HOW MUCH IS MVP APP DEVELOPMENT COST FOR A START-UP?

Many of us cannot realize our ideas in life just because of some bad mistakes we made in the beginning. According to statistics, 42% of the apps cannot succeed because they didn’t meet the market requirements. To prevent these scenarios, it is best to start with MVP app development for startups.

When creating an application for your startup, the best way is to create an MVP application to test its feasibility and scope. There are numerous other reasons and benefits for building a minimum workable product highlighted in this article.

Most importantly, we take a comprehensive look at the MVP development costs and schedule guidelines to create a successful MVP. So, without further ado, let’s get started!

Key Summary

This article from InApps Technology, authored by Phu Nguyen, explores the importance of Minimum Viable Product (MVP) development for startups, addressing the 42% failure rate of apps due to unmet market needs (CB Insights). It details why MVPs are critical, factors affecting costs, and development timelines to ensure successful launches. Key points include:

• Why Build an MVP?: Pandemic Growth: The pandemic boosted digital adoption (e.g., Amazon’s $570B market cap gain), making MVPs ideal for testing ideas like contactless delivery or gaming apps. Market Potential: The global mobile app market is projected to grow at a 11.5% CAGR (2020–2027), with high demand in eCommerce, Education, Gaming, Healthcare, and AI. Long-Term Profit: Cost Savings: MVPs prevent financial failure (29% of startups fail due to running out of money, per CB Insights). User-Centric: Enables feedback-driven, user-focused development. Market Fit: Validates market demand, addressing the 34% failure rate due to poor market interaction.
• Pandemic Growth: The pandemic boosted digital adoption (e.g., Amazon’s $570B market cap gain), making MVPs ideal for testing ideas like contactless delivery or gaming apps.
• Market Potential: The global mobile app market is projected to grow at a 11.5% CAGR (2020–2027), with high demand in eCommerce, Education, Gaming, Healthcare, and AI.
• Long-Term Profit: Cost Savings: MVPs prevent financial failure (29% of startups fail due to running out of money, per CB Insights). User-Centric: Enables feedback-driven, user-focused development. Market Fit: Validates market demand, addressing the 34% failure rate due to poor market interaction.
• Cost Savings: MVPs prevent financial failure (29% of startups fail due to running out of money, per CB Insights).
• User-Centric: Enables feedback-driven, user-focused development.
• Market Fit: Validates market demand, addressing the 34% failure rate due to poor market interaction.
• MVP Development Costs: Range: Typically $15,000–$50,000 for average projects, with UX/UI prototypes costing up to $10,000. Complex apps (e.g., SaaS, food delivery) may exceed $100,000. Factors Influencing Costs: Developer Model: Freelancers: ~$12,000/month (e.g., $5,000 full-stack developer, $4,000 designer, $2,500 tester). Pros: Cost-effective. Cons: Lack of commitment, requires self-management. In-House Team: ~$21,000/month (e.g., $8,000 full-stack developer, $3,500 designer, $3,000 tester, $6,500 project manager). Pros: Better communication. Cons: Higher costs (sick leave, hiring expenses). Outsourcing: Saves up to 50% compared to in-house, with reputable agencies found via Clutch or GoodFirms. Requires thorough vetting for reliability. Idea Roadmap: Idea Validation: Tests market demand, reducing wasteful spending on unviable ideas. Discovery Phase: Analyzes competitors, market needs, target audience, and business goals to manage budgets effectively. App Features Complexity: Simple MVP: Limited features (3–4 screens, login, messaging), ~$10,000, 4–5 months (e.g., quiz game app). Medium Complexity: Includes data storage, payment portals, geolocation, ~$10,000–$50,000, 6–9 months. Highly Complex: Features video calls, data sync, large databases (e.g., car booking apps), ~$100,000+, ~1 year. App Design: Hybrid Apps: Cross-platform, cheaper, slightly slower, ~$1,500–$7,500. Native Apps: Platform-specific, faster, more expensive due to unique code per platform. UX/UI: Critical for user experience, impacting cost based on design complexity and deadlines.
• Range: Typically $15,000–$50,000 for average projects, with UX/UI prototypes costing up to $10,000. Complex apps (e.g., SaaS, food delivery) may exceed $100,000.
