MVP Development Cost: How Much Does It Cost to Build an MVP?

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Did you know that the MVP approach is so beneficial that over 70% of startups use it to test their app ideas?

The statistic isn’t really surprising when you consider the fact that an MVP can help businesses make accurate predictions about the functionality and usability of the product.

Here’s some more useful data. An MVP improves TTM (time-to-market) by 35%, reduces development costs by up to 60%, and increases the potential for sustainable revenue by 50%.

As beneficial as all those numbers sound, there’s one topic that comes up in MVP-related discussions: the MVP development cost.

With so much misinformation on the internet, it’s easy to be misled and make budgeting errors, leading to increased costs down the line.

To give a rough estimate, it costs somewhere between $10,000 and $100,000 to build an MVP. These numbers may go up or down depending on the complexities involved.

The sections below discuss this topic in detail. It touches on concepts like the factors that influence the cost of MVP development, typical cost ranges, a breakup of the costs, and more. Read on!

What is MVP & Why Does Cost Matter?

An MVP is an initial version of a product with just the basic features. Its objective is to get the attention of the early adopters, gather feedback, and analyze the marketability of the product idea.

Releasing a basic version of the app sets a path for the development to follow. It sheds light on what works, what doesn’t work, and how the market is reacting to the product.

Besides the advantages, the MVP development cost is one aspect that must be considered. Planning a budget contributes to the business’ financial sustainability. It allows businesses to plan ahead, eliminating the chances of overspending.

Now that you know what an MVP is and why the cost to build an MVP matters, it’s time to look at the cost ranges for MVP development.

What Are the Typical Cost Ranges for MVP Development?

The typical cost ranges for MVP development lie somewhere between $10,000 and $100,000. MVPs for enterprises can easily go above $200,000.

Note that these are approximate values, and the actual cost is fully dependent on the specifics of your project.

Simple MVPs, or those with a single function, cost less when compared to larger, more complex MVPs. The amount of research required, the resources assigned to the project, and the location play important roles in the final cost of an MVP.

Let’s discuss a few examples to better understand the typical cost ranges.

The most basic MVP with a single feature and a simple UI designed for a single platform can cost between $10,000 and $18,000.

The cost of an MVP with the core functionality, an updated UI, and additional features, like payment gateway integration, profile management, and analytics, will be in the range of $20,000 and $40,000.

Complex MVPs are the most expensive and time-consuming. They feature advanced functionalities, a fully customized design, multi-platform support, and integration with AI and third-party APIs.

As a result, the cost of building one can be anywhere from $45,000 to $150,000. With the typical cost out of the way, it’s time to answer the question, “How much does it cost to build an MVP?”

 

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How Much Does It Cost to Build an MVP?

The cost to build an MVP depends on a number of factors but usually ranges between $10,000 and $100,000. These factors normally include the complexity of the MVP, the chosen platform, the team tasked with building the MVP, the tech stack used, and the location of the development team. These factors are discussed in the next section.

That said, it helps to understand how the final cost of MVP development is split up.

The budget to develop an MVP is generally broken down into three:

1. pre-development costs
2. core development costs
3. post-development costs.

These components are discussed below.

Pre‑Development Costs

MVP pre-development costs usually lie in the range of $500 and $8,000. These costs usually include the prerequisites to build an MVP, like market research, user interviews, competitor analysis, requirements documentation, and prototyping and wireframing.

