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App Development Cost: Complete Breakdown

Author

Zakariyyaa Siddiq

Editor and co-author

Miles Mercury

Company

Aeterna Advisory

At Aeterna, we frequently receive inquiries about app development costs, a critical consideration for businesses exploring bespoke features. We pride ourselves on transparency and understand the importance of providing accurate cost estimates for our clients, enabling them to make informed decisions. Our business development team conducts a thorough analysis to deliver fair and clear pricing proposals tailored specifically for each client's needs.

In this blog, we will provide a clear breakdown of the costs involved when Aeterna develops your solution. Our aim is to offer you, the client, in-depth insights into our processes and the key factors that influence pricing. This understanding will enable you to create a realistic budget based on our professional expertise. By the end of this blog, you'll be equipped with a comprehensive view of the critical components we consider internally, empowering you to make informed decisions about your app development costs.

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How much does it cost to make an app: influential factors? What is the average cost of app development in the UK? What are the hidden application development costs ?​

How much does it cost to make an app: influential factors?

At Aeterna, various factors influence the price of app development, and we focus on key components that guide our pricing. Each of these components can be adjusted based on your needs, allowing us to work together to find a solution that fits your budget while meeting your goals. Your choices will directly impact the overall price, fostering a collaborative approach to your project.

App complexity

Our lead software engineer starts by evaluating the complexity and scale of your desired solution. This includes analyzing the technical details of each feature and the available options. If your solution is rich in features and large in scale, you can expect the price to increase due to the additional development hours and resources needed. More complex solutions also require greater expertise, ensuring that everything is executed meticulously. We understand that balancing features with budget considerations is crucial, and we’re here to guide you through this process.

Type of App and Scope

When planning an app development project, it’s essential to consider the variety of application types, as each affects cost, complexity, and scope. At Aeterna, we treat each application type as a distinct component, allowing us to develop the best pricing strategy tailored to your specific needs. Our goal is to ensure that your project aligns with your vision and budget.

  • Native Applications: These apps are built for a specific platform or operating system, such as iOS, Android, Windows, or macOS, using platform-specific technologies. Native apps offer high performance and can fully leverage system resources but require separate development efforts for each platform increasing the team capacity.
  • Cross-Platform Applications: Using frameworks like Flutter, React Native, or Xamarin, developers can write one codebase that runs across multiple platforms (e.g., Android, iOS, Windows, macOS). Cross-platform solutions are ideal for broad reach across different devices while maintaining cost efficiency, though some native performance may be sacrificed.
  • Web Applications: These apps run directly in a browser and are platform-independent, making them accessible on any device with internet access. Web apps are generally more affordable to develop but may lack the offline capabilities and full feature sets of native apps. They’re a great option for businesses looking for wide accessibility without the need for device-specific optimization.
  • Progressive Web Applications (PWA): PWAs are web apps with enhanced capabilities that offer a mobile-app-like experience through a browser, including offline access, push notifications, and installation on a home screen. They strike a balance between the reach of web apps and some of the functionality of native apps.
  • Desktop Applications: Built specifically for desktops and laptops, these applications may be developed for one or more operating systems (Windows, macOS, Linux) using technologies like Electron or Java. Desktop apps are common for enterprise solutions or tools that require more processing power or system-level access.
  • Cloud-Based or SaaS Applications: Software as a Service (SaaS) and cloud-based apps provide access to services through the cloud, eliminating the need for local installation. These apps are scalable, allow multiple users to access data simultaneously, and typically integrate with other cloud services. They often require robust backend systems, increasing development complexity.
  • Enterprise Applications: These applications are designed to support large-scale business operations. They often integrate with various internal systems such as ERP, CRM, or supply chain management platforms. Due to their complexity and specific business requirements, enterprise apps tend to have a larger scope and higher costs.
  • IoT & Hardware-Integrated Applications: Apps that need to communicate with external devices, such as smart home products, wearables, or industrial sensors. These solutions often involve challenges like device connectivity, real-time data processing, and integration with other systems, which can increase the project’s scope and complexity.
  • Machine Learning/AI-Powered Applications: These apps leverage artificial intelligence to provide data-driven insights, automation, and personalized user experiences. Developing machine learning models and integrating AI capabilities can significantly increase the scope and cost, especially if real-time data processing or advanced analytics are involved.

