Cost to Build an MVP: Realistic Budgeting

published on 27 February 2024

Thinking about creating a Minimum Viable Product (MVP) but unsure about the costs involved? Here's a straightforward guide to help you budget realistically:

  • Defining an MVP: A simplified version of your product designed to solve one problem well, with minimum features.
  • Cost Factors: Complexity, design, technology stack, and development team size can all impact the price.
  • Budget Expectations: Costs can range from $25,000 with freelancers to over $150,000 with US-based agencies.
  • Hidden Costs: Don't forget about deployment, hosting, app store submissions, and post-launch updates.
  • Budgeting Tips: Prioritize features, consider cheaper labor markets, and use ready-made tools to keep costs down.

By understanding these key aspects, you can set a realistic budget for your MVP, ensuring you don't overspend while bringing your product idea to life.

Understanding the MVP Concept

Defining an MVP

An MVP, or Minimum Viable Product, is the simplest version of a product that you can release to customers. It focuses on:

  • Solving one problem really well
  • Having just the necessary features to solve that problem
  • Being made quickly with not a lot of resources
  • Being used to see what customers think and to help decide what to do next

By just including the most important features, startups can get their MVP out there faster and cheaper than a full product.

The Lean Startup Methodology

The idea behind an MVP fits with the lean startup way of thinking. This is about learning fast by trying things out, seeing how customers react, and then deciding what to do next based on what you learn.

This approach prefers trying and learning over making big plans, listening to customers over guessing, and making changes based on real data.

Benefits of the MVP Approach

Some good things about starting with an MVP include:

  • Getting to market faster: You can launch in weeks or months, not years.
  • Saving money: You don't spend a lot at the start.
  • Hearing from customers early: You learn what they think right away.
  • Staying focused: You only work on what's really needed.
  • Making informed choices: You decide what to do next based on actual data, not guesses.

By focusing on an MVP first, startups can avoid big risks and save their resources for later, after they've learned more.

The Financial Implications of Building an MVP

Realistic Budgeting

When you're planning to build an MVP, it's super important to figure out how much money you'll need. Take a look at what other people have spent on similar projects and think about what will make your costs go up or down. This helps you avoid surprises with your money and make sure you have enough for everything.

Some good things about setting a clear budget include:

  • You won't run out of money because you've planned for your expenses.
  • You can decide which features are most important based on what you can afford.
  • Talking to investors is easier when you show them you know your numbers.
  • If you need to change your plan based on what users say, you won't be in trouble with your budget.

To get your budget right, look into how much money you'll need for things like paying people to build your MVP, tools, putting your product online, and getting the word out. Always plan to spend a little more just in case. Keep checking your budget to make sure it still makes sense.

Securing Investor Funding

Having a clear plan for your money can also make investors more likely to give you their support. Here's how:

  • Showing you're ready - If you've thought through your finances, it tells investors you're serious and have thought things through.
  • Explaining your needs - Being clear about how much money you need, what it's for, and when makes investors more likely to trust you.
  • Showing potential for making money - If you can link your costs to how you'll make money, investors can see how your idea could pay off.
  • Helping them decide - When you give detailed plans, investors can better understand your business and whether they want to invest.

Remember, investors want to know that their money is going towards something that has a good chance of success. Showing them you've got a handle on your MVP costs helps them feel more comfortable investing in your idea.

Factors Influencing the Cost of an MVP

When you're making a Minimum Viable Product (MVP), the cost can change a lot based on a few key things. Knowing these can help you plan your budget better.

Factor Impact on Cost
Complexity More features or tricky parts mean higher costs
Design Fancy designs take more work, so they cost more
Technology Stack Using special tech can make things pricier because of the skills needed
Development Team Bigger teams or experts cost more


How complicated your MVP is will affect how much it costs. A simple MVP with just the basics is cheaper and faster to make. But if you add in complex stuff like smart algorithms or lots of data handling, it'll take more time and skills, which means more money.

Starting simple lets you test your idea without spending too much. You can always add more features later once people like your product.


Design isn't just about looks; it's about making your MVP easy and pleasant to use. A simple design is cheaper, but a really polished look with animations or custom graphics will cost more. The trick is to find a balance - make it nice enough without going overboard on your budget.

Technology Stack

The tools and technology you choose for your MVP also play a big part in the cost. Using common, free programming languages can save you money. But if you need special tech or have to pay for software, it'll cost more. Don't forget about the cost of running your MVP online, especially if you need fancy databases or cloud services.

Choosing the right tech is important. Sometimes, the newest tools can do amazing things but remember they might also make your MVP more expensive.

Development Team

Who makes your MVP also affects the price. A big team or highly skilled experts will charge more. But, paying for top talent can mean your MVP is made faster and might do more cool stuff, which could be worth the extra cost for some.

Picking the right team is about balancing what you need with what you can afford. Aim for a team that fits with what your MVP needs to do without spending too much.

Average Costs of MVP Development

Making a Minimum Viable Product (MVP) can cost a lot or a little, depending on what you want it to do, how it looks, the tech you use, and who makes it. Here’s a quick look at what you might expect to spend:


If you go with freelancers, you could start at about $25,000. It's flexible and might save some cash, but keeping track of freelancers and making sure they stick around can be tough.

