The True Cost of App Development in 2025

How Much Does It Cost to Develop an App?

This general question has a general answer: the app development cost is between $5,000 - $300,000 depending on numerous factors like the app’s size and complexity. Let’s calculate some rough costs for app building based on its complexity assuming that the average developer’s hourly rate is $60.

Learn how custom application development can boost your business in our recent blog post.

Basic app development cost

A basic app is a simple mobile application that performs fundamental tasks and solves straightforward problems. Such a solution has a limited number of features, a simple User Interface (UI), and no customizations. Examples of basic applications are:

• Appointment scheduling apps: Help businesses manage appointments by allowing clients to book time slots.
• News apps: An aggregator of news articles from the website.
• Gym apps: Provide essential gym information such as operating hours, available membership options, and digital membership cards for easy check-in.

The development time for simple apps usually takes 2-3 months and costs around $5,000 - $50,000.

Medium app development cost

Medium applications include some advanced features and functionalities, complex business logic, interactive interfaces, and designs. Examples of such solutions are:

• Food delivery apps: Enable users to browse nearby restaurants, order food, and track deliveries in real time.
• Simple eCommerce apps: Streamlined platform that showcases products and allows users to add units to their cart and process purchasing.
• Social media apps: Solutions that facilitate communication between users, allowing also to post information like photos or videos.

App development budgets for medium-complexity apps range between $50,000 - $200,000.

Complex app development cost

A complex application is an advanced business solution with sophisticated functionality, multiple third-party integrations, and large-scale operations. They usually cover a unique business logic and can handle high traffic simultaneously. Examples of complex solutions are:

• Healthcare apps: Provide access to medical services, such as booking appointments, accessing medical records, receiving online consultations, and tracking health metrics.
• Banking apps: Allows users to perform banking operations, including checking account balances, transferring money, applying for loans, and more.
• Streaming services: A platform that is used by users to watch or listen to media content like movies, music, podcasts, etc.

The cost of building complex applications usually varies from $200,000 to $300,000+.

Top 10 Factors That Affect Mobile App Development Cost

The price for mobile application development depends on a number of factors. Understanding the key factors that influence the cost of the project is absolutely crucial if you want to make more cost-effective solutions, plan a budget, and actually get a return on development. Let’s review the principal 10 factors that impact the overall price for mobile app development.

Type of application

Simple as it is, the cost for an app development project is defined by its type, as usually, a specific type requires a predefined set of features and functionalities. Each app category has various criteria, such as expected traffic, core functionality, security, and third-party integrations, that affect the project’s scope. Let’s discover the average pricing for mobile app development based on its category.

Don’t see your app category in the list? Talk to our experts and receive an estimate on your mobile app development project.

App Complexity

App complexity is one of the biggest determinants of cost. Creating basic applications typically requires 2-3 months and ranges in price from $10,000 to $100,000. The budget for developing medium-complexity apps typically falls within the range of $100,000 to $200,000. The price range for creating intricate applications typically falls between $200,000 and $300,000 or more. Here is a more clear break-down:

Platform Choice

When starting the project it is crucial to research your industry and target audience in order to understand which platform will bring you the most revenue. The choice of the specific platform the app will run on significantly influences the project’s timeline and cost. Each solution has its own requirements. Here are the most popular platforms for you to choose from:

• Native: Native apps are built specifically for a single operating system like Android or iOS with the help of tools and programming languages native to that operating system (Java, Kotlin for Android, Swift, Objective-C for iOS). Such an approach offers the best performance and provides access to device features like a camera, notification system, and GPS. However native application development is the most expensive and time-consuming model, especially if you want to target both operating systems.
• Cross-platform: Thanks to cross-platform app development, you can target multiple platforms (Android, iOS) with a single app’s codebase, that usually requires zero or minimum modifications. Frameworks like Flutter and React Native allow developers to write a single app and launch it across various platforms. Although this approach is more budget-friendly, it has limitations in accessing native device features and has worse performance optimization compared to native development.
• Web app: A web application is a responsive website version that behaves like a mobile app but runs in a browser. Unlike native or cross-platform solutions, web apps don't need to be downloaded on the device. Such solutions are always faster and cheaper to develop, especially when you already have a website. They are typically built with technologies like HTML, CSS, and JavaScript.
• Hybrid: Such applications combine the elements of both native and web apps. They are developed with the help of technologies like HTML, CSS, and JS but wrapped in a native shell, meaning they are available via app stores. Although they allow some access to device features, their performance is worse optimized compared to native solutions.

