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Cost guide background for MVP Development

MVP Development Cost Guide

Transparent pricing breakdown and factors affecting your project investment

Quick Summary

MVP (Minimum Viable Product) development costs range from $15,000 for basic prototypes to $120,000+ for feature-rich applications. Codexty also offers MVP development at $25/hour (time & materials). The average mid-complexity MVP costs $45,000–$80,000 and takes 2–4 months to develop. Factors include feature set, design complexity, platform (web/mobile), and team location.

Pricing Tiers

Simple
$15,000 - $40,000
4-8 weeks

Basic features, minimal customization, standard design

Most Popular
Medium
$40,000 - $80,000
2-4 months

Custom features, integrations, advanced functionality

Complex
$80,000+
4-6 months

Enterprise-grade, complex architecture, extensive features

Cost Breakdown

Discovery & Planning

10-15%

User research, competitive analysis, feature prioritization, technical architecture

UI/UX Design

15-20%

Wireframes, mockups, prototypes, design system, user flows

Development

45-55%

Frontend, backend, database, API integration, core features

Testing & QA

10-15%

Functional testing, usability testing, bug fixes, performance optimization

Deployment & Launch

5-10%

App store submission, server setup, monitoring, documentation

Factors Affecting Cost

Feature Complexity

High Impact

Simple CRUD operations cost significantly less than real-time features, payment processing, or AI integration. Each major feature adds $2,000–$10,000.

Platform Choice

High Impact

Web-only MVPs are cheapest ($15,000–$50,000). Native iOS/Android adds 30-50% cost. Cross-platform (React Native/Flutter) balances cost and reach.

Design Requirements

Medium Impact

Custom design with animations and micro-interactions costs 40-60% more than using templates or pre-built UI kits.

Team Location

High Impact

Codexty offers development at $25/hour regardless of location. Market rates elsewhere: US $100-170/hr, Eastern Europe $45-70/hr, Asia $35-55/hr.

Third-Party Integrations

Medium Impact

Payment gateways, authentication, analytics, CRM integration. Each integration adds $1,500–$5,000 depending on complexity.

Backend Complexity

High Impact

Simple database and REST API vs complex microservices, real-time sync, and extensive business logic can double development time.

Pricing Models

Fixed Price

Agreed-upon scope and price upfront. Best for well-defined projects with clear requirements.

Best For:

Projects with detailed specifications and minimal expected changes

$15,000–$120,000 (project total)

Time & Materials

Pay hourly/weekly rates for actual work done. Flexible for evolving requirements.

Best For:

Projects with uncertain scope or requiring iterative development

$25/hour × actual hours worked

Dedicated Team

Monthly retainer for exclusive team access. Predictable costs, maximum flexibility.

Best For:

Ongoing development with changing priorities

$15,000–$40,000/month for 2-4 developers

Equity Partnership

Development agency takes equity stake in exchange for reduced or deferred fees.

Best For:

Startups with limited capital but strong growth potential

10-25% equity + reduced cash fees

Hidden Costs to Consider

  • •App store fees ($99/year Apple, $25 one-time Google Play)
  • •Server hosting and infrastructure ($50–$500/month depending on usage)
  • •Third-party API costs (Stripe 2.9% + $0.30, SendGrid $20–$90/month)
  • •SSL certificates and domain registration ($15–$100/year)
  • •Maintenance and updates (15-20% of initial development cost annually)
  • •Bug fixes post-launch (budget $5,000–$15,000 for first 3 months)
  • •Analytics and monitoring tools ($0–$200/month)
  • •Compliance and security audits ($2,000–$10,000 for SOC2/HIPAA)

Project Timeline

Discovery & Planning

1-2 weeks
10-15% of total cost

Design (UI/UX)

2-3 weeks
15-20% of total cost

Development (Frontend + Backend)

6-12 weeks
45-55% of total cost

Testing & QA

1-2 weeks
10-15% of total cost

Deployment & Launch

1 week
5-10% of total cost

Compare Options

In-House Team

$200,000–$400,000/year (salaries + benefits)
Pros:
  • + Full control over development
  • + Direct communication
  • + Company culture alignment
Cons:
  • − High fixed costs
  • − Recruitment takes 3-6 months
  • − Requires multiple hires (designer, frontend, backend)

Development Agency

$15,000–$120,000 (project-based)
Pros:
  • + Complete team ready immediately
  • + Established processes
  • + Predictable timeline
Cons:
  • − Less control over daily work
  • − May have multiple clients
  • − Knowledge transfer needed

Freelance Developers

$10,000–$80,000 (highly variable)
Pros:
  • + Lowest cost option
  • + Direct communication
  • + Flexible contracts
Cons:
  • − Quality inconsistent
  • − Coordination overhead with multiple freelancers
  • − Risk of project abandonment

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