How Much Does it Cost to Build an MVP (Minimum Viable Product)?

Ever hesitated to start a big idea because you were not sure it would work? That is where a Minimum Viable Product (MVP) comes in. It lets you test the waters before going all in. MVP software development involves building a simple version of your product, testing it with real users, and refining it based on feedback before scaling up.

However, understanding the MVP development cost is your priority before turning your vision into reality. How much does it take it launch a minimum version of your product?

This blog explores the minimum viable product cost, key factors, and smart tips to help you move forward with confidence.

What Determines the MVP Software Development Cost?

Every team or developer delivers different minimum viable product cost estimates, even if you describe the projects in the exact same way. This is due to the following factors involved in MVP software development. Let’s discuss them in detail:

Feature Scope

The biggest driver of MVP development cost is the feature scope. A simple MVP keeps it basic, like a landing page where users can sign up for updates. It is perfect for testing your idea and costs less because it’s light on features. This MVP also takes 2 to 4 months to build. On the other hand, a medium-complexity MVP adds more, like extra tools or smoother navigation, to improve the user experience. This takes 3 to 6 months and bumps up the price.

Additionally, there is the high-complexity MVP, which includes advanced features like AI recommendations or analytics for a personalized feel. This type of MVP takes 6 to 12 months and costs the most. So, the more features you pack in, the higher the MVP development cost.

Design Needs

How your MVP looks and feels also plays a big role in MVP development cost. A good user interface (UI) and user experience (UX) keep people interested and coming back. UI includes visuals like logos, colors, fonts, wireframes, responsive layouts for phones or laptops, and meeting accessibility rules. Whereas, UX covers researching users, planning navigation, testing usability, and adding smooth interactions or animations.

Simple design needs, like a basic and clean look, cost less. But if you want something fancier, like custom branding or complex animations, the minimum viable product cost goes up. In short, the more effort you put into making your MVP pretty and user-friendly, the more you will spend.

Team Type

Another factor determining the minimum viable product cost is your team type. An in-house, like a full-time developer and designer you hire, gives you control and quick changes, but costs the most. Their salaries, benefits, and office space add up to the MVP development cost. Moreover, outsourcing to a development agency is cheaper and brings skilled pros who know their stuff. However, it takes time to find a good agency.

Then there are freelancers, the budget-friendly pick. They take hourly or per-project payment. However, managing them can be tricky, and quality depends on who you hire. Each option has trade-offs. What matters is your choice to set the budget.

Tech Stack

The tech stack, like the tools and programming languages used to build your MVP, can change the cost big time. It is all about picking what fits your project. Simple, free tools like basic frameworks keep costs low and are easy to maintain. These are perfect for a small MVP.

But if you need something that grows fast or handles lots of users, you might pick fancier tech, like advanced languages or paid platforms. This also increases the minimum viable product cost.

The trick is matching the tech to what your team knows and your goals down the road. If your crew’s already good with a tool, it saves time and money. However, if you opt for a complex MVP, you will have to pay more for experts or extra setup.

How Much Can You Expect to Pay?

The MVP software development cost depends on what you are building. A basic MVP, like a landing page with a sign-up feature, costs $5,000 to $15,000. On the other hand, a mid-tier MVP, with features like user logins and payments, costs $20,000 to $50,000. The best example of this type of MVP is a polished eCommerce platform. For advanced MVPs, with chat support or custom dashboards, the cost ranges from $50,000 to $100,000.

Location matters too. In the US, the MVP development cost ranges from $50-$150 an hour, while in places like India, it is $20-$50 an hour. Therefore, costs shift based on complexity and where your team is based. 

Breaking Down the Expenses

Understanding the minimum viable product cost means looking at where the money goes. MVP software development splits into three phases:

• Pre-Development Phase: This phase includes market research ($1,000-$15,000), prototyping ($500-$5,000), and design ($1,000-$15,000). The minimum viable product cost during this phase totals $2,500-$30,000.

• Development Phase: This is the big phase and includes front-end development ($5,000-$30,000), backend development ($5,000-$40,000), database ($1,000-$10,000), integrations ($1,000-$20,000), and testing ($2,000-$15,000). The Minimum Viable Product cost during this phase ranges from $14,000-$115,000, depending on complexity.

• Post-Development Phase: This phase includes launching ($1,000-$5,000), marketing ($2,000-$20,000), and upkeep ($500-$5,000), and adds $3,500-$30,000.

Therefore, the average MVP development cost ranges from $10,000-$50,000, and covers planning, building, and launching. Hidden costs like extra features or fixes can sneak in too. 

Tips to Keep Costs Down

You can save smartly on your MVP development cost by following these tips:

• Start by prioritizing just the must-have features for MVP software development.

• Work with your team to focus on what tests your idea best.

• Go lean with design. Skip flashy extras for a simple, clear look that still works great.

• Use free open-source tools, like libraries or databases, instead of pricey custom ones.

• Consider offshore developers in places like Eastern Europe or South Asia.

• Lock in a fixed-price deal once your plan’s set for predictable costs with no surprises.

Conclusion

Determining the exact MVP development cost can be tricky since factors like project complexity, team expertise, and technical needs all play a role. This guide has broken down the costs, including hidden expenses, and shared tips to keep your budget in check.