How much does an MVP cost in 2024?

Facebook, Instagram, Airbnb, Uber—these and other great products didn’t start off as the fully-fledged platforms we know today. Instead, they embarked on their journeys as MVPs.

An MVP, or minimum viable product, is the version of a new product with just enough features to satisfy the initial market demand and user expectations. Its aim is to validate the concept and generate feedback for further development.

Let’s take Instagram, for example. Before it became a global hub uniting millions of people, businesses, creators, and many more, it started as a simple photo-sharing app. The MVP version allowed users to snap photos, apply filters, and share experiences with friends. It was a focused offering that resonated with users who wanted a sleek and intuitive way to share visuals. Over time, Instagram’s creators expanded the platform, adding features like direct messaging, video sharing, and advanced editing tools.

This example proves: starting with a version of a product that has just the right amount of features to catch early adopters is faster, cheaper, and less risky than developing a full-blown solution.

But how much does it cost to build a working MVP?

Well, it depends. Based on the estimates from our MVP development portfolio, the price can start at $75.000. Your specific numbers will most likely vary—depending on a number of factors, such as the area of usage, target industry, intended platform, technology stack, and more.

To learn more about MVP cost constituents and get familiar with the pricing of real-world MVP development projects from ITRex’s portfolio, carry on reading.

An optimal path to take depends on your goals and where you find yourself on the product development timeline.

The goal of a Proof of Concept (PoC) is to demonstrate that a concept is technically or economically feasible. You usually build a PoC early in the project to determine whether you should pursue the idea further. You need to build a PoC if you’re hunting for initial investments to fund your startup or want to get buy-in from enterprise executives.

A prototype, in turn, is a preliminary model of a product that is mainly used for demonstration purposes. It’s usually clickable but not functional. The focus is, thus, on testing out user flows and design choices.

The key function of an MVP, as said above, is to inform development and get feedback from early adopters. In general, an MVP is a market-ready, usable product, even though it doesn’t have all the bells and whistles. It focuses on the specific problem the app was designed to solve, like sharing photos, measuring insulin temperature with a temperature sensor, or calculating invoices. An MVP is usually built later in the product development journey.

While these concepts aren’t mutually exclusive, they all play a role in influencing MVP costs. A software development project might involve creating all three, but at different stages of project planning, with each aspect having its own impact on MVP pricing.

Building an MVP instead of a full-blown product can let you achieve the following goals:

If you want to learn more about what makes a successful MVP and how to build one, continue your research by reading this article.

We have identified eight factors that influence the final MVP pricing.

The cost of development for B2B and B2C software can vary significantly.

B2B solutions, like CRM, ERP, or financial management systems, are usually intended for a smaller and more specialized target audience. But don’t let this fact trick you into thinking that it’s cheaper to craft a B2B product. B2B software solutions are usually more complex and boast a large number of specialized features, which often adds to the overall MVP cost.

Meanwhile, B2C software solutions, such as messaging apps, social media platforms, or games, are aimed at a larger yet more general audience, which can help reduce the overall development costs. B2C solutions are usually simpler in terms of functionality, which makes them less expensive to develop.

The complexity of the envisioned solution impacts the price of an MVP, too. While the essence of developing an MVP boils down to keeping the set of features limited, the complexity of those features varies from solution to solution.

For a property booking website, for example, you would probably concentrate on listing properties, enabling bookings, and managing user profiles. Given the straightforward nature of this idea, the cost of its MVP will probably stay within manageable boundaries.

In turn, crafting a mobile app for pet owners seeking reliable sitters involves a more specialized need. Its MVP revolves around user profiles, search filters, establishing a secure communication channel, and initiating pet sitting requests. In this case, MVP development might involve a bit more intricate functionality to ensure a smooth user experience.

Here’s another example to top it off. Crafting an MVP of an AI-powered mirror that replaces a personal coach like we did at ITRex is not merely a software endeavor. The MVP still called for implementing custom software and underlying infrastructure. Consequently, the MVP costs for such an innovative solution can be significantly higher due to the complex requirements.

Whether you are developing a web, a mobile, or an embedded software application affects MVP pricing, too.

Generally, developing a mobile application is more expensive compared to a web application. It is usually due to the fact that mobile platforms call for more intricate features and have to meet higher safety and security requirements to be approved by app stores. Moreover, mobile developers have to balance functionality against the limited capabilities of mobile devices, which might call for more specialized developer skills.

Web apps, in turn, can be built using content management systems and web application builders even without much technical expertise.

When it comes to developing embedded applications, their MVP costs tend to be higher, as the total cost of developing such an app is additionally affected by the cost of hardware and firmware, as well as more complex customization and integration. The same applies to custom electronics product design.

The choice of technology for front-end and back-end development, as well as for database development, will impact the final MVP price, too, as different technologies have different levels of complexity and call for different skill sets.

This way, for example, resorting to a popular, well-documented front-end framework, say React or Vue.js, is likely to be less expensive compared to a less common or more complex one. The same goes for back-end and database development. Similarly, customizing existing technologies or developing custom solutions from scratch gets more expensive than relying on off-the-shelf technologies.

Infrastructure costs are a substantial component of MVP pricing, too. Server, storage, bandwidth, scaling—these and other costs have to be accounted for when estimating MVP pricing. To put it into perspective, IoT solutions typically rely on cloud infrastructures. Such solutions generate a considerable volume of data that needs to be processed, stored, and managed—often in real time, which can turn out to be quite pricey. To optimize MVP development costs, it is essential to set up the infrastructure in an optimal way, say, by adjusting the number of server calls and configuring data caching.

