Web Application Development Cost: How to Save Your Budget
Budgeting a web development project is not an easy feat. One of the most common reasons for project failures is unexpected expenses during web development. According to TeamStage, 55% of tech companies overrun their budgets simply because they make mistakes in project cost estimation. Therefore, understanding the cost of web application development is important.
The tricky part is that there’s no one-size-fits-all-answer when it comes to web app development. It’s like guessing the cost of a house. You can make assumptions, but the final price will be formed based on the number of rooms, layout, materials used, interior and exterior works, the total area, location, and construction team composition.
The same is true for web app development projects. There are at least eight common types of apps, plus custom applications, that may differ in features and functionalities. Additionally, new technologies constantly emerge, pushing companies to continuously innovate to be different from the competition. All of these factors affect the end price, making it challenging to provide a precise estimate for web app development.
In this article, we’ll shed light on the key factors affecting the cost of web development. We’ll also provide you with steps that will help you determine the approximate cost of development and make better decisions during the initial stages of the software development lifecycle.
Main Factors That Affect Web Application Development Cost
Even if you pop into one of the largest software development companies and ask them the exact cost of your web application, they won’t be able to tell you the price without breaking your project down into detail. First, they’ll need to hear your requirements, and then they will be busy creating the blueprint for your digital venture, which will take some time before they are ready to give you a precise cost estimate.
Let’s take a look at the factors that influence web development and which need to be taken into consideration before starting a project.
Complexity of Web Applications Is the Number One Factor
One of the main factors in determining the cost is the complexity level of web app development. Obviously, the larger the app, the more extensive the functionality and the higher the bill you’ll be looking at at the end of the project. And vice versa, if you only need to develop a simple web application, your costs are likely to be more contained. Further down, we break down the average cost of web application development based on the project complexity so you can get an idea of what you might be charged.
Simple Applications
Web applications that are simple in nature, include minimum functionality, and have a very simple UI design are relatively cheap to build. A case in point is a one-page brand website, a widget for the existing application, or an online catalog. On average, the cost of developing such an application varies in a range from $20,000 to $50,000.
Proof of Concept (PoF) Applications
PoC applications contain quite a lot of content and interactive features, but don’t imply any complex integrations and are mainly designed to gather funds from investors. They are considered stepping stones to more elaborate applications. On average, building such an app takes about 1,000 development hours and falls in between simple and mid-complexity web apps.
Some of the most notable examples of Proof of Concept apps include Dropbox with its explainer video and Buffer, which went public with a single landing page to validate their product idea. All these examples were quite simple to implement yet had enough features to gather user feedback, prove their value, and raise funds from investors. The cost of PoC applications falls within the price bracket of around $50,000 to $70,000.
Medium Complexity Applications
Mid-complexity apps have more intricate functionality compared to PoC applications. Most often, they come with video or audio processing features and include some kind of analytics tools and API integrations. The development of these apps takes approximately 3,000 hours or around 3-4 months, depending on the size and skills of the team that’s been hired for the project.
An example of a medium-complexity project our team was tasked with is Odoo development. We were approached by a European insurance company looking to implement an Odoo-based solution, allowing for quick processing of customers’ claims and calculations. The biggest challenges that we faced were ensuring proper localization of European markets through the program’s functionality, achieving preciseness in automated calculations without removing the option of manual calculations for high-risk transactions, and streamlining the management of requests.
Despite the challenges, we nailed the task with ease and grace. Our team picked the most suitable tech stack commonly used for Odoo app development and implemented an API to make data transfer to and from the head office smooth and quick. In general, the development of the project – from gathering requirements to implementation – took two months, which was rather quick.
Overall, mid-complexity applications vary in cost quite a lot, with estimated costs floating around $50,000 and $150,000 marks.
Complex Applications
Complex applications include custom web solutions and feature-rich management systems like ERPs and CRMs. These can also be SaaS products for businesses, electronic health record systems, e-learning solutions, automation management platforms, banking software, taxi booking, and other intricate applications designed to handle intense workflows, large datasets, and high user interactivity. Furthermore, if we take any application that has features like a shopping cart, checkout, payment gateway, or shipment module, it will fall into the category of complex solutions.