• Factors Influencing Costs: Developer Model: Freelancers: ~$12,000/month (e.g., $5,000 full-stack developer, $4,000 designer, $2,500 tester). Pros: Cost-effective. Cons: Lack of commitment, requires self-management. In-House Team: ~$21,000/month (e.g., $8,000 full-stack developer, $3,500 designer, $3,000 tester, $6,500 project manager). Pros: Better communication. Cons: Higher costs (sick leave, hiring expenses). Outsourcing: Saves up to 50% compared to in-house, with reputable agencies found via Clutch or GoodFirms. Requires thorough vetting for reliability. Idea Roadmap: Idea Validation: Tests market demand, reducing wasteful spending on unviable ideas. Discovery Phase: Analyzes competitors, market needs, target audience, and business goals to manage budgets effectively. App Features Complexity: Simple MVP: Limited features (3–4 screens, login, messaging), ~$10,000, 4–5 months (e.g., quiz game app). Medium Complexity: Includes data storage, payment portals, geolocation, ~$10,000–$50,000, 6–9 months. Highly Complex: Features video calls, data sync, large databases (e.g., car booking apps), ~$100,000+, ~1 year. App Design: Hybrid Apps: Cross-platform, cheaper, slightly slower, ~$1,500–$7,500. Native Apps: Platform-specific, faster, more expensive due to unique code per platform. UX/UI: Critical for user experience, impacting cost based on design complexity and deadlines.
• Developer Model: Freelancers: ~$12,000/month (e.g., $5,000 full-stack developer, $4,000 designer, $2,500 tester). Pros: Cost-effective. Cons: Lack of commitment, requires self-management. In-House Team: ~$21,000/month (e.g., $8,000 full-stack developer, $3,500 designer, $3,000 tester, $6,500 project manager). Pros: Better communication. Cons: Higher costs (sick leave, hiring expenses). Outsourcing: Saves up to 50% compared to in-house, with reputable agencies found via Clutch or GoodFirms. Requires thorough vetting for reliability.
• Freelancers: ~$12,000/month (e.g., $5,000 full-stack developer, $4,000 designer, $2,500 tester). Pros: Cost-effective. Cons: Lack of commitment, requires self-management.
• In-House Team: ~$21,000/month (e.g., $8,000 full-stack developer, $3,500 designer, $3,000 tester, $6,500 project manager). Pros: Better communication. Cons: Higher costs (sick leave, hiring expenses).
• Outsourcing: Saves up to 50% compared to in-house, with reputable agencies found via Clutch or GoodFirms. Requires thorough vetting for reliability.
• Idea Roadmap: Idea Validation: Tests market demand, reducing wasteful spending on unviable ideas. Discovery Phase: Analyzes competitors, market needs, target audience, and business goals to manage budgets effectively.
• Idea Validation: Tests market demand, reducing wasteful spending on unviable ideas.
• Discovery Phase: Analyzes competitors, market needs, target audience, and business goals to manage budgets effectively.
• App Features Complexity: Simple MVP: Limited features (3–4 screens, login, messaging), ~$10,000, 4–5 months (e.g., quiz game app). Medium Complexity: Includes data storage, payment portals, geolocation, ~$10,000–$50,000, 6–9 months. Highly Complex: Features video calls, data sync, large databases (e.g., car booking apps), ~$100,000+, ~1 year.
• Simple MVP: Limited features (3–4 screens, login, messaging), ~$10,000, 4–5 months (e.g., quiz game app).
• Medium Complexity: Includes data storage, payment portals, geolocation, ~$10,000–$50,000, 6–9 months.
• Highly Complex: Features video calls, data sync, large databases (e.g., car booking apps), ~$100,000+, ~1 year.
• App Design: Hybrid Apps: Cross-platform, cheaper, slightly slower, ~$1,500–$7,500. Native Apps: Platform-specific, faster, more expensive due to unique code per platform. UX/UI: Critical for user experience, impacting cost based on design complexity and deadlines.
• Hybrid Apps: Cross-platform, cheaper, slightly slower, ~$1,500–$7,500.
• Native Apps: Platform-specific, faster, more expensive due to unique code per platform.
• UX/UI: Critical for user experience, impacting cost based on design complexity and deadlines.
• MVP Development Timeline: Typical Duration: 1–2 months for basic MVPs, with full development cycles (analysis to maintenance) taking 6–12 months. Iterative Approach: 1–2 week iterations for updates and testing ensure rapid adaptation and market validation. Importance: Speed is critical to stay ahead of competitors and validate ideas quickly.
• Typical Duration: 1–2 months for basic MVPs, with full development cycles (analysis to maintenance) taking 6–12 months.
• Iterative Approach: 1–2 week iterations for updates and testing ensure rapid adaptation and market validation.
• Importance: Speed is critical to stay ahead of competitors and validate ideas quickly.
• InApps Insight: InApps, ranked #1 in Vietnam for mobile app development, conducts in-depth market and customer research to deliver MVPs that attract funding and scale effectively. Aligns with Microsoft’s Azure DevOps, Power Platform, and Power Fx for rapid, low-code prototyping, and integrates Vue.js, GraphQL APIs (e.g., Apollo), or Azure Durable Functions for cost-efficient, user-centric solutions. Offers free appraisals to help startups realize ideas, targeting Millennial-driven markets with agile, market-validated apps.
• InApps, ranked #1 in Vietnam for mobile app development, conducts in-depth market and customer research to deliver MVPs that attract funding and scale effectively.
• Aligns with Microsoft’s Azure DevOps, Power Platform, and Power Fx for rapid, low-code prototyping, and integrates Vue.js, GraphQL APIs (e.g., Apollo), or Azure Durable Functions for cost-efficient, user-centric solutions.
• Offers free appraisals to help startups realize ideas, targeting Millennial-driven markets with agile, market-validated apps.

