How to Calculate App Development Cost (Complete Guide for 2022)

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    The cost of app development is usually a significant concern when considering beginning a digital business, and there is no clear answer yet. Because it is dependent on a variety of aspects, types, and categories, including what you require, how much you need, when you require it, and where you require it.

    Consider how outsourcing app development will save you time, money, and effort. After all, why not? Your time is valuable, and you can contribute to the global mobile application market, which is expected to create USD 5274 million in sales by 2024. Aren’t those insane figures?

    Let’s make it even crazier by learning how to manage your app development budget so you can get the most value for money even before you begin.

    What does it cost to create an app? Before starting a project, one of the first queries app developers and companies have is this.

    The app development cost estimate is the bottom line of every mobile app development budget. A business owner is usually faced with how much it will cost to hire a professional to design an app for my company versus how much it will cost to construct an app on my own.

    Fortunately, various app development budget-generating aspects can assist you in determining the cost of an app’s development.

    How Much An App Development Will Cost?

    • What an app’s functionality and purpose are — what an app can genuinely do for its customers.
    • Mobile platforms and supported devices – whether an app will be built exclusively for iOS or an Android version. What specific devices, such as the iPhone 12, iPhone 12 Mini, Samsung Galaxy S10 Plus, and others, will it support?
    • Points of integration — Will an app be integrated with third-party apps that serve as its content source?
    • Use of visual items – the cost of an app is heavily influenced by the complexity of its visible components.
    • Use of smartphone hardware features — whether or not an app will use smartphone features such as GPS navigation, NFC technology, motion co-processors, Augmented Reality technology, and other technologies found in smartphones and tablet computers.
    • Maintenance strategy – once an app development project is completed, it will almost definitely require technical assistance from the developer.

    The Checklist-What Should You Look For When Choosing an App Development Company? 

    Numerous IT outsourcing companies provide various services. But how can you locate a trustworthy partner who can offer high-quality goods?

    First and foremost, it is preferable to undertake extensive research on IT businesses to ensure that they fit the needs of your product.

    Here are a few things to consider when choosing an IT company to complete your project and create the app you need:

    Make a list of your application’s needs.

    It would help if you determined the needs for your application, as well as the amount of funding available for its development, the planned development timetable, and the platforms on which it will run.

    It will also help you realize more clearly what type of application you need to design if you learn about the vital standard technologies for mobile application development.

    It will tremendously assist you in selecting a mobile app development business because you will find a specialist in your specific application kind.

    Choose companies that provide a broad range of services.

    You may be sure that you will obtain qualified specialists if you choose from the software development businesses that have already built a name for themselves and have a fantastic portfolio of services.

    Such a business will be able to supply you with all of the resources you need at every stage of the application development process, including design, development, and testing, so you won’t have to look for additional assistance or services elsewhere.

    Personalize your interview with the devs.

    Once you’ve found a reliable and effective app development agency that’s right for you, take the time to ask the development team some key questions.

    Inquire about their app development experience, tell them a little about your app ideas, and ask for their feedback on your project.

    This type of interaction can assist you in understanding how the company’s app developers perceive your idea and whether or not they are ready to adopt it.

    Examine the firm’s portfolio.

    Inquire company personnel about some of the best apps they’ve made, and sift through them.

    Consider whether you enjoy the way these apps appear and feel, as well as whether they are helpful and user-friendly.

    It’s also worth remembering that uniqueness is one of the most critical factors of an application’s success. Do you observe anything unique about this company’s apps, or do they appear to be standard?

    Learn about the company’s data security and privacy policies.

    It’s critical to talk about the security and privacy of your mobile app and the data related to your company.

    To ensure that your information is protected, developers should be willing to sign a confidentiality and non-disclosure agreement with you.

    Furthermore, it is preferable to address intellectual property rights ahead of time. Before beginning work on a project, one must discuss these and other factors of assuring personal data privacy.

    Factors Affecting the Costs of an Application

    Before creating the mobile application, you must first study the target audience and company objectives, design an app and select a coding platform.

    The application’s buttons, screens, and other aspects make it unique, entertaining, and valuable, but each adds to the overall project expense.