• Market Research: The team conducts a comprehensive analysis of the market to identify the potential of the product. Market research usually costs between $1,000 and $7,000 and takes approximately 4 weeks to complete.
• User Interviews: A group of end users are interviewed to understand what their pain points are and how the product can address them. Interviews of early adopters can be done in 2 weeks and cost between $500 and $4,000.
• Competitor Analysis: The team researches the competitors of the target market to discover their strengths and weaknesses. This phase takes a minimum of 2 weeks to be completed and can cost anywhere between $1,500 and $7,000.
• Requirements Documentation: A detailed document, containing the intended behavior and the functionality of the MVP, is drafted to be used in the SDLC. As this document is important for the rest of the process, it can take up to 2 weeks for it to be completed. The cost of drafting one can range from $1,000 to $4,000.
• Prototyping and Wireframing: The team creates wireframes and prototypes to explain how the MVP solves the end user’s issues. Developing detailed wireframes and prototypes usually costs around $1,000 and $8,000, depending on the complexity of the MVP. The process is usually completed within 2 weeks.

The table below summarizes the pre-development cost of an MVP.

Task	Description	Approximate Cost	Time to Complete
Market Research	Analyze the marketability of the app idea.	$1,000 – $7,000	< 4 Weeks
User Interviews	Conducting interviews to understand end-user pain points.	$500 – $4,000	< 2 Weeks
Competitor Analysis	Research competitors to identify their strengths and weaknesses.	$1,500 – $7,000	< 2 Weeks
Requirements Documentation	Prepare a document describing the intended behavior and functionality of the MVP.	$1,000 – $4,000	< 2 Weeks
Prototyping and Wireframing	Create wireframes and prototypes to demonstrate the MVP’s functionality.	$1,500 – $8,000	< 2 Weeks

Core Development Costs

Core development costs take up a major chunk of the MVP development budget and can be anything between $20,000 and upwards of $100,000. These costs usually cover front-end development, back-end development, API integrations, and testing and quality assurance.

• Front-end development: This phase of MVP development focuses on creating the user-facing side of the MVP, which includes the visual elements, the user interface, and the core user interactions. This process can take up to 7 weeks, and usually MVP costs between $4,000 and $20,000.
• Back-end development: Activities like server-side logic, database management, defining APIs, and user authentication are carried out here. The expenses for back-end development can be anywhere between $5,000 and $35,000, and the process lasts roughly 7 weeks.
• API Integration: APIs enhance the functionality of the MVP. The commonly used APIs include payment gateways, social media integrations, and cloud storage. Based on the type of API to be integrated, it can take up to 3 weeks for the process to be completed. The cost of API integration is usually between $4,000 and $20,000.
• Testing and QA: Once development is complete, the MVP is tested for bugs, security issues, and the accuracy of the core functionality. As testing is the final step before MVP launch, the process can take as much as 4 weeks. The cost of MVP testing and QA can be between $7,000 and $35,000.

Task	Description	Approximate Cost	Duration
Front-End Development	Developing the user-facing side of an MVP.	$4,000 – $20,000	< 7 Weeks
Back-End Development	Creating server-side logic & infrastructure of the MVP.	$5,000 – $35,000	< 7 Weeks
API Integration	Including APIs to improve MVP functionality.	$4,000 – $20,000	< 3 Weeks
Testing and QA	Testing the MVP for bugs and accuracy.	$7,000 – $35,000	< 4 Weeks

Post‑Development

The next step is to launch the MVP and make the preparations for a continuous feedback collection process. The post-development costs can be anything between $5,000 and $25,000. These costs usually include launch, MVP marketing, and maintenance.

• Launch: The developed MVP is launched to a single or multiple platforms. The launch process can take up to two weeks and costs roughly $1,500 to $6,000.
• Marketing and User Acquisition: The MVP is promoted using various strategies across different channels. MVP costs can start at $3,000 and go up to $16,000. Marketing is a continuous process and will go on throughout the MVP’s lifetime.
• Maintenance and Support: MVP maintenance involves releasing periodic updates and patches to fix bugs and address other issues. Based on the complexity and issues being fixed, the cost of maintenance and support of an MVP can cost between $1,000 and $6,000.

Here is a table that lists the post-development costs involved.

