costs only when choosing an IT partner. Evaluate the technical skills of your potential development team, past client reviews, and ability to deliver on time.

Typical cost breakdown to consider

For maximum efficiency, find a specialized IT agency. Such development companies have seasoned experts who know the intricacies of various app projects and can accurately assess your specific case.

Let us offer you some insights from Andersen’s experts. With over 17 years of market presence, we have gained extensive experience in mobile software development. We know the typical features you might need and can calculate the associated costs.

Here is a clear structure of all relevant expenses to be guided by when calculating the cost of development for your mobile application:

Non-technical expenses

1. Project management: If your team members communicate seamlessly and workflows are uninterrupted, you could save a lot and avoid mistakes—professional management significantly improves the mobile app development process.

2. Planning your app development project: Thoroughly research the latest trends to validate your app idea. Of course, this is vital for mobile app development cost estimate as well. If you understand what exactly will find acclaim among your target audience, you’ll be able to invest reasonably. In any case, consider $5,000–$40,000 for this stage.

3. UI/UX design: Your product may be truly feature-rich, but if it lacks clarity, elegance, and perfect navigation, it might fail. So, don’t neglect this component. Depending on the complexity of animations and other features, you may spend $5,000–$50,000 for this.

Tech expenses

1. Front-end development: You shouldn’t save on this—the interface is what any person deals with. One may be tech-savvy or, on the contrary, unfamiliar with programming—still, a user-friendly experience makes a difference for anyone.

2. Back-end development: Server-side logic, databases, APIs, integrations—even though lay users may not have a clue, these components are just as important. They are the basis of impeccable software performance.

3. QA activities: Any digital product demands thorough testing before launch. What if it has certain bugs? What if it lacks some essential navigation features? What if it is vulnerable in the face of numerous attacks? The answer is clear: you’ll lose your audience. A good digital solution should perform flawlessly under all conditions. So, be prepared to pay between $5,000–$50,000 for this too.

4. Optional expenses: If your app needs to support multiple OSs (other than being purely native), you might need to pay for its optimization and platform-specific adjustments.

Deployment expenses

1. App store listing fees: Each app store has its own requirements. The App Store, for instance, can cost you $99 a year, plus a 15–30% commission.

2. Certificates and licenses: Some industries have very strict regulations. To build a mobile banking solution or health app, you will have to ensure robust security and protection of sensitive data. Of course, this comes at a cost.

3. Legal aspects and intellectual property: You don’t want your unique idea “copied and pasted” in another digital solution, do you? So, be ready to pay for patents, trademark registrations, copyrights, and so on.

Expenses after launch

1. Support and updates: After the product is ready and enjoys demand, you should maintain your app anyway. Mobile apps must respond to users’ actual demands—the competition is fierce, and expectations are changing all the time.

2. Hosting and infrastructure expenses: These are unavoidable because they secure both decent performance and stability.

3. Evaluation and monitoring: Specialized tools for app usage control will allow you to introduce the necessary changes whenever needed.

Many businesses underestimate such expenses. But you should consider them a vital part of mobile phone app development costs. Maintenance alone can account for 20–45% of your initial budget.

Why does mobile app development cost so much?

After calculating everything, you might be surprised by how much it costs. But what makes mobile app development such a costly endeavor?

1. Experienced specialists: You won’t be able to build a good mobile solution without skilled professionals. Recruiting and fairly compensating top developers is one of the biggest expenses.

2. Backend infrastructure: Many apps depend on complex server-side systems to manage data, synchronize information, and support API functionality, all of which require significant spendings.

3. Advanced integrations: Incorporating third-party services or external APIs can be technically demanding—and as a result, costly.

4. App maintenance: Launching an app is just the beginning. You’ll need regular updates, security patches, and compatibility with evolving operating systems, but this adds to your costs.

5. Hard-to-please users: With intense competition in the app market, delivering an intuitive interface, smooth performance, and eye-catching design is a must. Of course, any refinement will increase your expenses.

6. Security and compliance: If your software processes sensitive data or must adhere to strict regulations like GDPR or HIPAA, it needs to be super secure and compliant. Any adjustments will be expensive.

7. Timeline: The scope and complexity of the product dictate the effort. You may need to hire more developers or pay your team extra for overtime.

