How much does it cost to develop an app?

August 29, 2017
How much does it cost to develop an app?

Introduction to the App market:

The application market is increasing and evolving day by day. With the recent advancements in technologies like IoT and machine learning, there is a drastic shift of businesses on scalable applications. The expansion is huge in terms of available platforms like iOS, android, windows, Linux etc. It is important to have a deep understanding of the cost related to application development if you are a potential app seller or buyer.

Costing by App Type:

Apps can be of the following types:


These are basic applications which require no connectivity, servers or special features like a calculator application. They cost less than $5,000.

Data Consumption:

These apps require a minimal connectivity and cost between $5,000 to $10,000. A typical example is a weather prediction app.

Login app costs:

The apps, which require authentication range between $10,000 to $100,000. Applications like google drive are complex and have larger design cycles. An iPhone app development company usually puts a higher price tag.

Social networking app costs:

Along with logins, these apps also require data-interactions, background algorithms and encryptions for security. Costing somewhere between $15,000 – $50,000, such apps are highly sophisticated and have a longer testing lifespan.

Ecommerce app costs:

Ecommerce apps go a step further by the introduction of cart management and cash transactions. Established android app development companies will bill you around $20,000 – $100,000 for a high-end application.

On-demand app costs:

These apps are extremely complex. They need different interfaces for service provider and various customers. They also require extensive mapping and hence the budget provided by any android or iPhone app development company for these apps fall in between $10,000 – $150,000.

IoT / hardware app costs:

The development of these apps is an expensive affair. Both android app development companies and iPhone app development companies will cost you on the extremes. A $200,000 – $500,000 budget is a mere average for such apps. Home assistance, universal remote systems, smart home appliances etc all fall into this category.

Costing by App Development Companies:

There are three tiers of Android and iPhone app development companies available.

The Tier-1 companies are the market leaders, popular, bigger firms with an in-house all in one facility. These will provide you with a multitude of options in terms of designing, platforms, server types etc.  Most of the applications they build are scalable, high-end and cover a post development support for a year or more.

The tier-2 companies will be comparatively smaller agencies which can provide services at 75% of the tier-1 budget. Sometimes, the costs offered by an android app development company can even be lower than this.  These companies price usually based on social factors including their geo location, resource availability, and Infrastructure expenses. A Reliable Offshore development company shall build your app with great quality within a reasonable budget.

The tier-3 comprises of mostly freelancers. They can offer development at a cost cutting of 40-50% compared to the big player in the market.  However, Freelancing services cant be available 100% as they work somewhere and offer these services in part time. If your business can withstand a fix for an Issue for a day or two, you shall explore freelancers.

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Written by

As one of the top full-stack developers in the industry for almost a decade, Sasikumar has worked with clients across the globe from a variety of industries. His expertise in software development has helped some of the most renowned players in the market to optimize their digital operations. He also heads a team of diverse and capable talents that has built over 50+ high-end digital platforms for his clients. Driven by his passion for technology, he frequently blogs about all things digital, which also helped him gain some hardcore followers from the developer community. You can reach out to him @


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