    As a result, it’s critical to create a prototype in advance and consider every functionality component. To know more, click here.

    Team of App Developers

    The development team’s talent and expertise impact the cost of mobile app development just as much as the app’s intended functionality. Your selections for the squad can either save or add a significant amount of money to the project. 

    Cheaper isn’t always better; it can sometimes be quite the reverse.

    You’ll need expertise at each stage of the software development process unless you have a small in-house team or someone who can fill numerous responsibilities. 

    The app screens will be programmed in Objective-C/Swift for iOS and Java/Kotlin for Android. 

    Another developer will handle the server-side program and APIs. Quality assurance should be involved from the beginning. 

    Installing the app, setting up a stable server environment, and dealing with database redundancy, backup, security, performance, and scalability all necessitate the assistance of a seasoned professional known as DevOps.

    Depending on how you plan to build the app, you can choose one of four primary models of engaging talent (in decreasing price order).

    Co-founder on the technical side

    You can hire technical co-founders and pay them in stock if you’re a seasoned entrepreneur.

    Domestic App Development Firm 

    App development companies give the entire team needed to create and market a product. It’s the safest approach to create a high-quality app, from concept to launch, but it’s also the most expensive. 

    These agencies charge between $200 and $300 per hour for their services.

    The greater the price, the bigger the app agency (its track record, reputation, ratings, and awards). Big agencies provide a more comprehensive range of services, larger teams, a wealth of knowledge, well-developed development procedures, and the assurance of a well-known brand in terms of quality and timely delivery. 

    This may be your only development choice if your app is highly complex. Small agencies (three to ten people) usually specialize in one app. 

    Although small domestic agencies offer an appealing middle ground in terms of quality and consistency, they also provide significant cost advantages compared to large agencies.

    Outsourcing

    This is yet another excellent choice for low-cost software development. The advantages of app development agencies and overseas freelancers are combined in outsourcing companies.

    Most would provide a full-fledged team of designers, developers, and project managers for the duration of a project, all for an Indian or Eastern European pricing. 

    For example, with the same quality and knowledge, the average hourly wage in Ukraine is often three times lower than in the United States. JIRA, Slack, and GitHub are used to organize the process and communicate with customers daily, making collaboration across oceans easier.

    However, the cost of a service should not be the only consideration when selecting an offshore development team. Keep in mind that if customers continue to update your mobile app, it could be a long-term connection. Before making a decision:

    • Talk to a few different teams.
    • Look through their portfolios for recent examples that are relevant to your project.
    • Ask for references.
    • Study customer comments and other information you can discover online.

    App Development Companies vs. Freelancers

    Freelancers and agencies are the two primary sorts of providers who can design an app for you.

    If you choose to hire freelancers to create an app, you will benefit from the following benefits:

    • App creation at a low cost
    • Only communicate with the developer regularly.

    At the same time, consider the dangers:

    The requirement for freelancers to provide all required services

    • Software development services are of lower quality.
    • Accountability and transparency are severely limited.
    • On your side, team management
    • Additional paperwork is required

    On the other hand, professional app development necessitates collaboration and employees who are accustomed to working on the same project.

    Working with a custom software development business will provide you with the following advantages:

    • Relationships of trust
    • Deliverables’ quality
    • In one location, you’ll find all or most of the services you’ll need.
    • Discipline and a schedule
    • Management of a project
    • Accountability

    Working with app development businesses has certain drawbacks:

    • Increased rates
    • Increased bureaucracy

    Even though they need more money and paperwork, app development businesses typically provide a sense of security and confidence well worth the investment.

    In-House or Outsourced App Development?

    For firms with a highly talented web development staff and experienced programmers, in-house app development is possible. Should you give them this project on top of everything else they’re already doing? When should a project be outsourced to a third-party software development company?

    These are crucial concerns that necessitate an understanding of the advantages and disadvantages of both growth choices. The following are some advantages of building a mobile app in-house:

    • Developers with experience with your products and services clearly understand your specific business needs.
    • On-site communication with developers with whom you already have a working connection.
    • Resource management is simple, and resources can be reassigned as needed.
    • Ability to quickly shift gears and move in a new direction if market conditions or your company’s priorities change.
    • All team members are in one location during the agile development process. 

