Creating a Minimum Viable Product in this age remains one of the most reliable ways to gauge the popularity of an app for its intended user base. However, such a product might require proper budget management; otherwise, the MVP could end up costing more than the planned budget. In this article, we’ll cover the average cost of MVP development and the additional expenses and factors that may affect it.

MVP: An Introduction

Before we touch on the cost breakdowns, let’s get to know what an MVP is first. In simple terms, an MVP or Minimum Viable Product is usually an app or a product that has “good enough” or sufficient features to be utilized by the intended target user base. The idea here is that the MVP is a way to gauge whether the product is trendy or not. If the former is met, the MVP could then undergo further tweaks by the MVP app development company to satisfy the customer’s criteria.

MVP Development Cost Breakdown

Now that we’re oriented on what an MVP or Minimum Viable Product is, let’s cover the Development Cost Breakdown. Knowing the average MVP cost breakdown will help you properly allocate resources to develop one for your company. These are divided into different subcategories.

What are the Pre-Development Costs?

The first subcategory of MVP cost we’ll cover is the Pre-Development Costs. These expenses for MVP app development consist of forming the framework of the Minimum Viable Product, and the costs that you might incur could be between a couple of thousand dollars ($2000) up to the higher 20,000s or even $30,000. The costs vary depending on how complicated your MVP is. Here are some of the expenses that count as pre-development costs:

• Market Research ($1,000 to possibly $10,000) - The first component that forms the MVP cost is Market Research. Now, market research is all about discovering what the audience wants in a product. It's to help understand who your target audience is for your MVP. There is no fixed period for this phase, as you’ll need to carry out questionnaires, surveys, and the like to have a better picture of what your buyers want.

• Prototyping your MVP ($500 at lowest, $5,000+ at highest) - The second element that forms the pre-development costs is forming the prototype of your MVP. This phase involves the formation of your MVP’s initial form from features and the like - the costs and time frame also vary as the more complex your MVP is, the more time-consuming and more costly it gets.

• Product Design ($1,000 at lowest, possibly more than $15,000 at highest) - The last element that comprises the MVP cost in the pre-development phase is the product design. You will need to invest in resources to ensure that the initial UX/UI of your MVP is appealing to use and also easy on the eyes, based on the feedback of your target audience from the Market Research phase. Again, this step will take you a few weeks to maybe a month or two, since there will be reiterations and revisions along the way.

Main Development Costs

With the pre-development costs already covered, let’s move to the main event itself - the central or main development costs. This consists of expenses that are essential in completing your Minimum Viable Product and help it attain a usable state. Here are the main development costs that you need to be aware of:

1. Front-end Developments (Between $5,000 to $25,000+)

The main MVP development cost we’ll cover is Front-End Development. The intent of front-end development is to ensure that the user interface is user-friendly across different devices - whether by mobile, laptop, or desktop, for example.

2. Back-end Developments (Between $5,000 to $35,000+)

The next main MVP development cost is the Back-End Development, which deals with the server-side logic and data processing side for your app. This expense includes programming within the app, forming the API, and, of course, integrating the database into the MVP itself.

3. Setting up the Database (Between $1,000 to $8,000+)

The next MVP cost we’ll cover to ensure your app’s functionality is the Database for your MVP. Setting up the database ensures that your app is capable of storing data properly, but also optimizes itself depending on how you scale your app. This ensures the retention of each user’s data inside the app.

4. Integration of Third-Party Apps and Services (Between $1,000 to $15,000+)

Many MVPs nowadays are very reliant on third-party apps and services such as analytics, payment platforms, and the like. Adding these vital services will increase the MVP cost, but in exchange, will heighten the user experience, meaning that your apps have a shot at becoming a favorite among your user base. 

Keep in mind that the cost of integrating third-party platforms will be variable, dependent on how complex your MVP is and the third-party apps themselves.

5. Quality Assurance Tests (Between $2,000 to $15,000+)

Quality assurance tests are another MVP cost that you need to cover because ensuring that your app is bug-free is a must. That’s because you will run tests on the features present on your app to see whether it's working as intended, or if there are components that require a tweak or two. Keep in mind that this phase might last depending on the number of bugs and reiterations conducted to ensure the app is mostly or absolutely bug-free.

Post-Development Costs

Once your MVP is fully operational, the expenses don't end there. You will still need to cover post-MVP development costs to ensure that your app will gain traction and presence, and at the same time, ensure its longevity in service. Here are some of the Post-Development expenditures that you need to be aware of.

• App Launch or Deployment ($1,000 to $4,000+) - MVP cost related to app launch or deployment tends to be associated with hosting setups and the registration of the app’s online domain, but also submitting the app’s information to online app stores and marketplaces. Conducting the launch or deployment of your app requires careful planning to ensure the best launch results.

