App development costs are one of the biggest unknowns for many CTOs and tech leads in project planning. Agencies quote price ranges from a few thousand euros to six-figure sums, and without clear categorization, it’s hard to derive a realistic budget for your own company. This article shows which cost factors are truly decisive, how typical price ranges in the B2B sector are composed, and how you as a CTO can create a budget that is defensible internally and holds up in practice. You’ll find the specific price ranges for B2B apps at the end of the article, after you understand what they consist of.
What factors determine the costs of app development?
The costs of app development consist of several components that are rarely all on the radar when a project starts.
Platform Choice. Native development for iOS and Android separately usually doubles the effort compared to a Cross-Platform Approach like Flutter or React Native. For B2B companies that need to be present on both platforms, this is often the biggest lever to reduce costs without compromising on quality.
Backend and Integrations. An app is rarely an isolated application. Connections to existing ERP systems, CRM tools, or internal APIs significantly increase the effort, especially if the interfaces are not well documented or need to be created from scratch.
Design and UX. A well-thought-out interface takes time in the conceptual phase but saves support effort in the long run and increases acceptance among end users. This point is often underestimated with internal tools because it is assumed that employees will adapt.
A common misconception is to base app development costs solely on the number of screens or features. In reality, the depth of integration and long-term maintenance often drive total costs more than the sheer number of visible functions. More on this: Cross-Platform App Development: When Flutter, React Native, or MAUI is the Right Choice.
What does app development cost at an agency compared to hiring a freelancer?
In addition to agencies, there are two other common ways to have an app developed: through individual freelancers or through an internal team.
Freelancers: Lower Hourly Rate, Higher Risk
Freelancers often have lower hourly rates than agencies but come with higher risks. Availability is rarely guaranteed, quality varies greatly depending on the individual’s experience, and if someone drops out or changes, documentation is often lacking to continue seamlessly. This can work for small, clearly defined tasks, but for a B2B product with long-term support, it’s usually a risk that CTOs should be aware of.
Internal Team: Expensive to Build
Building an internal team is often the most expensive option in the long run when factoring in recruiting, onboarding, and workload between projects. It’s especially worthwhile when app development is a permanent, central part of the business model and not just a single project.
Agency: A Well-Established Team
A specialized agency like LEAN-CODERS usually falls between freelancers and internal teams in terms of cost, but brings a well-established team, established processes, and continuity throughout the project duration. For most B2B projects with a defined scope and clear timeline, this is the approach with the best balance of cost, risk, and quality of outcome.
Additionally: Developing an app and operating it over the years is a complex task, even in the age of AI. It requires more than just programming skills. Design and UX know-how, conceptual thinking, business evaluation, marketing experience, and analytics are all part of it. Building an app and hoping it works is possible, but many apps miss their target and fail to achieve the expected return on investment. There are now countless apps in the stores. The difference is made by the apps that deliver exactly what is needed and convince users to enjoy using, sharing, and recommending the app.
Such apps are created by a whole team of professionals who have experience in this environment, have launched numerous apps, and know what to pay attention to. This team builds the app and the entire ecosystem around it to ensure it has a long-term impact. That’s exactly what an agency with a well-established team delivers.
Why the Higher Price Often Pays Off
Even if an agency seems more expensive at first glance, you utilize the skills of all these professionals exactly to the extent your project needs. You benefit from their entire knowledge without having to hire, onboard, coordinate, and integrate a full team yourself. This way, you can focus on what you do best and leave the results to the experts.
Agency and Internal Team Complement Each Other
Internal teams and agencies are by no means mutually exclusive. We also continuously collaborate with internal teams and complement them with additional expert skills. Similarly, an agency can create a solid foundation with the first app version, on which you can internally assess whether building your own team is worthwhile. If the decision is made to do so, we will support you step by step in insourcing and handing over to your own team.
How can you realistically budget for app development costs?
Instead of entering discussions with agencies with a vague overall budget, a more structured approach is worthwhile.
Prioritize Requirements. Before even obtaining an offer, it should be clear which functions are truly necessary for the first launch and which can be postponed to a later phase. This not only reduces costs but also the risk of building an overloaded first release.
Start with a Pilot Project. Instead of releasing the full budget at once, a clearly defined pilot project over four to twelve weeks is recommended. This gives both sides the opportunity to assess collaboration and quality of results before investing larger sums. Especially CTOs who need to defend budgets internally benefit from this approach, as early results are easier to communicate than a mere cost promise.
Plan for Maintenance Costs from the Start. As described below, ongoing costs after launch are not a trivial matter. A realistic budget includes the first twelve to twenty-four months of maintenance and further development, not just the initial development phase.
Plan a Buffer for Integrations. Backend connections are typically the most common source of budget overruns, as existing systems are rarely as well documented as assumed. A buffer of 15 to 20 percent for this area prevents nasty surprises during the implementation phase.