Task	Description	Approximate Cost
Launch	Launch the MVP on select platforms.	$1,500 – $6,000
Marketing and User Acquisition	Running marketing campaigns to attract early adopters.	$3,000 – $16,000
Maintenance and Support	Fixing bugs and periodically releasing updates.	$1,000 – $6,000

With the three main components of MVP cost done, let’s dive into the factors that affect them.

 

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What Are The 6 Factors That Influence MVP Development Costs?

Numerous factors influence the MVP development cost, including the complexity of the MVP, the chosen development team, the tech stack used, the location of developers, the development approach used, and the level of customization required.

Each of these factors is discussed below, along with the costs associated with them.

1. Complexity

The cost to build an MVP varies widely based on its complexity and usually lies in the range of $5,000 to $30,000+.

A basic MVP with a single functionality will be more affordable than a complicated MVP with an intuitive user interface and multiple third-party integrations.

Here is a detailed look at the comparison.

• Basic: These are the MVPs with minimal functionality, like a simple landing page or an app with just the core functionality. A simple MVP can take up to 2 months to be developed and can cost anywhere between $5,000 and $10,000.
• Moderate: MVPs with moderate complexity have the core functionality along with additional features like profile management and API integrations. It can cost between $12,000 and $25,000 to create one. An MVP with moderate complexity can be developed in 4 months.
• Complex: Complex MVPs have advanced functionalities and UI/UX along with AI and third-party integrations and multi-platform support. As a result, they need at least 6 months to be developed and can cost over $30,000.

Here is a table to better understand how the complexity of an MVP impacts its cost.

Complexity	Features	Approximate Cost	Development Time
Basic	1. Simple features (Usually just a landing page or a single feature) 2. Basic UI/UX	$5,000 – $10,000	< 2 Months
Moderate	1. Core functionality 2. Basic profile management 2. Better UI/UX 4. May include payment integration, registration features, and analytics	$12,000 – $25,000	< 4 Months
Complex	1. Advanced functionality 2. AI and third-party integration 3. Multiple features 4. Fully customized design 5. Multi-platform support	More than $30,000	< 6 Months

2. Development Team Structure & Platform

The development team assigned to build the MVP will have a massive impact on the cost, which lies in the range of $20 per hour to up to $200 per hour.

Business owners have numerous options when it comes to choosing development teams.

They can either create an in-house team, outsource the project to an MVP development company, or hire freelancers to get the job done.

• In-House: Opting for an in-house team for MVP development can cost anywhere between $75 and $200 per hour. Although expensive, an in-house team offers unmatched control over the MVP development process.
• MVP Development Company: The recommended option among the three. The cost of hiring an MVP development company can range between $25 and $130 per hour. Businesses may run into communication challenges and timezone issues when working with an MVP development company.
• Freelancers: Hiring a freelancer is a cost-efficient option when compared to partnering with an MVP development company or recruiting an in-house team. They’re also the riskiest among the three due to commitment issues and improper communication. Freelancers are available in the price range of $20 to up to $150 per hour.

The table below compares all the development options and lists the cost of hiring one.

Team	Pros	Cons	Approximate Cost
In-House	Total control over the development process.	Infrastructure and benefits can be expensive.	$75 – $200/Hour
MVP Development Company	Cost-efficient, scalable, and expert recommendations.	Communication and timezone challenges.	$25 – $130/Hour
Freelancers	Extremely affordable and flexible	Commitment &trust issues. Lack of proper communication.	$20 – $150/Hour

As the table suggests, hiring an in-house team is the most expensive option among the three.

Paying salaries and benefits, and purchasing the resources required to build an MVP can add up to hundreds of thousands of dollars.

Time is also an issue when hiring an in-house team, as the MVP development process will be on hold until the right talent is hired.

Another major contributor to MVP development cost is the platform.

Based on the chosen platform, the MVP development cost can be between $10,000 and $160,000.

Businesses can choose to launch their MVP either on a single platform, across multiple platforms (iOS and Android), or as a cross-platform application.

