App development costs: what you should know App development costs: what you should know

App development

Are you planning to launch an app development project but wondering how much it costs to create an application in 2022?

The truth is that there’s no fixed price for building a business application. Usually, this varies depending on the complexity of the app, technologies used, developer fees, and many other factors.

However, based on recent industry figures, you should expect to part with around $10,000-$60,000 for a simple app, $60,000-150,000 for a medium-complexity app, and $350,000+ for a high-complexity app.

Here’s everything you need to know about app development costs.

Key Factors Influencing App Development Costs

App development is oftentimes a complicated process that packs together many tasks with variable amounts of logical connections and rules. Plus, every such task has its own level of complexity and may require special expertise. That’s why it’s hard to tell exactly how much it costs to build an app.

Even so, there are several factors you can use to deduce the average cost of developing an application. We take a look at a few of the main factors below:

Development approach

When it comes to app development, you can choose between hiring a developer and leveraging technology to create an app on your own.

Obviously, hiring a developer is going to be the more expensive option. If you’re looking to cut costs, consider using a platform like Microsoft PowerApps. This suite comes with ready-to-use Powerapps templates that let you create apps that use connected data sources.

You can build any app in Microsoft PowerApps, from cost calculators to budget trackers to employee onboarding and more.

Even better, you can get started without any coding knowledge or technical experience required. Because most of the work is already done for you, you can reduce the cost of building an app by up to 80%.

Type of application 

The type of application has a direct impact on the overall app development cost. Today, different applications comprise different features and functionalities to suit every need and purpose.

To estimate the development costs, we can categorize apps as:

Basic apps

These consist of only the core features needed for the app to function. Examples of basic apps are calculators, clocks, and small games.

A basic app development project costs anywhere from $10,000-60,000 and takes 1-3 months to complete.

Moderate apps

Medium apps include applications used for food delivery and digital payments. A good example is McDonald’s Loyalty App.

These types of apps use data and authentication to share information across devices. It costs between $60,000 and $120,000 to build a moderate app with the process taking around 3-6 months to complete.

Complex apps

Complex applications usually have massive data sets and support “mission-critical” tasks. Put another way, these applications are designed to handle broad, unstructured goals or nonlinear workflows.

Complex apps may include social network apps (e.g. Facebook), e-commerce apps (e.g. Amazon), and on-demand apps (e.g. Uber). These apps require an extensive list of features like social interactions (through chatbots), user registration, catalogs, payment options, third-party integrations, and so on.

Complex apps require a solid backend structure, which translates to a larger investment. The cost of a complex app development project varies between $150,000 and $350,000 and up. Likewise, the project can take 9+ months.

Type and location of the vendor

The application development cost is also dependent upon the vendor type and location. There are several main types of vendors, including:

Small firms

Small firms consist of independent freelancers who can truly create apps. However, they may not have in-depth knowledge to create complex solutions. Small firms offer the lowest app development costs.

Specialist companies

These focus on software development and provide a much better result than small firms. As expected, their services cost more than those of small firms.

Large agencies

Large agencies have experienced staff who can deliver a great product. They also handle a wide spectrum of services and charge the highest fees for application development.

The location of the vendor will also affect the app development costs. According to, North American developers are the most expensive, with their rates varying between $50 and $150 per hour.

In the UK, app development costs about $70 per hour, whereas, in Europe, developers charge $40-60 per hour. India is the cheapest region, where most developers are happy with $20-50 per hour.

So how much does it cost to build an app?

As you can see, lots of different factors influence the overall app development costs. But as a quick recap, the cost of building an app can rise from $10,000 all the way up to $350,000+ depending on the type of app, who builds it, and how it gets built.

If you’re operating on a limited budget, consider using app builders to create a functional app. Ready-to-use templates are a cost-effective way to build an app that reaches your target audiences and accomplishes your goals.

Good luck!


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