Furthermore, the cost of developing an innovative solution featuring Gen AI, AI, IoT, RPA, or other modern tech will be much higher than that of crafting, for example, a low-tech messaging app.

Lastly, the final MVP cost largely depends on what type of development you choose for your project—traditional custom development or low-code development solutions, with the latter being the most cost-efficient way. Low-code involves using tools like Retool and Bubble.io for web applications and FlutterFlow for mobile apps, which provide pre-built components and drag-and-drop interfaces to build and test an MVP with minimal coding effort. This approach allows for quick iterations and adjustments in response to user feedback, making it an attractive option for both startups and established businesses looking to bring innovative products to market faster and at a lower cost. To get an idea about low-code MVP development costs, check our FAQ section below.

Certain industries, like healthcare or banking, have specific compliance requirements that any software must meet in order to be approved for use in that sector.

It translates into a more extensive planning phase, often with external subject matter experts involved. Additionally, software solutions for regulated industries require special approaches to data management and call for fail-proof security. Consequently, the cost of developing an MVP for a regulated industry is more expensive compared to crafting a solution for general use.

Certification is also considered a major factor behind the cost of industry-specific software. The numbers might get even higher for devices. For example, as we’ve pointed out in our article shedding light on the costs of IoT, the price of a certificate for a simple electronic gadget (including devices that rely on wireless connectivity) starts at $10,000.

Similarly, developing an MVP for a highly competitive industry will end up being more expensive due to the need for more research and development resources required to stand out in a saturated market.

Software development projects fall into several categories depending on the planned scope of work, which influences MVP pricing, too:

The size and make-up of the software development team, as well as the pay rates of the team members, determine MVP development costs.

Depending on the project scope, the team for MVP development can span from the minimum of three people for small-scale projects to the optimum of six for medium-scale projects and even more for enterprise-grade implementations.

The experience and expertise of the team members is another factor contributing to the final MVP cost. Naturally, junior specialists with less than two years of experience are less costly to hire than mid- and senior-level specialists with up to five and more than five years of experience, respectively.

The hiring model influences the cost of MVP as well. Assembling and sustaining in-house teams is typically more expensive than partnering with an MVP development services provider. Though the cost of the latter can vary too, depending on the team’s location.

As we’ve shown in our blog post about estimating the cost of software development, the median developer hourly rates vary as follows, depending on the region:

It is rare for a software solution to operate in isolation. Most likely, you will have to integrate your software with enterprise systems and third-party services. Take a delivery application. To offer a pleasant user experience, it would need to be synced with maps, an ecommerce store’s database, a payment system, and even a weather app. The number and complexity of the planned integrations will affect the cost of MVP development.

And while some services and systems provide convenient, easy-to-use APIs, others (say, legacy enterprise systems) require coming up with custom integration solutions that may take up more development effort and time.

Take a peek at some projects from the ITRex portfolio.

Project 1. AI-powered litter box catering for cats’ health

Short description: The innovative solution helps pet lovers gain insight into their pets’ wellbeing by examining cats’ feces with custom trained AI algorithms.

The smart litter box is equipped with a proximity sensor and smart camera. The proximity sensor detects a cat in a box, while the smart camera records the defecation process and sends the footage to the cloud for further processing.

Cloud-based AI algorithms analyze the footage and make predictions about a cat’s health based on cat behavior, defecation time, as well as feces consistency and color. The information about a cat’s wellbeing, along with recommendations on improving its health, is then sent over to the cat owner’s mobile app.

Duration: 2.5 to 3 months

MVP cost: $125,000 – $150,000

Project 2. OCR solution for a logistics company automating document processing

Short description: The application allows the client’s employees to save time spent on manual document processing.

The goal of the project was to develop an optical character recognition (OCR) solution that would recognize and index batches of incoming documents and seamlessly integrate the solution into the customer’s existing document processing system.

Duration: 2 months

MVP cost: ~$100,000

Project 3. AI-powered art generator

Short description: The client, a renowned visual artist, approached ITRex to create a proof of concept for an AI solution capable of generating new paintings based on his existing works. The solution needed to be completed within a six-week timeframe—in time for an upcoming exhibition.

In the initial development phase, a team of two machine learning engineers and a full-stack engineer crafted a full-screen web application and integrated it with Midjourney, an AI service specializing in image generation. The solution had the ability to produce high-resolution, 1,024 x 1,024 visuals, all based on the input images fed into the underlying neural network.

Looking ahead, given that the proof of concept was well-received at the exhibition, we’re planning to further enhance the solution. This might involve architectural changes, such as transitioning from a locally deployed AI engine to a cloud-based infrastructure.

Duration: 1.5 months

MVP cost: ~$75,000

Project 4: Post-ambulatory care solution

Short description: A startup with the goal of becoming a leading middleware provider for post-clinical patient care across the USA approached ITRex to craft a solution that would improve post-ambulatory rehabilitation.

The solution is centered around receiving a patient’s electronic medical records from their care provider, conducting a comprehensive analysis, crafting an optimal post-discharge care plan, and coordinating appointments with relevant specialists.

The MVP version is designed for simplicity and does not yet include a back office. Consequently, such features as statistical analysis and settings are planned for further releases.

Duration: 2 months

MVP cost: ~$100,000

Determining MVP costs involves considering various factors, such as the project’s audience, intended platforms, technology choices, and more. However, the ultimate cost of developing an MVP is unique to each project.