The document discusses the costs associated with building a minimum viable product (MVP) for a mobile app. It outlines several key factors that influence MVP development costs, including the type of app, design complexity, development approach (outsourcing vs. in-house), technical stack, and time required. On average, an MVP built by an outsourced firm may cost between $5,000-$50,000, while an in-house team approach could cost around $25,000 depending on staffing levels and durations. Careful planning that considers user needs and technical requirements is advised to optimize MVP development costs.

1. How Much Does
It Cost to Build
an MVP? (MVP
Development
Cost in 2021)
www.bacancytechnology.com

2. Table of Index
1. Introduction
2. Why Do You Need to Plan the
MVP App Cost?
3. Factors Affecting the MVP
Development Cost in 2021
4. How Much Does It Cost To Build
An MVP?
5. MVP Post-Launch Costs
6. Wrapping Up

3. Introduction

4. Have an app idea but not sure how to
get started? Worried, thinking investors
wouldn’t pay heed to your idea because
it’s all an idea with no actual
implementation? In case you just
nodded your head, now is the time to
step ahead, take that plunge, and get
started with your MVP.

5. But wait, what do you mean by an MVP?
As far as the acronym goes, it stands for
Minimum Viable Product. Following the
same notion, by definition, MVP or
mobile app prototype is a minimalistic
product with as many features as
needed to attract buyers or the end-
users. That is to say, MVP mobile app
development has all the necessary
features that one needs to pack in a
product/app before the final release.
Often, it happens that startup owners
fail to receive funding or gain traction in
the market. By the time they
restructure their app to fit the
customer’s expectations, either it’s too
late, or they have spent a lot more than
decided.

6. In order to prevent such a situation,
leading startup enthusiasts invest their
time and money in something that we
must define as MVP. The primary
purpose of designing a minimum viable
product is to launch the same, have
customers try and test the product,
receive feedback, modify the same, and
start working on the actual model only
after they are convinced.

7. With that being said, one reason why
entrepreneurs hesitate to build MVP
app is the cost associated with the same.
It is essential to strike a balance and act
wisely. This is where you must know
how to build an MVP and the cost to
develop a MVP. You need not scour the
web to find an answer for that. This
blogpost is designed to help you
understand the factors that influence
the MVP development cost in 2021 and
what the figures would ideally look like
when it comes to the cost of building an
app.
Without further ado, let’s get started on
how much does a mobile app MVP cost.

8. Why do you
need to plan
the MVP app
cost?

9. Before we move ahead to see what are
the various factors that cast their
impact on the MVP app cost, let’s
understand why you should plan the
same in advance.
Even though the cost of building MVP is
less as compared to the actual product
development cost, it does incur
significant charges. If the plan and the
budget are not synchronized, it might
so happen that the fate of your app is
nothing but failure.

10. Running out of cash
Lack of initial testing
Not having ideal planning for the
budget as well as minimum viable
product may end up being your
product’s fate as Beepi- P2P car
marketplace. Beepi was so promising
from the point of view of consumers as
well as investors, and back in 2015, the
platform secured a hefty $60 million
funding. Still, a good idea meets the bad
execution, and the products fail
eventually.
https://youtu.be/dx0P5OvwXF0

11. It is seen that even after investing a lot
of time and efforts in building a
minimum viable product, securing
funds, apps fail to see the light of the
day. Probably because the curious
minds run out of cash. In order to avoid
the same and make sure that your
prototype doesn’t eat up all of the
money, planning is the best bet.

12. Factors
Affecting the
MVP
Development
Cost in 2021

13. Now that we are aware of what an MVP
is, why you need it, and most
importantly, why is there a need to
determine the budget in advance, let’s
get into the depth and see what factors
affect the MVP app development cost?
#1. Application Type: Number of
Features and Complexity affect
MVP Pricing
To begin with, the cost to develop an
MVP is mostly dependent on the type of
app, followed by the complexities
associated with it. Meaning that the
cheaper the complexities involved, the
more reasonable the cost to build an
app and vice-versa.

