How to calculate mobile app development costs

Hello, lonely wanderer. If you came across this article, you may be thinking about creating your own mobile app. Good news: you are in the right place! Mobile apps are great tools for startups and established businesses to work with clients, retain them, and reengage via rich mobile instruments, like push notifications. Sounds good, huh? But how much does it cost?

 

How much does it cost to build a mobile app?

How much does it cost to build an app? If you are looking for a short answer, here is it:

From $1,000 to $100,000*

*based on the scope of work, number of features, and supported platforms (iOS, Android, iPadOS, wearOS, etc). If you are looking for a detailed price - keep reading.

 

1. Key factors influencing mobile app development costs

The cost of mobile app development depends on multiple factors, from complexity and platform choice to design, and third-party integrations. Proper planning and a clear scope definition can help optimize your costs.

1.1. App Complexity

The more complex an app is, the higher the development cost. Complexity can be explained as:

  • Basic apps – Simple UI, minimal functionality, no backend (e.g., calculator, to-do list).

  • Medium apps – Requires backend, API integration, data processing (e.g., fitness tracker, cooking app).

  • Complex apps – Real-time sync, IoT, AR/VR, blockchain (e.g., telehealth, banking apps).

1.2. Platforms & Device Compatibility

  • iOS, Android, Web – Developing for all platforms increases complexity and costs.

  • Cross-Platform vs. Native – Native apps (Swift for iOS, Kotlin for Android) are easier to build and more simple in maintenance than cross-platform apps (React Native, Flutter).

  • Device Support – Compatibility with smartphones, tablets, smartwatches, or wearables increases complexity and costs.

1.3. UI/UX Design Complexity

  • Basic UI – Simple screens without advanced UI elements cost less.

  • Custom UI/UX – Advanced animations, custom interactions, and unique branding require more design and development efforts.

1.4. Features & Functionality

The type and number of features significantly impact cost. E.g.:

  • User Authentication – Email and password, vs. SMS OTP, vs. social logins for different socials.

  • Push Notifications – Basic vs. advanced segmentation & automation.

  • Real-Time Features – Chat, video calls, and live streaming require sockets and real-time synchronization.

  • Payment Integration – In-app subscriptions vs Stripe, PayPal, Apple Pay, or custom payment solutions.

  • AI & Machine Learning – chatbots, speech recognition, image recognition.

1.5. Backend Development & Infrastructure

  • Simple Apps – No backend, stores data locally.

  • Database & API Integration – Requires cloud storage, data management, and API integrations.

  • Scalable Backend – Microservices, cloud computing (AWS, Firebase) increase infrastructure costs.

  • Security & Compliance – Encryption, GDPR, HIPAA compliance add development effort.

1.6. Third-Party Services & APIs

Using third-party solutions speeds up development but increases recurring costs:

  • Payment Gateways (Stripe, PayPal)

  • Cloud Storage (AWS, Firebase, Azure)

  • Maps & Navigation (Google Maps API, Mapbox)

  • Chat & Video Calls (Twilio, Agora)

  • AI tools (OpenAI, Gemini, Elevenlabs).

 
 
 

2. Defining the Scope of Work (SoW)

Clearly defining the app’s scope helps estimate costs and set realistic timelines. The more complex the app - the more time is needed and the higher the cost. However, careful planning can optimize development time and efforts. That’s why we recommend contacting molfar.io during the planning stage. In this case, we can plan the most reasonable scope of work for your budget.


2.1. Platform Choice (iOS, Android, or both)

Deciding which platform to start depends on your target audience, budget, and go-to-market strategy. The price of iOS and Android development is approximately the same. So, it should not be the deciding factor.

If we compare Global market share, we can see that Android is more popular worldwide (70% vs 29%). But at the same time, iOS is a more profitable platform for developers (x2 more profits).

This anomaly can be explained by the fact that iOS users are more likely to pay for applications and content. This also correlates with the fact that Android predominates in developing countries (weak economies). So, there are more Android users but less solvency.

So, what to do?

You should make an educated decision based on your business model and target audience. Identify who your target audience is and what they use. This information should help you to make a decision. For example:

  • If you are building a healthcare app for Somalia, start with Android.

  • If you are building a business tool for the US market, start with iOS.

  • If you are thinking about a social network app, it is better to start with both platforms to gain the network effect.

The choice depends on the needs of the specific business and the resources available.


2.2. Type of App

The type of app significantly affects development costs and effort. There are three main types: Native apps, Cross-Platform, Web apps.

Native Apps are built specifically for a single platform (iOS or Android) using platform-specific programming languages (Swift or Kotlin). Native apps offer the best performance, UI/UX, and access to device features.

Cross-Platform (Hybrid apps) are built using frameworks like React Native, Flutter, or Xamarin. Cross-platform solutions reduce development time but may have performance limitations and extra maintenance costs.

