How Much Does It Cost to Build an MVP: The Ultimate Guide in 2024

The minimal viable product, MVP, was originally a part of the lean startup methodology, but the situation changed. Today, it is a critical component of the successful launch and continuous iterative improvement of any digital solution. An MVP allows companies to test their ideas in real conditions with controlled investments, offering invaluable insights for future development.

DBB Software knows more about MVP development than other companies. We have perfected our approach to creating successful MVPs and use our Pre-Built Solutions to solve the ever-present problem of managing time efficiency and costs. 

This article explores every aspect of MVP development cost and how to prepare for success properly.

Building an MVP has become a critical part of launch strategy for most startups and established companies that want to introduce new products to users. This method of probing the market is too effective to pass on. There are other reasons why businesses choose to develop MVPs.

Validate Ideas

Companies often launch MVPs to test whether their product meets the demand of the target market. The idea is to focus on core functionalities to peak user interest. This way, it is possible to collect feedback from actual users and gather concrete evidence to support further development of an MVP into a complete product.

The founders of Dropbox wanted to find out if users would be interested in a cloud storage solution before creating a complete platform. They launched an MVP as an explainer video that demonstrated how Dropbox would work. It sparked interest and led to more than 75,000 signups and the founders received a proof that their concept would work!

Reduce Risks

MVPs start small to reduce risks and minimize potential losses. As a result, a business can learn from users’ interactions with the product without complete commitment to developing a solution. This try-and-test approach optimizes the MVP development cost to allocate budget costs to important features properly.

For example, Zappos founder Nick Swinmurn wanted to ensure that people would actually buy his products online. To reduce the potential financial risks of fully committing to developing a complete platform, he took photos of shoes from local stores and posted them online. If a customer made a purchase, Swinmurn would buy and ship the product. 

Cost Efficiency

The cost of MVP development is lower than that of a full solution. Therefore, a company investing in an MVP saves resources on software development and gains ground for allocating resources to different aspects of the product, such as core functionality, marketing, or testing.

Buffer is a great example of using MVP to achieve cost efficiency. Initially, Joel Gascoigne built a landing page to explain the concept of his product and provide a pricing plan. Users could sign up to use the product when it was ready. Gascoigne gathered insights into market demand and made proper investment decisions, and Buffer has hit more than 4.5 million registered users.

Faster Time-to-Market

MVPs always take less time to develop than full-fledged software. That is why they provide companies with a speedy route to the market, meaning that a business can establish its presence much faster than usual. This is essential to gaining an advantage in the highly competitive software market.

Foursquare started as a very simple MVP with a focus on check-ins and gamification. The company did not develop features such as social networking. An early launch and gamified elements allowed them to gain traction and build a community in the competitive landscape of social networks. As a result, Foursquare has been used in over 190 countries worldwide.

Attract Investors

Investors are much more likely to fund a project with a proven track record. MVP development shows investors that the product has actual market potential. That is why startups and smaller companies build MVPs for their grand growth strategy.

Airbnb is an excellent example of how an MVP can attract investors. Their website allowed users to rent out air mattresses, and this proof-of-concept was enough to peak the attention of Sequoia Capital in 2009, as they contributed $600,000 to Airbnb and allowed the company to grow into the giant it is today. 

Develop a Community

MVPs are about offering users a product with core functionality. This means that a company benefits from early adopters forming a community of advocates for the product. Therefore, MVP development is also an excellent way to market one’s solution through the word-of-mouth effect.

Reddit founders created an early community simply by showcasing the platform’s features through the posts made by themselves. As people discovered Reddit, it started creating its own community and became “the front page of the internet” with more than 430 million contributors worldwide.

MVP development cost can vary considerably depending on several technological factors. They determine the future state and specifications of the solution. That is why companies should carefully consider them when determining how much does it cost to develop an MVP.

Choice of Platform

Choosing the platform for an MVP plays an imperative role in determining its costs. Here is a brief overview of the platforms and their specifics to get a better idea of what to choose:

• Native – applications developed specifically for Android or iOS usually require more time and resources, which leads to increased costs. However, they outperform other types of applications due to their very nature;
• Cross-platform – these solutions offer reduced development time and cost because the team uses a single codebase to run on different platforms. Still, these applications are less capable in terms of performance in comparison to native ones;
• Web – apps require the least amount of time and investment due to the use of simpler technologies and hosting requirements. 

From Scratch or Pre-Built Solutions

Custom development is one of the most crucial factors determining the cost of an MVP. Building an MVP from scratch gives businesses the most control over the product's functionalities. However, this means a company must invest 3-4 months or more to create the most basic solution. Logically, this approach also requires the most resources.

DBB Software has the solution to this problem, and it can reduce the development time to 2-4 weeks. DBBS Pre-Built Solutions feature a comprehensive list of components that are ready to use. Instead of building an essential feature like a payment system, you can use one of our pre-configured modules to add them to an MVP, considerably saving time and money.

Tech Stack

The technology stack for MVP also influences the cost of development. For example, a modern tech stack provides more flexibility in terms of adding libraries to speed up the development process. That is why the correct choice of tech stack to balance performance and cost can be crucial for proper budget control.