• Single Platform: MVPs created for a specific platform, like Android, iOS, web, or desktop, are called single platform MVPs. They take less than 4 months to be developed and can cost anywhere between $10,000 and $125,000. 
• Multiplatform: Multiplatform MVP involves the creation of native applications for each platform. The cost of developing a multiplatform MVP lies between $25,000 and $150,000. Multiplatform MVPs can be developed in 5 months.
• Cross-Platform: These are the MVPs that use a single codebase that can be executed on multiple platforms. They need less than 4 months to be developed and can cost between $30,000 and $160,000. They are usually created using React Native, an open-source framework that offers cross-platform support with near-native performance.

Platform	Approximate Cost	Duration
Single Platform	$10,000 – $125,000	< 4 Months
Multiplatform	$25,000 – $150,000	< 5 Months
Cross-Platform	$30,000 – $160,000	< 4 Months

3. Technology Stack

Selecting the right tech stack is critical, as it decides the flexibility and scalability of the product. The chosen tech stack has a direct impact on the cost to build an MVP, which usually ranges from $8,000 to more than $20,000. Here is a detailed look at the costs.

• Standard Tech: These are the MVPs developed using standard technologies, like HTML and PHP, and have minimal functionality and UI/UX. The cost of building an MVP using a standard tech stack can range from $8,000 to $14,000.
• Modern Tech: Modern tech stacks use frameworks like Node.js for MVP development. They can cost between $10,000 and $20,000.
• Emerging Tech: MVPs utilizing emerging tech like AI and IoT are the most expensive, considering the specific expertise required to build them. Developing an MVP with emerging tech can cost businesses over $20,000.

The table below shows how the chosen tech stack influences the final cost.

Tech Stack	Description	Approximate Cost
Standard Tech (HTML, CSS, PHP)	Well-established technologies, like LAMP, that are widely used.	$8,000 – $14,000
Modern Tech (Node.js, React)	Modern tech stacks, like MEAN and MERN, that are gaining popularity.	$10,000 – $20,000
Emerging Tech (AI, IoT)	Advanced technologies that require the expertise of specialists.	More than $20,000

4. Location and Hourly Rates of Developers

Another important factor to consider when it comes to minimum viable product cost is the location of the developers hired to do the job.

Depending on the location, businesses may have to spend anything between $10 and up to $170 per hour to build an MVP.

Developers from certain South Asian countries, like India, Eastern European countries, like Ukraine, and African countries will be affordable when compared to their North American and Australian counterparts. Here are the reasons why.

• India: Skilled developers from India can be hired at $10 – $30 per hour. These lower charges are mainly due to the lower cost of living, the larger developer pool, and the competitive job market.
• Ukraine: Businesses can hire Ukrainian developers for $25 – $50 per hour. The huge and competitive talent pool, a lower cost of living, and a focus on technical education make Ukrainian developers more affordable than their Western European counterparts.
• Poland: Poland’s competitive talent pool, low living expenses, and a strong tech industry make it easy to hire developers at hourly rates of $30 – $50 per hour.
• Brazil: Brazilian developers usually charge between $20 and $40 for MVP development services. The lower cost of living, favorable exchange rates, and increasing number of skilled developers are considered major reasons for these affordable costs.
• United States: The United States, at $100 – $200, has one of the highest rates for hiring MVP developers. The factors attributed to the high rates include a high cost of living, competitive market rates, and a pool of specialized talent.
• United Kingdom: Developers from the UK normally charge between $35 and $120 for MVP development. These charges are mainly due to the high cost of living and the specialized skills offered by many specialized developers in the UK.
• Australia: Australian developers charge between $90 and $170 for MVP development. The factors that contribute to these charges mainly include a higher cost of living and the demand for skilled developers.

Here is a table that shows the hourly rates of developers from different countries.