    The disadvantages of developing your mobile app in-house include the need to invest time and money in hiring new people or hiring an outside expert to fill in skills shortages, as well as the necessity to purchase new software licenses or certifications.

    Suppose your development team lacks the time, skills, or experience necessary to produce a mobile app. In that case, it may be more cost-effective to outsource the job to a business specializing in this type of work. 

    The following are some of the advantages of outsourcing your mobile app development to a third-party vendor:

    A skilled team is already in place and ready to go, which means a shorter development time.

    • At a reasonable cost, ready-made features are offered.
    • Less time spent on day-to-day project management
    • Because experienced app developers are used, there are fewer chances of the app failing.

    Another benefit of outsourcing is that cloud-based application hosting may be one of the services provided in addition to application development. 

    The software provider handles back-end activities such as security, maintenance, and code upgrades when an app is hosted remotely in the cloud. The app’s owner is provided as-needed remote access to the virtual server.

    When you outsource your mobile app development, you may face challenges such as being unable to monitor the project in real-time and adhering to an outside team’s schedule, which may change at any time.

    Estimation of App Development Costs for Different Business Types

    It’s vital to remember that the purpose of the app development cost analysis is to establish a shared understanding and provide a general app development cost estimate.

    Because numerous clients have various requirements, business concepts, technologies, and development teams, each app development project are unique.

    To understand the detailed cost analysis, click here.

    Baselines for App Development Costs

    Several years ago, the cost of developing an app for two major mobile platforms – iOS and Android – was significantly different. According to various studies conducted by established app development businesses, this difference is not significant. 

    Today, the essential element is the complexity of the mobile app, which is arbitrarily divided into three categories: 

    • Simple, 
    • Medium, 
    • Complex 

    The cost for a simple app with a primary User Interface and a set of must-have features ranges from $25k to $60k, medium complexity app development project costs between $50k and $120k, and, finally, a complex app project would need $120k of most minor investment, if not more.

    To learn more about the baselines for app development costs, click here.

    Keep in mind that these figures are only estimates. They’re designed to provide you a bird’s-eye view of what your app development budget might look like based on the app’s complexity. 

    These figures exclude the price of app upgrades, which are an inevitable component of every mobile app’s lifecycle and vary greatly depending on the app’s version 1.0 and the significance of each update.

    App Development Cost Facts And Figures

    The global growth of mobile development determines the popularity of applications and the cost of their product.

    More than 7 million apps are available for download from in-app stores.

    Statistics on the app development sector and its expenditures in 2021 have been compiled by mobile app development.

    Here are some facts and figures to think about, based on several sources and methodologies:

    • Google Play receives over 100k new apps every month, while the Apple App Store gets over 30k. (Statista)
    • Free apps dominate the app development market. For the most part, free and freemium pricing models are the most effective. Free utilities, for example, make up almost 92 percent of the total in the Apple App Store (Statista)
    • In 2020, the mobile app business will generate $581.9 billion in revenue. If current trends continue, the industry’s sales will exceed $1 trillion in 2023. (Statista)
    • By 2026, the mobile app development market is estimated to increase by more than 18.4 percent, reaching a market value of $ 407.31 billion (Market Research)
    • People spend nearly 90% of their time on apps. People will soon spend 4 hours a day on their mobile devices, with 88 percent of the time spent on app activity (eMarketer)
    • Sixty-six percent of smartphone users install games. Simultaneously, 95% of all users download communication, messaging, and online browsers, among other things. (Statista)

    The price of app development is highly dependent on the type of app.

    Now that we’ve established that you’re aware of the market’s burgeoning activity and speed let’s look at the factors that influence app prices.

    Technologies For Mobile App Development

    An app can be utilized on several different devices. The cost of developing an app is determined by the mobile app development technologies you select:

    Native mobile apps 

    Native mobile apps are created using the same programming languages as the intended platforms. These programs are more dependable, faster, and offer the best user experience. 

    Two apps will almost certainly be more expensive than one. Simultaneously, each platform’s development environment allows for creating a specified convention, and standard mobile app development is generally more cost-effective.

