How to estimate budget for future maintenance and updates of a mobile app?

This article was written by our expert who is surveying the industry and constantly updating business plan for a mobile app.

Our business plan for a mobile app will help you succeed in your project.

How can you accurately and affordably plan for the future maintenance and updates of your mobile app?

How much of the initial development cost should we set aside for yearly maintenance?

How often should we update our mobile app to keep it competitive?

What's the usual cost for a small update to a mobile app?

How much should we plan to spend on major updates or adding new features?

How long does a mobile app typically last before it needs a complete redesign?

How does user feedback affect the maintenance budget for a mobile app?

What portion of the maintenance budget should go towards security updates?

How do analytics tools influence the budget for app updates?

What are the cost implications of updating apps on both iOS and Android?

How does the complexity of a mobile app impact its maintenance costs?

What part does app store optimization play in the maintenance budget?

How do unexpected operating system updates affect the maintenance budget?

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 Future Maintenance and Updates of a Mobile App

• 1. Assess current maintenance costs:

  Identify and calculate the ongoing costs associated with maintaining the app, such as server hosting, bug fixes, and minor updates. Determine the monthly and annual expenses for these activities.

• 2. Plan for major updates:

  Decide on the frequency of major updates (e.g., quarterly) and estimate the resources required, including developers, designers, and testers. Calculate the cost for each update based on the hourly rates and hours worked by each team member.

• 3. Estimate user support costs:

  Determine the need for user support and estimate the cost of hiring support specialists. Calculate the annual cost based on the hourly rate and the number of hours worked per week.

• 4. Include a contingency for unexpected expenses:

  Add a percentage (e.g., 10%) to the total estimated budget to cover unforeseen expenses such as emergency bug fixes or additional features.

• 5. Calculate the total estimated budget:

  Sum up the costs from maintenance, major updates, user support, and the contingency to arrive at the total estimated budget for the app's maintenance and updates for the next year.

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. Imagine you have a mobile app that currently has 100,000 active users. You want to estimate the budget for future maintenance and updates over the next year.

First, consider the current maintenance costs, which include server hosting, bug fixes, and minor updates. Suppose server hosting costs $500 per month, and you anticipate spending $1,000 monthly on bug fixes and minor updates. This totals $1,500 per month or $18,000 annually.

Next, factor in major updates, which you plan to release quarterly. Each major update requires a team of developers, designers, and testers working for a month. Assume the team consists of 2 developers at $50/hour, 1 designer at $40/hour, and 1 tester at $30/hour, working 160 hours each.

The cost per update is calculated as follows: (2 developers x $50/hour x 160 hours) + (1 designer x $40/hour x 160 hours) + (1 tester x $30/hour x 160 hours) = $16,000. With four updates planned, the annual cost for major updates is $16,000 x 4 = $64,000.

Additionally, consider user support, which requires a part-time support specialist at $20/hour for 20 hours a week, totaling $20,800 annually.

Finally, account for unexpected expenses, such as emergency bug fixes or additional features, by adding a 10% contingency to the total budget. The total estimated budget is calculated as follows: $18,000 (maintenance) + $64,000 (updates) + $20,800 (support) = $102,800. Adding a 10% contingency ($10,280) brings the total estimated budget to $113,080.

Therefore, the estimated budget for the app's maintenance and updates for the next year is $113,080.

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

Frequently Asked Questions

What percentage of the initial development cost should be allocated for annual maintenance?

It is generally recommended to allocate 15% to 20% of the initial development cost for annual maintenance of a mobile app.

This budget covers bug fixes, performance improvements, and minor updates to ensure the app runs smoothly.

Regular maintenance helps in keeping the app compatible with the latest operating system updates and devices.

How often should a mobile app be updated to remain competitive?

On average, a mobile app should be updated every 4 to 6 weeks to stay competitive in the market.

Frequent updates help in addressing user feedback, fixing bugs, and adding new features to enhance user experience.

Regular updates also improve the app's visibility and ranking in app stores.

What is the typical cost range for a minor update to a mobile app?

A minor update to a mobile app can cost between $5,000 and $10,000, depending on the complexity and scope of the changes.

This cost includes developer time, testing, and deployment to app stores.

Minor updates often involve bug fixes, small feature additions, or performance improvements.

How much should be budgeted for major updates or feature additions?

Major updates or feature additions can cost between $20,000 and $50,000, depending on the complexity and scale of the new features.

These updates may require significant design, development, and testing efforts.

Budgeting for major updates ensures that the app remains relevant and competitive in the market.

What is the expected lifespan of a mobile app before a complete redesign is necessary?

The expected lifespan of a mobile app before a complete redesign is typically 3 to 5 years.

During this time, user interface trends, technology advancements, and user expectations may change significantly.

A complete redesign helps in modernizing the app and improving user engagement.

How can user feedback influence the maintenance budget of a mobile app?

User feedback is crucial in identifying areas that require improvement or new features that users desire.

Incorporating user feedback can lead to increased user satisfaction and retention, which may justify adjustments in the maintenance budget.

Allocating resources to address user feedback can prevent negative reviews and improve the app's reputation.

What percentage of the maintenance budget should be allocated for security updates?

It is advisable to allocate 10% to 15% of the maintenance budget specifically for security updates.

Security updates are essential to protect user data and prevent vulnerabilities that could be exploited by malicious actors.

Regular security updates help in maintaining user trust and compliance with data protection regulations.

How can analytics tools impact the budget for app updates?

Analytics tools provide insights into user behavior, app performance, and areas that need improvement.

Investing in analytics can lead to more informed decisions about where to allocate resources for updates, potentially optimizing the budget.

By understanding user engagement and app usage patterns, developers can prioritize updates that offer the most value.

What is the cost implication of supporting multiple platforms (iOS and Android) for updates?

Supporting multiple platforms can increase the update cost by 30% to 50% compared to a single platform.

This is due to the need for separate development, testing, and deployment processes for each platform.

However, reaching a broader audience can justify the additional investment in maintaining both iOS and Android versions.

How does the complexity of a mobile app affect its maintenance budget?

The complexity of a mobile app directly impacts its maintenance budget, with more complex apps requiring 20% to 30% more resources.

Complex apps often have more features, integrations, and dependencies that need regular updates and monitoring.

Understanding the app's complexity helps in accurately estimating the necessary budget for ongoing maintenance.

What role does app store optimization (ASO) play in the maintenance budget?

App store optimization (ASO) is crucial for improving the app's visibility and download rates in app stores.

Allocating a portion of the maintenance budget to ASO can lead to increased user acquisition and retention.

Regularly updating app store listings, keywords, and visuals is part of a comprehensive ASO strategy.

How can unexpected operating system updates impact the maintenance budget?

Unexpected operating system updates can necessitate urgent app updates, potentially increasing the maintenance budget by 10% to 20%.

These updates may require compatibility adjustments to ensure the app functions correctly on new OS versions.

Proactively monitoring OS updates and planning for potential changes can help mitigate these costs.