With these four steps, you can create a budget that not only looks good on paper but also holds up in actual project implementation. Regarding cost savings: Custom Software: Increase Flexibility & Save Costs with Open Source.
Why the Cheapest Solution for App Development Often Becomes the Most Expensive
You get what you pay for. This is especially true for software and apps, just like many things in life. An app is typically intended for long-term use and should fulfill its purpose over an extended period. What saves time and money initially often costs significantly more in ongoing operations.
As app development professionals, we regularly receive problem apps and problem software for takeover. These projects were not further developed or maintained after a few weeks, could not be completed, incurred high maintenance costs, or were even hacked. In the end, they had to be restructured or completely rebuilt at great expense.
One-off action apps can theoretically be built with less caution if there are no security concerns or prestige requirements. However, if an app needs to function for more than four to five months, it’s worth laying the right foundation from the start so that the project doesn’t have to start over after a few months.
Is there a relationship between cost and quality?
We stand for good value for money and offer our developments at fair, competitive prices. Nevertheless, we emphasize a clear quality standard with every delivered app. Therefore, we recommend not to focus solely on the lowest prices. Give the project time and space, so that it impresses beyond the minimum requirements in details like user experience, appearance, and functionality.
An example is Tinder, one of the most successful dating apps. The idea of connecting singles existed before. The difference was an implementation that seemed simpler and more intuitive than many apps before it.
We like to compare this to cooking: The more time you take to season a dish, let it simmer, refine, and prepare it, the better the result will be. Even a ready-made tomato sauce essentially consists of the same ingredients as a freshly cooked one. The difference lies in the details.
What does an app cost after launch and what is included in maintenance?
With the launch, the ongoing operation of an app begins, and development costs are only part of the total bill. Maintenance initially seems like a pure cost point, but it secures the value of the investment because an app operates in a constantly changing environment. Maintenance primarily includes these areas:
- System Updates. New versions of iOS and Android change interfaces and behavior. The app must be regularly adjusted to keep running smoothly.
- New Devices. New smartphones with different screen sizes and device functions must be supported to ensure the app works well for all users.
- Security. Security vulnerabilities in libraries and dependencies are continuously discovered and must be closed promptly, especially in B2B apps with sensitive data.
- Monitoring and Logging. This allows you to identify errors and performance issues before users report them and respond proactively.
- Further Development. Feedback from everyday use, new requirements, and changing processes gradually advance the app.
As a rule of thumb, around 15 to 20 percent of the original development costs per year are expected for maintenance and further development. This is an industry-standard estimate and not a fixed rate. It depends on scope, integrations, and security requirements. Planning for these costs from the start avoids nasty surprises in the budget and keeps the app operational in the long term.
What does app development cost on average for B2B companies?
Now to the numbers: App development costs depend heavily on the type of application being built. Broadly, three categories can be distinguished.
A simple MVP, that is, a app with a reduced feature set to test an idea., usually ranges between 15,000 and 35,000 euros. This typically involves a few core functions, a simple design, and a manageable backend connection.
An app with medium complexity, such as user management, multiple data sources, push notifications, and a thoughtful UX, often falls between 40,000 and 90,000 euros. This is the category where most B2B projects from LEAN-CODERS are found, as companies rarely need a disposable app and usually seek a tool that will be used for years.
Enterprise applications with complex integrations, high security requirements, or multiple connected systems can cost significantly over 100,000 euros. Here, factors like compliance, scalability, and the number of concurrent users play a larger role than in smaller projects.
In addition to these one-time costs, ongoing maintenance is required, as described in the previous section. All figures are rough estimates from the DACH market and vary depending on the provider, region, and project scope. However, they provide a solid guideline for CTOs to realistically plan before moving into concrete offers.
Frequently Asked Questions
What does an app cost on average?
Depending on complexity, costs range from 15,000 euros for a simple MVP to over 100,000 euros for enterprise applications with extensive integrations. Most B2B projects with medium complexity fall between 40,000 and 90,000 euros.
How much does app development cost for a simple MVP app?
A simple MVP with a reduced feature set typically costs between 15,000 and 35,000 euros, depending on platform choice and design effort.
Is it worth hiring a freelancer for app development instead of an agency?
For small, clearly defined tasks, a freelancer can be a cost-effective option. However, for B2B products requiring long-term support, this brings higher risks regarding availability, quality, and continuity.
What does app development cost in Austria compared to Germany?
Price levels are generally comparable in the DACH region, although there are regional differences in hourly rates and labor costs. More important than the country is usually the experience and specialization of the chosen agency or team.
How long does it take to complete app development?
A pilot project can often be implemented in four to twelve weeks. A complete B2B product with medium complexity usually takes three to six months, depending on the scope of features and depth of integration.
Ready to realistically plan your budget?
If you want to have an app developed and need a solid budget that holds up internally, LEAN-CODERS can help you prioritize requirements and create a realistic cost estimate for your specific project.
Do you want to know what your app really costs?