    Apps that run on both the iOS and Android platforms are known as cross-platform apps. They’re created with a mix of web and native technologies. The code repetition enhances the cost-effectiveness of development. 

    However, due to the varying traditions of the platforms, they can be challenging to create. As a result, the expenses of support and expansion might be highly unexpected.

    A progressive web app is a mobile-optimized website with many features and feels like a native app. It can be accessed via the browser and then added to the home screen. These mobile web apps are platform-independent. 

    They give a satisfactory user experience and are cost-effective to develop.

    Hybrid app

    A hybrid app can run on several platforms and perform the same functions like a native app. The developer creates the product once, using HTML5, CSS, and JavaScript, and then prepares it for all platforms with PhoneGap. This method can drastically lower the cost of developing an app for any platform.

    Currently, the two most popular mobile operating systems are iOS and Android. Android users account for the majority of mobile web traffic. 

    The cost per install for an Android app is substantially lower than for an iOS app, implying a larger market for a company. On the other hand, an Android app often takes 2-3 times as long to develop as an equivalent iOS app. 

    As a result, even though the cost per hour for producing iOS and Android apps is nearly comparable, it turns out that developing an Android app is more expensive.

    On the other hand, Apple’s more challenging requirements equate to higher quality and security. Some organizations choose to start with an iOS-only app because of these benefits and the faster development time. If it is a success, it will be followed by an Android app.

    Choose the platform where your target customers are most likely to be found, although accessibility on both iOS and Android appears to be the best option. 

    There will almost probably be some crossover if you launch on both mobile platforms simultaneously, cutting the overall cost. There will almost always be a shared back-end architecture. 

    Furthermore, because the team discovered and rectified some issues when developing the software for one platform, they will construct the next one more quickly.

    In any case, you’ll need to decide which devices your mobile app will work with. It may, for example, be available just on smartphones like the iPhone 6S, iPhone 6S+, or Samsung Galaxy S6, or on several tablet variants. 

    For Android, developing unique interfaces to accommodate all screen resolutions can be time-consuming and expensive. Supporting all OS versions on all devices will be costly, so only the most popular ones should be chosen.

    If developers are compelled to pay a license fee for technologies, the entire cost of developing a mobile app may rise dramatically. The price will be determined by the number of devices and the annual fees.

    iOS Or Android As A platform

    What does it cost to create an iOS or Android app?

    The cost of app development is also influenced by the platform you choose. The audience you want to reach is the most crucial consideration in determining whether you need to create an app for iOS or Android.

    There are fewer iOS devices than Android devices. A thorough market study will assist you in selecting the best solutions.

    There will be no difference in app cost if you only need an app for one platform, whether it’s iOS or Android. However, be prepared to invest extra money if you create a mobile app for both platforms.

    To get detailed information about the app development cost according to the platform, visit here.

    Share Of The Market

    Android, according to StatCounter, has the most market share. Whereas iOS is used by only 16 percent of the world’s smartphone users, Android is used by over 80% of the population. Here’s what the numbers indicate about the market share by region:

    • US – 53% – iOS, 47% – Android;
    • Europe – 22% – iOS, 73% – Android;
    • Asia – 14% – iOS, 83% – Android; 

    Even a frequent assumption about an iPhone-dominated America turned out to be untrue: the gap in market share between Android and iPhone development is relatively tiny.

    Android is the best platform for developers that want to reach a worldwide audience.

    Is It Possible To Control Both Platforms?

    To profit from both the iOS and Android markets, developers usually create a single cross-platform program rather than two native apps. While a jack-of-all-trades strategy may appear to be the best of both worlds, developers should be aware of all the benefits and drawbacks of a cross-platform solution.

    Advantages of cross-platform programs include:

    • Reduced development expenses compared to developing separate native apps; 
    • Increased speed; 
    • Reusable code; 
    • Unified user interface for both platforms;
    • Broader customer reach

    However, in comparison to a native program, a cross-platform solution will lack flexibility and rich features.

    Cross-platform apps have the following drawbacks:

    • Limitations in the user experience; 
    • More complex code design; 
    • Longer time to market for new additions; 
    • Maintenance issues

    Stages Of An App Development Cost

    Having a reasonable figure for how much different stages of app development can cost might help organizations avoid misallocating venture capital funds throughout the mobile app development cycle.

