How Much Does It Cost to Develop a Web Application

There is no exact cost to build a web application. The web and software development industry does not work like that, and the final cost for your particular project will be individual for you. Because every client has unique requirements, it is impossible to predict how to make an app using a unified template.

However, in this article, we will still give you an idea of the main cost-forming factors and how much does it cost to build a web application. At OS-System, we have developed web solutions for over 15 years. Whether you are a startup owner or enterprise CEO, this article will help you to get an insight into how much does it cost to develop a web app how to calculate web application development for your business.

What is a web application?

Web app is a software that works within the browsers and is delivered to the users via the Internet. Web applications are sometimes contrasted with native apps and hybrid apps.

Examples of web applications:

• Google Docs – a cloud-based document editor.
• Gmail – a web-based email service.
• Facebook – a social media platform accessible via a web browser.
• Trello – a project management tool.
• Netflix – a streaming service available through a web interface.

Unlike traditional desktop applications, which require installation on a user’s device, web applications operate on remote servers and are accessed through a web interface.

Key factors of web app development pricing

The only way to determine the final cost of web application development is to get in contact with a development company that will provide you with an exact price. However, there is a certain way you can calculate it yourself. To calculate the cost of developing a web application, you need to define the following aspects:

1. Who is your team? Evaluate what kind of services you will require to get your product to the final look. Apart from the development services, you might require UI/UX design, business analysis, project management, quality assurance services, etc.
2. Based on your required team, determine the optimal rates depending on the budget. The cost of the services may vary on the contractor, so you need to have one or several development partners in mind to evaluate the price of the required services.

Here’s an exhaustive break-out of the primary elements that determine the web app development cost.

Project Complexity and Functionality

The complexity of a web application largely makes a difference with respect to the development cost. Web applications are put into three main categories:

• Basic Web Applications ($5,000 – $20,000). Simple websites that have static pages of contact forms and very small amounts of interactive behavior. Examples are small business websites and basic blogs.
• Average Complexity Web Application ($20,000 – $80,000). These apps include dynamic user behaviors, databases, dashboards, integrations with authentication, and third-party APIs. Third-party API may include customer ports, SaaS sites, and various marketplace applications.
• Enterprise-Level Web Applications ($80,000 – $500,000+). Such applications are extremely complex and have to include custom back-end development, real-time processing, enterprise-level security, AI-powered features, or the microservices architecture of banking applications, healthcare management systems, and ERP solutions.

Higher costs are attributed to the application in terms of feature complexity, like AI-driven recommendations, real-time collaboration, or blockchain-based transactions.

Design and User Experience (UI/UX)

A high-quality user experience encompasses stages of research, prototyping, usability testing, and visual design. The price of UI/UX design depends on the customization level: 

• Basic UI/UX Design ($2,000 – $10,000). The pre-designed templates with minor adjustments. Good for simple applications and basic structures.
• Custom UI/UX design ($10,000 – $50,000). This includes tailored and proprietary designs based on interactive elements, animations, and extensive user journey mapping. Custom UI/UX is mandatory for web applications that have the intent to prioritize user engagement, especially those that involve e-commerce or SaaS.

Further costs are related to responsive design for mobile devices, accessibility compliance, such as WCAG, and a variety of A/B testing to make the most of these interactions.

Technology Stack and Development Approach

The choice of programming languages, frameworks, and infrastructure plays a big role in web application development cost estimation:

• Frontend technologies. Angular, React.js or Vue.js ($10,000 – $50,000 on the frontend). React is mainly designed for scalable applications, while Vue.js is lightweight.
• Backend technologies. Node.js, Django, Ruby on Rails, or .NET ($15,000 – $80,000+ in backend development). Node.js is cheap for real-time applications, while Django is ideal for security in data-sensitive applications.
• Database and hosting. PostgreSQL, MySQL, Firebase, or AWS DynamoDB ($5,000 – $30,000). The choice between SQL and NoSQL databases affects long-term scalability and performance costs.
• Cloud hosting. AWS, Google Cloud, or Azure ($500 – $10,000 annually, depending on traffic and storage needs). Cloud infrastructure that can scale with your application is important.

By the way, JavaScript is one of the most popular programming languages and one of the best quality/rate solutions for web application development. JavaScript is the best solution whether you develop a healthcare web platform or eCommerce website. The average salary for JavaScript software developers is lower compared to the other most popular programming languages, which is one of the biggest cost-forming factors in the software development industry in general.

Location and Rates of the Development Team

The cost for developers to be hired depends on the geographical location as follows:

• North America & Western Europe. $100 – $250 per hour. The most expensive. This option is great for large enterprise collaboration.
• Eastern Europe. $40 – $100 per hour. The perfect cost-effective way to outsource to highly experienced countries such as Ukraine and Poland.
• Asia & Latin America. $20 – $70 per hour. Least expensive with broad ranges of skill levels.

Of course, a full-cycle development team with project managers, UI/UX designers, and QA testers will be way more expensive than any freelance services.

Third-Party Integrations and APIs

Web application integration with third-party services increases the cost of development:

• Payment processing (Stripe, PayPal, Braintree). Integration will cost between $5,000 – $15,000, and add transaction fees (2.9% + $0.30 per transaction).
• CRM & ERP systems (Salesforce, HubSpot, SAP). Full integration with a web app will cost $10,000 – $50,000.
• Analytics and Monitoring (Google Analytics, Mixpanel, Datadog). This costs $2,000 – $10,000, depending on data tracking needs.
• AI and ML (Chatbots, Recommendation Engines). $20,000 – $100,000 for AI-powered functionalities.

Each integration takes up more development time, testing, and licensing fees.