Why do you need to build an MVP?

Before knowing the MVP development cost, explain why an MVP (Minimum Viable Product) is necessary. These factors indicate the need to develop a Minimum Viable Product while starting your startup.

Reason | Description

Pandemic period | Companies worldwide are witnessing massive growth during the pandemic. For example, Amazon’s market capitalization has gained around $570 billion so far. The concept of contactless delivery has also benefited several food delivery businesses. This is a clear sign that if you have an application idea, it is best to test it out now. As some of the countries are still employing lockdown restrictions, people have more time to spare. It will be best to go for a time killer application like a game!

Market Growth | The global mobile application market is expected to grow at a CAGR of 11.5% from 2020 to 2027. Moreover, applications like eCommerce, Education, Gaming, Healthcare, and AI will show high growth in the future. Hence, it is better to realize an idea and build an MVP for this type of application.

Long-term Profit | This is the most important factor in creating MVPs for startups. Here are a few things that make an MVP profitable: The CBInsights report suggests that 29% of startups fail because they run out of money. This is a benefit of MVP development. You can get an idea of ​​the scope of the application and save money that you may not have if you publish a full-fledged application. User-centric development: Build an MVP application and learn about user expectations and feedback. It will help you build a user-centric app. Adapting to the product market: The best thing about an MVP is that you get to know the market interaction, whereas 34% of the startups fail.

Maybe you want to read: Top 5 mistakes make you fail in MVP development

How much does MVP App Development cost?

The cost of MVP app development depends on many factors. Many founders assume that MVP app costs depend on the type of technology used, but that’s not true.

How much for MVP mobile app?

When it comes to practical numbers, the price of building MVP for startups varies based on several factors such as team/developers model, location, hourly rate, level of experience.

Generally, the budget for an MVP comprises the cost of design, coding, project management, and testing. For example, making a UX / UI prototype, validating an idea, and making a pitching app costs up to $ 10,000. The average price to build an app is $ 15,000 to $ 50,000, depending on the project’s complexity.

Now, let’s dig deep into at factors.

Developers salary

If you want to create a fantastic product, it is crucial to choose the MVP app developers wisely. Here are some options you have:

Freelancers

You can use many platforms out there to help you find freelance developers that suit your needs. Some platforms to start with are freelancer.com, upwork.com, fiverr.com.

The problem that can happen with hiring freelance developers is their lack of commitment to the project. They can quickly go away when something goes wrong. It also means that you have to become a project manager and that all coordination and communication are your responsibility.

Freelancer is the choice for developing MVP for startup app

It is pretty challenging to deal with this problem. Still, if you want to hire freelance developers, my advice is to involve the locals. For a typical project, you should hire a full-time team. Let’s look at freelance app development cost.

• A full-stack app developer cost you around $5,000 per month. This specialist is needed throughout the project development.
• A designer costs you about $4,000 per month. You need this specialist at the beginning of the project.
• You also need a tester throughout the process. This specialist will cost you about $ 2,500 per month.

Hence, it takes you around $12,000 per month when hiring freelancers.

In-house team

Sometimes people prefer to choosing in-house software development because of better transparent relations and clear communication.

In-house development team fully involved in the project. The quality is still your responsibility. Your developers are more motivated by the success of the application and company, though.

The main disadvantage of this option is a significantly higher cost. It could be an issue if you have a limited budget. When you hire full-time developers, you have to pay for sick leave costs and hiring costs, and many other expenses.

• A full-stack app developer cost you around $8,000 per month.
• A designer costs you about $3,500 per month.
• A tester costs you about $3,000 per month.
• And a project manager costs you around $6,500 per month.

MVP development by an in-house team comes with a price of approximately $21,000.