In-house Team

Having your own team means more control but also means you have to think about extra costs like HR, space, and equipment. This could set you back at least $50,000 - $75,000.

US-Based Agencies

Agencies in the US know their stuff and can really help make your MVP shine, but they’re not cheap. You’re looking at $75,000 to $150,000 or even more.


Going with a team from another country can cut costs without cutting quality, with prices usually between $35,000 - $60,000. Just remember, working across time zones can be tricky.

How simple or complex your MVP is can really change how much you end up spending. A basic mobile app might only cost $30,000 if you outsource, but a fancy web app with lots of smart tech could go over $150,000 with a top-notch agency in the US.

It’s all about spending wisely on what’s really important. Start with just enough to test your main ideas and get feedback. You can always add more bells and whistles later. Think carefully about cost versus quality and speed to find the best budget and team for your MVP.

Hidden Costs in MVP Development

Building a simple version of your product, called an MVP, costs more than just making it. There are extra costs that might surprise you. It's important for new businesses to know about these so they can plan their money right.

Deployment and Hosting

After your MVP is ready, you need a place on the internet where people can use it. You might use:

  • Big cloud services like AWS, Azure, or Google Cloud
  • Special hosting services like Heroku
  • Your own computer servers

These can cost differently based on how many people visit your MVP, how much data you store, and other things. Think about setting aside $50-100 every month for this.

App Store Submissions

If you're making a mobile app, you need to pay to put it in the app stores:

  • Apple App Store - $99 every year and they take 30% of what you earn
  • Google Play Store - A one-time $25 fee and they also take 30% of your earnings

Ongoing Testing and Monitoring

You need tools to check if your MVP works well and to keep an eye on it:

  • Tests for load, security, and trying different things (A/B testing)
  • Tools to watch for crashes and understand how users behave
  • These tools can cost $100-$300 or more each month

Feature Additions and Revisions

After testing your MVP, you might need to add new things or make changes:

  • Updating features based on what users say
  • Making technical changes for more users
  • This means more costs for redesigning, making, and testing

Plan to spend an extra 10-20% of your initial budget for these updates.

Longer-Term Expenses

Also, think about costs after launching, like:

  • Continuous cloud service fees
  • Paying developers to keep your MVP working well
  • Money for marketing and getting the word out

These can add another 20% or more to your costs every year.

The Takeaway

The money needed to keep your MVP going, make it better, and tell people about it can add up. To avoid surprises, include these hidden costs in your budget from the start.


Strategies for Budgeting Your MVP

Building your first version of a product, known as an MVP, without spending too much money means you need to plan well and make smart choices. Here are some ideas to help keep costs down while still making something great.

Use Easy App Builders

Platforms like Bubble and Thunkable let you put together web and mobile apps quickly without needing to write a lot of code. This can save you a lot of money and time. These tools are user-friendly, even for people who aren't tech experts, allowing you to get your idea into a real shape fast.

Focus on What's Most Important

Don't try to add every feature you can think of to your MVP. Concentrate on the main problem your product solves. Keeping things simple means you can build faster and cheaper. You can always add more features later.

Hire Developers from Cheaper Places

Think about hiring developers from places where it's less expensive to hire skilled people, like Eastern Europe or Southeast Asia. Developers there might charge $20 - $50 an hour, which is a lot less than in the U.S. This can cut your costs a lot.

Start with a Prototype

Before spending money on building your MVP, first make a prototype that shows how it will work using tools like Figma or InVision. This way, you can test your idea and make changes before the real building starts. It saves time and money.

Use Ready-Made Tools

For common features like chat or payments, use tools that are already made, like Stripe for payments or Zapier to connect different apps. This way, you don't have to build these features from scratch, saving you development time and money.

Following these steps can help you make your MVP without spending too much, while still making sure it does what it needs to do for your users.

Real-world Examples of MVP Costs

Big companies like Twitter, Instagram, and Uber all started with something simple called an MVP - a basic version of their app to see if people liked it. Let's look at how much they spent to get started.


Twitter first came out as a simple way to send short messages.

Key facts:

  • It took 2-3 months to make
  • It only did a few things like sending messages, following people, and using hashtags
  • Only 2-3 developers worked on it
  • They might have spent about $15,000 - $25,000 in today's money

Twitter shows that you can start small, test your main idea quickly, and not spend a lot.


Instagram started as Burbn, a basic app for sharing photos with cool filters.

Key facts:

  • It was made in 8 weeks
  • You could upload photos, use filters, and see a feed
  • 2 developers built the first version
  • It would cost around $20,000 - $30,000 now

Instagram got popular fast by focusing on what users liked best, proving a simple MVP can go a long way.


Uber began as UberCab, a way to book fancy car rides in a few cities.

Key facts:

  • Developed in 3 months
  • It was all about booking rides
  • 3 developers made it happen
  • Today, it would cost about $35,000

Uber's MVP showed that focusing on one good service can set the stage for bigger things later.