Security and Compliance

Applications that have sensitive information should comply with the security standards that increase the development cost:

• Basic security ($3,000 – $10,000). SSL encryption, firewall protection, basic authentication (email/password).
• Advanced security ($15,000 – $50,000). MFA, end-to-end encryption, intrusion detection systems, and compliance with the GDPR, HIPAA, or PCI DSS.
• Enterprise security ($50,000 – $200,000+). Biometric authentication, blockchain for data integrity, security audits, and continuous monitoring.

Additional development and legal costs for regulatory compliance, like SOC 2, HIPAA, or ISO 27001, can also increase the cost of developing a web application.

Custom web application development cost: in-house or outsourced team?

Oftentimes, there are two main choices for entrepreneurs who are looking forward to starting the development of their web product or service:

• Outsource the development process to another country
• Hire an in-house team of web developers

Of course, there is always a third option: hiring a freelancer for development services. However, if you are going to develop a complex product that will require all the processes to be well-established, we do not recommend freelance developers.

Hiring an in-house team

Hiring an in-house team of developers is the most obvious option that comes to mind. It is easier to manage a team of professionals who are located and managed by your company.

However, with the average salary of developers in the US and Europe and the additional cost of workplace arrangements, it is the most expensive option for business entrepreneurs. Especially if your web application idea is a startup project and you have a lot of other important things to invest your budget in to guarantee the success of the company.

To put it simply, in-house teams work great for big companies and enterprises, where internal communication between departments is essential. But if your budget is limited, that is not the best option for you.

Outsourced web application development

Outsourcing is a go-to solution for SMBs and startup entrepreneurs. You can save greatly on the hiring process while getting a high-quality final product. Of course, there are always certain risks for outsourcing unless you know how to avoid them and how to find the most reliable outsourced contractor for your particular business.

Pricing models for web app development

OS-System provides flexible pricing models that best fit different project needs. Here are the key models we operate under, each suited for certain development scenarios.

Fixed-Price Model

This model is suitable for projects with clear requirements, timelines, and budgets. It’s a one-time payment for a well-defined scope of work. Cost predictability and relatively little risk are involved for the customer. It’s not very flexible in case frequent changes are needed. 

Well-suited for small-to-medium-sized applications and MVPs and projects where specifications are well-defined.

Time & Material Model

The model allows flexibility to the clients by billing them for the actual time spent and resources used. It is suitable for progressive project development in which requirements may evolve over a period of time. Its main advantage is adaptability, allowing iterative improvements. The final cost to build a web app can go higher than expected due to extended timelines for development.

Suitable for long-term projects, startups still refining their product, or applications requiring continuous updates.

Dedicated Team Model

A dedicated team is a full-time team of developers, designers, and project managers who work on a client’s project exclusively. It offers deep collaboration, high scalability, and full control over the development. Higher ongoing costs are sometimes a drawback but ensure faster delivery and consistency.

Best for complex enterprise applications, large projects, and companies that need a long-term development partner.

How much does it cost to develop a web application?

We at OS-System provide detailed cost analysis and consultations to help businesses choose the right web application development approach based on their budget and goals.

Simple web apps

The first and most straightforward solution is to start your product from a landing page, which is usually an MVP for most web applications at the earliest stage of development. This will mainly consist of the list of services, sign-up form, and general information about the product or service. Generally, the price for such services may vary from $2,000 to $10,000.

Medium web applications

If you want to develop a SaaS platform, the rough and approximate estimation is harder to give because the final price strongly depends on the required functionality of the app. SaaS platform development from scratch may vary between $35,000 for an MVP version and around $100,000 for a full-featured application.

Complex web applications

For ERP systems, the main estimation approach is similar to that of SaaS platforms. The final fixed price for the product development highly depends on the evaluated required features to be implemented and the scope of work in general. A minimum viable product for an ERP may cost around $20,000. When it comes to a fully functional ERP system, there is no upper limit for the development services price, and it can even go beyond millions of dollars. However, for medium-sized companies, the general price tag starts from around $80,000.

As for marketplaces, all of them mostly have similar functionality. The cost for such a product will be between $30,000 for an MVP and $120,000 for the full version.

Tips to save your budget

The reduction of costs with no compromise on quality in web application development is very important. The following are the key ways to save your money with a successful project:

• Select the right development model. Selection of an appropriate pricing model will help avoid overpayment for unnecessary services: either a fixed price for a small project or a Time & Material price for projects that require more flexibility.
• Focus on must-haves. Start with an MVP that includes only core features. Without feature creep, the budget is lean, and the time-to-market is faster.
• Leverage prebuilt solutions. Using ready frameworks, templates, and third-party integrations will significantly cut development costs compared to building everything from scratch.
• Outsource to an affordable team. Recruiting a dedicated development team in a region with competitive prices, such as OS-System in Eastern Europe, can help reduce expenses while not compromising on quality.

We recommend you invest in scalable architecture upfront and avoid very expensive reworks later on. Then, the answer to the question of “How much does it cost to build a web app?” will not sound too scary for you. A well-thought-out plan of architecture makes scaling smooth and devoid of unexpected expenses.

Conclusion

When planning the development of a web application, it is important to define the most suitable engagement model for your business. Mainly, there are two top engagement models: Fixed Price and Time & Materials.

A fixed price is an option for small projects with defined requirements that cannot be changed. If you want to have a flexible development flow, consider choosing time & material. The Time & Materials engagement model is a better solution when the quality of the final product is the main priority, and you have enough resources to maintain it.

So, how much does it cost to develop a web application? There are a lot of factors that can hugely affect the final cost of the web application development for your business. The clearest decision regarding web application development cost estimation is to get in touch with a software development company.