    Clutch, a B2B analytics firm, conducted a study in 2017 that described the data acquired from more than 100 app development companies. It gave a percentage for how much money organizations spend on each of the four stages of app development: discovery, design, development, and testing and deployment.

    So, when it comes to performing a pre-research stage, 51 percent of company representatives claimed that coming up with an original concept and conducting research costs up to $5k. 

    Twenty-two percent spent more than $5k and spent $10k, while 14 percent spent between $10 and $25k. Discovery is the cheapest step of app development when compared to the others.

    Discovery/Pre-Research stage

    Cost range

    less than $5,000

    $5k – $10k

    $10k-15k

    $15k-25k

    $25k+

    Percentage

    51%

    22%

    7%

    7%

    13%

    Source: Clutch

    Only 32% of app development teams spend less than $5,000 on an app design, and only 9% spend more than $50,000 on an app design. The majority (60%) say between $5 and $50k.

    UI / Design stage

    Cost range

    less than $5,000

    $5k – $10k

    $10k-15k

    $15k-25k

    $25-50k

    $50k+

    Percentage

    32%

    17%

    14%

    13%

    16%

    8%

    Development is the most critical component of the entire mobile app development process; it entails coding all of its features. Only 9% of respondents said they spent less than $5k on developing an app’s code, while 33% said they spent between $5k and $10k on this stage.

    Development stage

    Cost range

    less than $5k

    $5k – $10k

    $10k-20k

    $20k-30k

    $30+

    Percentage

    9%

    33$

    25%

    17%

    15%

    Any app development project would be impossible to imagine without testing and deployment. For 32% of respondents, doing app testing and putting it on the market cost less than $5k of their budget. Another 31% stayed within the $5-$10k price range, while the rest spent more than $10k to finish the Testing and Deployment step.

    Testing and Deployment stage

    Cost range

    less than $5,000

    $5k – $10k

    $10k-15k

    $15k-25k

    $25k+

    Percentage

    32%

    31%

    14%

    12%

    11%

    App development costs vary depending on the type of app. The distinction is due to the degree of complexity of an app. 

    For example, whether it offers built-in user analytics, backend CMS support, a built-in shopping cart, or social media sharing options, and so on.

    The hourly fee for mobile app development varies depending on the economy’s health in different parts of the world. 

    App Development Cost Calculators

    With millions of mobile apps in the market, the topic of how to reach your target customers and accomplish your ROI objectives is quite tricky. Businesses are eager to figure out how to estimate the cost of app development upfront. Many online calculators were created to accommodate this demand, and we’ll feature the most popular ones below.

    Examples of App Development Cost

    The following are some examples of apps and their prices and development times.

    Based on our personal experience, it is merely to offer you an idea of the app development cost, not the actual cost of an app.

    Tinder

    Tinder is one of the most widely used dating apps.

    It raised $485,000 in the seed round in 2012, the first year it was available on the market.

    Users will find Tinder’s functionality to be extremely straightforward. It’s simply a function that allows you to swipe right and left to like or dislike a specific person.

    The app creates a match if the person you love reciprocates your feelings.

    Such an application can cost up to $70k and take up to 1k hours to complete.

    The features of a mobile dating app like Tinder determine the cost of the app, which include:

    • Authorization,
    • GPS settings, 
    • Location,
    • User profile,
    • Matching functionality,
    • Push notifications,
    • Communication,
    • 3rd party integration.

    Ikea

    Ikea is a brand-based application that was created with Augmented Reality in mind. The majority of the photographs of furniture in their catalogs are 3d models.

    These programs increase the fee but provide many functionalities due to additional features, integrations, and security concerns.

    The cost of such a brand based application can start at $45k and take up to 1k hours to complete.

    The following are some of the features of the mobile app design:

    • 3D product visualization,
    • social media sharing compliance,
    • 360-degree product view,
    • real-time analytics and dashboard,
    • CRM integration.

    Uber

    Uber is an example of a popular ride-hailing service.

    In reality, an app like Uber has three components: two mobile apps for passengers and drivers and a website for the admin panel.

    As a result, the app development budget should cover three different apps.