8.Continuous refinement: No digital solution is perfect on the first attempt. Iterative improvements, user feedback implementation, and extensive testing are necessary to fine-tune any software.

9. Unexpected challenges:__ Even with meticulous planning, unexpected technical difficulties or software bugs can arise—naturally, this will bring about additional expenses.

Useful measures to influence the price tag

If you want to develop an app cost-efficiently, we have some tips for you. Take these steps—and the final cost will definitely be attractive.

1. Define your objectives clearly: The key thing is to understand the most important features to implement. If you keep on adding new ones, this will result in considerable expenses and delays.

2. Set priorities: Pay attention to what matters to your target group above all. You can always introduce less critical functions later.

3. Start with an MVP: We always give this piece of advice to our clients. If you develop only the most necessary features first, you’ll both validate your idea, and avoid unnecessary expenses right from the start. In case your product works, you may add some more sophisticated features later.

4. Plan efficiently: Develop a structured project plan with clear milestones and realistic deadlines. Having no delays means no additional expenses.

5. Make your product user-friendly: An intuitive design with a touch of elegance is not only beneficial for UX. It will help you minimize the need for constant (and quite costly) improvements.

6. Apply reusable components: Development time matters, and with reusable modules, libraries, and frameworks you can considerably save it.

7. Consider the cross-platform approach: Rather than creating separate native apps, this will secure simultaneous access to multiple platforms.

8. Explore hybrid methods: For less ambitious initiatives, you could choose this approach.

9. Carry out continuous testing: At Andersen, we advocate for agility and carry out tests throughout the entire app development process. Should any issues emerge, we thus timely spot and eliminate them.

10. Listen to your users and introduce iterations: Being aware of what people think of your product will help you swiftly and efficiently improve it.

11. Weigh outsourcing vs. internal expertise: You can considerably cut your expenses if you hand over certain tasks to professionals working in locations with lower salary rates.

12. Leverage open-source libraries and tools: This way, you won’t need to spend money on custom solutions.

13. Employ the cloud: If you do this for hosting, databases, and storage, you won’t need to spend considerable sums on building your own infrastructure. What’s more, you will achieve impeccable scalability.

14. Be open with your team members: Honest communication will help you timely reveal serious issues and avoid costly mistakes.

15. Monitor and analyze the performance of your application constantly: If you track user behavior on a regular basis, you’ll understand what exactly and when to update or improve.

16. Avoid over-engineering: Don’t implement features that cannot add significant value, as this can strain your budget.

17. Create a post-launch plan: This document should cover such aspects as maintenance, improvements, and updates. It will help you future-proof your mobile product.

The key thing is: by no means compromise on quality, security, and UX. This could ruin your project.

Securing cost-effectiveness with Andersen's calculator

If you're looking for investors, precise and detailed financial projections are very important. Our solution streamlines this process:

1. Specify your needs: Outline the core features and target platforms. Consider elements like user authentication, database connectivity, design components, and potential integrations.

2. Break down project phases: Divide the project into key segments, such as UI design, coding, quality assurance, deployment, and support.

3. Assess time and effort: Estimate the duration required for each stage in hours or days.

4. Set appropriate compensation: Define the hourly rates of your future team members. These may fluctuate based on their experience and location.

5. Calculate sub-costs: Multiply the estimated hours for each phase by the respective hourly rate to obtain preliminary projections.

6. Include extra expenses: Don’t forget to account for app store fees, hosting, and a financial buffer for unexpected expenditures.

7. Calculate the overall budget: Sum up all estimated costs and extra charges to arrive at a comprehensive financial outline of your project.

Important note: Unexpected expenses can arise at any stage of mobile app development. To stay prepared, you should allocate an extra 10–20% of your total budget for unforeseen needs.

Let’s create a robust app together

The average mobile app development cost is hard to calculate since every application is unique. Standard price ranges generally apply to the simplest applications. Complex solutions, in turn, require a tailored approach.

If you're looking for reliable software development services, Andersen is here to help. Our experts will consult you on the most important issues and offer you a comprehensive cost breakdown together with a structured project plan. What’s more, we can give you a rough estimate right away.

So, schedule a free consultation, ask any questions you may have—and let’s create an app together.