How much does it cost to develop an app? Whether you’re running a well-established business or taking the first steps into entrepreneurship, this question is on the minds of everyone starting a software development project. However, arriving at a precise answer isn’t as straightforward as you might think.
Asking software app developers how much it costs to develop an app is like asking a carpenter how much it costs to build a house. The answer depends on things like how big the house is, what materials you’re using, and the ground you’re building it on.
Similarly, software development costs fluctuate widely based on an app’s features and functionality.
At Vertical Motion, we take a close look at what your requirements are before we give you an estimate – that way, you’ll have a more precise estimate that allows you to make an informed decision. Part of that process might involve working with you on a Statement of Work that outlines your project in detail.
While it’s challenging to give a precise estimate without the details, we understand that many clients just want a ballpark figure. Below, we cover four tiers of apps ranked by complexity, their price range, and the general development work that goes into building each one.
Tier 01 | Basic Informational Apps
$5,000 — $10,000 CAD
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- Company product or service catalogues
- Product user manuals
- Event programs
- Educational or legal reference guides
- Calculators or converters
Tier 02 | Personal Data Storage Apps
$20,000 — $50,000 CAD
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- Address and contact books
- To-do lists
- Notepads and journals
- File storage solutions
- Receipt collectors
- Photo galleries
- Private vaults
Tier 03 | Third-Party Software Integrated Apps
$75,000 — $150,000+ CAD
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Tier Three apps are unique in that they leverage external third-party software to expand app functionality. Tier Three apps use APIs (Application Programming Interfaces) to access data, information, and resources from leading software programs.
Some common examples are digital payment processing, social media, inventory management, mapping services, weather forecasting, and customer relationship management (CRM) software.
The complexity and cost of Tier Three apps increase with each third-party system connected. Each new API requires additional work to construct, interconnect, test and maintain the components of the app that it connects with.
Examples of Tier Three apps include:
- E-commerce platforms
- Travel booking services
- Health & fitness trackers
- Sports & recreation tools
Are you in this tier? Let’s talk about it! Contact us here.
Tier 04 | Multi-User Collaboration & Sharing Apps
$100,000 — $500,000++ CAD
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Tier Four apps are built to streamline communication, facilitate data and information sharing, and promote collaboration amongst various user groups. Apps in this tier typically incorporate three fundamental components:
A robust communication infrastructure
This allows users to interact with one another in real time through messages, multimedia sharing, voice and video calls, and community-driven forums.
Geolocation services
Beyond basic location tracking, Tier Four apps commonly integrate advanced mapping features, route optimization, and location-based suggestions to provide users with relevant information or services based on their geographical data.
Push notifications
Tier Four apps use push notifications to deliver personalized updates, reminders, and alerts tailored to individual preferences and behaviours.
Developing these feature-rich Tier Four apps involves sophisticated technical considerations. These include compatibility across multiple devices, effortless scaling to accommodate a growing user base, powerful data security measures, privacy protocols, and comprehensive software testing to ensure an optimal user experience (UX).
Examples of Tier Four apps include:
- Dating platforms
- Ride-sharing services
- Social networking platforms
- Food delivery services
- Online marketplaces or Buy/Sell platforms
Are you in this tier? Let’s talk about it! Contact us here.
One Final Thought | Don't Overlook Ongoing App Maintenance Expenses
Keep in mind that the price ranges for each app tier only include the immediate costs of software development. A common misconception is that apps are finished as soon as they’re developed – when in reality, they require ongoing maintenance to stay functional.
Learn 5 Things For Maintaining Your Mobile App
Generally speaking, apps need to be updated a minimum of once every six months to prevent bugs and maintain optimal performance. There are a few reasons for this:
Continuously improving user experience
Ideally, the app you release should be a minimum viable product, or MVP. That means getting the most basic version of your app on the market as quickly as possible, then developing additional features based on user testing and feedback.
That way, you’ll have a much better chance of developing an app that appeals to your customer base, rather than spending time up front on features they don’t end up using.
Avoiding technical debt
App maintenance isn’t just about improving user experience; it’s also about preventing technical debt that can increase development costs down the line.
What is technical debt? It’s a type of “repair debt” that can accumulate when apps aren’t updated regularly. Since much of the functionality of your app depends on its compatibility with app stores, devices, APIs, browsers, and more, it may need to be updated when their requirements change.
Over time, a lack of maintenance can lead to cascading debt that creates much bigger problems. Just like a house that’s never repaired can develop mould, leaks, and foundation issues, apps left untouched can develop more serious issues that require significant development effort to fix.
At Vertical Motion, we recommend you allocate approximately 10-20% of the initial development costs for ongoing maintenance purposes.
It’s normal to want a precise estimate for app development, but we strongly advise against engaging with software developers who offer you a fixed quote before carefully defining your app’s specifications and project scope.
Hopefully, this article helps shed light on the different tiers and associated expenses of app development, and empowers you to make an informed choice about your project’s success.
For more insight into app development across the four tiers and a glimpse into successful agile software development, check out our recent projects that showcase our work with some of North America’s most innovative and industry-leading organizations.
Ready to take the next step in your app development journey? Contact us today to get started navigating from idea to execution and beyond!
Vertical Motion is a trusted Canadian software development and entrepreneur assistance company that has supported the global efforts of startups, non-profits, B2B, and B2C businesses since 2006. With headquarters in Calgary and Kelowna, and team members coast to coast, Vertical Motion is recognized as an award-winning leader in the technology industry. Our team of executive advisors, project managers, software developers, business analysts, marketing specialists, and graphic designers have extensive experience in several industries including — Energy, Finance, Blockchain, Real Estate, Health Care, Clean Technology, Clothing & Apparel, Sports & Recreation, Software as a Service (SaaS), and Augmented & Virtual Reality (AR/VR).
Come chat with us and let us take you “From Idea to Execution and Beyond!” 🚀