App Development Costs In 2025: A Full Analysis

Nowadays, custom mobile apps cost, on average, over $170,000. At the same time, some apps are worth just a few thousand dollars. We want to ask why the price varies so much and provide you with a cost guide for apps. We will focus on what you are paying for during app development and try to help you predict the expenses.

The Variation in App Development Costs

It is rather difficult to identify app development costs. After all, apps are very diverse. Consider some examples. 

• A simple 2D puzzle game will not require a lot of complicated coding or extensive testing. It is not really complex in terms of security either. It is easy to create, and as a result, you can expect to pay $5000 or a similar price for it.
• An e-commerce app is more complicated. It needs to enable catalogue browsing and purchasing. The fact that it involves money also makes security a concern. There might be user profiles to consider as well. This type of app can cost between $25,000 and $250,000 or possibly even more.
• An app that is particularly complex can cost hundreds of thousands of dollars. An example would be a banking app that needs to incorporate numerous features and be particularly secure. Similarly, a complicated game with many maps and a multiplayer option could be very expensive. It is possible for an app to cost $500,000!

In summary, apps cost more when they are more complex. 

Components of App Development Costs

It is common to underestimate the app costs. In general, they include:

• the development price that you pay while creating the app;
• the maintenance price, which amounts to 15-25% of the development price yearly;
• hosting and infrastructure for all the data you use;
• third-party services (for example, SMS).

Make sure to take into account the additional costs. Keep in mind that the app might also need to be refreshed every now and then. Its redesign will also require funds, which can be necessary to keep the app relevant. Overall, the initial development price is likely to constitute around 50% of the entire investment in the app.

App Development: What Do You Pay For?

Features

Just like apps, features cost more if they are more difficult to implement. Consider some examples.

• There exist basic features that are not too complicated and can be created easily. For instance, a user profile is considered to be simple. Such a feature will require between $1000 and $3000.
• There are also moderately complex features. An example is a basic chat without any additional qualities like sending voice messages. Such a feature can be built for $3000 to $8000.
• Finally, there exist complex features. An example is an AI-based suggestion system. Those will cost over $8000.

Code

Regarding coding, you have two options, which are determined by the needs of your app.

• No-code/low-code. An example of a tool used for that is Oracle APEX. That is a quick and cheap option, rarely exceeding $25,000 in costs. However, low- and no-code tools are very limited in what they can do. As a result, they are not suited for every app.
• Code. Most apps will need coding, which means paying either one or more developers. You can also choose to employ an agency or create an in-house team. Making code from scratch is slower and more expensive, but often, it is inevitable.

Key Considerations

Other factors can also contribute to costs.

• Backend and frontend. Backend refers to the data management that enables the app’s functioning. Frontend refers to the user interface, the things that users interact with. The more complicated and feature-rich either of these is, the more it costs.
• Platform selection (iOS, Android). Using just one platform is cheap, but it means your app is not accessible to a large number of users. It is more expensive to use both platforms, but you can do that in one of two ways. If you choose native platform development, you will pay more than you will for a cross-platform framework. Native development presupposes creating different versions of the app for different platforms. That takes longer, but the resulting app often performs better and is easier to use. Cross-platform development means creating only one version of the app that will work on different platforms decently due to the technology selected. It is a faster option, but it may have more issues with performance or user experience.
• The inclusion of bots, AI, augmented reality and machine learning generally increases the costs quite substantially.
• Customization. On average, a customized solution will cost more than a basic approach. However, a lot of businesses that create apps want to stand out and use their branding, which makes customization necessary.
• Hardware and software integrations. Usually, integrations require additional coding, which drives up the price of the app. Hardware integrations also need a lot of testing across different devices. However, integrations are usually necessary for functioning, which is why they are a must, especially for more complex apps.
• Compliance. It is critical to follow the law, so depending on the country, your app might need to comply with regulations. That may result in additional costs.

The Team

Some apps can be developed by just one person. However, a complex app needs a team — your most important asset and your greatest expense. It is estimated that up to 60% of the app development funds go to the team. Here is the list of the people you will likely want to hire.

• Manager. You do not typically need many managers, and just one can be enough. They will focus on ensuring that the project goes smoothly. They are responsible for all the deadlines being met and will ideally make the rest of the team cooperate successfully.
• Developers. You will probably have more than one developer. They will focus on the backend and make sure that the app operates as intended.
• User interface and user experience specialists. You can have just one or multiple specialists. They will make sure that the app is easy and comfortable to use. That is a frontend task.
• Quality assurance specialists. Again, you can employ one or multiple of them, but their goal is testing the app. They will make sure that the app actually works and does not have (too many) bugs or issues.

The hourly rates of these people will vary widely depending on their experience and location. 

• Junior specialists earn the least. Depending on the location, it can be as little as $15 per hour. Such is the pricing in some regions of Africa, Asia, and Eastern Europe. In richer countries, the earnings can go up to $50 per hour.
• Mid-level specialists tend to earn between $40 and $80 per hour.
• Senior specialists earn the most, often more than $100 and up to $150 per hour.

Never hire someone who knows less than you do about what he’s hired to do.

Malcolm Forbes, businessman and politician

Time

Naturally, time also affects the price of your app. After all, the longer you develop it, the more you have to pay your team. However, time increases proportionally to the difficulty of the task, which is why it affects the price in the same way. The more complex your app is, the more time it needs, and the more it costs.

App Development Costs Based on App Type

While app types are numerous, and they can differ in complexity, some observations about their respective price can still be made.

• E-commerce. Some of the key features in e-commerce apps include catalogues, carts, payments and user accounts. Depending on the complexity of all these, you can expect to pay for such an app between $25,000 and $250,000.
• Social media. The most common features here include the ability to view, create and share content, as well as user profiles and various methods of communication. The development of such an app costs between $30,000 and $250,000. 
• Freelancing apps, like Insolvo’s app. These tend to include a mechanism for creating tasks, as well as communication methods for buyers and freelancers. They can also have user profiles and even portfolios. The simplest of freelancing apps might cost $30,000, but more complex ones tend to require much more, up to $300,000. 

Overall, the type of app contributes to the development cost based on the types of features that it requires to function.

In Conclusion

Mobile app development costs are very variable. It is important to take into account maintenance and redesign costs when creating your app. Overall, apps cost between thousands of dollars for a very simple option to hundreds of thousands of dollars for more complex ones. Backend and frontend, as well as platforms and customization are likely to affect the cost. So are integrations and AI. The type of app matters in that it determines the features you need to pay for. Finally, the team is a major but necessary expense.