The development of complex web applications isn’t quick and would require a team of highly skilled developers proficient in complex tech stacks and technologies. In this case, web application development costs will be considerably higher compared to simpler applications. The price you’d be looking at will start from $150,000 and can go up to $350,000 for more complex enterprise software.
An example of a complex application QArea’s team was working on is a Cryptocurrency social-based eCommerce platform. In total, the development process took us two years. However, the result was a fully functional platform designed from scratch that embraced a novel customer engagement model, allowing users to reach new audiences and effectively grow their social presence online.
Our team can assist you in developing any kind of web application, basic or complex
Type of Web Application
The type of an application may heavily influence the web app development cost. As we’ve mentioned earlier, there are eight types of web apps that vary in complexity and functionality. Let’s delve into how these apps can impact the overall development cost.
1) Static Web Applications
Cost of Implementation:
These are the simplest of web solutions consisting of fixed content and devoid of any dynamic features. Most often, they are built using simple programming languages such as HTML and CSS and have no personalization. Even though static applications allow for advanced features like video and GIFs, they aren’t the easiest to incorporate, making modifications possible to implement only by experienced web app development companies.
Since these apps require minimum interactivity, development costs are rather low and typically vary from $500 to $2,000.
Examples of Static Web Applications:
- Brochure websites;
- Personal portfolios;
- Landing pages;
- Event websites;
- Educational institution websites.
2) Dynamic Web Solutions
Unlike basic web apps, dynamic websites display content that can be updated in real-time, making them the best type of web solutions for constantly evolving online experiences. They may include a bunch of interactive elements to draw the user’s attention and make use of databases to store content data.
As a rule, these applications have an admin panel, allowing the administrator to assign users different roles and modify the content. To create a dynamic web solution, software engineers typically use web programming languages such as PHP, ASP.NET, and JavaScript.
Cost of Implementation:
Development costs increase due to backend development for dynamic content generation and range from $1,000 to $300,000, depending on the intricacies of the application.
Examples of Dynamic Solutions:
- CMS;
- eCommerce apps;
- Blogging platforms;
- Online forums;
- Social networking sites.
3) eCommerce Platforms
An application that is used to promote products or services refers to eCommerce. Just like an online shopping store, it includes all the basic eCommerce features such as inventory management, payment processing, and order fulfillment, and has a management panel to let you effectively control various aspects of your online store.
This type of application falls under the mid-level category in terms of complexity as it involves many advanced features like user accounts, payment gateways, product databases, shopping cart functionality, and so on. Even if you’re not going to build a web app like Amazon, eBay, or Walmart, the cost of an e-commerce website will be rather high.
Cost of Implementation
On average, the cost to develop a web solution in e-commerce ranges from $10,000 to $250,000, based on the chosen platform, the complexity of the project, the required functionality, and the amount of personalization.
4) Content Management Systems (CMS)
A CMS is a rather complex type of application that empowers users to create, manage, and modify digital content on a website without requiring advanced technical skills. These systems are particularly beneficial for businesses and individuals who work with content a lot and need to regularly update and organize it. Some of the most popular content management systems that have been developed and are widely used around the world include WordPress, Joomla, and Drupal.
Cost of Implementation
Should you be interested in developing another big CMS, be aware that the development cost may vary dramatically depending on the scope of the project and the team you hire to do the job. In general, the total bill can be anything from $20,000 to $500,000.
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5) Social Media Platforms
Without exaggeration, social media platforms are about the most complicated web applications out there, combining intricate features, real-time interactions, multiple types of content, and extensive user management. These applications can handle massive loads of data and allow users to engage with each other through various media formats. Most of them also include integrations with third-party services, advanced algorithms for content delivery, and security measures to protect user data and privacy.
