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Software and app development price

The most important factors influencing the costs of project development:

  • Team – Project manager, various developers, designers, testers;
  • Overhead/fixed costs of a company – office, equipment, marketing expenses, organisational costs, etc.;
  • Capacity utilisation – when capacity utilisation is low (summer and winter holidays, times of crisis) you often get “good” prices. In the good times, with a full workload, you pay extra (idle time has to be compensated, high opportunity costs, if you accept your project, you may have to cancel another one).
  • Macroeconomic / market factors, e.g. developer salaries, these have been exploding all over the world for years.

How we calculate our project and app development price

There are two common models for billing software projects: Time & Material (billing per hour), Fixed Price. We offer both models and depending on project requirements we can use one or the other.

  • Price & material: an estimate is made (if possible) of how many hours or man/days the programming may cost. We then calculate the hours with our hourly rate of 95 QQEuro + VAT. H. v. 95 Euro + VAT.
  • Fixed price of app development: for other projects, we agree a fixed price with our customers. This is calculated according to the following formula: Number of expected project months x (team expenses + pro rata overhead) + margin.
App3null Mockup English Mobile App Dev Cost Factsheet

Costs of Building an App

Mobile and web app development has a number of different cost factors to consider when planning your app development project. In this infosheet we will give you an overview on what to expect when you are planning to develop an app:

Why should I develop and app?
What does it cost to build an app?
What affects mobile application costs?
What platforms are most apps built on?
How can I start my project with App3null?

Download App Development Factsheet
App3null mobile App creation-04
Based on our experience

Example Projects and Budget of App Development Price

In-House Apps

Companies often want to optimise and digitalise internal processes. In particular, this refers to companies with many logistical tasks. Although there are small and inexpensive projects of this kind, most are relatively complex and app development price start at 30,000 euros. But even here, the app development price can rise to 40-50,000 euros or even more. If you develop the software for only one platform, you save a lot of money.

Gaming Apps

Games are generally an expensive business. We specialise only in a small segment of games that are not very dynamic, such as quiz games, GPS-based games, logic or memory-based games, etc. With such games, the effort is still limited, but can quickly move towards the mid or upper five-figure range. For other games, strategies, shoulders and so on, the app development price are in the six-figure range, with no clear upper limit.

Food & Fitness Apps

These are very popular categories. There are very simple apps that you can finish within two or three months and spend on app development price between 10 and 20,000 euros.

There are, however, much more complex variants for which the app development price can very quickly reach the middle or upper five-digit range. So it would be difficult to make a general statement, but on average you should have 30,000 euros ready.

Social Media / Dating Apps

When developing such projects, a relatively large theme is used, consisting of 3-4 developers, a project manager, testers and of course a UI/UX designer. Such projects last at least four months, often longer than 5 months. The app development price start at 40,000 euros and can quickly reach a high five-figure or six-figure amount. For larger agencies, such projects cost several 100,000 euros.

Utility Apps

Both of these smaller utility apps usually get the job done faster. Such apps usually solve one or more problems, teach something or help in everyday situations. The development takes 2-3 months and the task can often be solved without a backend, which makes the development cheaper. The app development price range between 10 and 20,000 euros. But here, of course, it depends on what you want. Some utility apps can be significantly more expensive.

New Technologies

Blockchain, IoT, embedded, wearables and similar projects are usually difficult to budget for. They often involve protocols, devices and frameworks with which we have no experience. That’s why a fixed price makes little sense in such cases. The projects are charged on an hourly basis – 95 € per hour + VAT. The smallest such project and app development price us 20,000 euros, and the largest was well into six figures.

Project-related factors

The following project-related factors have an influence on the project budget:

  • Number of platforms: IOS, Android, Web. Will the project be developed for all 3 or just one or two?
  • Complexity of the task: Do you want to develop an app that gives you a daily motivational slogan or redevelop Facebook?
  • Payments: Do you have no payments in the app or do you have multiple complex payment models including third-party connectivity?
  • Devices: Is the app or website designed for one device only, e.g. smartphone or for smartphone, tablet and desktop?
  • Design: Is a simple design sufficient or is the project strongly design-oriented?
  • Backend & APIs: Does the software have a backend connection? Should one or more third-party APIs be integrated?

Running costs

The costs of software development are not limited to one-off expenses. All software needs maintenance and updating. This includes platform updates, library updates, refactoring, etc. These activities are usually covered under a support contract. These are calculated according to the following formula: Original budget x 10 % / 12 = monthly contribution.

But that is not all. Every software needs a server, hosting, domain, perhaps a mail server, as well as other IT infrastructure (such as third-party APIs).

We are not talking about marketing and personnel costs for software popularisation and support here. These costs are often self-evident and must be taken into account in the business plan or within the company.

Most important app development price factors Overheads|Employee Salaries

Due to high competitive pressure and rapidly growing employee salaries, app development price defers and the business of app or web development is by far not the most profitable. Companies often have their hands tied and budget flexibility is limited. But don’t negotiate too hard, it has to be worth it for the other side to work with you. And don’t go for a cheap solution. That will cost them more in the end. Here are some examples:

Salaries
Overhead
Other
A few selected customers

We know what we are talking about

RA- Micro mobile app development
Delivery Hero Mobile App Development
Bringmeister App development
Europäische Reiseversicherung Mobile App development by App3null
GaLaBau-Winterdienst
To know more about how we can best help you

Contact or Visit App3null Offices in Munich

App3null HQ Office

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