14. Hence, the need to outline the features
that would be part of the application. In
other words, you must prioritize them
as adding too much will only increase
the MVP app cost.
The best way to highlight the must-have
features is by segmenting them
according to the user’s journey. There
are three different parts: the user, the
user’s actions, and the action taken by
you. You can refer to this feature
prioritization techniques to first define
the features and then identify the
important ones.

15. (i) Prioritization matrix: It allows you to
sort out all of the features in the order
of their importance.
(ii) Moscow method: This segments the
features into four different categories
(Must-have features, Should have
features, Could have features, and won’t
have feat). This makes it easier to strike
off the not so important ones.

16. (iii) Feature Bucket: Divide features into
3-5 categories such as delights, metric
movers, customer requests, etc.

17. It is advisable to divide your features
into 3, or for your convenience, you can
divide them into 5 bucket categories
like customer requests, metric overs,
and delights. Make sure for the metric
movers you have considered features
that create positive effects on your
KPIs. Those are pretty considerable as it
will help you reach your business goals.
Under the delight, add the features that
help to increase customer satisfaction.
Customer request features help to
resolve core problems.
So, before you get started with the
process, make sure you have done the
homework right, aligned the features,
and chalk out the necessary ones. MVP
development costs in 2021 may vary
from product to product and industry
to industry.

19. #2. MVP Cost of Design
The design conjures up a significant
amount of MVP app development costs.
In fact, it accounts for the maximum
price and is dependent on the extent of
difficulty. This is why we recommend
you to plan and determine the cost of
development in advance to precisely
understand how much does an MVP
cost.
One thing to note here is the MVP app
design consists of the User Interface.

20. https://twitter.com/jensenharris/status
/1001662478189707264?
ref_src=twsrc%5Etfw%7Ctwcamp%5Et
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&ref_url=https%3A%2F%2Fwww.bacan
cytechnology.com%2Fblog%2Fmvp-
development-cost-in-2021

21. The CEO of the esteemed
organizationTextio,Jensen Harris, once
tweeted that no matter what all you
pack in the MVP feature list, it has to
have a good UI. Without an appealing
interface, the MVP stands null and void.
However, a beautiful design doesn’t
implicate inducing complexities. You
need to simplify the design while
keeping it eye-catching.
In order to build an engaging User
Experience (UX), it is a must to keep the
User Interface (UI) simple, easy to
navigate, and understand in an attempt
to keep the users engaged.

22. Now several aspects affect the cost of
MVP app design:
(i) Preparation for the design: Begin
with preparing for the design. What this
means is to have enough information on
the app design. This will help be an
active part of the meeting; you might
have scheduled with the designing
team.
The Decision-making factors in
UX Cost of an MVP

23. (ii) Wireframe: This is more like the
skeleton of the app/website. You can
either sketch it out on a piece of paper
or draw the same on a software/screen.
Several job-specific tools simplify the
process of creating wireframes.
Depending upon your needs, you can
pick either of them. If you plan to create
the design by yourself, you won’t incur
any costs. However, if you are looking
for professional services, the cost will
depend on the company selected. On
average, it costs $500 for the same.

24. (iii) Mockup or Prototype: Mock-up is
the visual representation of the client’s
ideas. If you are wondering how much it
costs to build app prototype, then here’s
your answer. An app prototype cost
around $500. If you have more screens,
the cost increases exponentially. You
can go ahead and download Adobe
software to design the prototype saving
money, yet it is best advised to hire a
designer for better services.

25. MVP mockup might cost you nearby
$500 with mere 5 screens, and with the
comprehensive design, it would cost
around $1000. Each screen might cost
you nearby $50 to $70. It is convenient
to estimate the charges, which is how
UX design agencies consider offering
their services. However, to get it done
with the Adobe Photoshop and Adobe
Experience Design at the cost of $10-$20
from professionals. Adobe XD is
completely free for the starters.

