How Much Does It Cost to Develop a WebApp? (Full Breakdown)

Recently, we developed a web application for a client in the US real estate industry. At the project’s start, the client popped the classic question: “How much will it cost to build this web app?” Instead of giving a straight answer, I hit back with a question of my own: “How much does it cost to build a house?”

The client chuckled and replied, “It depends. What kind of house do you want, how big, what materials, and where?” I nodded and explained, “Just like building a house, developing a web application depends on various factors.”

You see, estimating things we can touch or feel is straightforward because we can visualize the process. But when it comes to web application development, it’s a different ball game, especially if you’re not in the tech industry. Moreover, there are a thousand factors that can sway the cost of developing a web application.

In today’s article, we’re diving into the nitty-gritty of web application development costs. The goal? To demystify it for non-tech folks like you, so you can grasp the costs and make better decisions.

Types of Web Applications You Can Build 

As you know, web applications come in various types and sizes. Each type serves specific purposes and solves different user needs. Your goals and the needs of your business or service will determine the type of web app you need to build. To give you a basic understanding, here are some common types of Web applications you can develop. 

1. Single-page applications (SPA)

The first type I want to discuss is Single-page applications (SPA). From the name, you can guess that it consists of just one page. It dynamically updates the current web page with web server data without reloading the page. 

That’s why a single-page app without any external scripts and inline CSS can cost less than another type of web applications. A basic SPA can cost you  $90-$400 and will take 3 to 4 hours. But make no mistake of thinking it can’t be scaled up, based on the complexity of your web application requirements and complexity, it can cost between $1500 to $10,000 or even higher. 

Real-life example

• Gmail.
• Google Calendar.

2. Multi-page applications (MPA)

On the other hand, A multi-page app is a web application with many pages with different features on each page. The pages are hyperlinked with each other and give the user a connected feel. 

If your web application provides a lot of functionality and information (such as marketplaces, enterprise applications, news portals, eLearning sites, or online forums), MPA is suitable for you. The average cost will be $10,000 to $50,000 in the USA.

Real-life example

• Amazon
• Coursera
• eBay, etc.

3. Progressive web applications

Simply put, progressive web apps are applications that can run on multiple devices using a single codebase. It’s an interesting new way for developers to make apps that work in browsers and look like native apps. You can use PWA on any platform with a browser. So, you can call all PWAs web apps, but not all web apps PWAs. 

PWAs can be a game-changer if you want to use it for an e-commerce business or shopping app. It is also suitable for news, loyalty apps, social media, communications, etc.

Real-life example

• Starbucks
• Twitter Lite
• Uber
• Pinterest, etc.

Key Factors Influencing Web App Development Costs

You may have already realized that the final cost of a development project is heavily influenced by the type of application and its scope. Are there any other factors that contribute? Let’s discuss it!

Complexity of the Application

Complexity is one of the factors that influences the cost. As you know, there are three levels of complexity: Simple, Medium, and Complex. The more complex and advanced the features,  the higher the development costs required.

Let’s say you want to build a Simple Web App with basic features, minimalistic design, and functionalities like basic user interactions and simple navigation, which will cost you $3,000 – $10,000. 

If you want to build an application with more features (like User authentication, Payment processing, API integration, Database integration, etc. ) and custom design elements, it falls under the medium complexity project. Such a project will cost you $10,000 – $50,000. 

As for Complex web applications that are scalable with advanced features and complicated designs will cost you $50,000 – $500,000+. These types of web applications also need thorough testing and ongoing support.

Web App Complexity	Simple	Medium	Complex
Cost Range	$3,000 -$10,000	$10,000-$50,000	$50,000 – $500,000+
Features	Static contents,Contact forms	User authentication, Database integration, Payment processing, Content Management System (CMS)	Real-time updates, complex algorithms, extensive user interactivity.
Design	Minimalistic designs with pre-designed templates, limited customization	Custom design elements like tailored UI/UX, responsive design, etc.	Intricate Design: Custom graphics, animations, interactive elements
Integration	Basic user interactions, simple navigation	API integration, User accounts	Advanced architecture, Multiple third-party integrations
QA & Mantainace	N/A	N/A	Thorough testing and Ongoing support

The Technology Stack you choose 

Your choice of technology stack, such as programming languages, frameworks, and tools, will impact the cost of your web application. 

