How much does it cost to make an app?
Custom application development can benefit all types of business models including well established companies and startups by creating bespoke software to meet the needs of their customers and clients.
As an app and custom software and development agency two of the questions we always get asked are “how much does it cost to develop an app?” or “can you provide me with ballpark estimates?”
How much does it cost to make an app? – A good range of what it costs to develop in Australia is around $60,000 – $300,000 depending on feature requirements, platforms and a multitude of other factors.
With this being said, multinational organisations have much larger budgets and fewer time constraints than the average start up. There are lots of moving parts to app development, therefore it’s key to understand the process and factors which will affect the cost.
App development is a journey which can sometimes take months on end so it’s important to be fully prepared, educated and informed.
So, how much does it cost to make an app?
How much does it cost to make an app? – Branding & Design
If you are an established business you’ll likely already have your branding in place however for a new business/startup the first port of call will be the visual identity and branding. This will include colours, fonts, iconography and style guides for your brand.
You can enlist a digital designer to work on the branding or your app development team will have inhouse designers that can bring your idea to life. They can create the all important logo/icon, the logo is a symbol and the visual representation of your business. It is the foundation of your brand identity. They will then work on the brand guide which is a document that denotes the best practises for the logo, the brand colours, typography and icongraphy.
A good brand guide can cost anywhere between $3000 – $5000. Of course larger organisations will have larger budgets however for any growing business regardless of size, a solid, scalable brand is pivotal to its success.
Once your branding is in place, you can move onto the design phase in the form of UI/UX prototypes. At Media Shark we don’t move to the development phase without these. They are the foundation of the application.
The UI/UX prototypes will enable you to visualise what the fully developed application will become. They will visually demonstrate the user stories and how the user will interact with the application once it’s fully developed, confirming lots of intricate details such as how many screens will be included and which features will be built.
If the application is going to be rolled out in phases with new features added in the future, it’s important to build the foundations correctly.
“The UI/UX prototypes are the blueprints to your house. You wouldn’t let your builder construct your house without first agreeing on the layout. Imagine if you changed your mind about where you want your bathroom or kitchen to go once built – it’s a lot easier to change your mind during the design phase than having to demolish and rebuild once it’s done!” – Tom Blake Media Shark Director
The average cost of UI/UX Prototyping is $12,000 – $25,000, depending on the amount of screens, complexity and the amount of platforms you are wanting to develop on.
For example, a business that wants to be able to licence their software to customers may need a mobile app, a backend and an admin backend – that’s 3 apps/platforms in total.
Whereas another business may only require 1 mobile app and 1 backend.
How much does it cost to make an app in Australia? – Native or Hybrid?
Native app development refers to building an app for a single platform, using programming languages also known as code which are specific to that platform.
The official language for Android is Java, and for iOS it’s Swift.
Whilst native apps may run faster and smoother than non native apps the cost of native app development is significantly higher as you will need developers that can programme in 2 different languages. This means your development hours and costs will be considerably increased.
Native app development would generally be chosen for high level app development which includes making full use of the devices specific software including the GPS, camera and microphone.
Hybrid app development refers to the build of an app that can run on multiple operating systems. When developers build hybrid software/apps they only need to include once code for all platforms, allowing them to run anywhere. Hybrid app development can be less expensive but may not offer the same functionality and performance level.
Typically Native App Developmet is around 40% more expensive than Hybrid App Development
How much does it cost to make an app in Australia?
A good question to ask yourself is – Why am I developing an app?
Are you looking to create a basic MVP with the view of securing investment?
Do you want the app to compliment your existing business?
Are you completely self funded and ready to launch the application immediately once developed?
Once again, there are a number of variables including the amount of features and third party integrations, but here come the numbers:
The average cost of a basic app or MVP is $30,000 – $80,000
The average cost of a mid range app is $80,000 – $110,000
The average cost of a high end app is $150,00 +
*average based on Media Sharks most recent app development projects 2021 – 2022
Trademarks and licences
If you are going to develop an app for iOS and android, licences for both app store and play store will be required. For the app store, you will need to register as an iOS developer. This will cost you a yearly fee of $99.
For the Google play store you will need a Google developer account, which is a one off cost of $25
Server fees include things like domain access and AWS hosting, these can cost as little as $500 per year
Third party integrations refer to anywhere the app uses an API to borrow data and functionality from other apps. Examples include Stripe payment gateways for payments within your app, Firebase for instant messaging and Google maps for GPS.
Most third party integrations are free until you reach a certain number of users therefore once you start paying – the more succesful your app has become!
Developers
There are a number of ways to develop your app, you may feel confident managing the project and conducting all the testing yourself. If this is the case then a freelancer may be the right fit for you. With that being said, some degree of technical knowledge would be beneficial.
The average cost of freelance MEAN stack app developer in Australia is $130 per hour depending on level of experience
Fixed price app development is when the cost of the project is agreed and paid for prior to developers starting any work. This can be a great way to know where you stand in terms of timelines and costs however does not offer the flexibility to make changes once the project scope has been agreed and signed off on.
The average fixed price developments costs in Australia are $60,000 – $300,000
Dedicated resource models are a great option if your software is going to have many phases and features rolled out gradually. Dedicated resources can perform many ad hoc tasks and offer a lot of flexibility in development.
The average cost of dedicated resource development in Australia is $16,000 per month per resource.
(based on a developer charging $100 x 160 hours per month)
Maintenance
At Media Shark we always advise our clients that the ongoing maintenance cost will be approximately 15% of the overall development cost. With constant updates and advancements in technology and smartphones it is important to keep your app up to date and functioning correctly.
Example:
App Development cost – $95,000
Ongoing Maintenance – $14,250
Marketing and launch
App development is the tech that compliments your business and as with any business, a strong launch is crucial as this is where you will gain your users (customers base) and where you will build your brand awareness. The marketing and launch plans should be in place long before the app is complete. It’s important to build the hype and get people excited and anticipating the release of your app.
Some agencies may offer assistance with your marketing or you may benefit from a separate marketing agency/PR firm.
At Media Shark we recommend an average budget of $30,000 – $100,000 for pre and post launch marketing.
This can include your advertising campaigns, app store optimisation, creation of a website or landing page and a pitch deck for your investor and stakeholder meetings.
Final Thoughts
When starting off on your software development journey, it’s important to find a team that is going to be the right fit for you as this is the team you will be working alongside for a substantial period of time.
Spend some time doing the research and talking to various people, companies and agencies as you should choose a team that has a clear understanding of your business concept and who can provide you with honest and realistic expectations of timelines and costs.
The experts will also be able to guide you on the important things to consider before you begin and provide you with advice on your best route forward.
Remember to enjoy the process, this is your app and your business!
Reach out to Media Shark to discuss your custom application needs further!