Countries	Approximate Cost per Hour
India	$10 – $30
Ukraine	$25 – $50
Poland	$30 – $50
Brazil	$20 – $40
United States	$100 – $200
United Kingdom	$35 – $120
Australia	$90 – $170

The values mentioned in the table above may change depending on the complexity of the MVP.

5. Development Approach

There are numerous development approaches when building an MVP.

The most common ones include the agile methodology, the traditional waterfall model, and low-code/no-code solutions.

Depending on the chosen development approach, the cost of building an MVP can lie between $2,500 and $175,000.

Each of these approaches has its own set of pros and cons. As such, the impact they have on the MVP development costs also varies.

• Agile Methodology: Thanks to its focus on flexibility and continuous improvements, agile is one of the more popular methodologies for MVP development. Developing an MVP using agile methodology would cost between $13,000 and $140,000.
• The Waterfall Model: Although a linear approach, the waterfall model is still a viable option for MVP development. Projects with well-defined requirements are ideal candidates for this methodology. The cost of developing an MVP using the waterfall model would be somewhere around $20,000 and $175,000.
• Low-Code/No-Code Solution: Low-code/no-code solutions is one of the more beneficial options in this list. It speeds up development times and offers better customization options. Building an MVP using a low-code/no-code framework would approximately cost $2,500 to $8,000.

Here is a table that describes the MVP development cost using the three approaches.

Development Approach	Description	Approximate Cost
Agile Methodology	Focuses on flexibility, continuous improvements, and collaboration. Popular frameworks include Scrum, Kanban, and Extreme Programming.	$13,000 – $140,000
The Waterfall Model	Linear approach that splits development into phases. Ideal for projects involving well-defined requirements and a low degree of change.	$20,000 – $175,000
Low-Code/No-Code Solutions	Builds applications with little to no coding. Promotes better customization, quicker development, and reduced costs.	$2,500 – $8,000

6. Customization Level

Although most MVPs have just the basic functionality, some may have additional customizations.

These customizations can either be in the form of unique interfaces, animations, or one-of-a-kind branding and can cost anywhere from $4,000 to $18,000+.

• Basic: MVPs with basic customization options cost $4,000 to $10,000 to develop. The use of pre-designed templates and minimal branding are often considered the major reasons for the low costs.
• Intermediate: MVPs with unique branding, a fully personalized UI, and slightly advanced customization requirements fall into this category. The cost of developing such MVPs usually lies between $6,000 and $15,000.
• Complex: MVPs with complex customizations cost over $18,000 to develop. The customizations made usually include advanced UI/UX, animations, graphics, and interactions.

Here is a table that shows how MVP development cost is impacted by the number of customizations involved.

Customization Level	Description	Approximate Cost
Basic	Simple MVP with pre-designed templates or standard templates with minimal branding.	$4,000 – $10,000
Intermediate	Slightly advanced MVP with unique branding, personalized UI, and interactive elements.	$6,000 – $15,000
Complex	Complex MVP with fully customized UI/UX, animations, graphics, and interactions.	More than $18,000

Now that you have learned about the different factors that influence the cost to build an MVP, let’s talk about some hidden costs you must be aware of.

What Are the Hidden Costs in MVP Development?

Hidden/unexpected costs often blindside business owners and are detrimental to the development process.

These usually include licensing and compliance fees, infrastructure and operational charges, API or third-party integration costs, and expenses related to user feedback implementation.

The sections below talk about these hidden costs in detail.

Licensing and Compliance Fees

The legal aspects of MVP development, like drafting user agreements, business entity registration, and copyright of certain elements, might lead to expenses that were overlooked.

Also, if the MVP uses cloud platforms, like AWS or GCP, their licensing fees will have to be considered.

Expenses related to adherence to industry-specific laws and compliance with regulations like GDPR and CCPA are also easy to miss.

Infrastructure and Operational Charges

Hosting, server maintenance, and email services are a few infrastructure expenses that businesses may fail to consider.

This is because the focus is often on immediate development expenses, and the potential growth of the MVP may be underestimated.

