Tuesday, October 6th 2020
  • How much does it cost to build an app?

    “How much does it cost to build a house?” As you know, the answer depends on many factors including the type of the house, size, location, operational setup and construction company rates. Same applies for building mobile apps.


To start with, consider that the app you envision might be a digital service, as we explained in the blog post: “I need an app! Sorry, I mean a digital service.”

Then, the following factors will decide the cost for design and development:

  • Type of App/Service: Communication, Social, Productivity, Health app etc.

  • Interaction & Design: complexity of user flows, standard or custom graphical elements, animations and graphical effects etc.

  • Feature complexity: video/audio streaming, communication via Bluetooth BLE, IoT communication, external system integrations, use of AI/Machine Learning.

  • Seniority of designers and developers

  • Vendor rate

  • Number of target platforms (iOS, Android, Web)

According to recent surveys, the average price for app development is 1,5 MSEK (150 kEUR).

To give you a feeling for Your need, we divide apps into 3 categories: Simple, Median and Complex. We assume development for both iOS and Android i.e. 2 apps. And we assume that no UX/UI design is available at project start.

Simple App

Cost estimate: 0.5 MSEK
A Simple mobile app – is a tool for users to consume content. It usually includes login logic, user profile, notifications, dynamic content such as news feed, and static content like text and images.
Example: Basic News apps.

Median App

Cost estimate: 1+ MSEK
A Median app includes features for user engagement and app monetization. Along with Simple app features, the apps in this category might include social media integration, payment integration, audio/video streaming. Also, mobile device capabilities such as camera, GPS, and sensors might be used.
Example: Travel apps including image/video sharing.

Complex App

Cost estimate: 3+ MSEK
Apps in this category are integrated with advanced technology. The user features are often laced with complex data logic, communication with external devices via Bluetooth BLE, integrations to external services and systems, use of AI or user touchpoints such as chatbots.
Example: Health app powered by AI, IoT apps.

Obviously, development of apps and services cost money. That is why the choice of partner is extremely important. In our next blog post we will explain Avico’s approach to secure cost-efficiency for your project.