UI/UX design complexity

The next point that impacts app development cost is design. The user experience (UX) and user interface (UI) of a mobile app can be basic or advanced, depending on the number of custom animations, transitions, and user flows. A well-designed app enhances user engagement but also increases development time and cost.

There are two main options for app design: Custom and Standard UI. Custom design is more complicated to implement while in standard design you can use pre-built templates and interfaces. The other design stages that influence the cost of prototyping or wireframing and animation.

• Prototyping (Wireframing) is the process of creating a visual blueprint of the app’s layout and structure. It involves drawing simple, low-fidelity sketches or digital mockups that represent the skeletal framework of the user interface (UI). Wireframes focus on the functionality, navigation, and overall user experience (UX).
• Animation is the use of motion to enhance user interactions, improve user interfaces, and create more engaging user experience.

Apps like Google Keep use basic designs, keeping costs low. More customized designs, like those in Tinder, involve swiping features and animations, making them more expensive. Below, you can see a cost breakdown of each design stage:

App features and functionalities

The features and functionalities embedded in the app play a paramount role in determining the final cost. Common features include user login, social media integration, payment gateways, geolocation, etc. The more complex the features, the higher the cost. Apps like Uber or Google Maps use geolocation tracking extensively, which increases their development costs. Adding features like live chat and video streaming also significantly raises costs.

Third-party integrations

Many applications rely on third-party integrations. Such integrations allow apps to connect with external services, including but not limited to payment gateways, social media logins, cloud storage, or analytics tools.

Dev team expertise and location

The costs for the mobile development project heavily depend on the development team’s expertise and location. It’s not a secret that offshore software development companies from Eastern Europe offer significantly reduced hourly rates compared to the USA or Canada for the same scope of work and expertise. Besides, developers might have various levels of experience (junior, middle, senior) which also influences the hourly rate. Unlike development team location which provides zero change to code quality, the dev’s level of expertise can significantly influence the outcomes. We highly recommend opting for middle or senior app developers for your project.

Here are the average hourly rates for app developers by country:

Having hubs strategically located across Canada and Europe, our developers are available for both nearshore and offshore outsourcing projects. Check out our guide on offshore software development to learn everything you need to know about this type of IT outsourcing.

Scalability needs

When starting an app as a startup you need to take care of the platform's scalability in advance, so you don’t have to redo everything from scratch as your business grows. Applications that expect significant traffic growth and functionality enhancements in the future require a well-structured and well-thought architecture scalable for development and improvements later on. More complex architecture requires more resources for its research, design, and development.

Security measures

Web security is a paramount concern for all business owners worldwide. Applications that store sensitive user data, such as health records or banking operations should take security seriously. Hacker attacks and malicious code injections bug the website and application owners all over the globe, causing harm, data leaks, and data loss. Investing in security planning and implementation from the beginning might save huge amounts of money in the future.

Examples of security measures you can implement are basic encryption, data encryption, two-factor authentication, biometric authentication, regular security updates, and more.

Smart technology

Incorporating smart technologies into your mobile application is the most expensive aspect due to its complexity and the level of expertise required. Smart technologies are features like Artificial Intelligence (AI), Augmented or Virtual Reality (AR/VR), Machine Learning (ML)., blockchain, and Internet of Things (IoT).

Artificial Intelligence

AI-based applications use AI algorithms to provide smart functionalities such as voice recognition, personalized recommendations, predictive analysis, and more. Artificial Intelligence features make apps more creative, personalized, and competitive. Integrating AI into a mobile app requires specialized expertise, as well as an extended timeline and budget.

• Cost Estimate: $20,000 - $100,000+ depending on the complexity and AI features.
• Example Features: Chatbots, personalized content recommendations, facial recognition.

Augmented/Virtual Reality

AR/VR is a new trend not only in the gaming industry but also in eCommerce, retail, and beauty segments. With the help of digital overlays developers can create virtual try-ons for clothes, home decorations, and makeup & beauty products, allowing users to visualize how products will look in real time. Such technology integration requires advanced graphics, hardware integration, and 3D visuals.

• Cost Estimate: $30,000 - $150,000+ based on the level of immersion and interaction.
• Example Features: AR navigation, virtual try-ons, VR gaming experiences.