For example, you can go for LAMP Stack (Linux, Apache, MySQL, PHP) if you want something cost-effective and open-source. With MySQL as the database and Apache server, PHP frameworks such as Laravel or CodeIgniter can result in reasonable development expenses. LAMP Stack is going to cost you $10,000 – $30,000+.

On the other hand, MEAN/MERN Stack offers excellent scalability and flexibility by using JavaScript throughout the stack. MEAN/MERN Stack (MongoDB, Express.js, Angular/React, Node.js) is going $20,000 – $50,000+ depending on the scalability. 

As you know, there are many tech stakes you can use. I have discussed different tech stakes with their average cost in the following table.  

Tech Stack name	Includes	Benefit	Cost
LAMP Stack	Linux, Apache, MySQL, PHP	Cost-effectiveness, Customization options	$10,000 – $30,000
MEAN/MERN Stack	MongoDB, Express.js, Angular/React, Node.js	Excellent scalability, flexibility, and third-party support	$20,000 – $50,000
Django/Flask	Python	Require security and scalability	$15,000 – $40,000
Ruby on Rails	Ruby on Rails	Versatile and provides a standardized way to build web apps.	$20,000 – $40,000
ASP.NET	C#	Supports a wide range of frontend and backend frameworks.	$20,000 – $50,000

Your Hiring model

How you are hiring your developers is another important factor that influences the cost of your web application. There are many options you can choose from I will discuss the main four: In-house, Outsourcing, Hybrid, and Freelancer. 

In-House Development

In this model, you establish your own development team cosist of developers, designers, and other professionals to work on your web application. Undoubtedly, it is the costliest model of hiring but gives you many advantages, such as direct control, easy collaboration, and communication within the organization. 

Hiring one in-house developer in the USA can cost you from $60,000 – $100,000+. So, you probably have an idea that hiring the full team would cost you from half a million to one million each year, and that’s for a simple project. 

Experts recommend setting up an in-house team when you have a continuous source of revenue or good funding. Otherwise, you should go for other hiring models. 

Outsourcing to Development Agencies

What do people do when they don’t have a budget to build an internal development team? Well, in the business world there is a solution for every problem. There are companies that allow you to hire their in-house developers so you don’t have to build the team yourself.

You can outsource your development team or project to such agencies. Depending on the location of your development agency, the complexity and scope of the project, developing your web application can cost you between $5,000 and $500,000.

Keep in mind that you can hire developers with staff augmentation or you can opt for a custom project. If you have time and clearly understand your project, choosing staff augmentation would be a better option. It will be like having your own team in a different office.

Hybrid Development Team

Imagine you want to hire some devs to work in your office and others through an external agency. That’s called a hybrid hiring model.

Lately, this way of hiring has become really popular. Often, companies hire an offshore agency for the front-end development team and keep the backend development team in-house.

Take Technex, for example. We recently finished a travel agency web app project, bagging $8 million in funding. They decided to bring in our front-end team while handling the backend internally.

This hiring approach significantly cuts down on development costs while maintaining high-quality outcomes.

Freelancers

Freelancers are independent professionals who work remotely. You can hire Freelancers from different platforms. They often charge per hour or project.

The hiring cost of freelancers varies widely based on expertise, location, and project complexity. The average cost is $3,000 – $50,000+. There are lower rates available, but you may have to trade off quality and reliability.

Hiring model name	Cost	Benefit
In-House Development	$40,000 – $ 500,000+	Direct control, easy collaboration, and communication
Outsourcing to Development Agencies	$20,000 – $200,000+	Cost savings, scalability, and access to a global talent pool
Hybrid Development Team	$30,000 to $400,000+	Oversee important tasks while using external help for specific projects.
Freelancers	$3,000 – $50,000+	Specialized expertise,  flexibility, cost-effective

Your Development team location

Last but not least, where you want to hire your development team will always affect your web application development cost. For example, hiring a web developer from the North American region will cost you $80 on average. On the other hand,  hiring from the Asia region will cost you $30 on average. 