    The cost of a riding hailing service application can start at $50k and take up to 12k hours to complete.

    The app includes the following features:

    • Payment integration,
    • Geolocation,
    • Advanced route optimization,
    • Push notifications integration
    • SMS

    TikTok

    TikTok is a popular video-sharing social media platform.

    The cost of producing a TikTok app is determined by the number of features and functionalities it delivers.

    Such an entertainment app can cost up to $70k and take up to 12k hours to complete.

    Some of the app’s features are as follows:

    • Online messaging,
    • Video calls,
    • Multi-language support,
    • Sharing videos and images,
    • User connecting.

    Airbnb

    Airbnb is a well-known example of a thriving marketplace app.

    A marketplace is typically a hybrid of on-demand software and an e-commerce site. As a result, the cost of a mobile app and its time to develop it will be higher.

    The cost of an application like Airbnb can start at $75k and take up to 1,000 hours to complete.

    It will include advanced features such as:

    • Look for available residential apartments and make a last-minute reservation.
    • Make a list of your favorite places and homes to save.
    • Trip co-planning and referral system
    • The advanced booking workflow includes the date, check-in, and other details.
    • There’s also an in-app chat feature.

    Now that you know all the facts and figures on how much it costs to develop apps for well-known companies, it’s time to look at the elements that influence app expenses.

    App Maintenance Cost

    Mobile apps, like any other software, include a maintenance component. The industry standard for software maintenance is around 15-20% of the initial development cost. Hosting, monitoring, engagement, marketing, upgrades, and licenses are all included in the price of sustaining the process.

    • Hosting

    What type of data the app works with – text or media, such as photo, video, or audio – is the deciding factor in calculating the cost of mobile app backend data hosting. A media-rich program would necessitate a web server with a higher CPU, more RAM, and more disc space. Depending on these criteria, an app hosting web server could cost anything from $70 to $320 per month. Amazon AWS, Microsoft Azure, and Google Cloud are the most popular web hosting solutions.

    • Monitoring

    Monitoring your mobile app is critical to its success. Sign up for one of the mobile analytics systems suggested in this article to track your app’s performance. Because each app has its audience and a hugely varying number of users, it’s impossible to estimate a mobile app monitoring cost. However, once you’ve contacted the companies on the list, make sure you receive a general range for your spending.

    • Engagement & Marketing

    Multiple components make up a mobile app marketing expense, including initiatives to engage a mobile app user base. An app install is the first step in any mobile app engagement. The price an app marketer spends for an app install is determined by the country, platform (iOS/Android), and ad unit. In 2020, the iOS CPI (Cost-Per-Install) in the United States was $2.37 per app install, $0.98 in China, and $0.22 in Brazil. The average cost-per-install for Android and iOS was $2.24. We can talk about an average mobile app user acquisition cost as we get more specific, from a general app install to a desirable activity the app user is anticipated to take. In 2018-2019, the average app UA cost over the world was $7.5 for registration, $87 for in-app purchases, and $46 for subscriptions.

    • App Updates

    Every single mobile app that has ever been released on an app store, whether for iOS, Android, Windows Phone, or other platforms, has received further upgrades. On the one hand, developing a perfect app with version 1.O is just not possible; on the other hand, subsequent upgrades are an excellent tool for maintaining app user engagement. The time it takes to build an update varies greatly depending on the app’s complexity. An actual update release in an app store may take roughly one hour, but the time it takes to develop an update varies significantly and depends on the app’s complexity.

    • Licenses

    If a mobile app design includes one or more technologies for which the developer must pay a license fee, the entire app development cost may skyrocket. A licensing price is calculated based on annual rates, the number of devices and can be as high as $120k per year for 50 devices.

    Return On Investment And Monetization

    Last but not least, while deciding between Android and iOS, app monetization is an essential factor to consider. In-app purchases, a premium app, and an ad-based model are the three main ways to make money from a mobile app. And, for both iOS and Android, here’s a quick rundown of all three techniques and their performance characteristics:

    • Purchases made within the app: In terms of the number of purchases, Android apps outnumber iOS apps by 22 percent to 17 percent. However, the average transaction cost on iOS is $30, whereas, on Android, it is $10.
    • Paid applications are available: In terms of releasing paid apps directly to the app store, iOS is a market leader. Only 11 percent of all iOS game apps are paid. The percentage for Android is 7%.
    • Monetization through advertisements: Most iOS apps do not contain ads; only 22% of non-gaming apps do. Android apps, on the other hand, are heavily reliant on advertisements. Advertising SDKs are used in 63 percent of Android apps.

