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This must be one of the first questions a business asks itself when thinking about application development.

The estimating of an application development cost is the foundation of any application development budget.

Initially, a business will attempt to answer these two questions next:

  1. How much it costs to create an app for my business by outsourcing?
  2. How much is this compared to the cost of developing in-house?

Both approaches have their advantages and disadvantages.

To clarify how each of the application development costs affects, let’s look at both.

Application development companies accumulate experience while developing applications. They learn from errors in application projects, so working with such a team would help protect a business from repeating the same mistakes.

Choosing to develop the application in-house could reduce the application development cost, at least for a minimal viable product (MVP). But over time, debugging, caused by lack of experience, can move the cost higher than that of a development company.

As much as we would like you an exact cost of application development, there can only be an estimate.

Why?

Each application development process involves many factors and features that influence the final cost.

Below are typical benchmark costs for an application development project:

  • Simple application development – £30,000 to £45,000
  • Medium complexity application development – £45,000 to £90,000
  • Highly complex application development – £90,000+

The cost of hiring a full-stack experienced application developer(s) is from £50,000 /year.

Please note these numbers are just approximations. 

They provided to give a general feeling on what would be the size of the application development budget based on the application complexity. 

These numbers don’t include costs of ongoing hosting, maintenance, and future application updates (part of any application life cycle). 

They all vary based on the application MVP, usage and the significance of any update.

Application Development Cost Stages

Having an order of magnitude cost for each stage allows businesses to properly allocate capital for the whole project cycle of application development.

When it comes to the plan, team, and roadmap stages, these will have the lowest cost of any stage. They will, however, have the most significant impact on the project’s outfall cost and operational costs once the application is deployed.

  • Plan
  • Team
  • Roadmap
  • Design
  • Develop
  • Test
  • Deploy
  • Maintenance
  • Iterate

See Management of software development for information on each stage.

Application Development Cost Calculator

The application sector is highly competitive, with millions of applications on the web.

The questions of how to reach your users and how to meet your business objectives are essential. Cada Global understand businesses are keen to find a way to calculate an application development cost upfront. Multiple online calculators have been developed, and we’re going to highlight our own.

The calculator guides you through a variety of questions to shape an application development cost. As you’re making choices, you’re getting application development estimates in GBP.

The calculator is designed to estimate a cost for a web application, giving you a cost estimate for each step of the price calculation process.

The calculator walks you through the set of questions, starting with asking if there is a Functional Design Specification (FDS) available to provide an application development cost.

Cost of Hiring Developer(s)

If a business decides to hire an application developer(s), the question arises – how much does it cost?

According to Talent data, to employ qualified and experienced full-stack application developer(s), businesses will need to pay a salary from £50,000 / year per developer.

Maintenance

As with all software, the application cost has a maintenance component for hosting, monitoring, engagement, marketing, updates, and licenses.

The industry average accepted cost to maintain software is roughly 15-20% / year of its MVP development cost.

Hosting

The decisive factor in application backend data hosting cost calculation is what kind of data the app deals with – text or media, such as photo, video, or audio. A media-rich application would require a higher CPU webserver with more RAM and disk space.

Application hosting may start at between £30 to £300 / month based on these factors. The leading hosting solutions to choose from are Amazon Web Services (AWS), Microsoft Azure, or Google Cloud.

Monitoring

Application monitoring is essential for success. As each application has a unique audience and a vastly variable number of users, it’s not feasible to develop a monitoring estimate for an application.

Once you get in touch with the hosting companies above, ensure you get an acceptable range of application monitoring prices.

Marketing

Application marketing costs include activities to engage the application user base and consists of multiple cost components:

  • Pre-launch
  • Market research
  • Beta testing
  • PR outreach
  • Influencer marketing
  • Viral marketing
  • App promotion assets
  • App launch
  • Post-launch
  • User actions from feedback

Updates

Every single application ever released subsequent updates!

It’s simply not feasible to develop the perfect application with the first version from the other – subsequent updates are an excellent tool for continuous user engagement. The time, and cost, it takes to develop an update is significantly varied and depends on an app’s complexity.

Licenses

An application may incorporate one or more technologies or integrations for which the business need to pay a license.

In that case, it may significantly increase overall application development and maintenance costs.

Conclusion

When businesses estimate a development cost for the application, they need to factor in a development team and application complexity. Both factors significantly impact an overall application development cost.

As the used infrastructure is the most significant contributor to an application maintenance cost, businesses must save on data storage, scalability, and third-party API integration.

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