MVP Development Cost Explained – Factors, Estimates, and Cost Saving Strategies!

MVP development cost guide: factors, estimates, and cost-saving strategies
Key Takeaways:

Cost of developing an MVP typically ranges between $10K-$150, depending on complexity, region, and team type.

Complexity drives prices. The higher the complexity, the higher the prices will be.

Major spend areas for an MVP are design, frontend/backend, integrations, and QA

Team and location size matter in terms of MVP development cost.

It is possible to save costs by focusing on core features, cross-platform builds, and outsourcing.

Around 90% of startups fail. However, while every startup has a culmination of unique reasons behind the failure, a decent chunk cites issues related to finances, such as:

  • 44% of startups fail because they run out of cash
  • 38% closure occurs due to funding or budgeting mistakes
  • 16% failure happens because of cash flow problems or other financial issues
  • 47% struggle due to a lack of financing and investors

Believe it or not, each of these failures could have been avoided to a larger degree by understanding the MVP development cost. The MVP development process and the costs associated with it familiarize you with what’s to come in terms of financial expenditure. It prompts you to budget your development at an earlier stage and provides a segue to gain investment from investors. Additionally, paying for feature integration beforehand prepares you for full-blown development and provides a roadmap as to how much funding is required for further scaling.

But we do understand that finding the right resource to gain an initial understanding of this pathway can be tough. In fact, the internet is booming with varied prices. And, while some may claim that MVP pricing starts from $15,000, others might quote a lower price. On the flipside, some websites are claiming the upper cap to be as high as a million or maybe more, which doesn’t make sense.

However, the reality behind understanding the cost to build an MVP is that everything is true, and none of it is. For instance, based on our per-hour prices, the MVP cost can typically range between $10K-$50 for a market testable product. Why? Because the prices change based on factors like region, expertise required, complexity of the project, etc.

But to truly understand the minimum viable product cost for your product, you need to understand the surrounding nuances. And that’s why we’ve created this article. So, let’s begin!

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What Is an MVP & Why Understanding Its Cost Matters Strategically?

We have already discussed what an MVP is in our article, “How to build an MVP?” However, just for the sake of clarity, in simpler terms, it can be defined as:

“An MVP (Minimum Viable Product) is the simplest working version of your product idea that solves the main problem, showcases core value, and gets feedback before committing to a full build.”

A strategic advantage of minimum viable product development is that it provides something to show to investors, raising potential funds. However, there is more to the story.

The MVP development process acts as an MVP cost estimator. How? Well, it familiarizes entrepreneurs with the kind of money required to build a product, the avenues it gets spent on, and where to bet the money first, in terms of features. In fact, MVP app development is less about a cheaper build and more about strategic value. 

Putting a nail on the thought, here is a table that showcases the strategic value of assessing the cost to build an MVP:

Strategic ValueWhy It MattersExample Impact
Budget AlignmentEnsures development stays within financial limitsAvoids overspending early and secures investor trust
Feature PrioritizationHelps focus on core features firstFaster launch with essential functionality
Risk ReductionIdentifies potential financial bottlenecks earlyPrevents project delays or abandonment
Investor ConfidenceA clear cost breakdown builds credibilityEasier to attract funding or stakeholder buy-in
Scalability PlanningHelps forecast future costs beyond MVPSmooth transition to full product development

MVP Cost Range Based on Complexity

The majority of firms that work on MVP product development divide MVP pricing based on three tiers of complexity, i.e., Basic, Moderate, and Complex. Since each of these complexities deals with different levels of feature integration, as per the context, they can be defined as:

MVP TypeFeature IntegrationExamples
BasicCore features only, minimal UI, few/no integrations.Simple task app, landing page with signup.
ModerateCore + secondary features, 2–3 API integrations, smoother UX.Food delivery MVP with payments & tracking.
ComplexAdvanced features, multiple integrations (payments, AI, analytics, real-time), scalable infra.Marketplace app, SaaS with dashboards.

It is advisable to keep the feature integration to the base minimum to avoid any unnecessary MVP cost.

