Science & Technology

Reasons why app development budgets vary in 2022

Vitaly Makhov

CEO at DOIT Software


The average app price can vary drastically depending on the factors such as app complexity, vendor location, deadlines, etc. But how to keep your app development budget tight and avoid overspending? According to the research from the Business Of Apps, the average cost to produce an app lies somewhere between $40,000 and $120,000 and sometimes even more. In this article, we will investigate the best practices to reduce the development price tag and create a budget-friendly, high-quality software solution.


Reasons why app development budgets vary in 2022. Source:

Factors that determine the development cost

In this section, we will go over the top six factors that largely influence the app development cost.

Application type

In the abundance of application types, we will focus on a few most popular and promising ones.

  • The development cost of a basic educational app starts from $35,000 to $60,000. Prominent examples: edX, Khan Academy, Duolingo.
  • Casual 2D gaming apps are at least $25,000 for the development, but can go up to $100,000.
  • Prominent examples: Forgotten Anne, Alto’s Adventure, Hitman Sniper.

Entertainment apps including chatting, photo sharing, video streaming, etc. can vary in cost from $30,000 to $150,000.

Prominent examples: Netflix, YouTube, Dubsmash.

Vendor type and location

Another important aspect that will noticeably impact the app development budget is the software development provider’s location. While in the US an average app developer earns $150 per hour, in the UK the same specialist can come in around $70 per hour. And in Eastern Europe average rates are $40 per hour. If you would like to reduce your app development cost, consider hiring a Ukrainian software development company.

Complexity and the number of app features

Although some functions like user login are essential and cannot be spared for the sake of cutting the app development budget, others can be eliminated. Essential features include user login ($500 to $1,000), push notifications ($1,000 to $10,000), and payment integration for most cases ($2,500 to $5,000). Additional features can be adopted later, after the app proves to be successful: offline mode ($1,000 to $2,000) or chat/messaging ($2,000 to $4,000).

Complexity of UX/UI design

UX/UI designers are an expensive workforce that cannot really be left out of the equation. The importance of UX/UI design cannot be overstated, which is why investing in this phase is a good decision. However, it is recommended to go with a simple design at first to stay within a tight app development budget.

Development approach

As far as the development approach goes, you can hire a team of in-house developers to carry out your project, or you can partner up with a software development company. Unless you already have a seasoned team of professionals on your staff, hiring in-house employees is always more costly than outsourcing the project. If you would like to reduce the costs, consider hiring a trustworthy service provider with extensive experience in the type of application and the industry you are after.

Ongoing maintenance and support

Most software development providers include post-release maintenance and support in their service agreement. It is recommended that you not exclude this clause to lower your app development budget. As time goes on, you will discover possible bugs or redundant features in your application, which should be taken care of by the software development team. If you delegate this task to another team they will have to go through all the documentation, which might lead to mistakes and misunderstandings.

How to save on your budget for your app development

Discovery phase

The Discovery phase is the very first stage of the software development cycle, which includes gathering all the requirements, preparing features descriptions, and creating a prototype. Implementing the discovery phase cuts down the average cost of app development as it helps to avoid mistakes and inconsistencies, etc.


MVP is a small basic version of an application that carries out the essential functions that generate a certain value for the user. Without the fluff, an MVP simply shows everyone how the app will perform and solve a particular problem. MVPs are the perfect way to test and validate your idea before spending time and money on a full-featured digital product. As a result, they provide a lower average cost to develop an app and offer valuable user feedback.


There is no simple answer for the question of how much it costs on average to develop an app. The costs are contingent on the industry, type of app, features complexity and density, vendor location, the thoroughness of the discovery phase, and much more. However, to keep the app development timeline intact and save on the budget, make sure to partner up with a reliable and experienced software development agency.


How much does it cost to create a mobile app for a small business?

A basic application for a small business costs from $40,000 to $60,000.

How long does it take to develop an app?

The average timeline for a basic app is from three to six months.

How to develop an app within a tight budget?

To keep your app development costs under budget, make sure to include the discovery phase in your pipeline, create an MVP before launching a full-on development process, and consider outsourcing your project to a service provider.

Vitaly Makhov, CEO at DOIT Software, custom software development and IT Staff Augmentation company. The DOIT Software team is passionate about building bold systems and solving business challenges for startups, product companies, and digital agencies. 


Pay Space

6836 Posts 0 Comments

Our editorial team delivers daily news and insights on the global payment industry, covering fintech innovations, worldwide payment methods, and modern payment options.