How to estimate budget for developing a mobile app from scratch?

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How can you accurately and affordably estimate the budget for developing your mobile app from scratch?

How much does it usually cost to create a mobile app from the ground up?

How does choosing between iOS and Android affect the cost of making an app?

What portion of the app budget should go towards designing the user interface and experience?

How much should you set aside for developing the backend of the app?

What are the cost considerations when adding third-party APIs to an app?

How does where your development team is located change the app's budget?

What should you expect to spend on testing and ensuring the app's quality?

How much should you plan to spend on maintaining the app after it's launched?

What are the cost implications of adding features like AI or AR to an app?

How does the complexity of an app influence its development time and cost?

What are the typical costs involved in launching an app and marketing it?

How can creating a prototype affect the overall cost of app development?

These are questions we frequently receive from entrepreneurs who have downloaded the business plan for a mobile app. We’re addressing them all here in this article. If anything isn’t clear or detailed enough, please don’t hesitate to reach out.

The Right Formula to Estimate Budget for Developing a Mobile App from Scratch

• 1. Define the app's features:

  Outline the core features and functionalities your mobile app will offer. This could include user registration, content browsing, transaction processing, and any other specific features relevant to your app's purpose.

• 2. Estimate development time for each feature:

  Break down each feature into tasks and estimate the time required to develop each one. This will help in understanding the total development time needed for the app.

• 3. Calculate development costs:

  Determine the average hourly rate for developers and multiply it by the total estimated development hours to calculate the development cost.

• 4. Estimate design costs:

  Consider the time and resources needed for designing the app's user interface and experience. Calculate the cost based on the hourly rate for designers.

• 5. Include testing and quality assurance costs:

  Estimate the time required for testing the app and ensuring quality. Calculate the cost based on the hourly rate for QA specialists.

• 6. Account for project management:

  Estimate the time needed for project management tasks, typically a percentage of the total development time, and calculate the cost based on the project manager's hourly rate.

• 7. Consider infrastructure costs:

  Estimate costs for necessary infrastructure, such as servers, hosting, and any third-party services required for the app's operation.

• 8. Plan for marketing and launch expenses:

  Estimate the budget needed for marketing the app and any costs associated with launching it to the public.

• 9. Sum up all costs for the total budget estimate:

  Add together all the estimated costs from development, design, testing, project management, infrastructure, and marketing to arrive at the total budget estimate for developing the mobile app from scratch.

An Easy-to-Customize Example

Simply replace the bold numbers with yours to see the project outcome.

To help you better understand, let’s take a fictional example of developing a mobile app for a food delivery service. The first step is to outline the app's features, such as user registration, restaurant listings, menu browsing, order placement, payment processing, and delivery tracking.

Next, estimate the time required for each feature. Suppose user registration takes 40 hours, restaurant listings 60 hours, menu browsing 50 hours, order placement 70 hours, payment processing 80 hours, and delivery tracking 100 hours. This totals 400 hours of development time.

Assume the average hourly rate for a developer is $50. Therefore, the development cost is 400 hours x $50/hour = $20,000.

Additionally, consider design costs, which might require 100 hours at $40/hour, totaling $4,000. Testing and quality assurance could take another 80 hours at $30/hour, adding $2,400.

Don’t forget project management, which might require 10% of the total development time, equating to 40 hours at $60/hour, totaling $2,400.

Infrastructure costs, such as servers and third-party services, might be estimated at $1,000. Marketing and launch expenses could be around $3,000.

Summing these costs gives a total budget estimate: $20,000 (development) + $4,000 (design) + $2,400 (testing) + $2,400 (project management) + $1,000 (infrastructure) + $3,000 (marketing) = $32,800.

Therefore, the estimated budget for developing this mobile app from scratch is approximately $32,800.

With our financial plan for a mobile app, you will get all the figures and statistics related to this industry.

Frequently Asked Questions

What is the average cost range for developing a mobile app from scratch?

The average cost for developing a mobile app from scratch can range from $30,000 to $150,000, depending on the complexity and features required.

For more complex apps with advanced features, the cost can exceed $300,000.

Factors such as design, platform, and development team location can significantly influence the final cost.

How does the choice of platform affect the budget for a mobile app?

Developing a mobile app for a single platform, such as iOS or Android, typically costs 20% to 30% less than developing for both platforms simultaneously.

Cross-platform development tools can reduce costs but may limit access to native features.

Choosing the right platform depends on your target audience and budget constraints.

What percentage of the budget should be allocated to UI/UX design?

UI/UX design generally accounts for 10% to 20% of the total mobile app development budget.

Investing in a good design is crucial as it directly impacts user engagement and retention.

Complex designs with custom animations and interactions may increase this percentage.

How much should be budgeted for backend development?

Backend development can consume 30% to 40% of the total mobile app budget, especially for apps requiring server-side logic and database management.

The complexity of the backend, such as real-time data processing or integration with third-party services, can increase costs.

Choosing scalable backend solutions can help manage long-term costs effectively.

What is the cost implication of integrating third-party APIs?

Integrating third-party APIs can add $1,000 to $5,000 to the mobile app development budget, depending on the number and complexity of the APIs.

Some APIs may have usage fees or subscription costs that need to be considered in the budget.

APIs can significantly enhance app functionality but require careful selection to avoid unnecessary expenses.

How does the development team's location impact the budget?

Development costs can vary significantly based on the team's location, with North American developers charging $100 to $150 per hour and Eastern European developers charging $30 to $50 per hour.

Outsourcing to regions with lower labor costs can reduce the budget but may introduce communication and time zone challenges.

It's important to balance cost savings with the quality and reliability of the development team.

What is the expected cost for app testing and quality assurance?

Testing and quality assurance typically account for 15% to 25% of the total mobile app development budget.

Comprehensive testing is essential to ensure a bug-free and smooth user experience.

Automated testing tools can help reduce costs and improve testing efficiency.

How much should be allocated for app maintenance post-launch?

App maintenance costs can range from 15% to 20% of the initial development cost annually.

Regular updates, bug fixes, and feature enhancements are necessary to keep the app competitive and functional.

Planning for maintenance in the budget ensures the app remains up-to-date and secure.

What is the cost impact of adding advanced features like AI or AR?

Incorporating advanced features such as AI or AR can increase the mobile app budget by 20% to 50% or more, depending on the complexity.

These features require specialized expertise and additional development time.

While costly, they can provide a significant competitive advantage and enhance user engagement.

How does the app's complexity affect the development timeline and budget?

Complex apps with multiple features and integrations can take 6 to 12 months to develop, significantly impacting the budget.

Each additional feature or integration increases both the time and cost required for development.

Prioritizing essential features and planning for phased releases can help manage the budget effectively.

What is the typical cost for app store deployment and marketing?

App store deployment costs are relatively low, with fees such as Apple's annual developer fee of $99 and Google's one-time fee of $25.

However, marketing and promotion can require a substantial budget, often 20% to 30% of the total development cost.

Effective marketing strategies are crucial for app visibility and user acquisition.

How can prototyping impact the overall budget?

Prototyping can cost $5,000 to $15,000 but helps in refining the app concept and reducing development risks.

It allows stakeholders to visualize the app and make informed decisions before full-scale development begins.

Investing in prototyping can lead to cost savings by identifying potential issues early in the process.