However, to deliver optimal performance of your product, in this competitive market, it becomes essential for some entrepreneurs or startups to get a complex MVP developed.

If we talk about the prices, the universal price range for minimum viable product development for these varying complexities would range between, with time estimates and real-world examples:

MVP TypePrice Range (USD)Time-to-BuildReal-World Examples
Basic$15,000 – $25,0004 – 8 weeksAirbnb – a simple website renting a founder’s apartment
Moderate$25,000 – $50,0002 – 4 monthsUber – MVP with ride-booking + payments
Complex$50,000 – $150,000+4 – 9 monthsSpotify – streaming app with licensing, playlists, and discovery features

MVP Development Cost Breakdown by Stage

The majority of MVP development services use a milestone-based model to charge their clients. Based on it, the client needs to pay out a particular sum of money at the end of each stage. So, here are the estimated universal MVP software development price ranges for different stages:

1. Research & Validation

ComplexityPrice Range (USD)
Basic MVP$1k – $2k
Moderate MVP$2k – $5k
Complex MVP$5k – $10k

2. Design (UI/UX)

ComplexityPrice Range (USD)
Basic MVP$2k – $4k
Moderate MVP$5k – $8k
Complex MVP$10k – $20k

3. Frontend Development

ComplexityPrice Range (USD)
Basic MVP$3k – $6k
Moderate MVP$8k – $15k
Complex MVP$20k – $40k

4. Backend Development

ComplexityPrice Range (USD)
Basic MVP$3k – $6k
Moderate MVP$8k – $15k
Complex MVP$20k – $40k

5. Integrations (APIs, Auth, Payments, etc.)

ComplexityPrice Range (USD)
Basic MVP$1k – $3k
Moderate MVP$3k – $6k
Complex MVP$8k – $20k

6. QA & Testing

ComplexityPrice Range (USD)
Basic MVP$1k – $2k
Moderate MVP$3k – $5k
Complex MVP$10k – $20k

7. Deployment & App Store Launch

ComplexityPrice Range (USD)
Basic MVP$1k – $2k
Moderate MVP$2k – $4k
Complex MVP$5k – $10k

8. Post-launch Maintenance & Marketing

ComplexityPrice Range (USD)
Basic MVP$3k – $5k
Moderate MVP$5k – $10k
Complex MVP$15k – $30k+

Team Models & Regional Impact on Cost to Build an MVP

For minimum viable product software development, there are routes that can be chosen in terms of team structures, such as:

  • Freelancers – Offers cost-effective solutions with flexibility, and are ideal for small/basic MVPs
  • MVP Outsourcing Agencies – Specialized agencies overseas, capable of delivering solutions for startups, with faster delivery and full-cycle support
  • Local Agency – Similar to outsourcing agencies but local, delivers advantages like easier communication, cultural fit, etc.
  • In-House Team – Delivers full control, deep product knowledge, and long-term scalability.

Now, let’s look at a generic price structure for hiring each of these different teams:

Team TypeEstimated MVP Cost (USD)
Freelancers$10,000 – $20,000
MVP Outsourcing Agencies$20,000 – $50,000
Local Agency$40,000 – $100,000
In-House Team$100,000 – $300,000+ (salaries, infra, overhead)

Now, while each of these team structures may sound enticing to different entrepreneurs and startups with different product ideas, they struggle with their own issues, too. For example:

  • Freelancers don’t always have access to all the necessary paid tools. And, it is difficult to form and moderate a team of freelancers.
  • Communication, cultural values, ethical values, etc., differ in outsourcing as these companies are from different geographies of the world.
  • Local agencies are great; however, if you belong to a country like the USA, UK, etc., then the MVP cost can be really high.
  • In-house teams are expensive to manage, and they often need to be vetted initially.

So, choosing a team structure is not only dependent on MVP app cost, but also on taking note of all the possible advantages and disadvantages that may occur during product development. 

In fact, this is the reason most people choose outsourcing agencies, as they are relatively affordable, have all the necessary tools, are experienced with complex projects, etc. However, there is more than one country where you can find a credible MVP development company. So, let’s explore further:

MVP development hourly rate comparison by country: USA, UK, India, and more

1. India (🇮🇳)

Known for: Delivers cost-effective outsourcing with a massive IT talent pool.