As you can see, web application development costs vary significantly based on location due to differences in hourly rates and overall living costs. Here’s a general breakdown based on geographical regions.

North America

North America is one of the world’s largest and most advanced economies. It comprises three major countries: the United States, Canada, and Mexico. 

You have to pay high hourly rates due to a higher cost of living, advanced expertise, and quality standards here. The cost range is  $50 – $250+ per hour.

Western Europe

Western Europe includes several countries, such as Germany, France, the United Kingdom, Italy, Spain, etc. This region is renowned for its rich cultural heritage, advanced economies,  complex history, and delicious cuisine. 

You have to pay $45- $200+ per hour because of this region’s highly skilled workforce, technological expertise, and strong commitment to quality.

Eastern Europe

The eastern part of the European continent, which includes countries like Russia, Poland, Ukraine, Hungary, etc, makes Eastern Europe. This region is known for its diverse cultures, rich history, and economic development.

Eastern Europe offers you slightly lower rates than Western Europe while maintaining quality and expertise. You can hire developers for $40 – $150+ per hour here. 

Asia

Asia is the largest and most populous continent on Earth. From Southeast Asian rainforests to the Himalayan mountain ranges, Asia has diverse cultures, languages, and landscapes.

Most of the world’s offshore software developers are located in Asia, a pioneer in the software outsourcing industry. Due to lower living costs, hourly rates are typically $25 – $80+, but quality and expertise can vary. 

Also, remember that Asia is the biggest continent in the world. So, one company in Singapur may cost way more than a company in Bangladesh. For example, software companies in Bangladesh usually cost $30 to $60 per hour, whereas if you want to hire from Singapur, you have to start from $60/hour.

South America

South America, also known as Latin America, includes countries like Brazil, Argentina, Colombia, Peru, etc. This region’s beauty, cultural heritage, and natural wonders contribute to its unique identity, making it fascinating.

South America is renowned for nearshore software development. You will find a balance between quality and cost in this region. The cost range is $35 – $100+ per hour.

Region name	Cost Range(per hour)
North America	$50 – $250+
Western Europe	$45- $200+
Eastern Europe	$40 – $150+
Asia	$25 – $80+
South America	$35 – $100+

Complete Breakdown of Web Application Development Cost with Real Example

We recently completed the development of an Online Job Portal, similar to indeed.com. The entire project was managed by Technext, covering end-to-end development. Now, I will provide you with a detailed breakdown of the project costs, before that you may read the case study.

Case Study: Sophisticated Online Job Portal Case Study

The client wanted to use a team for making the web app. First, we needed a designer, and later, three developers joined. The whole project took 8 months, with the designer working for 2 months and the developers started after 1.5 months. Let me break down each part for you:

1. Design Phase:
   • Role: Designer
     • One designer was hired offshore at a rate of $2000/month.
     • The designer worked for 2 months, focusing on crafting the user interface and user experience (UI/UX) design of the web application.
     • Cost: $2000/month * 2 months = $4000.
2. Development Phase:
   • Role: Senior Developer
     • One senior developer was hired offshore at a rate of $2500/month.
     • The senior developer led the algorithm design and backend development tasks, ensuring the robust functionality of the web application.
     • Worked for 6.5 months during the development phase.
     • Cost: $2500/month * 6.5 months = $16,250.
   • Role: Front End Developers
     • Two front-end developers were hired offshore at a rate of $2000/month each.
     • The front-end developers focused on implementing the visual elements and user interactions, shaping the web application’s front end.
     • Each worked for 6.5 months during the development phase.
     • Cost (per Front End Developer): $2000/month * 6.5 months = $13,000.
     • Total Cost for 2 Front End Developers: $13,000 * 2 = $26,000.
3. Total Web App Development Cost:
   • The total cost of the offshore development model, covering both the design and development phases, was the sum of the individual costs:
     • $4000 (Design) + $16,250 (Senior Developer) + $26,000 (Front End Developers) = $46,250.