Work on a minimum viable product (MVP) goes through the same software development life cycle as a full-blooded product, but it’s developed much quicker, and its go-to-market is shorter.

First of all, the MVP development cost depends on a business task a business owner wants to solve. And the features, in their turn, are subject to execution logic. As many non-core features are set aside for implementation, the price of an MVP development is naturally lower. In our practice, MVP app cost starts with $19,000 for more or less simple functionality up to $50,000 for pretty complex core features. Additional features are added as the product evolves.

Secondly, it much depends on how you decided to implement your idea:

  • employ a developer
  • contract a freelancer
  • outsource MVP to a software development company

The in-house development team is the right choice for a mid-sized stable company that can afford such an expensive unit. For a startup, for example, it’s a costly decision, especially when a development team works for a share. Moreover, there may ocсur employee dismissal or errors in assessing the competencies of the staff. To contract a freelancer is one more accessible way to build a minimum viable product. As a rule, 1 freelance developer is cheaper than having an in-house team or outsourcing development to a specialized company. But often you’ll need to find not only a programmer but also a designer, a QA, a business analyst, which makes the whole picture not so attractive. Besides, there is a risk of NDA violation by a freelancer, part-time work, and combination with other projects, downtime, etc. In the case of an outsourcing company, the risks of  the lack of quality guarantee, budget mismanagement, lack of transfer of rights to the product are completely excluded

Read Also Benefits of Hiring Remote Team For Software Development Project

So, in MVP development cost evaluation, it’s essential to find the best quality for the lower price and (and it’s pretty important!) the guarantee. So, it’s highly recommended to find a reliable outsourcing company that carries out development services for startups. The vendor must provide a guarantee period for the developed MVP, NDA, and rights transfer agreement for you to know your rights are reserved.

So, how much does it cost to build an MVP? You can use the comparison table after contacting the vendors or evaluate the labor costs in the case of a full-time team member. Frequently, the MVP development cost will vary much depending on:

  • the number and complexity of MVP features
  • the region of outsourcing and team qualification
  • technological stack you want
  • contract type

How Much Does an MVP Development Cost in Different Outsourcing Regions?

Regions of outsourcing go in the following order by the increase in the minimum price per hour for an employee: Asia, Eastern Europe, Latin America, US. On the diagram, you can see hourly rates in $ of different specialists and how they differ by region.

hourly rates of IT specialists by region

The region of Eastern Europe is considered to be the best combination of price and quality of development. Let’s calculate the cost of MVP development outsourced to eastern Europe.

Let’s estimate as an example working hours for an MVP as:

Business Analyst – 120 hrs,

Designer – 150 hrs,

Mid-level developer – 450,

Mid-level QA – 120 hrs,

which makes up 40*120+35*150+35*450+30*120=29 400 USD.

Technology Stack

Dice published a US Tech Salary Report for the year 2019. From it, top 10 the highest-paid tech skills and experience in 2019, descending per month:

top 10 the highest-paid tech skills in 2019

To decrease the costs of MVP development, one may strive to replace more expensive technologies with similar ones but requiring lower development budgets.

One more option is to use frameworks for the front-end. Frameworks speed up development as they already include codebase for any web app, for instance, Kendo UI, Semantic UI, Onsen UI, etc. For example, the Webix framework and UI library gives an opportunity to use 100+ adaptive UI widgets and feature-rich CSS / HTML5 JavaScript controls. It’s good because their components have proven code. There are also regular updates and user support.

Read Also Reducing Development Costs With Webix

Also, there is one more option not to build user interfaces from scratch but use ready-made components. Many of them are specific solutions to the application in solving certain tasks. If the application contains, for example, a scheduler, then the component does not need to be developed. There are many examples of such systems – booking systems for hotels, medical centers, logistics platforms, and many more. This approach significantly reduces the MVP development cost. A scheduler component, for instance, you can find by DHTMLX, DayPilot, Bryntum, and others.

Contract Type

One should also remember that to build a minimum viable product will cost differently depending on the contact type. At XB Software, there are 3 main contract types. They are Fixed Price, Time & Materials, and Budget With the Float Scope. In practice, Budget With Float Scope gives the best development savings for MVP. Then go Time & Materials and Fixed Price, respectively. The 3 contract types are observed in this article. Still, some words must be added about the most efficient contract type that allows us to reduce and control the MVP app development cost.

Budget With Float Scope gives an opportunity to the client to develop an MVP that fulfills essential business tasks. And the cost to develop an MVP is guaranteed within the budget. It’s the client who voices the budget, and it’s the vendor who puts the necessary features into the budget. Parties agree that the price won’t be exceeded if there will be no additional functionality requests from the client.


The price of an MVP development may significantly vary depending on such factors as the number and complexity of MVP features, the region of outsourcing and team qualification, technological stack, and contract type. Creating an MVP, you should keep in mind that businesses, especially startups, are caught up in an endless competitive race and along with the quality of development, time plays a significant role.

Our dedicated development team will help you to define and develop the core features of your dream MVP. So you will be able to validate your idea in the shortest time.

Feel free to contact our experts to get a no obligation consultation on your idea and we will do our best to bring it to life.