Company SizeAvg. Hourly Rate (USD)
Small Agency (10–50 employees)$20 – $25
Mid-sized Agency (50–200 employees)$25 – $35
Large Agency (200+ employees)$30 – $40

2. Ukraine (🇺🇦)

Known for: Skilled engineers, strong startup culture, and European standards.

Company SizeAvg. Hourly Rate (USD)
Small Agency (10–50 employees)$30 – $40
Mid-sized Agency (50–200 employees)$40 – $50
Large Agency (200+ employees)$50 – $60

3. Poland (🇵🇱)

Known for: Offers EU compliance with high-quality code and reliable delivery.

Company SizeAvg. Hourly Rate (USD)
Small Agency (10–50 employees)$35 – $45
Mid-sized Agency (50–200 employees)$45 – $55
Large Agency (200+ employees)$55 – $65

4. Brazil (🇧🇷)

Known for: Strong nearshore option for countries like the US, delivering cultural fit and a growing talent base.

Company SizeAvg. Hourly Rate (USD)
Small Agency (10–50 employees)$30 – $40
Mid-sized Agency (50–200 employees)$40 – $50
Large Agency (200+ employees)$50 – $55

5. Vietnam (🇻🇳)

Known for: Affordable, disciplined workforce, and a growing outsourcing hub.

Company SizeAvg. Hourly Rate (USD)
Small Agency (10–50 employees)$20 – $25
Mid-sized Agency (50–200 employees)$25 – $35
Large Agency (200+ employees)$35 – $45

6. USA (🇺🇸)

Known for: Premium expertise, innovation, and advanced product strategy.

Company SizeAvg. Hourly Rate (USD)
Small Agency (10–50 employees)$100 – $130
Mid-sized Agency (50–200 employees)$130 – $160
Large Agency (200+ employees)$160 – $200+

6. UK (🇬🇧)

Known for: Strong design focus + top agencies + product strategy expertise

Company SizeAvg. Hourly Rate (USD)
Small Agency (10–50 employees)$60 – $75
Mid-sized Agency (50–200 employees)$75 – $90
Large Agency (200+ employees)$90 – $100+

MVP Development Cost Estimation Based on Platform Choice: Web vs Mobile vs Cross-Platform

When it comes to MVP product development, the bifurcation is done based on three platform choices,i.e., Web vs Mobile vs Cross-Platform.

  1. MVP Web Development: In this case, the MVP is developed to run on browsers like Opera, Safari, Chrome, etc. The main advantage here is that these MVPs don’t require any installation, and the users can directly run them on a compatible browser. 
  2. MVP Mobile Development: These are native MVPs developed for the two most popular mobile OSs, which are Android and iOS. MVPs developed natively have their own unique codebase. The main advantages of developing native MVPs are: they are faster, better performers, and can take advantage of device features.
  3. MVP Cross-Platform Development: As opposed to native development, MVPs developed in this category share a single code base. It is a popular choice today as it offers cost-effective development and saves time with a slight performance trade-off.

MVP Estimated Cost – Based on Platform Choice (Table):

PlatformBasic MVPModerate MVPComplex MVP
Web App$10,000 – $20,000$20,000 – $40,000$40,000 – $80,000
Mobile App (Native iOS/Android)$15,000 – $25,000 (per platform)$30,000 – $60,000 (per platform)$60,000 – $120,000+ (per platform)
Cross-Platform (Flutter / React Native)$15,000 – $25,000$25,000 – $50,000$50,000 – $100,000+

Things to Note:

  • Web MVPs are the cheapest and fastest to launch
  • Native mobile MVPs are expensive because they usually need two teams (iOS + Android)
  • Cross-platform can offer up to 30-40% of cost and time saving, in comparison to native apps

Cost to Build an MVP – NewAgeSys (@25$-$49 per hour)

NewAgeSys is a U.S.-based outsourcing development company. Throughout our 25+ years of experience, we have worked on numerous projects, including MVPs. Our portfolio covers a range of applications from different industries like healthcare, transportation, social networking, entertainment, and real estate. 