Machine Learning

Another revolutionary technology is Machine Learning, which enables apps to automatically learn from users’ behavior and interactions and improve themselves. ML involves the creation of custom modules and pre-trained algorithms.

• Cost Estimate: $20,000 - $100,000+ depending on the data complexity and algorithms used.
• Example Features: Personalized search results, predictive text input, speech recognition, fraud detection.

Blockchain

Blockchain is the new trend in web security and payment decentralization, making it a top choice for financial apps, cryptocurrency platforms, and apps designed for secure transactions. The complexity of blockchain implementation requires skilled developers and extensive expertise in this industry.

• Cost Estimate: $30,000 - $200,000+ depending on the complexity of the decentralized system and security requirements.
• Example Features: Secure payments, digital wallets, decentralized apps (dApps).

Internet of Things

IoT apps connect with physical devices through the internet to control and monitor systems remotely. To build an IoT-powered mobile application, you need to hire developers with an in-depth understanding of hardware technologies and data processing.

• Cost Estimate: $30,000 - $150,000+ depending on the number of devices and sensors integrated.
• Example Features: Smart home controls, fitness trackers, remote monitoring systems.

Hidden Costs in App Development

Aside from the factors mentioned above, app development also includes some hidden costs. Keep them in mind when planning a project budget.

Quality Assurance

It is hardly possible to imagine a software project without Quality Control, yet many stakeholders often forget about this stage when planning a budget. To make sure that the app runs smoothly without bugs or crashes, it is crucial to invest time and budget into QA.

App Support and Maintenance

After the official product launch, an app requires ongoing support and maintenance to keep it up-to-date, secure, and bug-free. App support & maintenance services include fixing bugs, updating features, and ensuring compatibility with new OS versions. On average, maintenance costs are 5-20% of the original development cost per year.

Technology Costs

Not all technologies are open-source. For the usage of some frameworks or tools, you need to pay licensing fees and subscription costs that increase the app development budget. This might include cloud hosting (AWS or Google Cloud), third-party APIs, machine learning platforms, security technologies (firewall services, encryption libraries), and others.

App Publishing Costs

Publishing your app on platforms like Google Play or the Apple App Store is paid. Google Play charges a one-time registration fee of $25, while Apple charges an annual developer fee of $99. Additionally, app stores may take a percentage of in-app purchases and subscriptions, typically around 15-30%.

How to Reduce Costs for Mobile App Development?

Well, the expenses are huge. Check out these pro tips to reduce mobile app development costs.

1. Cross-platform development: Choose cross-platform frameworks like React Native or Flutter to build apps that work on both iOS and Android within a single code base. This way, you will eliminate the need to build separate codebases for each operating system, which typically results in x2 to the budget.
2. MVP Approach: Build a Minimum Viable Product (MVP), which includes only essential features. Thus, you can launch the app faster and collect user feedback before investing in more advanced features.
3. Offshore Development: Hiring developers from offshore regions with lower hourly rates, such as Eastern Europe or South Asia, can significantly lower development costs compared to onshore development with no sacrifice to code quality.
4. Reuse Code: Utilize pre-built components or existing libraries and tools to save on custom development time.
5. Optimize Maintenance: Plan for efficient support and maintenance to avoid expensive, last-minute fixes by establishing a clear maintenance schedule.

How Can Business Apps Make Money?

There are many ways to monetize your app. Let’s review the most common revenue channels you might use in your business strategy.

1. In-App Purchases: Offering virtual goods, premium features, or subscriptions within the app is the most usual option to monetize. For example, games often use this model to increase revenue.
2. Freemium Model: Provide a free version of the app with limited features, while offering a premium version with advanced functionalities at a reasonable price.
3. Advertising: Displaying ads within the app is a good way to monetize. Ads can be displayed via numerous layouts, such as banner ads, interstitial ads, or video ads. Note that ads might become frustrating. Make sure they don’t disturb users from interacting with your app.
4. Subscription Services: Apps offering ongoing services like streaming, fitness, or education can charge users on a recurring basis, creating steady revenue.
5. Affiliate Marketing: Generate revenue by promoting third-party products or services and earning commissions from each sale or lead generated through the app.

Develop Your Business Mobile App with Drupfan

Here at Drupfan, we possess extensive expertise in all types of application development, including native, cross-platform, hybrid, and web apps. Contact us today to discuss your project.