These stories tell us that with $15,000 to $35,000, you can create an MVP. It's all about starting with the most important features and learning from there.

Navigating Post-Launch Expenses

After you launch your MVP, you'll need to keep spending money to keep it running and to help it grow. Here's a simple breakdown of the costs you might see.

Marketing and Advertising

  • Monthly Cost: $1,500 - $3,000
  • What to Do:
    • Improve your website's Google ranking
    • Use ads on social media
    • Create helpful blog posts and videos

Put your money into online ads that speak directly to your ideal customers and make useful content that draws people in. Skip the big, expensive ad campaigns until you're sure your product hits the mark.


  • Monthly Cost: $2,000 - $5,000
  • What to Focus On:
    • Making your website better at turning visitors into buyers
    • Trying out different prices
    • Digging into customer data

Spend on figuring out the best ways to sell your product. Be ready to try new things, because what you first think might not work out.


  • Monthly Cost: $1,500 - $2,500
  • What's Included:
  • Fixing glitches
  • Helping users with problems
  • Paying for web hosting
  • Using tools to check on your MVP

Set aside money for a developer to fix any issues, make your MVP run smoother, and keep it up and running. Expect to spend more at the start, then find ways to save as you go.

All up, plan to spend $5,000 - $10,500 every month after launching. Stay flexible with your budget, putting money into what helps your MVP grow. Keep a close eye on what works and make decisions based on solid data.


It's really important to think carefully about how much money you'll need when you're planning to build a basic version of your product, or MVP. This helps you avoid running out of money and makes sure you can keep your project going.

Building an MVP isn't free. Even the simplest version of your product will cost a good chunk of change. How much exactly? Well, it depends on a few things like how complex your product is, how fancy the design is, what kind of technology you use, where your team is based, and more.

If you hire freelancers, you might spend around $25,000 or more. If you go with a specialized agency in the US, prices can jump to between $75,000 and $150,000+. And don't forget, after you launch your MVP, you'll also need to pay for things like hosting, keeping your product running smoothly, and telling people about it.

To get a good idea of what you'll need to spend, it's smart to talk to people who know their stuff and to really nail down what your MVP needs to do. This might mean having meetings to make sure everyone understands the project, what technology will be used, and how long it will take.

Working with a team that has experience in making MVPs can also help a lot. They can guide you on what features are most important, how to design your product, and what technology to use, all without breaking the bank.

By spending some time planning, figuring out your budget, and choosing the right people to work with, you can make a solid MVP that does what you need without costing too much.

Frequently Asked Questions

Let's clear up some common questions to help you understand things better.

What is the typical timeline for building an MVP?

Building an MVP can take from 2 to 6 months. Simple apps might need just 2 months, but if your product is more complicated, it could take up to 6 months.

Why should I build an MVP first?

Here's why starting with an MVP is a good idea:

  • Check if people like your idea by letting real users try it.
  • Less risk because you're not spending too much money or time if things don't work out.
  • Get early feedback to make your product better.
  • Use your resources wisely by focusing on the most important features.
  • Better chances of getting money from investors if they see people are interested.

Starting with an MVP helps you figure out if your idea will work without risking too much.

What are some examples of successful MVPs?

Some big companies started with just a simple MVP, like:

  • Twitter, which was first just about sending short messages.
  • Instagram, which began with just photo filters.
  • Uber, which started by offering fancy car rides in one city.

These examples show that starting simple can lead to big success.

How do I build a successful MVP?

Here are some tips:

  • Understand your users - Make something that solves a real problem for them.
  • Pick the main features that are most important.
  • Keep it simple - You can add more features later.
  • Be ready to change based on what users say.
  • Make it easy to use - Don't make things too complicated.

Focusing on your users and what they need makes your MVP more likely to succeed.

How do I choose an MVP development team?

When looking for a team, consider:

  • Experience - Have they made something like your product before?
  • Skills - Do they know the tech needed for your project?
  • Flexibility - Can they grow with your project?
  • Cost - Can you afford them?
  • Testing - How do they make sure everything works right?

Choosing the right team is key to turning your idea into a real product that works well.

How long should it take to build a MVP?

Usually, making an MVP takes about 3-4 months. How fast you can build it depends on what features you want, how complex the design is, and who's building it. But generally, an MVP can be made much quicker than a complete product.

How much should I budget for minimum viable product?

It's smart to plan for spending anywhere from $10,000 to $100,000. Simple MVPs can be made for around $10k, while more detailed ones with special designs and features might cost more than $100k. The price changes based on how complicated your MVP is, what tech you use, how much your development team charges, and other factors.

How to build an MVP on the cheap?

  • Only include the most important features
  • Try to use tools that don't need coding when you can
  • Consider hiring freelancers or teams from other countries
  • Keep the design simple at first
  • Plan to make changes based on feedback after you launch

These steps can help you make a good MVP without spending a lot of money.

What is a minimum viable plan MVP?

An MVP is the simplest version of your product that lets early users try it and give feedback. It aims to solve one main problem well with as little complexity as possible. The idea is to see if people like your product without spending too much money right away. Getting feedback and improving your product is a big part of this process.

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