Each type of app presents its own set of challenges and advantages, and the scope of the project can vary greatly depending on factors like platform, user base, complexity of features, and integration with external systems. The type of app you need will directly impact development costs and timelines at Aeterna.

Developer experience required

At Aeterna, we regularly evaluate the expertise required for each feature or project and how this influences overall costs. We focus on assigning tasks based on the specific skills and experience needed, ensuring that each task is entrusted to the most suitable developer. Our internal analysis connects task complexity with the appropriate expertise, resulting in a clear breakdown of our pricing strategy and its rationale.

Timeline constraints

If your application development project allows for shorter deadlines, it may incur lower costs due to the reduced scope of work. However, if you require an expedited timeline for a project that typically takes longer, it is important to anticipate additional costs. Accelerating the timeline necessitates that developers prioritize your project and allocate additional resources, including the potential addition of staff. This ensures that quality is upheld while meeting the faster deadline, but it often results in increased expenses.

Timeline constraints

If your application development project allows for shorter deadlines, it may incur lower costs due to the reduced scope of work. However, if you require an expedited timeline for a project that typically takes longer, it is important to anticipate additional costs. Accelerating the timeline necessitates that developers prioritize your project and allocate additional resources, including the potential addition of staff. This ensures that quality is upheld while meeting the faster deadline, but it often results in increased expenses.

What is the average cost of app development in the UK?

Providing an exact price for app development is challenging without analyzing your specific requirements. Pricing varies based on numerous factors, including app type and functionality. However, we can offer general cost ranges to help you establish a budget and set goals for your project.

Below are some basic guidelines for different types of apps and their associated costs:

Type of an app Functionalities Average Costs
Basic apps (calendar, calculator, weather, etc.) User login, notifications, search bar, etc. £5,000 – £15,000
Medium complexity (photo editor, fitness tracker, messaging, etc.) Personalization, advanced search filters, multimedia, etc. £20,000 – £50,000
Advanced (AR, social media, financial, etc.) AI integrations, natural language processing, cutting-edge security, etc. £70,000 – £150,000
eCommerce Payment interaction, shopping carts, order and inventory management, etc. £50,000 – £150,000
Enterprise-grade ERP, workflow automation, real-time analytics, etc. £100,000 – £500,000

Determining the cost of app development can be challenging, as prices vary widely depending on many factors. To get the most accurate estimate for your project, we recommend consulting directly with us at Aeterna. This allows you to present your app idea and engage in an open discussion about your needs and goals.

Methods of estimating app development cost

At Aeterna, we utilize a bespoke program to provide clients with automated cost estimations for their projects. We run your projects through our code base to generate accurate cost estimates, which we then return to you. In this chapter, we will outline some of the estimation methods employed by our specialists, designed to simplify project pricing and enhance transparency. Given the various approaches to budget calculation, Aeterna offers summaries of the most effective methods for your consideration.

Parametric

If you are developing an app that has an eloquently defined goal and scope, covering the features, app type and expertise required, the parametric approach can provide an efficient method for estimating costs. In the parametric method, one calculates the scope of work by estimating the number of work hours needed to complete the project and multiplying it by the average rates charged by development providers. The result is a rough budget estimate, which becomes even more accurate if you already have a vendor in mind and are familiar with their pricing.

Analogous

The analogous method is another great option if you have information about the costs of projects similar to yours, such as if you’ve developed a similar solution in the past or know someone who has. In this case, you can simply compare the pricing for the range of features and design elements you'd like to incorporate into your app. However, it's important to account for inflation if the previous solution was developed some time ago.

Bottom-up

The bottom-up app development budget estimation process offers the most accurate results, though it requires more time compared to other methods. This approach involves breaking down the project into individual development stages or sprints, then estimating the time and cost required for each one.

By identifying the costs for each phase, you gain a detailed and precise understanding of the budget needed for every feature and functionality. Additionally, this method allows you to calculate both low-end and high-end expenses, giving you a realistic budget range. However, it requires a solid understanding of the app development process to be effective. Depending on the complexity and specific needs of your project, choosing any of these methods can help you better estimate the overall cost of your solution.

Expert judgment

The expert judgment approach is one where we use our industry professionals to draw from their experience to provide rough estimates. These experts can quickly assess a project’s scope and complexity, offering ballpark figures based on similar work they’ve done in the past. While not always precise, this method is helpful at Aeterna in the early stages of planning.