    Overall, iOS apps outperform Android apps in terms of return on investment.

    Google Play came up with a new technique to increase monetization a few months ago. Developers can improve the app’s revenue by having visitors watch sponsored videos in exchange for in-game currency via the ‘Rewarded Products’ option. It only takes a few clicks for a developer to add a rewarded product to an app using the Google Play Billing Library.

    A subscription-based pricing option is also available on Google Play. This is ideal for music and video streaming apps available on demand. The following are some of the benefits of subscribing:

    • Grace periods; 
    • Flexible billing; 
    • Free trial; 
    • A variety of subscription plans

    A subscription model is also active on the App Store, with developers allowing both auto-renewable and non-renewable subscriptions. Instead of the standard 30% commission found in other monetization models, both platforms take 15% of a developer’s revenue.

    This decision has led some mobile app enthusiasts to think that by 2021, in-app subscriptions would have surpassed all other forms of revenue.

    Final Thoughts

    So, how much does the development of an app cost? This isn’t a question that can be answered in a single sentence.

    The cost of an app is determined by app complexity, the scope of your app idea, app design, app functionality, app development timeline, and building on multiple platforms. Do you have your development team or hire a custom software development firm? Are you a developer of Android and iOS applications? Or will it just be an iOS app? Native apps may be more expensive than hybrid ones. Complex apps are more costly than simple apps.

    Will you engage a project manager to help you with your software development project? What is the size of your app development team?

    When evaluating the cost of app development, there are various more factors to consider.

    This includes additional features, in-app purchases, app analytics, app marketing to attract app users, app testing, and more, in addition to app creation. All of this has an impact on the cost of developing an app.

    FAQs

    Time estimate to create an app from the ground up?

    The complexity and amount of features are essential when it comes to the app development timeline. It takes 3-5 months to construct an app with a core feature set for one platform, such as simple login, email subscription, and ad with simple design elements. 

    This timetable will stretch to 6-9 months to construct a more complex app.

    Cost to keep a mobile app operating?

    The cost of app maintenance could be anything between 15% and 20% of the initial development cost. 

    To put it another way, if you paid $40k for a basic application, you should expect to spend between $6k and $8k on upkeep.

    When developing my app, which platform should I start with, Android or iOS?

    To determine which operating system to target, you must first decide whom you want to reach. 

    As a result, consider undertaking thorough market research to determine which devices and platforms your target audience prefers. In general, iOS devices are less common than Android devices.

    How do you calculate the cost of developing a mobile app?

    The app development cost is determined by the app’s size, social media integration points, employee job, and the number of platforms.

    To acquire an accurate calculation, you must tell the marketing team of all the characteristics and business priorities.

    App development companies vs. freelancers

    Working with freelancers has the advantage of lower app development prices. On the other hand, this collaboration comes with a slew of dangers, including lower service quality, process management on your end, and a lack of responsibility and transparency. 

    When you collaborate with a software development business, you may eliminate these risks and take advantage of benefits like project management, commitment, and discipline.

    Is it a good idea to hire a local team?

    The development team you choose will significantly impact the final cost. The sole significant benefit of developing an app locally is that the team is physically close to you, facilitating communication and increasing your chances of success.

    Before spending much money to construct your solution, it’s easier to discuss the specific requirements of your product in person, hold regular meetings, and see the team in person. Local development teams may be brought in to help with the project.

    Why is it not always best to outsource app development to India?

    India’s IT outsourcing region is appealing with one of the lowest development rates. 

    On the other hand, be prepared to deal with downsides such as a significant cultural gap that affects the cooperation process and mutual understanding. 

    In terms of functionality, design, and code quality, there’s a reasonable risk that the outcome won’t meet your expectations. To mention, piracy is widespread in the region, with developers just repurposing the code of others.

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