Cost of Implementation:
The development cost for social media platforms is one of the highest due to the extensive features involved. On average, it starts from $50,000 and can go up to several million dollars, depending on the application’s scale, features, and specific requirements. For example, the cost of Facebook, with its vast infrastructure and continuous feature enhancements, reaches millions of dollars.
Examples of Social Media Platforms:
- Facebook;
- Twitter (X);
- LinkedIn;
- Snapchat;
- Instagram, etc.
6) Custom Web Applications
Custom solutions are designed to align with the specific requirements of a business. Unlike pre-built systems, they are built from the ground up and seamlessly integrate with existing systems and third-party services. The strength of custom software is that it represents the brand’s identity while offering a unique user experience. In addition, it can easily grow and adapt to the business’s changing needs.
Cost of Implementation:
Since custom web application development takes more development time, effort, and resources, the cost of implementation is rather high. It’s common for the cost to range from $20,000 to $500,000 or even more, depending on the scale of the project. The upside is that investing in custom-built software is usually quite rewarding, as you get a product that meets the specific needs of your business and provides unique capabilities that off-the-shelf software can’t offer.
Examples of Custom Software Solutions:
- Enterprise resource planning systems (ERP);
- Customer relationship management systems;
- Project management systems;
- Healthcare information systems;
- Educational management systems.
7) Progressive Web Apps (PWAs)
Progressive Web Apps (PWAs) represent a modern approach to web development, combining the best features of both web and mobile applications. They offer a seamless, responsive, and engaging user experience, regardless of which device or platform is being used. The best thing is that PWAs can seamlessly function even when the user is offline or experiencing a slow Internet connection. Besides, they support push notifications, allowing businesses to re-engage users by sending them messages regardless of whether they’re connected to the internet or not.
Cost of Implementation:
The cost of developing progressive web applications varies based on a number of factors, such as complexity, features, and integration requirements. In general, they tend to be more cost-effective compared to native app development, with the pricing falling between $10,000 and $100,000.
Examples of PWAs:
- Twitter (X);
- Pinterest;
- Flipboard;
- Starbucks;
- Trivago.
8) Single Page Apps (SPA)
Single-page applications (SPAs) have been gaining traction in recent years due to their streamlined and efficient web development approach. They don’t require browser reloads like most traditional websites and update the content dynamically as users interact with the application, allowing for faster response and reduced latency times. Additionally, SPAs can be reconfigured based on the goals and objectives that a company wants to achieve.
Cost of Implementation:
The cost of a typical single-page application ranges from $5,000 to $20,000, though it can be considerably higher if the functionality of the app includes sophisticated features and extensive integrations, like in the case of Facebook.
Examples of SPAs:
- Google Maps;
- Gmail;
- GitHub;
- Trello.
As you can see, each type of web solution comes with its own set of complexities, features, and functionalities, directly affecting the time and cost required to build an app. Make sure that you know what type of app exactly you want to build in order to estimate the cost right and find a development partner with the required expertise.
Compliance With Regulations Impacts the Project Cost
The two most regulated industries requiring strict compliance with regulation requirements are fintech and healthcare. For example, if you’re planning to develop a web application in healthcare, it will need to be HIPPA compliant, have FDA clearance, include HL7 integration if the app implies sharing health-related data, and meet EVV requirements for remote patient monitoring.
The key regulations for fintech solutions include CGPR for data protection, PCI DSS for payment card information, and various financial regulations depending on the location of the operation.
However, these aren’t the only industries where compliance is required. You can take any industry, be it education, eCommerce, legal services, etc., and it will demand its own level of compliance. So, it’s important that development firms are fit to develop these kinds of applications. As you can guess, the team’s experience with stringent legal regulations is directly reflected in the cost of web app development.
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Tech Stack of Web Apps
The chosen backend infrastructure is one of the other factors that directly affect the web application development cost. For example, using modern serverless frameworks such as Node.js, .NET, and Java for back-end and cloud services like AWS and Microsoft Azure will cost more compared to traditional server-based architectures.