Web Apps (Progressive Web Apps, PWA) run in a web browser but function like an app. They don’t need App Store or Play Store distribution but have limited offline use and device access.


2.3. Feature Prioritization

You definitely have many feature ideas. However, adding everything at once can make the app complicated and expensive to develop. Feature prioritization helps you decide which features to build first and which can wait. Such an approach helps you launch faster and give your product to customers immediately. Start with the essentials (MVP), test with customers, and improve based on real user feedback. It’s a smart way to run your startup.

How to prioritize features:

  1. User Needs First – Focus on features that solve users’ problems. What do they need most?

  2. Business Goals – Choose features that help your app succeed, like increasing sign-ups or sales.

  3. Market Research – Study competitors and trends to see what works well in similar apps.

  4. Effort vs. Impact – Some features are easy to build but highly useful. Others are complex but add little value. Start with the high-impact, low-effort ones.

  5. User Feedback – If your app is already live, listen to user reviews and requests.

Popular methods for feature prioritization:

  • MoSCoW Method – Sort features into Must-have, Should-have, Could-have, and Won’t-have categories.

  • RICE Scoring – Rank features based on Reach, Impact, Confidence, and Effort to determine priority.

  • User Story Mapping – Arrange features in the order a user would need them in real life.

 
 
 

3. Estimation process

Once the Scope of Work is defined, then goes the estimation stage.

We follow Agile best practices to ensure accuracy and flexibility in planning. For this activity, we invite the CTO, Team Leaders, and key developers to estimate each listed feature. They use Planning Poker for the most accurate estimation. Each feature is discussed in detail to assess complexity, dependencies, and effort. Instead of estimating in hours, they use story points to reflect effort and uncertainty, aligning with Scrum principles.

Each task for each platform has its own estimation, which helps to get a flexible structure of features. This granular approach allows you to adjust feature priorities dynamically, ensuring a flexible development process. With a well-structured estimation, you can always optimize the MVP scope to match the budget while keeping room for adjustments.

 

Estimation example. Task decomposition

 

If you want to estimate features without our professional help, you can ask your friend developers for help. Be sure that the developer has enough experience in estimations and coding. Only by combining practice and theory, you can get the best results. That’s why we involve the CTO and team leaders in this process.


4. Cost Breakdown

After evaluating all the functions, we get a detailed table of how much developer effort is needed for each task. Such a table allows you to understand how resource-intensive a particular task is. The next step is to translate those story points into hours. If the project is simple and straightforward, 1 point = 1.2 hours. If the project has a lot of unclear parts, completely new technologies, or tasks requiring RnD, then 1 point can be 1.3 or even 1.5 hours. For such projects, we usually offer to conduct RnD before the final estimation to reduce uncertainty.

The next step is to translate estimated hours into actual costs. This is done by factoring in developer salaries, which vary based on dev experience and skills. The formula to determine costs:

Total Cost = Estimated Hours x Hourly Rate

Developer rates depend on region and experience. Here’s an approx. breakdown:

  • North America & Western Europe: $50–$150/hr

  • Eastern Europe & Latin America: $30–$70/hr

  • South Asia & Africa: $15–$50/hr

Example. If your app requires 1,000 hours of development:

  • US-based dev: $100/hr → $100,000

  • Eastern European dev: $50/hr → $50,000

  • South Asia dev: $25/hr → $25,000

A mobile app often requires multiple specialists (UI/UX designer, mobile developer, backend developer), each with different rates. So, these 1000 hours will be distributed across the team. Here’s an example of cost structure:

 
 

Total costs for five specialists = $41,000.

So, now you understand how the app development costs are formed. You can gather your own team and hire each needed specialist (designer, mobile dev, backend dev, PM, QA). Knowing estimated hours, you can multiply it by the average monthly salary of such a specialist in your region and calculate the running costs for your startup. Or you can hire molfar.io and get an experienced team with a Lean vision and a product-wise approach.

One of the benefits of working with molfar.io - we provide Project Management and QA at no extra cost. You pay only for development while we handle coordination and testing to keep your project on track.


5. Hidden costs to consider in mobile app development

Beyond the core development expenses, some app projects often incur hidden costs that impact the overall budget. Two major categories are Server & hosting costs and Third-party APIs, which are essential for some apps' functionality.

5.1. Server & hosting costs

The cost of servers and hosting depends on factors like storage needs, traffic volume, and data security. Aside from cloud hosting, apps often require additional backend services, such as:

  • Database Management: Costs for storing and retrieving user data (e.g., Firebase, AWS).

  • Security & Encryption: SSL certificates, firewalls, and DDoS protection.

  • Auto-Scaling & Load Balancing: Handling sudden traffic spikes without downtime.

Not all apps need such services. But if your app needs all these, approximate costs can be $50-$800 monthly.

5.2. Third-party APIs & services

Many apps integrate third-party services to save development time and enhance functionality. However, these services often come with ongoing costs. Example costs from APIs:

  • Google Maps API: Free for up to 28,000 requests/month, then $7 per 1,000 extra requests.