Three-point estimation

The three-point estimation helps us to address uncertainty by evaluating three different scenarios: the optimistic estimate (best-case), the most likely estimate (realistic case), and the pessimistic estimate (worst-case). These estimates are combined, often averaged, to give a balanced projection that accounts for risks, making it more accurate than a single estimate.

Top-down estimation

Commonly at Aeterna we are provided with the total project budget which is predetermined, and the app’s features and scope are adjusted to fit within that limit. This method is useful when resources are fixed, but it requires careful management of the scope, as it limits flexibility for adding features.

Function Point Analysis

In functional point analysis the cost is calculated based on the number of distinct functions within the app, such as user inputs, outputs, and database calls. Each function is assigned a value, and the total is multiplied by a standard rate to provide a more objective cost estimate. This method works well when only the functionality is clearly defined.

Agile-based estimation

In the Agile-based method, costs are estimated iteratively based on our development sprints with the client. Each sprint’s cost is calculated individually, and the overall budget is adjusted as requirements evolve over time. This method provides flexibility but can lead to unpredictable budgeting as the project progresses.

Choosing the right estimation method depends on the specific project needs, level of detail required, and available resources. Each method offers different levels of precision, flexibility, and insight into the potential costs of app development.

What are the hidden application development costs ?

It’s important for clients to be aware of some less obvious factors that can affect the cost of app development. While we have focused primarily on the app itself, there are additional expenses that may not be immediately apparent. These costs can impact overall pricing. To assist you in navigating this, Aeterna has compiled a list of common fees that you may not have considered, which are often included in our projects as part of the development process.

App Store Service Fees

When creating a mobile app, you'll need to publish it on platforms where users can download it. For Android apps, this means the Google Play Store, and for iOS apps, it’s the Apple App Store. If your app is cross-platform, you’ll need to publish it on both. However, being listed on these stores isn't free, each has its own fees and revenue-sharing requirements that need to be factored into your development costs.

Ongoing Maintenance and Support

The initial app development price typically doesn't include ongoing maintenance and support services, which are essential for ensuring long-term performance and profitability. Regular updates, bug fixes, and performance monitoring are necessary to keep your app running smoothly, meaning you’ll face continuous expenses after launch. Generally, app maintenance costs around 15% to 20% of the initial development cost per year, making it critical to budget not just for development but for future upkeep as well.

Changes in Requirements Mid-Project

While it’s easy to assume that your project’s scope will remain consistent, changes in requirements are common during development. These changes can arise due to shifting market conditions or evolving business objectives. Adjusting the project scope midway, especially if it involves revisiting research, planning, or redesign will inevitably lead to additional costs, so it's important to plan for potential pivots.

Third-Party Service Integration Fees

If your app relies on external services—such as payment gateways, cloud storage, or analytics tools—those services often come with subscription fees. These fees can vary depending on usage and may significantly impact your budget, particularly if your app requires heavy integration with third-party systems.

Licensing and Compliance Costs

For certain types of apps, especially those handling sensitive data or operating in regulated industries, there may be additional costs associated with licenses and regulatory compliance. This could include acquiring software licenses, ensuring adherence to data protection laws like GDPR, or meeting industry-specific regulations, all of which can add to your overall development expenses.

User Testing and Quality Assurance (QA)

Thorough testing is critical to the success of any app, but it’s an often-overlooked cost. From usability testing to bug identification and performance tuning, the QA process ensures your app runs smoothly across all devices and platforms. The more complex your app, the more extensive the testing phase will be, potentially increasing costs.

Mobile app development cost models: hourly rates vs fixed costs

At Aeterna, we assist our clients by clarifying the payment models for their projects, ensuring that our analysis guides you toward the option that best aligns with your needs. In this chapter, we will outline the common models you should be aware of to better price your project and gain insight into Aeterna’s internal processes. The two most common models are the pay-per-hour model and the fixed-price model. Understanding these pricing structures is essential for refining your cost estimates, as each has its own advantages and drawbacks. Below, we will explore these models in greater detail.

