Setting up a budget and hiring the best developers and designers are some of the best ways to create a new mobile app. Besides, it helps you factor in costs so there are no unexpected financial costs you’re not prepared to pay.
Below are hints to assist you in how much you’ll need to finance your app project.
Setting up a budget for specific costs
Unless you have a specific development team who has a chart breakdown, it’s best to create your own. App costs can range from $10,000 for offline standalone apps to $500,000 or more for enterprise apps. Hence, your budget should be flexible for the type of app you want. You might want to allocate about 60 percent for development and quality assurance (QA) and 15 percent for project management. Set aside about 15 percent for user interfaces (UI) and user experiences (UX) and 10 percent for business analytics.
Allocating enough money for labor costs, coding and UI/UX
Your materials and labor costs are primary expenses with app development. Labor rates can vary depending on the development team you hire. If you can, find developers and designers under the same parent company to lower costs. Ensure they are familiar with the app preference you want and that they work on that type of UI/UX. Depending on your app features, your labor costs might be high and you might have a large team. You may need business analysts, backend developers and UI/UX engineers. You will also have a project manager, mobile developers and a QA engineer. Projected costs might range from $2,000 – $60,000.
Including project management and business analysis costs
To help with market analysis, research and documentation, you’ll need about $1,200 – $11,000. You also have to determine if your app will run on iOS, Android or both. Consider where your target audience is when making your choice. With your project management, set aside $1,200 – $12,000 depending on your app features. Your PM can help with account management, business analysis, QA and concepts. They’re also there to assist with digital project management and design.
Adding in expenses for maintenance and updates and specific app related costs
Another area to set aside money is for covering maintenance and updates. Depending on if you use iOS or Android, maintenance might run anywhere from $10,000 – $14,000 every year. There are additional costs you should factor in.
These might include:
Server components that will work with your mobile app through APIs. These might cost between $6,500 – $30,000.
Any features you offer with the app like navigation, OCR, QR codes or integrated payments. These can run about $3,000 for a single feature.
Analytics that you include to gauge revenue, user payments, user characteristics or user actions. These can add on another $2,500.
Adding in third-party chats from software development kits (SDKs). These can cost $2,500. If you use custom chat modules, these might run $15,000 or higher.
While app costs can vary, having a budget can help. Hire the best developers and designers and look for ways to calculate app design costs. That way you can allocate money where you need it to ensure the success of your app project.
*Figures used are from the 2019 App Guide.