Some of the most common hidden infrastructure and operational charges include domain expenses, the cost of SSL certificates, content delivery network charges, and email service charges.

API or Third-Party Integration Costs

An MVP will go through numerous iterations before it reaches the final version.

These iterations may involve removing existing features, adding new features, or including new APIs or third-party elements.

APIs and third-party applications come with their own set of expenses, which may not be clear until the need arises.

These costs are usually in the form of licensing fees, customization requirements, and charges for using the relevant tools required for API integration.

User Feedback Iteration

The direction of the MVP is fully reliant on the feedback it receives.

Updates with minor charges require fewer resources and less time.

However, the same cannot be said for complete overhauls.

If user feedback points the application in a completely different direction than what was planned, then development cycles may take longer.

The resources required will also go up. All this leads to additional expenses that weren’t planned initially.

What Are the Best Tips to Reduce MVP Development Costs?

With the right strategy, businesses can save plenty on the MVP development budget. Here are five useful tips to reduce the MVP development cost.

Prioritize Only the Core Feature

Focus on testing just the core product idea. Save the low-risk/high-reward ideas for future iterations.

Opt for Cross-Platform Development

It’s wise to go for a cross-platform development model that uses technologies like React Native. This approach saves plenty of time, greatly reduces costs, and grants the convenience of launching the application on multiple platforms at the same time.

Use Open-Source Solutions

Open-source solutions, like React, Angular, Django, and Ruby on Rails, are free alternatives that perform just as well as their paid counterparts.

Consider a Fixed-Price Model

A fixed pricing model eliminates surprise expenses, like chargeable hour overruns. Idea for MVP projects with a well-strategized scope.

Choose an Offshore Development Company

Reputable offshore development companies from countries like India and Ukraine can build scalable MVPs at competitive prices.

How to Choose the Right MVP Development Team

Choosing the right MVP development company is vital to the success of your product idea. Factors like industry experience, technical expertise, a portfolio of successful projects, collaboration skills, and transparency should be considered before settling with one.

Here is a brief explanation of each factor for you to make a better decision.

• Industry Experience: MVP development teams with industry-specific experience are well-equipped to deal with unique challenges and regulatory issues that may arise.
• Technical Expertise: Knowledge of the latest technologies and trends and expertise in utilizing innovative tools assist in developing scalable, high-performing MVPs.
• Portfolio of Successful Projects: Successful past projects denote an MVP development company’s skill in launching functional MVPs that meet business and market demands.
• Collaboration Skills: Development teams with strong communication skills and collaborative abilities are easier to work with, as they’re better at understanding requirements and cooperating to overcome challenges.
• Transparent Pricing Model: MVP development companies with transparent pricing models are upfront about what’s included and what’s not included, removing chances of hidden/surprise charges at later stages.

Why Choose CONTUS Tech for MVP Development?

A recommended option when it comes to building a scalable MVP is to get in touch with CONTUS Tech.

Our software development expertise spans 17+ years, building high-performing MVPs for some of the biggest brands across the globe.

The experts at CONTUS Tech come with the skill and experience to create MVPs that lay the foundation for a successful product.

Our focus on quick delivery and our industry experience combined with unparalleled domain expertise make us the right choice for your MVP development journey.

Our expanding list of clients proves how effective we are in launching performance-oriented MVPs. We help businesses get their app idea in just 30 days!

It’s time to turn your exciting idea into reality! Schedule a meeting today to get started.

Conclusion

An MVP is your ticket to success. It’s only wise that you pay special attention to it.

The cost to build an MVP depends on numerous factors, like platform, complexity, development team structure and location, and chosen tech stack.

Businesses should consider all these factors before investing in MVP development.

It helps to compare the different options mentioned in this blog before making a decision. Unique ideas may require additional effort.

In such instances, it’s best to let an MVP development company take care of things. Their expertise is crucial to the success of your business and app idea.

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