Tips on How to Determine the Cost of Creating Your App
Around 66% of software projects fail, as found in the 2020 CHAOS report by The Standish Group. When only 1 in 3 digital products make it, you want to be completely sure you’ve covered all your bases.
It makes sense to start with the basics: funding. Software development costs can be among the biggest challenges for innovators and entrepreneurs. Estimate your budget accurately here, then find the resources you need to get your project moving.
To find the approximate cost to build a mobile app or program, follow this basic equation:
(Features x Time) x Hourly Rate = Total Cost
If you’re outsourcing or augmenting your staff, divide the flat rate for the whole project by the number of hours your team is scheduled for in order to get their hourly rate. Remember that different regions around the world have different price ranges too. Developer costs are listed below by area (as found with SofterMii):
- U.S., Australia, & New Zealand = $100 to $175 an hour
- Western Europe = $65 to $100 an hour
- Eastern Europe = $40 to $60 an hour
- Latin America = $20 to $50 an hour
- Africa = $20 to $45 an hour
- Asia = $15 to $25 an hour
Simpler ways to refer to these are nearshore, offshore, and onshore services. Nearshore means the services are located in a nearby country for easier time zone management, among other benefits. Offshore means the services are farther abroad for lower taxes or costs at the expense of easier collaboration. Onshore means the services are based in the same country as the company ordering those services, with higher costs but easy scheduling.