How to Plan an App Development Budget


How to Plan an App Development Budget

If you’re planning on developing an app, one of the first things you’ll need to do is figure out how much it’s going to cost. While web app development costs can vary widely, there are some general guidelines you can use to help you come up with a budget.

Know what your app will require

Before you can start putting together a budget, you need to have a good understanding of what your app will require. This includes things like the features it will need, the number of screens it will have, and any other functionality that will be included. Once you know what your app will need, you can start.

The cost of the application depends on the complexity

First of all, it all depends on the complexity of the application:

  • Simple. A classic application for easy business. Includes only a few functions and consists of only 3-5 screens. The number of pages can be large, but they are generated based on several templates. The price of such an application can be from a couple hundred to thousands of dollars.
  • Intermediate level. Includes registration system, personal account, and up to 5 main features. Another feature of medium complexity applications is the need for a back-end. They often integrate social networks, payment systems, and the ability to evaluate services. This includes booking services, chatbots, etc. Usually, their price starts from $10000.
  • Difficult. These include all applications with increased load, many functions, and the need to integrate third-party services. A good example is Google Analytics, where there are dozens of metrics, as well as online banks. The price floor is $50,000 and there is no upper bar.

Pick A Platform

Deciding which smartphone platform to develop for iOS, Android, or both. These platforms have their pros and cons, and there is no one-size-fits-all answer. 

Here are some tips to help you make the right decision:

  • iOS development is faster and easier, while Android gives you more control over the look and feel of your app.
  • The size of the market: Android has a larger global market share, while iOS dominates in developed countries. 
  • The target audience: iOS users are generally wealthier and more educated than Android users. 

The best solution is a multi-platform application because users of both platforms are your target audience. Only this will inevitably affect the price of the application.

Target niche analysis

When it comes to developing a new business app, it’s important to think about who your target audience is. This process is known as target niche analysis. Defining your target niche will help to ensure that your app is designed to meet the needs of your potential users. It will also help you to identify any gaps in the market that your app could fill. To carry out a target niche analysis, you’ll need to consider factors such as the age, gender, and location of your potential users. You’ll also need to think about their interests and needs. 

It is important to pay attention to the following niche parameters:

  • Niche load. The more competitors you have, the better the product should be. Otherwise, you will not be able to attract potential customers, they will simply go to other companies.
  • Sales funnel. The deeper it is, the more attention needs to be paid to the development and this process will cost more. Usually a long sales cycle for expensive services and complex products.
  • The target audience. As the analytics show, young people are more demanding on the design and functionality of applications than more mature ones.

Once you’ve defined your target niche, you can start to develop a business app that is tailored to their specific requirements.

Dependence of the price of the application on the functions

For a better idea of ​​the cost, here are examples of prices for the main types of applications:

  • Basic apps. This includes simple apps for discovering business services that don’t require complex features. For example, quiz apps, notes, reminders, calendars, etc. Their price will vary from $1,000 to $10,000.
  • Applications for working with data. If the application is focused on a large amount of content, then the price of its development starts from $10,000 and ranges up to $20,000. These are various maps and weather forecasts.
  • Applications with personal accounts. If an authentication system is required, the price of the application will increase greatly, because deep work with the back-end is already required here. We are talking about various applications with promotions, product lists, or special offers. The price of such applications ranges from $30,000 to $80,000.
  • Social network, eCommerce, Marketplace. All of these types of applications are expensive to develop, as they require a lot of man-hours. Their price starts from $100,000 and sometimes reaches $1 million. These are high-load applications. Despite their high development cost, they pay off the fastest.

How can you save on application development?

When it comes to application development, there are a few ways that you can save on costs:

  • Get rid of excess. If your type of application doesn’t require the use of complex mechanisms, just leave them out. For many niches, simplicity is the right choice. You not only save money, but it will also make it easier for your users to understand the application.
  • Create a mashup. It is developed from HTML, CSS, and JavaScript, and then converted to the required format for a specific operating system. The functionality of such an application may be more modest, but in most cases, it will save up to 30-40% of development costs.
  • Don’t skimp on a professional development team. In the long run, low-quality applications will cost the customer more than paying for a project in a good company. Cheap apps have high maintenance costs and lots of bugs, hence a significant increase in bounce rates.

And most importantly – the price is very different in different companies. It is not wise to choose the cheapest offers, it is better to look for a middle ground. In this case, you will receive the optimal cost of creating and operating your applications.