A Complete Guide on How to Handle Hidden Cost While Developing an App

Creating your own mobile app is a thrilling project that takes your ideas out of the lab and in front of people. But too often, app owners don’t adequately consider the full price tag of bringing an app to life, neglecting the numerous expenses that come after its initial creation. These “hidden expenses of application development” can quickly add up, leading to budget overruns and delays.

To stay on top of your app development project, knowing all the possible costs in advance is essential. This will help you plan things right and avoid nasty surprises later.

You’ll also learn about the major categories of hidden costs of building a mobile app to watch out for, from IT support to administrative fees. Statistical insights on average app budgets provide helpful benchmarks. Finally, we’ll share tips to minimize app development costs at each phase of your project. Follow this advice to develop a high-quality, feature-rich app while sticking to your budget.

How to calculate app development costs?

Calculating an accurate app development budget begins with determining the effort involved across these key parameters:

• App complexity and features – The number and sophistication of features and integrations will dictate the mobile app development advancement cost. Simple apps can be built with as little as $10,000, while complex enterprise apps run well over $100,000+.
• Platforms – Cost is approximately 30% more for both iOS and Android versus a single platform.
• Design – Extra screens, custom animations, and complex UI/UX increase design and development time. Simple designs begin at about $5k, whilst super complex visuals can be in the $15k+ range.
• Backend/integrations – Simple databases / 3rd party APIs have a lower build cost than extensive custom backend systems.
• Testing – The more platforms, devices, languages, and features for testing we have the higher the cost. Automatic tools reduce the cost of optimization for testing.

The process of mobile app development involves multiple steps, from initial planning to launch. It’s important for companies to understand each phase of the process, so there are no surprises when it comes to budgeting. The development process may include research, design, coding, testing, release, and maintenance. Knowing what to expect at each step can help manage app development costs.

To calculate a ballpark estimate:

• List all features and screens along with priority for MVP.
• Determine the number of platforms, integrations, and design complexity.
• Multiply by the average hourly rate of the developer ($100-$150 in the U.S.; lower overseas).
• Add estimated hours for project management (15-20% of dev time).
• Include projected monthly costs for infrastructure, licenses, support, etc.
• Build a contingency buffer (15-20% of total) for unforeseen costs.

While outsourced and offshore development can significantly reduce costs, compromising too much on quality or communication channels often leads to more long-term expenses. Investing in experienced mobile app developers ultimately saves money and headaches.

One of the biggest costs of developing an app is the actual coding and backend infrastructure. Factors like complexity, number of screens, and integrations will impact the development efforts. Apps that require complex logic, intense calculations, or advanced features will require more development work. The costs scale up as the app capabilities and technical difficulty increase.

Hidden app development costs

While the “visible” development costs like programming and design are accounted for in most budgets, many hidden costs of app development are often overlooked. Be sure to consider these categories of recurring/long-term app expenses:

Functional Costs

This includes expenses related to creating, testing, and running your app:

• Bug fixes and ongoing maintenance
• Regular app enhancements and new features
• Monitoring performance and addressing issues
• Paying developers and designers
• Testing on real devices
• User research/feedback
• Submission to app stores

Don’t forget that mobile app testing challenges arise from the diversity of devices and platforms to test. Emulators and real devices, beta testing, functionality testing, security testing, and automated testing all take considerable time and resources. Testing must be comprehensive to ensure broad compatibility and a smooth user experience.

IT support costs

These ensure your app remains available and secure:

• Server/cloud hosting fees
• Database Administration
• Ongoing security auditing
• Disaster recovery procedures
• Scaling to support growth
• Caching mechanisms (CDN) to optimize speed

Infrastructure costs

Hardware, software, and tools needed to build and run the app:

• Developer computers and testing devices
• Prototype expenses
• Purchased software, SDKs, APIs
• Project management and collaboration tools

Here, it is worth noting taking a reference from a comprehensive API development guide is essential. It is for achieving a successful outcome, as it provides guidance on the various components of creating a successful app.

Software licenses

This is one of the hidden costs of developing an app. Paid access to certain SDKs, APIs, libraries, or development platforms:

• Apple Developer Program fee ($99 per year)
• Google Play Developer API fees
• Map integration licenses (Google Maps, Mapbox, etc.)
• Payment gateway fees

Administrative costs

The overhead costs of running a project:

• Project management
• Communication tools (Slack, Zoom, etc.)
• Documentation
• Time tracking

Mid-project changes

Altering original specs during development drastically increases cost:

• New features or integrations
• Different UI/UX design
• Additional supported devices
• Changing app purpose/audience

Mitigate this by finalizing detailed requirements upfront and deferring non-essential changes until later phases.

Statistical insights – facts and figures to consider

While you can read the whole guide on mobile app development cost, here are some benchmarks that help provide realistic expectations:

• The average cost to develop an app according to leading research firms:
  • Basic: $15,000-$30,000
  • Moderate complexity: $30,000-$70,000
  • High complexity: $70,000 – $250,000+
• Additional metrics on the average cost of app development:
  • Median cost: $171,450
  • Low-end range: $22,000 – $150,000
  • High-end range: $200,000 – $500,000+
  • E-commerce apps tend to be the most expensive: $171,000 median
• The expenses of mobile application advancement reach over $1 million for development.
• On average, a new feature takes 32 hours of development time.
• Bug fixing takes over 50% of some app budgets.
• 75% of app owners feel their budget was underestimated.
• U.S. app developers charge around $100-$150 per hour; overseas can be $25-$100 per hour.

Keeping your core app within the basic to moderate complexity range by deferring advanced features for later helps control initial costs.

When partnering with a mobile app development company, it’s crucial to discuss all potential expenses upfront. Reputable firms will provide comprehensive quotes outlining projected costs for the project. However, extra fees can sneak in if the scope expands. Defining the features, integrations, platform support and post-launch maintenance helps derive realistic cost estimates.

Formula to reduce your app development costs

Follow these tips to maximize development efficiency and reduce the hidden costs of developing an app:

• Lockdown requirements early – changing specs mid-project drastically increases costs. Prioritize must-have core features for MVP.
• Carefully vet developers – look for technical expertise, communication skills, and proven experience building similar apps.
• Optimize design – streamline workflows, minimize custom animations, and use common UI elements.
• Consider a cross-platform approach (e.g. React Native) rather than separate iOS and Android new builds.
• Use agile methodology but limit scope changes once sprints commence.
• Automate testing as much as possible. Manual testing should focus on critical user paths.
• A typical factor in an adequate contingency buffer for unforeseen costs is 15-20%.
• Phase enhancements over time rather than cramming every feature into the initial release.
• Allocate a separate budget for marketing – promotions can make or break app success.
• Plan for ongoing maintenance and incremental enhancements after launch rather than treating it as a one-time project.

Ketan Chavda

With in-depth knowledge in International Business Management and Information Technology, he can effectively craft business enhancement strategies and can skillfully untangle technical complexities. This has laid the path for him as the Co-Founder and MD of Prismetric . Writing about the new age technology and sharing his thoughts on the continuously evolving business trends keep him content.