Additionally, we are capable of handling different technologies along with the platform choices made by our clients. 

And, we are able to deliver all this at an affordable price range of $25-$49 per hour despite being a company from the U.S.. How? Well, we have created multiple offshore development centers that allow us to keep our quality to the max while keeping our cost to a minimum. 

Now, to help you get an estimate on the development of your MVP idea as per our price range, you can use our MVP cost estimator. In actuality, it is an app cost calculator, but it’ll work the same. And, if you want to have a look at our pricing, in a general sense, here are a few tables:

NewAgeSys MVP Cost by Complexity:

ComplexityAvg FeaturesAvg Dev HoursEst. Cost Range
Basic5–8~300–500 hrs$7,500 – $24,500
Moderate8–15~600–1,000 hrs$15,000 – $49,000
Complex15+1,200–2,000+ hrs$30,000 – $98,000
(Prices include dev, design, QA, launch, and 10–20% contingency)

NewAgeSys MVP Cost by Platform Choice:

Platform ChoiceComplexity FactorEst. Cost Range
Web Only×1.0$7,500 – $49,000
Cross-Platform (Flutter/React Native)×1.1–1.2$8,500 – $59,000
Native (iOS or Android)×1.5$11,000 – $73,500
Native Both (iOS + Android)×1.8–2.0$13,500 – $98,000

Also, if you want to add more features, then you can use the following formula:

Feature Cost = (Dev Hours * Hourly Rate) + (Design Hours * Hourly Rate) + (QA Hours * Hourly Rate) + (Contingency (10–20%)

Get a custom quotation for your MVP idea. Connect with our team!

Mini Case Studies – Mock Estimation of MVP Development Cost

Screening through the generic MVP cost is great for a surface-level understanding. However, one can not truly understand the breakdown without personally going through the minimum viable product app development process and paying out of pocket. 

We can not provide the aforementioned experience through this article. But what we can do is offer you a price break-up of several mock case studies. They’ll provide a wholesome idea on MVP product development and the MVP cost related to it.

Note: The mock products mentioned in the case studies below are priced between $25-$49 per hour.

Case Study 1: Simple Mobile App MVP ($25K – $35K)

Scenario: A wellness coach needs a basic mobile app. So, the app should have the following features: registering users, tracking daily meditation minutes, and delivering motivational notifications to clients.

Core Features:

  • User login & profiles
  • Meditation timer
  • Push notifications
  • Basic analytics dashboard

Cost Breakdown:

Design (UI/UX)$3,000-$5,000
Development$15,000-$22,000
QA & Testing$2,000-$4,000
Deployment & Maintenance$5,000
Total MVP Cost: Around $25K – $35K

Case Study 2: Marketplace MVP ($70K – $85K)

Scenario: A founder needs an MVP to test a niche marketplace specific to eco-friendly home products.

Core Features:

  • Vendor onboarding & product listing
  • Search & filtering
  • Shopping cart & checkout
  • Payment integration
  • Order tracking
  • Admin panel

Cost Breakdown:

Design$8,000-$12,000
Development$45,000-$55,000
Integrations (payments, shipping APIs)$7,000-$10,000
QA & Testing$5,000-$8,000
Deployment & Maintenance$7,000-$10,000
Total MVP Cost: Around $70K – $85K

Case Study 3: SaaS Productivity Tool MVP ($40K – $55K)

Scenario: A startup team wants a lightweight SaaS tool for remote collaboration.