  • Twilio for video calls: $0.0015 per minute per participant.

  • OpenAI for chatbots: GPT API usage starts at $0.15 per 1M input tokens, meaning a chatbot-heavy app could cost hundreds per month.

Proper planning, choosing cost-effective services, and optimizing backend resources can help manage these costs effectively. For example, we at molfar.io analyze each project individually and offer the most cost-effective solution for each project. It can be a no-backend solution, low-code backends, or advanced AWS solutions based on the project scale and needs. Moreover, the app architecture is designed to use high-level abstraction, that in case of project success and scale, even a no-backend solution can be easily replaced with an advanced backend with little work.


6. Startup MVP vs. Enterprise App: how it affects development costs

The cost of developing a mobile app varies significantly depending on whether it is a Minimum Viable Product (MVP) for a startup or a fully-featured enterprise application. Each approach has different goals, features, scalability requirements, and development processes, which impact overall costs.

A Minimum Viable Product (MVP) is a basic version of an app that includes only the core features necessary to test an idea, attract early users, and validate the business model with minimal investment. Characteristics of an MVP:

  • Focuses on essential functionalities only (lower cost due to minimal features).

  • Developed quickly to launch and test in the market (1-3 months)

  • Scalable but may rely on third-party tools for cost efficiency.

  • Prioritizes a lean budget to minimize risk.

  • Limited security and compliance requirements (unless necessary for the industry).

An enterprise app is a fully-fledged, scalable, and highly secure application designed for large businesses. It includes multiple features, complex integrations, and a robust backend to handle large-scale operations. Characteristics of an Enterprise App:

  • Advanced functionalities (CRM-integrations, automations, business intelligence).

  • Scalability & performance for thousands/millions of users.

  • Robust security & compliance (GDPR, HIPAA, SOC 2).

  • Custom integrations with enterprise software (ERP, payment systems).

  • High uptime & reliability (dedicated cloud hosting, auto-scaling).

  • Dedicated infrastructure & DevOps

  • Longer development time (6-12 months).

  • Much higher costs due to custom requirements and integrations.


7. Case Study. Let’s estimate Instagram

Let’s try to estimate an Instagram-like app. Developing an app like Instagram involves building a feature-rich, scalable, and secure social media platform. Assume the following tech stack: Native mobile apps (Swift and Kotlin), Node.js backend, AWS infrastructure. Below is an MVP cost breakdown based on core features (Auth, User Profile, News feed, Likes, Comments, Friends, Notifications):

  • UI/UX Design: 260 hours
  • Backend: 550 hours
  • iOS app: 670 hours
  • Android app: 650 hours

Let’s assume the design and development hourly rate is $40/hour.
In this case, we will get such prices:

  • UI/UX Design: 260 hours ($10,400)
  • Backend: 550 hours ($22,000)
  • iOS app: 670 hours ($26,800)
  • Android app: 650 hours ($26,000)
TOTAL cost: $85,200

To keep it more accurate, you should add Project management and QA costs to these numbers.

Take into account that it’s the MVP scope (only the most important features). No Chats, no Stories in the MVP scope. To reach the enterprise level, you will need to double or triple the estimate. However, the good news: Instagram started small and iteratively improved the product by constantly adding new features and polishing the UX. You should follow the same way. Start small and improve continuously.

Additional cost factors:

  • User Base Growth: Costs increase as more users require more storage, servers, and security.

  • AI/Algorithm Complexity: A basic feed is cheaper, but an advanced AI-driven recommendation system adds significant costs.

  • Live Streaming & Video Features: These are the most expensive due to server load, bandwidth, and storage costs.

  • Security & Compliance: Instagram deals with massive data privacy requirements (GDPR, CCPA), adding legal and security expenses.

 

Conclusion

Developing a mobile app is a complex process, but with proper planning and budgeting, you can optimize costs without compromising quality. Whether you’re building an MVP for a startup or a fully-featured enterprise app, managing resources efficiently is key to long-term success.

Some takeaways:

  • Define clear objectives. Outline must-have features versus nice-to-have ones. Start with an MVP and iterate based on user feedback.

  • Set a realistic budget. Consider development, infrastructure, and ongoing maintenance costs. 

  • Hire Smartly. Consider hiring an experienced development team like molfar.io instead of building an in-house team from scratch.

  • Use Open-Source & Third-Party Tools. Reduce development time and costs by leveraging pre-built frameworks, APIs, and cloud services.

  • Iterate Based on User Feedback. Avoid overengineering. Launch early and refine features based on actual user needs.

  • Consult with professionals. Contact molfar.io to get a detailed estimation for your startup. For the past 7 years, we have built over 100 projects of different sizes, from small MVPs to fully fledged digital systems. Working with us you can maximize value while keeping costs under control.

Product Development, MVPSerg Pirogovsoftware development, MVP