• Initial Acquisition of Users ($2,000 to $15,000+) - The next MVP cost post-development is the acquisition of a starting user base, which relies on the usage of Marketing Campaigns and creation of content to catch their attention.

• App Maintenance and Technical Support ($500 to $4,000 or $5,000) - To ensure that your app or MVP will run smoothly post-launch, you will need to shoulder expenses for app maintenance and technical support. This is to immediately handle bugs present in the app post-launch and to allow your company to patch up post-launch issues.

Outsourcing MVP Development

Sometimes, having an in-house team might not be the best option for companies, especially for those who are starting out, yet they want to launch a Minimum Viable Product. Thus, you’ll need to get all the help you can get to ensure the best results, but also the ideal MVP cost that won’t exceed the budget plan.

Here are some options you can consider when outsourcing MVP Developers:

Development Agencies

One of your options to consider for outsourcing MVP development is to look for agencies that specialize in forming Minimum Viable Products. The reason why agencies tend to be the best route to take is that they already house the talent that you are looking for, ranging from developers, project managers and the like. Do keep in mind that your MVP cost will be higher if you go this route, but it is nowhere near as high as having an in-house team, which will cost you more.

Carefully hiring specialized freelancers for MVP projects

This route is more difficult to pull off, but more rewarding if you manage to play your card correctly. However, this is a better-suited option for companies or startups that are new to MVPs or are running on a very lean budget.

You will have to manage each individual freelancer, ensuring that they are doing their tasks properly, and you will need heavier Quality Control to ensure that your MVP will come out as you wanted it to be. On top of that, you’ll need to interview your freelance talent to ensure that you are getting the most out of them for their value.

For a baseline, here is the range of hourly rates for each key position that you will need to ensure your Minimum Viable Product is functional. After all, knowing the hourly rates helps you gauge the idea of reasonable pay to keep your freelancers motivated for your project:

• Junior Developers ($20-40 per hour)

• Senior Developer ($50-100 per hour)

• UI or UX Designers ($30-60 per hour)

• Project Managers ($40-80 per hour)

Major Factors Affecting MVP Costs

Now that we’ve covered the MVP cost breakdowns, let’s take a look at the factors that can affect the overall MVP development expenses. Here are some factors that could increase or decrease your overall expenditures:

To Outsource or not to Outsource?

The first factor that determines the overall MVP cost is whether you’re employing the help of an in-house team or outsourcing talent from another agency or from freelancers. In-house teams tend to demand higher wages, which is more suited to already thriving companies. Whereas if you’re still new to the MVP scene, you are better off outsourcing talent.

Keep it Simple or make it Complex?

The more feature-laden your MVP is, the more likely it is to net a bigger MVP cost at the end. Simple MVPs will just use what’s essential to keep it functioning, whereas the more nuanced the MVP is, it will require the use of additional plugins and third-party platforms to make it functional, aside from the essentials.

Costs based on Location

Costs based on the location of team members or outsourced talent also play a huge role in either increasing or decreasing your end MVP cost. The factors that tend to play into location-based cost increases are the skill levels of the talent, the economic situation in the region where the talent is based, and labor expenses.

The MVP’s Platform

The intended platform for your MVP also affects the final MVP cost since it will define how readily accessible your app is, how it performs, and how user-friendly it is to the target audience. There are three platform types for you to be aware of, if you’re new to the MVP-making scene, alongside their average final costs in total:

• Web Applications - The cheapest option, as they range from $10,000 to $50,000 on average in terms of final MVP cost. This involves the creation of web apps via CSS, HTML, and the like to form platforms that are readily accessible via browsers. These apps tend to be easier to create, and the full project duration could take a few months before it goes fully online.

• Mobile Applications - Unlike the previous option, mobile apps can have a final cost of $20,000 to more than $100,000 since mobile apps tend to be more flexible. That’s because you are going to cater to both Android and iOS users, more so if your company decides to add cross-platform compatibility.

• Desktop Applications - The final MVP cost for desktop apps could range from $50,000 to more than $150,000, making it the costliest of the three platform app types, and the main reason is that they require keen attention to detail and repeat tests to ensure that they’ll function on Desktop systems such as Linux, Windows, and Mac.

Conclusion regarding MVPs

To sum up what we’ve covered - making an MVP, especially if you’re new to the scene, is no easy feat. You’ll need to factor in your game plan for the app and the expenses you’ll need to shoulder to ensure that your Minimum Viable Product is functional and meets the user base’s expectations. You can get away with a good MVP on a lean budget, provided that your app is simple enough for use; but the more nuanced your MVP is, you’ll require to invest more resources to ensure its success.