The same goes for front-end technologies. Hiring specialists adept at standard web development languages like JavaScript, HTML, and CSS costs less compared to those proficient in advanced frameworks like React, Angular, JQuery, and Vue.js.
In addition to choosing a back-end and front-end tech stack, you’ll need to pick a suitable database for storing your data. Some of the most popular options for storing large volumes of data are Amazon S3 and Google Cloud Storage, but both are on the expensive end of the spectrum. To reduce web application development costs, you may want to opt for cheaper alternatives like Wasabi, DigitalOcean Spaces, or Backblaze B2.
Whichever decision you make, make sure that you plan with scalability in mind. It can be much more cost-effective to pay more at the beginning rather than incorporate major changes later on when the application is up and running.
UI/UX Design Determines Success
The user interface is an important part of web application development that can make or break your digital venture’s success. Not only does it play a crucial role in how users perceive your web app, but it also helps boost user engagement and improve retention with existing customers.
Furthermore, a well-crafted UI/UX design can cater to diverse needs. By skillfully implementing features like voice searches, readable fonts, bright colors, and keyboard navigation, designers and web developers can build a web application that’s inclusive and can be easily accessed by people with special needs.
Surely, building a web solution with intuitive navigation and a visually appealing interface demands the skills of professional UI/UX designers, which will impact development costs.
Our team of 300+ IT specialists skilled in standard web development languages and advanced frameworks is ready to take on any project
The Location of the Development Team
Aside from the tech stack, app type, and complexity, the cost of developing a web solution is directly related to the team’s location. While hiring web developers to work in-house offers plenty of benefits, particularly due to the control offered over the development process, it often proves to be much more cost-effective to outsource development to teams from abroad. To give you the gist, the average web application development cost in Eastern Europe and Asia is typically half that of the USA and UK.
In some cases, it may be even better to delegate development to freelancers and contractors. However, since they often don’t meet deadlines, they are best reserved for building simple applications that don’t require advanced frameworks and technologies and have no urgent timelines.
Here’s an overview of developer hourly rates based on their locations:
| Tech stack | In-house (the USA) | Outsource (Eastern Europe and Asia countries) | Freelance |
| Front-end developer | $41 | $20-$45 | $15-$35 |
| Back-end developer | $58 | $20-$60 | $20-$40 |
| UI/UX designer | $45-$125 | $30-$45 | $20-$39 |
| QA engineer | $40 | $18 and more | $12-$20 |
Furthermore, the composition of the team also plays a crucial role in shaping the price. Obviously, a simple application that can be built by a small team of designers and web app developers will be less costly compared to a large enterprise software requiring extensive tech stack expertise.
Besides, the price will be affected by the number of stages of web app development required to bring your product to life. If you go through the initial stages of the development lifecycle yourself, the cost of web app development will be lower compared to developing a web solution from scratch by a professional web team.
Post-Development Expenses Add up to the Cost
Once the application is built, the work of a development team isn’t finished. The team continuously maintains and updates it, fixing bugs and monitoring the app’s performance. These post-development expenses must be factored into the cost of a web app as well. Companies that skip this stage face the risk of running into serious problems down the road, such as security vulnerabilities, performance issues, and user dissatisfaction.
Web Development Services Impact the Average Application Cost
In addition to everything we’ve already mentioned, the cost to build a web app depends on the web app development services required. Here are the most common options.
End to End Product Development
This service is demanded by companies that don’t have development teams of their own. They hire a development team from the outside to do all the work required to build and run a product – from MVP development to UX/UI design, testing, and maintenance. As you can imagine, this service can’t be cheap as you’re paying for the entire software development lifecycle.
Advantages:
- You get a fully functional product without the need to hire an in-house development team.
- The service covers all key aspects of the SDLC, from creating a product prototype to maintenance and post-release updates.
- You’re granted access to specialized skills and expertise at every stage of the software development lifecycle.
- The project can be completed within a rather short period of time.