Payment Model Definition Advantage
Milestone-Based Pricing In this model, payments are tied to specific milestones in the development process. For example, you may pay a certain amount upon completing the design phase, another portion when the first prototype is ready, and so on. This approach allows for greater flexibility and ensures that you only pay when tangible progress is made. Large projects with defined stages, projects where progress tracking is important, or when you need a structured payment schedule tied to deliverables.
Retainer Model The retainer model involves hiring a development team on a recurring monthly or quarterly basis. The team is dedicated to your project for a set period, working on development, maintenance, or updates as needed. Payments are usually based on an agreed-upon monthly fee. Long-term projects, ongoing maintenance, and support, or when continuous updates and new features are required.
Dedicated Team With this model, you pay for a full development team that is dedicated exclusively to your project for an extended period. Unlike hourly rates, where you’re charged based on time spent, this model ensures that the team works solely on your app until completion. Projects with evolving requirements or those that require full-time commitment from the development team.
Revenue-Sharing Model This model allows you to partner with a development company where the cost of development is reduced or postponed in exchange for a share of the app’s future revenue. It’s more common with startups or small businesses that may not have upfront capital but have strong long-term growth potential. Startups or projects with high growth potential, when the app’s success is expected to generate significant revenue in the future.
Time and Material Model This model is a variation of the pay-per-hour approach, where you pay for the time spent and the materials used (like software licenses or additional tools). It’s more flexible, as it allows the scope of the project to evolve over time without a fixed budget. Projects with undefined requirements, where adjustments and changes are expected throughout the development process.

Suggestions for reducing app development price

In this final section, we want to provide you with actionable tips to help reduce the overall cost of your app development project. Instead of generic advice like “hire the best team,” we’ll focus on strategies that can have a tangible impact on your budget.

Solidify Your Project Plan and Requirements

While it might sound obvious, the planning phase is critical in preventing unnecessary cost overruns. Failing to clearly define your app’s features and functionality from the outset can lead to costly changes later in development. For example, pivoting or adding new features midway through the project can significantly increase expenses. To avoid this, take time to thoroughly plan your app’s scope, from start to finish, before any development work begins.

Start with a Minimum Viable Product (MVP)

Developing a minimum viable product (MVP) is a highly effective way to reduce initial costs. By focusing on only the core features of your app, you can test the concept with real users, gather feedback, and validate your idea without investing in a fully-featured solution right away. This approach allows you to iterate and add more functionality over time as needed, minimizing early-stage development costs. This is especially useful for startups with limited budgets, as it lets you enter the market faster with a leaner product.

Opt for Cross-Platform Development

While developing a cross-platform app may seem more expensive than creating a single-platform native app, it can actually save you money in the long run if you're planning to launch on both Android and iOS. Building native apps for each platform can result in double the cost, as you would need separate teams to develop and maintain each version. Cross-platform development, using tools like Flutter or React Native, allows you to reuse the same codebase for both platforms, reducing overall development time and costs.

Limit Custom Design and Functionality

While it’s tempting to want a highly customized and unique app, going overboard on design and bespoke features can quickly inflate your budget. Instead, consider using pre-built templates or libraries for certain elements of your app. This can significantly reduce development time and cost, particularly for non-essential features that don’t impact core functionality.

Use Open-Source Tools and Frameworks

Leverage open-source tools and frameworks where possible. Many high-quality open-source solutions are available that can handle various aspects of app development, from front-end frameworks to backend systems. Using these tools can drastically reduce licensing costs, and since they are widely used and supported by a large community, they also come with extensive documentation to streamline development.

Conduct Thorough Testing with Automation

Manual testing is time-consuming and costly, especially for large or complex apps. Implementing automated testing early in the development process can save time and money in the long run. Automated testing tools allow developers to run multiple test cases quickly and efficiently, identifying bugs before they become more expensive to fix later in the project.

Phase Your Development Process

Instead of developing all features at once, consider a phased approach. Break the project into stages and prioritize the most critical features first. This way, you can manage your budget more effectively and release the core functionality early while deferring less essential features to later stages when additional funds or feedback become available.

Final thoughts

We hope this breakdown of mobile app development costs has provided valuable insights into the factors influencing pricing in today’s market, enabling you to make informed decisions for your project budget. At Aeterna Advisory, we prioritize quality solutions and transparency in our client relationships, so if you’re looking for a trusted partner to help turn your vision into reality, we invite you to reach out to us!

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