26. (iv) On-page Interactions: Remember, a
minimum viable product is not just a
page with all information-packed. It can
and must have more. Creating a
dynamic layout ensures higher
customer interaction, increasing
engagement. You can use tools like
Axure RP and InVision for designing an
MVP. Needless to state that the cost of
designing a dynamic model is a bit
higher than that of its static
counterpart.Alternatively, outsourcing
the work to a designer may cost you in-
between 100–$500, based on the skillset
and expertise you need.

27. #3. Development Budget
Planning: Outsourcing/In-house
Hiring
We have the features and design. The
next question that pops up is how.
Would you prefer outsourcing your
requirements and do away with the
hassles or have an in-house team
supervise and monitor everything.
As trivial as it seems to be, how do you
plan to develop triggers the cost of MVP
app development? When it comes to
hiring a development company, you
might need somewhere around $5,000
and $50,000 to get the job done. Note
that the total price again rests on your
necessities. All you need to have is the
right company to execute the task
efficiently.

28. #4. Users’ Understanding
On the other hand, an in-house team
might cost differently, considering who
you hire and for what duration.
Often, it is seen that entrepreneurs
segment the entire process into several
steps or versions. This is done to ensure
that the final product is as per the user’s
expectations. So based on the levels of
production/development, the cost of
developing an app increases.
MVP pricing widely depends on the
functional as well as business
requirements. Food delivery is a good
example to take into consideration
because;

29. The Initial version covers 3rd party
implementation, payment portal,
account protection, authentication
process with a few additional
characteristics.
The 2nd and updated version is a
little complex from the point of
view of customer preference and
recommendations
The 3rd and last one is even more
complex, which is also expensive to
develop from the business
perspective as well.

30. #5. Tech Stack for MVP
Development
The tech stack that you choose for the
mobile app MVP development has a
tremendous impact on the total cost. In
case you have a technical head who is
well aware of the different technologies
and frameworks, half of your job is
done. But if neither you nor your team
is capable of selecting the best stack,
you might feel the need to consult an
expert, and while doing so, you add
expenses to the estimate.
To help you, we have tailored a few
solutions that might help when
designing an MVP.

31. Ruby on Rails for backend
development: Since it is easy-to-
learn and has a 30–40% quicker
development cycle..
React Native: To build cross-
platform apps as it reduces the time
of development, reusing 90% of the
code.
Selecting the right tech stack is
essential as it ensures that you spend
less on the overall cost of mobile app
development.

32. #6. Time Required to Build an
MVP
Last we have the duration of the entire
project. Most often, developers are
billed based on their working hours. The
more time they spend on a project, the
greater is the amount. It would be best
to have more manpower to reduce the
cost of development.

33. Suppose that you have 8 developers
working at $25/hour. They complete the
project in two months. On the other
hand, if you hire 4 developers at the
same price, they take nearly 4 months.
Suppose that you have 8 developers
working at $25/hour. They complete the
project in two months. On the other
hand, if you hire 4 developers at the
same price, they take nearly 4 months.
Now the expenses here are more as
compared to the first scenario. Hence,
you need to be wise when deciding
whom you need to hire and for how
long.

34. How Much
Does It Cost
To Build An
MVP

35. The cost of building a minimum viable
product will be zero if you do it
yourself. Sounds good, but does not
work in 99% of the cases. The average
cost of a mobile app MVP may vary
from $5000 to $50000; as we discussed
earlier, the pricing completely depends
on the complexity of the app idea and
the other significant factors. The MVP
price is just one side of the coin;
however, on-time delivery is also a
crucial factor to take into consideration.
The importance of choosing a well-
versed developer is also a significant
thing to take into consideration.
An important aspect to consider when
estimating the cost of MVP app
development is the manpower. To put it
this way, you can:

36. (a) In-House Development
(b) Outsource App Development Firm
(c) Hand it over to a freelancer
All three have their share of interests
and affect the total cost of development.
You must have all your requirements
listed to shortlist which option to
proceed with.
(a) In-House Development
Sometimes founders choose in-house
development. It provides transparent
relations and clear communication. For
the in-house development, you are
required to identify individual talents
with different skill sets. There are lots of
pros of having an in-house development
team, but there are cons as well. Be it
quality, co-ordination, or quality;
everything comes under your
responsibility.