- There’s not much management involved, allowing you and your team to focus on core business functions.
The average cost of developing web applications by delegating the full-cycle development process to dedicated teams varies from $20,000 to $60,000, depending on the feature list.
Custom Software Development
As with end-to-end development, custom software development is developed from the ground up. The custom web application development cost is generally higher as it involves creating unique solutions that off-the-shelf software can’t meet.
Advantages:
- The product is precisely aligned with the business’s specific needs and goals.
- It addresses unique business challenges.
- The solution can be easily scaled to meet your business needs.
- It can adapt to the changing requirements over time without requiring major modifications.
- The ownership of the developed software goes entirely to you.
- No limitations of any sort, unlike most third-party solutions.
Building a custom, complex web app solution with an extensive set of features may cost from $100,000 up to $500,000, depending on the scope and type of an app as well as other factors mentioned above.
IT Consulting Services
For businesses seeking expert advice on technology-related matters, IT consulting services come into play. At QArea, we’ve got more than 23 years of experience developing all kinds of software solutions and can provide our clients with professional advice. IT consulting services prove invaluable in situations where a client needs assistance with planning, understanding how to adopt technology, optimizing core processes, and maximizing the efficiency of their team. Compared to full-cycle development, this type of service is rather affordable, so a lot of businesses can use it when they need help.
Advantages:
- Advice from a professional web app development company can facilitate technology-related decision-making, especially for novice companies that are relatively new to the field.
- It can help improve the efficiency and effectiveness of existing processes.
- It allows you to spot opportunities once they arise and optimize technology-related costs in the most efficient way.
Testing and Quality Assurance
If you don’t see much sense in hiring an in-house team of testers for a one-off project, testing can be entrusted to a third-party quality assurance team. Many IT providers, including us, provide testing as a service (TaaS), allowing businesses to gain access to high-quality service without burning their development budget. The cost of TaaS is related to the delivered output instead of the hourly rates of each and every tester, making it a fail-safe choice for most firms. However, you can also hire testers if you like. In this case, the cost will be calculated based on their hourly rates, which can range from $24/hr for a quality assurance analyst to $45/hr for a senior engineer.
Advantages:
- Involving testers in the project helps identify and fix issues early in the development process.
- Testing results in an error-free product, contributing to better user experience and improved retention rates.
- Testing eliminates non-compliance issues, providing you with peace of mind with regard to legal requirements and industry standards.
- When the product is tested early, there’s less of a risk of serious bugs later in the development process, which helps reduce web app development costs.
Team Augmentation
Another common scenario that happens quite often in the world of web development is when a company needs to augment its in-house team with external talent for specific skills or during peak workloads.
Many companies, including large enterprises like Google, Facebook, Skype, and others, use this approach to offload their internal teams and speed up the development process. For example, a few years ago, our team was hired by Skype to complete a testing project. Shortly after, we also became a partner of HuffPost, helping the team build a website and backend solution.
Advantages:
- Supplementing an internal tech team with external talent allows you to scale your team up or down based on the current requirements of the project.
- You get access to specialized skills without the need for permanent hires.
It allows you to significantly expedite project timelines by quickly onboarding additional resources. - Hiring a team from the outside is cost-effective, as it doesn’t involve costs associated with permanent hires, such as salaries and benefits.
- You only pay for the resources you need and use.
Unexpected Costs of Web App Development
Before you sign a contract and get down to product development, one of the first steps to take is to decide on the collaboration model. Depending on the model, the cost of development might slightly vary. For example, the time and material model allows for continuous evolution of requirements, allowing companies to make changes to a project at any stage of the SDLC. On the other hand, if you choose a fixed-cost pricing model, the amount agreed upon at the start of development shouldn’t change unless you initiate adjustments as the project progresses. So, the project’s increasing scope is the first and foremost reason that impacts the web application development costs.
