App Development Costs: How Much Investment Is Needed & Where Is It Worth Saving?

Dec 20, 2024

Developing an app to digitize time-consuming manual processes is generally a great idea. However, app development often has a reputation for being quite expensive.

It’s clear that giving a flat rate for app development costs is not possible—everything depends on the app's scope, complexity, and overall effort. And, of course, it's essential to consider how quickly the development costs can be recouped.

Key questions are: Where is the sweet spot between cost-cutting and luxury projects? How do app development costs arise, and where can you save without sacrificing quality? We've put together some helpful answers for you.

Overview: How much does it cost to develop an app?

Flat statements about app development and costs are practically impossible, especially since you must also consider ongoing costs. Several factors influence the cost of an app: the technology used, the complexity of the use case, the requirements for UX and UI, and whether you plan to develop the project in-house or outsource the app development.

To give you a rough idea of the possible price range:

An externally developed, low-code app with a manageable scope can start at around €5,000.
For the development of a highly complex software, even €100,000 may not be enough.

Generally speaking, custom development always requires a significant initial investment and leads to additional ongoing costs. If you use app builders, such as those based on low-code platforms, it becomes much more affordable, and you'll mostly only have to cover moderate costs for licenses or subscriptions.

We’ll explain what all of this means in detail now.

Cost comparison of app development outsourcing vs. building an app in-house

In app development, costs are not only associated with the finished product but also arise during the different phases of the development process. Your budget is therefore distributed across the planning phase, app design, actual app programming, and ongoing costs such as technical support or marketing (if that is relevant for you).

However, it is important not only to consider the total costs but also how the implementation takes place. If you hire an external service provider, they need to be paid. This is not necessary if you develop the app in-house. However, in that case, you need to plan for resources and personnel costs.

Here are your options at a glance:

In-house developer team: This is often the most expensive option, and due to the shortage of skilled professionals, it can also be quite challenging when it comes to recruiting. However, you have complete control over the process.
Development service providers or freelancers: If you decide to have the app developed externally, you'll need to invest, but you won’t have continuous personnel costs. However, you'll have ongoing expenses for software maintenance and other services.
App builders with no-code or low-code: With visual programming using no-code or low-code, you utilize pre-built modules and elements that can be assembled as needed. This way, you can create an app without needing to write any code.

What we should also distinguish: The low-code/no-code option can also be handled by freelancers or IT service providers for you. The costs tend to be lower than with traditional app development. If you want to create an affordable app, low-coding could be the key.

Alternatively, your team can use a low-code platform and take the app development into their own hands. This is cheaper than outsourcing and a real alternative to hiring new developers.

Some applications can be easily created in-house; for example, visually programmed apps are great for many business cases but have limitations in terms of complexity, graphics, and UX. For highly complex use cases, a service provider is generally the better choice.

The different options for app development, including costs, time, and effort at a glance.

	In-house developer team	External app development	No-code/low-code external	No-code/low-code in-house
Costs	Long-term high costs (mainly staff)	High development costs, possibly ongoing maintenance and support	Relatively cheaper, possibly moderate ongoing maintenance	Moderate costs for platform and staff
Time	Time-consuming, especially if hiringacquisition is necessary	Depends on scope and complexity	Faster development, faster feedback	Shorter coordination times, faster development
Effort	High effort to hire and retain employees	Moderately low effort for briefing and coordination with the provider	Low effort depending on the provider, as results come faster	Relatively low effort after initial learning curve

Other cost factors: Requirements & costs in context

Just like a car with more features becomes more expensive, app development costs increase as the demands on the final product rise. Here are a few examples of contributing factors:

Operating systems: The platform on which the app will run (e.g., Android or iOS) impacts development costs. Progressive Web Apps (PWA) have a clear advantage here.
Design & UX: The higher and more complex the requirements, the higher the effort and costs.
Multilingual support: If the app needs to be available in multiple languages, expect additional costs.
Login functionality: Costs will increase if user authentication needs to be programmed.
Integration: Integrating the app into an existing system landscape must also be accounted for.
Publishing on Play Store or App Store: There are fees for this as well, although PWAs hold an advantage since they can be shared via a URL.
Hosting, maintenance & support: External providers charge for these, and you should always consider them as ongoing costs.
Additional features & functions: Each adds extra cost.

Tips for budgeting: How to save on app development costs

To sum it up: the more you want, the more you pay. But there are ways to avoid overburdening your budget. Here are some tips:

Scope: Ask yourself which functions the app truly needs. Often, people overcomplicate things, whereas the use case could be translated into an app more simply. Get advice if necessary and pay special attention to the next point.
Strategy & planning: With careful planning and a basic understanding of application logic, you can avoid trial and error and prevent unnecessary adjustments or resource consumption for unnecessary features.
Development partner: Whether you create an app in-house with low-code or outsource it, the platform provider is usually a partner available for support and questions.
Avoid perfectionism: Instead, opt for a minimum viable product (MVP) approach. With MVP development, the app gets into use faster, allowing for earlier user feedback, practical experience, and benefits from the app.
PWAs again: PWAs save costs by running in any browser on any operating system, so there’s only one version to maintain, and fees for app stores are eliminated.
Total cost of ownership: Keep an eye on potential ongoing costs for support, maintenance, subscriptions, etc., and plan for these from the start to avoid unpleasant surprises.
Calculate return on investment: Important! Calculate what the app generates in revenue or savings, and compare that to the costs. If the ratio doesn’t work, reconsider the use case and/or the implementation.

Investment in app development. Keeping costs under control.

How much does it cost to develop an app? A seemingly simple question that isn’t easy to answer. You need to be clear about your company’s actual needs and use case. Once you understand that, you can better assess the potential of your investment and manage the process as cost-effectively as possible.

We’re happy to advise you on the costs involved in app development using our low-code solution. Feel free to reach out for more information and an obligation-free consultation!