How much does it cost to build an app? Uncovering the hidden costs of app development

When clients ask about building an app or website, the conversation often starts with the question: "How much will it cost?" While it's natural to focus on upfront development costs, this is only a part of the investment required to truly maximise ROI.

The expense of bringing a digital product to market extends beyond the initial build, and understanding these ongoing costs can help you to make more informed decisions and get more out of your digital project.

The iceberg effect: What lies beneath the surface?

One of the biggest misconceptions when it comes to mobile apps is treating it as a one-time project rather than an ongoing business asset. This mindset shift is critical in making sure an app remains relevant, secure and competitive, and you genuinely get a return on all you put in - both time and money.

Think of app development like an iceberg. The visible portion represents your initial build costs: the design, development and launch phase. But beyond the surface are ongoing expenses that many business owners don't anticipate.

User expectations evolve, operating systems update, security vulnerabilities emerge and competitors introduce new features. A successful app requires regular updates, bug fixes, performance improvements and feature enhancements. It’s in your best interest to consider this ongoing development work as part of your investment cost.

From subscriptions to marketing: have you factored in these costs?

For a mobile app, the technical infrastructure alone requires multiple subscription services. They require:

• Developer accounts with Apple and Google
• Annual fees for Expo Application Services (EAS is a platform for managing app builds), CI/CD and over the air updates
• Monitoring tools such as Sentry to help track issues and fix bugs
• Content management systems for updating the app's content
• Cloud storage for files and media
• Database hosting and potentially video streaming services

Each of these represents a monthly or annual recurring cost that adds up quickly, even before you factor in updates and maintenance.

Beyond ongoing subscription services, another overlooked area is marketing. At Voyage we've seen clients invest thousands into an app only to have no budget left for marketing. Marketing and advertising shouldn’t be considered optional spending but a fundamental way to gain meaningful traction. The right marketing strategy will attract users, generate downloads and build sustainable businesses.

For consumer-facing apps (B2C), the marketing investment is often the largest ongoing expense. Building a great app is only valuable if people can find and download it. This means developing comprehensive sales funnels, social media strategies, content marketing campaigns and potentially paid advertising across multiple channels.

The marketing investment for B2C apps is typically higher than B2B solutions, where word-of-mouth and industry relationships play a larger role. Consumer apps are often competing in crowded app stores where visibility requires consistent promotional efforts and advertising.

The undeniable value of continuous optimisation

If you read this and balk at the idea of ongoing overheads, it’s good to remember that even a smaller budget can go a long way. In fact, the most successful apps aren't necessarily those with the biggest budgets, they're the ones that continuously refine their user experience based on data and feedback. Small improvements can yield large gains. For example, optimising an onboarding flow might reduce user churn by 20%, while streamlining a subscription process could double conversion rates.

This approach requires the focus to be brought back from the app alone to consider analytics, user testing and iterative improvements. From this perspective, the support level you choose directly impacts the success of your app post launch date. Regular reviews of key user journeys, feature performance and conversion funnels can identify opportunities for significant improvements with relatively modest investments.

The value equation: Making the numbers work

Before committing to app development, we encourage clients to honestly assess what the upfront investment and measures of success are. This consideration goes beyond simple revenue projections and includes questions like:

• Will this app generate direct revenue through sales, subscriptions or brand reputation?
• How will it reduce costs or improve efficiency in your existing business?
• What is the customer lifetime value for users acquired through the app?
• How does the total cost of ownership compare to alternative solutions?

Where relevant, we also encourage clients to consider creating an ongoing budget that includes not just development costs, but recurring hosting, maintenance, marketing and improvement expenses.

A comprehensive view also helps you to evaluate whether an app aligns with your business goals and overheads. Sometimes, the honest answer is that a simpler web-based solution, integration with existing platforms, or partnering with established apps might deliver better ROI than building from scratch.

The bottom line: When done right, apps reap rewards

All in all, app development is a significant business investment that extends far beyond the initial build. Success requires treating an app as a product or business asset that needs attention beyond launch. By understanding the true costs upfront, you can make realistic plans for sustainable growth and avoid the common trap of launching an app without the resources needed to support its success over time.

The key is not just asking "Can we afford to build this?" but "Are we ready to invest in a powerful asset for our business?" When you can answer yes to both questions, you're ready to create something truly valuable.