The honest answer
A first version built by a professional team usually costs in the tens of thousands of dollars. Complex products pass six figures. A prototype you build yourself with AI or no-code tools can cost very little money and a lot of your time.
Those ranges are wide because the price depends far more on what the product has to do than on the fact that it is “an app”. Any quote that comes before someone has understood your product is a guess.
What makes the cost go up
- Number of user types. A product for customers, providers and administrators is three products that share data.
- Platforms. Web only, or web plus mobile apps for two app stores.
- Payments. Charging money brings rules, refunds, invoices and fraud.
- Real-time features. Chat, live updates and notifications.
- Connections to other systems. Each one has its own rules and its own failures.
- Sensitive data. Health, money or personal information demands more care.
- Design. A product people enjoy using takes more work than one that only functions.
- Changes along the way. The most common cause of a blown budget.
The costs founders forget
Building is the visible part. These arrive later, and they do not stop:
- Running it. Hosting, services the product depends on, app store fees.
- Maintenance. Operating systems and devices change, and the product must keep up.
- Fixing what breaks. With real users, something always does.
- The second version. What you learn after launch will change the product.
- Support. Someone has to answer users.
A useful rule: if the budget only covers the first version, the budget is too small.
Three ways to pay
| You pay with | How | Fits when |
|---|---|---|
| Cash | Freelancers or an agency | You have the budget and a clear scope |
| Time | You build with AI or no-code tools | You are testing demand, or the product is simple |
| Equity | A tech-for-equity partner or a technical cofounder | You have validation, and cost is what stops you |
Paying in cash
You keep all of your company and pay the full price. Every change after the quote costs extra. See tech for equity vs. hiring a software agency.
Paying in time
Cheap in money. It works well for a first test. Read what AI and no-code builders can and cannot do before you rely on one for a product that handles real users.
Paying in equity
A partner builds the product in exchange for a share of the company. This is tech for equity. At The Loop Ventures the stake is a minority one and is agreed at the start. Most deals also include a commitment fee, a fraction of what an agency would charge. After launch there is a support period, and maintenance is then agreed as a monthly fee.
How to lower the cost, whoever builds it
- Validate first, so you only build what people asked for.
- Build for one user and one task.
- Do by hand whatever users will not notice.
- Decide the scope once and sign it.
- Launch early. Real use tells you what to build next.
More on this in how to build an MVP when you cannot afford a full development team.
Next step
If the cost of building is what stands between you and the market, and you have proof that people want the product, apply with your idea or read how it works.