Outsourcing development

Software outsourcing is nowadays a popular option for many startups. It’s like hiring a local agency, but you can save up to 50% of the cost.

Make sure you do a thorough research of potential agencies before hiring them. You can do this by referring to the reviews, company websites, and recent case studies or past clients.

Clutch and GoodFirms are great platforms for finding a reputable outsourcing company. These websites display ratings and reviews from previous customers to help you choose a productive and trustworthy offshore development center.

How much does MVP development cost with an outsourcing agency?

Learn more: Which country is the best to hire a software outsourcing company?

Idea roadmap

This is the backbone of the entire application development process. Below are some of the critical factors that affect the total cost of MVP development.

Factor | Description

Idea Validation | The concept of idea validation involves techniques to find out if the market needs your app and is willing to pay for it. MVP development helps you validate an idea for your startup. In addition, by implementing the validation process of the idea, you can reduce the cost of the app development process. If your app idea shows no potential anyway, avoid wasting a lot of money.

Discovery Phase | The discovery phase helps you estimate the cost of an app or an MVP development. During this phase, you can learn about: Competitors, market needs, target audience, business goals, and development costs. When determining these aspects, you can plan well in case of investment. Hence, you can easily manage your entire project budget.

App Features Complexity

This technical part of the application also plays a vital role in estimating the cost of creating an MVP. Essentially, the technical part comprises the development and design of the application. It examines the functions contained in the application and their complexity. Complexity applications can be divided into three categories:

Complexity | Description

Simple MVP | The simplest app has limited features like 3 or 4 screens, simple functions, login screen, messages, etc. Since these applications are less complex, they require less development time and therefore less money. This app costs you about $10,000, with a development time of around 4-5 months—for example, a simple quiz game app.

Medium Complexity Products | These products take a little longer than simple MVP (around 6-9 months to develop). Plus, the cost to build MVP software is also higher, usually $10k-50k. These apps contain additional features like data storage, payment portals, in-app purchases, geolocation, location tracking, etc.

Highly Complex Applications | The last category is the application with master-level complexity. Most of these applications are car booking applications, food delivery applications, SAAS platforms, etc. The complexity of these applications is very high, and they include time-consuming functions such as video calls, location tracking, data sync, etc. The databases are significant as well. These apps cost you over $100,000 and take around a year to develop.

App Design

Another essential aspect that affects the cost of creating an MVP is the web or mobile application design. Since the application can have different types of user interfaces (UI), the price of the application design can vary depending on the operating system and what you want to include in the application. UX is also a crucial factor in deciding the cost of an MVP.

Applications can be divided into two types:

• Hybrid Applications: 

These applications have almost the same design on cross-platforms (Android and iOS) as there is one code for all. The main aspect of hybrid apps is that they have all the functionality of native apps and are inexpensive. One disadvantage of hybrid apps is that they can be a little slow to run.

• Native Applications:

Unlike hybrid applications, native apps have faster performance and are easy to maintain. The design of a native application is not the same on all platforms. Each application has its unique code for different platforms. This increases MVP development costs.

The total cost of an MVP design will be between $1,500 to $7,500 based on the location of the design, the team model, the complexity of the design, and the deadline.

Minimum Viable Product Development Timeline (MVP timeline)

MVP timeline is proportional to budget, and budget is directly proportional to the number of features to be developed. But you should keep in mind that time is not on your side.

Hence, detailed requirements and project milestones help you validate ideas quickly because the faster you can adapt to changes, the more likely you will be successful and beat your competitors.

How much time to develop an MVP?

MVP development typically takes 1-2 months. MVP timeline covers the complete development cycle from business analysis to product maintenance. The whole product development takes you 6-12 months.

Try to keep the time between updates as short as possible. Developers typically have 1-2 weeks iterations which is enough time to update and test the new features to launch an MVP in a good way.

A trusted partner to outsource MVP app development

InApps team focuses on early-stage MVP development for startups. Our goal is to develop successful products that enable founders to raise funds to grow rapidly in the target market. And then taking these products on a large scale with a strong market presence.

To this end, we conduct in-depth business research that includes an overview of the market, competitive landscape, and customer research.

If you are interested in developing valuable products that will significantly benefit your current and potential customers, we offer a free appraisal and advice on MVP development.

WHO ARE WE?

We are InApps, a top IT leading company in 2021, who always find the best solutions to“Realize your ideas” and always be a reliable long-term companion.

There are many software companies in Vietnam offering offshore software development services, and InApps Technology is proud to rank:

• 1st for Top Mobile App Development Companies in Vietnam
• 4th for Top Web Development Companies in Vietnam
• 89th for Top 100 Global Software Development Companies

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