37. A full-stack developer might cost
you $2900 a month.
A UI/UX designer costs $3600 a
month.
A QA developer costs $4100 a
month, and a project coordinator
costs $7500 a month
However, pricing is one of the biggest
disadvantages, so if you plan to start
with a limited budget, you need to think
twice before having an in-house setup.
From infrastructure to hiring expenses,
you are required to take care of
everything from your end along with
the development.
How much does an in-house
development costs?
If you build your MVP with the in-house
team, it would cost around $25,000.

38. (b) Outsource App Development Firm
Because of its viable nature, MVP
outsourcing is quite a popular option
than in-house development. Working
with the local agency always makes
sense instead of having an in-house
team. Covid -19 outbreak has changed
the whole scenario- clients working and
preferring next-door services are also
opting for remote software
development services and going for
outsourcing,
Lack of trust and time zone is not an
issue at all. The latest tools,
technologies, and Agile practices have
eliminated these fears. So, startups
outsourcing MVP development
undoubtedly sounds a good idea.

39. Let’s have a look at the cost of MVP
development and why startups must
outsource MVP development. If you are
outsourcing MVP development to India,
it might cost you $30 per hour. The
team of 4 four persons will cost you
$120. It might cost you $19 000 per
month to build an MVP.
Outsourcing from an app development
firm has 2 major benefits. Various
developer’s skillsets can be accessed,
and if you are not satisfied with the
assigned developer’s output, then a new
dedicated developer can be instantly
replaced and assigned.

40. (c) Freelance Developers
A freelance developer will definitely
cost less, and if selected meticulously,
will benefit you on a massive scale. In
case you aren’t in support of hiring
freelancers, maybe because you don’t
trust their work or find it hard to
communicate, outsourcing the job to a
relevant app development firm will
meet your needs best. Adopting
professionalism, they will look after
your project as their own and do the
best.
Even though this topic remains
controversial, the choice is yours and
solely relies on your requirements.

41. Is your app ready to launch? Does it
sound like a sigh of relief?
Hold on!
After app development, you need to
promote, market, and maintain the
same to get the desired results. And
when you are putting in your efforts,
you are liable to make some sort of
investment.
MVP Post-
Launch
Costs

42. Irrespective of whether it is advertising
the same through an inbound channel
or paid campaigns, it will cost you
money. It is expected that the
advertisements cost nearly $10k on
average. Besides, you also need to spend
money on maintaining the performance
of the application. This cost around
$20-$100, thereby increasing the total
estimate. You must consider all of the
above before stepping foot on the MVP
application development journey.

43. Marketing and Advertising
Choose an ideal marketing partner to
promote your app on all the platforms
where your prospects can reach out to
you at the earliest. Marketing price may
vary based on the type of marketing you
choose and the platforms you promote.
Be its promotional activities on social
media platforms, paid campaigns on
search engines, or corporate events. The
average cost of MVP marketing
campaigns is around $10 000. The
average cost of marketing campaigns is
around $10 000.

44. MVP Sales
The sales funnel plays a significant
factor in gaining the target audience as
well as profit on your MVP. Usually, the
average founders are investing $5000 to
$10,000 just to test the assumptions and
identify the right sales funnel.
MVP Maintenance
The maintenance cost is usually 20% of
the initial development budget, and the
product maintenance is completely
dependent on the team location,
experience product complexity. Along
with the maintenance cost, you should
also consider the server expenses and
the price of integrations and API who
helps you with the various interactions.

45. With that being said, designing and
developing an MVP is no easy task.
Looking for a Trustful Partner to Develop
MVP?
Looking for a trusted partner to develop
an MVP in 2021, you have landed on the
right blogpost at Bacancy Technology; we
lead the app development space with the
major focus laid on MVP application
development for early-stage startups. We
have a team of dedicated MVP developers
who are well-versed at creating next-
generation solutions that can make a
difference undoubtedly. We strive for
excellence and will do all that’s needed to
help your business grow and prosper. Get
in touch with us today to know the MVP
development cost in 2021.
Wrapping Up

46. Thank You