7 min read
Cost of app development: we explain it!
It makes sense that you want an estimate of the costs before you start developing an app. Still, it's difficult to give an accurate estimate without first having a good picture of the app's requirements. In this blog we discuss the most important factors that influence the cost of app development, so you get insight into this.
9 factors that determine the cost of app development
There are various elements that influence the ultimate cost of an app for your organization. Below we discuss 9 of the most important factors, including concrete examples.
1. Platform choice and development tool: high-code vs. low-code
High code: This is the traditional way of developing, in which software engineers build applications using complex code. Developing applications with high-code often takes more time and requires staff with specialist knowledge. This often results in less flexibility and higher costs. High-code is often chosen for apps with very specific requirements.
Low-code: This uses visual development environments that let apps be built faster. This significantly reduces development time and costs. Nowadays, low-code is ideal for almost any business application.
Example: An internal business application can often be built faster and cheaper with low-code, while a fintech app for banks is more likely to require high-code due to complex regulations.
2. Licenses: fixed vs. variable
Fixed licenses: This means a predictable cost structure, usually applicable with SaaS solutions. This can be attractive if you want to keep control over costs.
Variable licenses: Here the costs are based on the number of users, usage, or other factors. This is often applied with scalable platforms.
Example: An app used by thousands of external customers may require a variable licensing model, while an internal app for a small team is often fine with a fixed license. That's why it's important to make a realistic estimate in advance of the (potential) number of users, so you can choose the licensing model that best fits the scale and use of your app.
3. Hosting: self-managed vs. cloud solutions
Self-hosting: This gives you more control over your own data, but it also requires more technical knowledge and a large investment in hardware. It's suitable for companies that process sensitive information.
Cloud hosting: Cloud solutions such as Azure, AWS, or Mendix Cloud offer scalability and lower startup costs. This is especially useful for organizations that are growing fast and want to scale up (later).
Example: An app for critical business processes in the financial sector may require self-hosting so you have full control over your own data, while an order-processing application can run perfectly well in the cloud.
4. Number of screens and complexity
Few screens: Screens within an app can be compared to pages on a website. The fewer screens needed, the less development time is needed. This often results in a pleasant user experience and lower costs.
Many screens/pages: When an app has many screens, complexity increases. This means more attention is needed for the design, how users can easily navigate through the app, and testing the app. This increases development time and therefore the costs.
Example: An inventory app helps manage stock and automate inventory management. Think of tracking products in a warehouse, materials on a construction site, or office supplies within an organization. A simple inventory app with five screens can contain basic functionalities, such as entering items, viewing stock, adjusting quantities, a search function, and an overview screen. Because of the limited number of screens, development time and costs stay low.
When an inventory app needs to be more extensive, for example with user roles (different permissions for warehouse staff and managers), low-stock notifications, or extensive reporting, the app becomes more complex. This requires more development time, extensive testing, and a well-thought-out design, which ultimately increases the costs.
5. UI/UX preferences: standard vs. custom
Standard components: These are available elements that can be used quickly. These elements involve lower costs, but adding customization (for a better user experience) isn't possible here.
Custom UI/UX: Specially designed components that align with the brand experience require more time and therefore a bigger investment in resources.
Example: A standard login screen costs less than a fully personalized interface with interactive animations.
6. Database complexity
Simple tables: You can use these tables for basic data without complex relationships. This is suitable for simple apps.
Advanced databases: Relationships between multiple entities, data integration, and security require an extensive database.
Example: An app that stores customer data in a simple table is cheaper than an app that needs to support multiple tables, relationships, and hierarchies.
7. Integrations and connections
No integrations: Standalone apps that run independently and contain less complex logic are generally faster to develop.
Complex integrations: Connections with external APIs, CRM systems, or ERP packages increase complexity and costs.
Example: An internal app without integrations costs less than an app that communicates with external data sources, such as a webshop or financial systems.
8. User stories and functionalities
Basic functionalities: An application with limited interactions and easy-to-implement functionalities is less expensive and also often needs less maintenance.
Advanced functionalities: Functionalities such as AI, reporting, notifications, and advanced security require customization and extensive testing phases.
Example: A task management app is meant to help users organize, assign, and track tasks. This can range from simple checklists for ticking off personal tasks to shared to-do lists for small teams. Users can quickly see what needs to happen, set priorities, and mark tasks as completed.
Simple task management apps are often clear and contain few screens, keeping development costs relatively low. This contrasts with more complex project management apps that offer extensive reporting, notifications, and automated workflows to support larger teams.
9. Maintenance and support
Self-sufficiency: An in-house IT team manages the app, which can save costs.
Full support: Support from a development team for maintenance, updates, and technical issues.
Example: An app for internal staff can often do without extensive support, while a customer-facing app with a large number of users needs more support.
Costs versus benefits of developing an app
Organizations develop an app for various reasons and to achieve different goals. Possible goals include:
- Saving time by organizing processes more efficiently, so that, for example, administrative tasks take less time.
- A better and more up-to-date overview of crucial information such as stock, reservations, orders, and sales figures.
- The ability to handle important and frequent processes more intelligently, such as processing orders, sending messages, and storing data.
- Developing an app as a low-threshold service or sales channel for customers.
When developing an application, people often look at the costs right away, but not at how much money and time can be saved in the long term by digitizing. This way, you often save a lot of time and money in the long run, fewer mistakes are made, and processes run much more smoothly.
The biggest impact occurs when an app supports an essential process within your organization. In that case, there's a good chance the app actually adds value, pays for itself quickly, and justifies the investment. The precise goals and possibilities depend strongly on your organization's specific wishes.
Conclusion
The cost of developing an app can range from a few thousand euros to substantial amounts, depending on the complexity and your specific wishes. Want to know what your app will cost, or do you need more insight into the possibilities? Then get in touch with us, no strings attached!
Need an exact cost estimate?
During an "App in a Day" session, we look at your idea, scope, and requirements together. We start with a brainstorm to get your objectives clear and map out the key requirements. Next, we create a clickable prototype that you can test right away and present to stakeholders for valuable feedback. Based on this, we can make a realistic cost estimate and also show how much value/savings the application can deliver. This way you know exactly where you stand before investing further.