Are you considering developing an app this year? If so, you're likely wondering about the cost. Fortunately for app buyers, the overall cost to develop web and app technology is declining. Or, more aptly, the time and cost to develop an app of a given complexity has been reduced as some of that time can now be saved using improved tooling, such as AI. Therefore, this might be an ideal time to start a project.

And while the cost of app development can vary widely depending on a number of factors, there are some general guidelines that can help you to get a sense of what to expect.

The cost of app development can be broken down into several buckets:

  • Design: This includes the cost of designing the user interface (UI) and user experience (UX). Depending on the complexity of the app, design costs can range from as little as $1,000 to $50,000 or more. Much of this will depend on your choice of partner and your ability to clearly communicate your needs to the designers.
  • Development: This includes the cost of coding and testing the app. Development costs can vary widely depending on the platform (iOS, Android, Web, VR/AR, etc.), the complexity of the data, and the number of interactive features. Development costs can range from $10,000 to $250,000 or more. Similar to design, a critical aspect of keeping cost down is the business and design teams' ability to translate and transfer knowledge to the development partner. Experience, smart tools, and careful communication can help here. Additionally, the complexity of your data, migration of prior data models, and integration to third party tools are all factors in the time and cost to develop.
  • Considerate Use of AI: We have found that when guided by experienced developers, the use of AI assisted development can be a tremendous time and cost savings for our clients. We're not talking about messy vibe coding, where inexperienced developers (or would be developers) blindly accept the result of each prompt until they have a rat's nest of non-performative code. Deliberate and thoughtful prompting by an experienced senior developer can lead to time saved, especially in the early or more commonly repeated aspects of a software project. Work smarter, they say.
  • Maintenance: Ongoing maintenance and updates are an important part of app development. This includes fixing bugs, adding new features, and maintaining compatibility with new devices. For the sake of completeness, we are also including the cost to connect and support third party tools in this bucket. Maintenance costs can range from $1,000 to $10,000 per year or more.

Prior Year Comparison

While it's difficult to predict, it's likely that the cost to build apps will stabilize, given that the demand for and the complexity of app development will continue to increase, while tools will become smarter and better at helping us not repeat mundane work. Simple projects (basic websites) will decline, and developers will be able to shift their talents to solving more valuable problems (such as building systems to automate processes or probe complex data).

But what about inflation?

General inflation has had an undeniable effect on the software market. The costs of almost everything has gone up, leading to higher wages, and inevitably higher hourly rates for development and maintenance.

Yet, while many prices have risen, the industry has also seen a significant (~15%) workforce reduction. Widespread job loss has made it easier to find specialized talent at a more competitive rate than the past few years. The end result of these two factors combined is nearly a wash.

Can chatGPT or AI build my app?

The power of AI and generative technology is undeniable. Leveraging these tools, our internal team has been able to consistently reduce time to deliver and pass along cost savings. However, we're still a ways off from a LLM that can create a complicated application in the absence of a seasoned professional architect. In our history as a company, we have spent countless hours refactoring junk code created by less skilled low cost developers. Now, we're refactoring code generated by machines that was prompted by even lower skilled 'developers'. Garbage in, garbage out is a pertinent phrase. If you can't understand the output, then it's highly unlikely you gave the correct input. It will be awhile before we consider placing fully generative code into a client's production environment.

So is it a good time to build an app?

Yes, given all the factors at play this year it is absolutely a good time to invest. The cost of app development in 2025 will vary widely depending on the complexity of the app and the specific needs of your business. But, given the economic climate, new tools, and growing talent pool, now is a great time to invest. Choosing a development team that can meet your needs and help you to achieve your business goals is as important as ever. If you are looking for a tested and trusted partner, we might just know one ;)