How much does it cost to develop an app?

One of the most common questions when developing apps is the cost. The answer is: It depends. This is because the costs depend on many factors, such as the idea, the requirements and the complexity of the app. This means that the costs for an app can vary significantly and that there are no upper limits.

Let's take a look at how the costs for an app come about and what you should pay attention to if you want to estimate the costs. The development of an app can be divided into three phases: planning and conception, development and operation. There are costs in all three phases, which you should take into account when planning.

Planning and conception

Fundamental decisions are made in the planning and design phase. For example, it is decided which type of app should be developed. The range of functions and the corresponding design of the app are also developed in this phase.

Type of app

  • Native app: Native apps are used for every operating system (e.g. android or ios) programmed individually. A native app makes it possible to make optimal use of the operating system and to offer functions that cannot be implemented with other app types.
    However, since the app must be developed for different operating systems, native apps are more expensive to develop and operate than other types of apps

  • web app: If you want your app to run in any web browser, then a web app is the right alternative for you. Examples of web apps include Youtube, Netflix, AirBnB and Galaxus. As you can see, large companies often develop both web apps and native apps to give their users the best experience across all channels.
    Since only one version needs to be developed, web apps are usually cheaper than native apps.

  • Progressive web app: A progressive web app (PWA) is a web application that can be used to emulate certain functions of native applications. A PWA, for example, does not require an active Internet connection and can be stored on the device. This eliminates some of the disadvantages of a pure web app.
    A progressive web app is therefore more expensive than a pure web app.

  • Hybrid app: A hybrid app combines the advantages of a native app with those of a web app. Hybrid apps are often also referred to as cross-platform apps because they work across platforms. A hybrid app can use functions of operating systems such as Android or iOS without having to develop separate apps for both operating systems.
    The development of hybrid apps can be achieved thanks to modern frameworks such as Flutter be very efficient and therefore financially attractive compared to native apps.

UX/UI

It is worthwhile to invest time and money in designing the app because a) the app is understood more quickly by users and used in the long term and b) a targeted design shortens development time.

Basically, a distinction is made between user interface design (UI) and user experience design (UX). An appealing user interface is particularly important when the app is aimed at customers. If the application is only used internally, the user interface does not necessarily have to shine with a sophisticated UI. In both cases, however, usability and therefore user experience (UX) is of central importance.

The cost of designing an app shouldn't be underestimated, depending on the purpose of the app, as it can take a lot of time. Especially when the app is complex or the design needs to be validated and refined in so-called user tests with the target group. However, a sophisticated design saves time and costs in the long term, as redundant developments can be reduced and new functions can be validated based on user feedback.

Development site

The wage costs for developers and UX/UI designers play a decisive role in the costs of developing an app, which can vary significantly depending on the developing country. Outstanding developers and designers can be found everywhere with appropriate effort. However, there are a few things to consider when choosing a developing country:

  • Highly qualified developers may be more expensive, but they prove their worth in the long term. Because high code quality pays off for long-term projects. High-quality code is easier to maintain, more secure, more extensible, and less prone to errors.
  • Language barriers inevitably lead to misunderstandings and thus to unplanned additional work in project management.
  • Clear legal frameworks are important in the event that something goes wrong in the cooperation.
  • Sustainability is also of central importance in development. On the one hand, this applies to the working conditions of developers and, on the other hand, to the quality of the results delivered.
  • Last but not least, the budget for developing the app is a criterion for choosing the development location.

Development by an agency or in-house

A fundamental question with long-term effects is whether the app should be developed by an agency or by a dedicated team. There are a few things to consider when answering this question:

  • personnel: Do I have the necessary knowledge and free resources in my company to develop an app? If so, it may be useful to develop the app yourself
  • zeit: How much time do I have to develop the app? If you need the app as quickly as possible, it's a good idea to hire an agency. They have the manpower and knowledge to implement projects quickly and competently.
  • Proximity to the business model: Is the app a central part of the business model or just a medium for processing services or selling products? If the app is a central part of the business model (e.g. in SaaS solutions), it may be useful for development to be driven forward by a dedicated team and for an agency to provide support.
  • budget: Is my budget big enough to hire developers myself? If not, it's worth hiring an agency as the developers are only needed for the duration of the project.
  • flexibility: An agency is more flexible in its implementation than internal teams, as it has a high level of expertise and personnel.

Development

During the development phase, the actual development of the application takes place. The development of the app involves the most costs, as the development phase is the most time-consuming and costly. The main cost drivers here are the technologies used and development time.

Development time

Development time depends on the range of features and how developers work together and get their work done. Qualified developers are either faster in development or minimize the error rate. This has a positive effect on development time.

Basically, it should be noted that software development does not happen overnight. Depending on the scope, software development takes months to years. In many cases, it is never finished, as it is constantly being optimized and expanded.

Technology

The choice of technology has long-term effects. The use of a modern programming language or framework, which has a large developer community and is still maintained, helps to train new developers more quickly and reduces the lock-in effect.

Using outdated or less common technology will invariably result in higher costs. On the one hand, it takes longer to find new developers, and on the other hand, there is a risk that the technology will not be further developed. Sooner or later, the application will have to be redeveloped.

Operation

Running an app costs money. This is often forgotten and can lead to surprises. It is therefore important to consider operating costs from the outset. The costs during operation consist of license costs and operating costs, among other things.

License costs for tools

License costs for tools are not bad per se. Using ready-made tools during development reduces development effort and thus costs. License costs also guarantee the qualitative development and support of the tools used. And that is important.

However, license costs are often neglected or hidden in fine print. This can lead to expensive surprises. When selecting developers, it is therefore advisable to communicate license costs transparently. At devedis, we therefore select our tools specifically so as not to surprise our customers with (unjustified) high licensing costs.

Operating costs

A technical infrastructure is often required to operate the app. In many cases, this is now a cloud solution such as Google Cloud. Fixing errors, so-called bugs, or maintaining the app also causes operating costs. For example, apps must be updated regularly to meet the latest operating system requirements. This involves, for example, ensuring compatibility with new operating system versions or meeting new security requirements.

Conclusion

Developing an app costs money. How much cannot be said in general terms. The price always depends on your idea, the range of functions and many other factors. In many cases, it makes sense to first develop a Minimal Viable Product (MVP), i.e. a version with a reduced range of functions, and add further functions from there. The solution is decisive and always depends on the situation. If you're not sure which solution is best for your idea or would like a non-binding offer, feel free to contact us.

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