Aside from the project’s evolving needs, unexpected costs may arise in the case of starting a partnership with a dishonest IT provider. Quite often, companies intentionally lower the price to bait clients into a deal. However, once the documents are signed, they start charging you for each and every request you may have, driving the end price quite considerably. With that in mind, make sure that you don’t jump into signing the contract headfirst. Ask the company or contractor in advance about their pricing, including what happens if the requirements change and you need to add any additional features. The procedure should be clear and transparent and give you an understanding of how the costs are formed.
At QArea, we prepare a detailed web application development cost breakdown after the initial call with a client. This way, you get a rather accurate cost estimation that can help you decide if you want to proceed. Additionally, we offer four types of business models for cooperation, allowing you to choose the most appropriate one based on your budget, needs, and business goals.
Ways to Reduce Web App Development Costs
Web development cost depends on many factors, but it’s not cheap. Even the simplest application, like a brochure website, will cost you a few thousand dollars, to say nothing of elaborate solutions tailored for large enterprises. That said, there are a number of strategic measures you can use to reduce the cost of web development.
Invest Time in Pre-Planning
The best thing you can do to reduce web app development costs is to spend ample time planning your solution. Taking it slow at the beginning can save you a considerable amount in the long run. Start by conducting market research to estimate the need for a product you want to create. As evident as this might sound, there are still 35% of product failures due to no market need, according to CB Insights 2021, which is a huge number. Conducting market research will not only help you validate the value of your product but also identify existing gaps and optimize your development strategy accordingly.
Develop a Web App Prototype
Now that you’ve developed a concept for your web solution, it’s time to move on to developing a web app prototype. This step is necessary to validate your concept before investing in full-scale development. With a prototype at hand, you can visualize your idea and make efficient enhancements based on feedback from key stakeholders while cutting out unnecessary costs.
Create an MVP
The next step is to create a minimum viable product (MVP). The goal of this phase is to focus on essential features and cut out all of the other components that can be looped into the project at a later stage. Even IT giants that aren’t constrained by budget start as small PoC, which allows them to minimize software development costs and make better decisions with regard to their spending. While creating an MVP can cost $10,000 or more, it ensures that you don’t spend more in vain and can easily improve your existing solution.
Be sure not to overengineer your MVP. Whenever possible, simplify and streamline the process, using cost-effective technologies that help expedite development. Many companies resort to pre-made templates and off-the-shelf solutions to cut the scope of work at the initial stage.
Use Cloud Services
Take advantage of cloud services for hosting and infrastructure. Cloud platforms offer scalable resources, allowing you to pay for what you use. This eliminates the need for substantial upfront investments in hardware and infrastructure, contributing to overall cost efficiency.
Take Advantage of Open Source Tools
Using open-source tools is one of the other ways to reduce web development expenses. These tools can help develop feature-rich applications while saving you plenty of costs that would go on proprietary software that comes with a hefty price tag. Moreover, these tools have extensive community support. This way, if you need upgrades or help with maintenance, you’ll have a trusted shoulder to lean on.
Find an Outsourcing Development Partner
Last but not least, web app development costs can be reduced significantly by finding a partner from offshore countries. Software engineers from Eastern Europe, Asia, and South America charge considerably less than US developers while offering the same level of quality, if not better. In addition, companies from these countries have already formed teams, which allows them to start working within a couple of weeks without the need for exhaustive hires.
Summing Up
In summary, web app development cost isn’t something you can find out just by telling an IT provider your project idea. There are many things to it affecting the total cost. From app type and complexity to the chosen technologies, development team location, and the type of service you use, all of these factors need to be factored into to provide you with an accurate estimate. Moreover, there’s always a chance of potential risks during the web development process that may demand changes, driving the cost up. Ultimately, understanding these factors can empower you to effectively manage and optimize costs.
If you need any kind of help, whether it be consultation on enhancing your core operations or addressing unforeseen challenges, building a web solution from scratch, or testing a module, the QArea team is here to assist you.
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- Main Factors That Affect Web Application Development Cost
- Unexpected Costs of Web App Development
- Ways to Reduce Web App Development Costs
- Summing Up
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