Core Features:

  • Team signup & workspaces
  • Task creation & assignments
  • File uploads
  • Real-time notifications
  • Basic reporting dashboard

Cost Breakdown:

Design$6,000-$8,000
Development$25,000-$35,000
QA & Testing$3,000-$5,000
Deployment & Maintenance$6,000-$7,000
Total MVP Cost: Around $40K – $55K

Cost Reduction Strategies for MVP Development

For better understanding, we have divided these strategies into three segments, i.e., high, medium, and low impact. Let’s go through them, one by one:

High Impact (Major Cost Savings):

  • Prioritize Core Features – Eliminate all the unnecessary features. This would enable you to save between 30% and 40% of the budget.
  • Choose Cross-Platform Development – One codebase for iOS + Android, meaning it would cut dev cost by ~40%
  • Outsource Smartly – Hiring from regions with lower rates ($25–40/hr vs $80–150/hr) can halve costs.
  • Leverage Open-Source Tools – Avoids reinventing the features. Instead, use open-source tools to reduce dev hours significantly.

Medium Impact (Moderate Savings):

  • Start with Low-Fidelity Prototypes – Prevents wasted coding on poor UX and saves between 10–15% of the budget.
  • Cloud & Third-Party Services – Using Firebase/AWS for auth, storage, analytics cuts infra & setup cost.s
  • Adopt Agile Iterations – Reduces rework and ensures that the money is spent on validated features only.

Low Impact (Helpful, but Smaller Savings):

  • Automate Testing Early – Saves hours for QA long-term, but the initial setup does require investment.
  • Hire a Lean Team – Keep the staff size small. This avoids overhead costs early on but might increase time-to-market
  • Limit Integrations Initially – Minor savings early. However, bigger savings in the maintenance phase.

End Note!

Having a product idea and realizing it as an entity that exists in the world, helping people, are two different things. In fact, in your route to develop a product, getting an MVP developed and managing its cost are two pedestals that most entrepreneurs or startups are required to overcome. And, if one has access to a definitive guide on MVP cost that shares estimates, rationales, and nuances around it, then the route becomes easier.

With this article on MVP development cost, our aim was to deliver the same. We hope that after going through the article, you may have gotten a decent idea of the MVP app development cost breakup. Additionally, if you need an experienced partner to develop your MVP, then NewAgeSys is more than willing to share its experience and help you with development. In the end, we hope that if you have read till here, then we have been able to deliver something valuable in exchange for your time.

FAQs:

1. What is the cost associated with MVP software development?

The cost of MVP software development is the same as the cost of developing an app. For basic projects, your MVP development could range between $10,000-$50,000. However, if you want advanced features in your MVP, then the budget can exceed $100,000.

2. What is the MVP app development cost?

The cost to develop an MVP for an app typically ranges between $15,000-$25,000. 

However, it’s important to note that if you wish to build a cross-platform or feature-rich MVP, the cost can exceed $40,000, and in some cases, even $150,000.

3. What are the factors that affect MVP product development cost?

Here are a few factors that impact MVP product development cost directly:

  • Number of features integrated in the MVP product
  • Technology stack chosen
  • Team rates
  • Timeline and design requirements

4. Is MVP web development cheaper than app development?

Yes, in most cases, MVP web development is way cheaper than app development. 

To extrapolate, a simple MVP for a web app can cost between $5,000-$20,000, while a complex one can reach $50,000+.

5. What is minimum viable product software development?

Minimum viable product software development is building a software version with only the core features from a business idea validation perspective.

6. How much does a minimum viable product app development cost?

The cost of minimum viable product app development often ranges between $15,000 and $50,000. However, know this that the pricing can vary based on whether you’re developing native apps (iOS/Android) or using cross-platform frameworks.

7. What is the ideal catalog of minimum viable product development services delivered by a company?

Minimum viable product development services’ catalog typically includes:

  • Product discovery workshops
  • UX/UI design for the MVP
  • MVP software or app development
  • Testing & QA
  • Post-launch support

8. When should I take the route of minimum viable product development consulting?

Consultants for MVP product development are hired in scenarios where the MVP scope needs to be defined, the cost needs to be estimated, or a go-to-market strategy needs to be developed. 

In most cases, the consulting fees can range between $1,000-$5,000 for strategy sessions.

9. Why choose a minimum viable product development company over freelancers?

Hiring a minimum viable product development company provides:

  • Full-stack expertise (design, development, QA, PM)
  • Faster delivery with established processes
  • Ongoing support and scalability

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