Let’s take a look at an effective tech stack for an MVP to create a versatile and scalable solution:

• Front-end technologies:
  • React.js – a library for building UI with components;
  • Bootstrap – a framework for developing mobile-first web applications.
• Back-end technologies:
  • Node.js – a lightweight platform for creating scalable network apps using JavaScript;
  • Express.js – a web app framework for Node.js.
• Database:
  • MongoDB – a NoSQL database known for its high performance, availability, and scalability.
• Cloud services:
  • AWS – a popular and feature-rich cloud platform equipped with services such as EC2, S3, and Lambda.
• DevOps tools:
  • Docker – an open platform for developing, shipping, and running applications in containers;
  • GitHub Actions – a tool for CI/CD that automates workflow from code push to deployment.

Core Functionality

The rule of thumb is simple: more features lead to a more complex development process and costs. MVPs focus only on the core features to showcase the product’s value proposition and keep costs down. Nonetheless, it is better to clearly understand what functionalities will comprise your product's core before starting the development.

To have a clear idea of the core functionalities, companies conduct market research, identify target audience’s needs, and define the features to satisfy potential customers. With this information, it is possible to strategically allocate resources and streamline development pipelines to maximize the effectiveness of MVP during its launch.

UI/UX Design

The design of an MVP is more than just aesthetics. A properly designed solution engages users and properly opens up its functionalities. That is why it is required to consider the UI/UX aspect of a future MVP, as it is the first thing potential users will see.

DBBS Pre-Built Solutions feature ready-to-use UI components for web and mobile apps to speed up the development process. We included them because they have proven highly effective in creating a comprehensive UI and UX.

Third-Party Integration

The integration of third-party components, including an MVP, is one of the most effective ways to improve the functionality of any solution. However, this also means increasing production costs. The statement is especially true if developers are creating their own APIs.

DBBS Pre-Built Solutions enhances the development process through pre-configured third-party integrations that are readily available to developers. This allows them to integrate a number of third-party services easily:

• CRM;
• CMS;
• Payment systems such as Stripe;
• API connections. 

How Much Does an MVP Cost?

Typically, the average price of an MVP is around $25,000 - $75,000. However, how much does it cost to develop an MVP varies due to several non-technical factors. A company should consider things like the composition of the development team, the pricing model, and the type of contract being used. Each factor can considerably affect the final price of the MVP development project.

The Development Team

There are several types of development teams that a company can utilize to develop an MVP. The most popular traditional ones include:

In-House Development

Creating an in-house development team provides several advantages. A company gains total control over the project and enjoys complete transparency while aligning the specialists with its corporate goals and culture. However, the downside is that in-house teams are almost always expensive due to fixed salaries and overhead costs.

To create an excellent in-house team, a company needs to conduct an extensive recruiting campaign and review potentially hundreds of applications. HR managers may find appropriate candidates, but the latter must go through a complicated set of interviews. These steps determine whether the developers’ skills and attitudes align with the company’s goals.

Freelancers

Startups and smaller companies looking to save costs may find hiring freelancers one of the most cost-efficient ways to develop an MVP. This option comes with some drawbacks. A freelancer team is less reliable, and a company might encounter issues with quality control. A business must be prepared for strict oversight if it hires freelancers.

The choice of freelancers is a little tricky as a company has to put a lot of effort into monitoring the team. Freelance employees tend to be more independent, which could lead to internal disruptions. What’s more, such developers can take on several projects at a time, reducing their performance.

Development Outsourcing

Companies outsource their development needs mainly because of the net benefits and cost reduction. For example, surveys show that 63% of businesses consider outsourcing to be the primary driver of expenditure reduction. 

A company that chooses to outsource its development gains access to a competitive market where it can find a vendor to suit its needs. This opens a window to pick a development company based on one’s geographical location, price ranges, and more. 

Outsourcing the development of an MVP to a specialized company like DBB Software is a perfect balance between cost and effectiveness. Our team provides:

• Expertise – our team offers a decade of experience that translates into innovative solutions and effective problem-solving;
• DBBS Pre-Built Solutions – a unique set of pre-configured components, tools, and elements for rapid prototyping and streamlined development;
• Established processes – we have refined development methodologies to ensure smooth project execution;
• Corporate culture – a strong and cohesive team culture that fosters collaboration and communication;
• Proven track record – we have a strong portfolio of successful cases and overwhelmingly positive feedback from our clients, which further solidifies our expertise.

Hourly Rate

The cost of a development team varies depending on numerous factors. The most important are team location and composition.

Team Location

Let’s consider the location. It plays an important role when choosing a development team, as different educational and economic conditions impact the quality of the team and their price.

Eastern Europe

The Eastern European region includes Ukraine, Poland, and Romania. It is one of the most popular locations for companies looking to outsource their development needs. The developers from these countries are famous for their services and charge less than usual.

• Average team cost for MVP development – $35,000 - $120,000

Western Europe

This region’s specialists are also highly skilled. However, Western Europe’s development teams cost more than Eastern Europe. The high cost of living and education in countries such as the UK, Germany, and France is the main reason for higher prices in comparison to the majority of other regions.

• Average team cost for MVP development – $60,000 - $200,000

North America

The United States and Canada are known for the highest development costs. A company must pay a premium price for outsourcing teams in these countries. The two main reasons for this high price phenomenon include the higher cost of labor in the region than in other countries and the high demand for skilled developers.

• Average team cost for MVP development – $100,000 - $300,000

Latin America

This region is becoming more popular among companies looking to outsource their development needs. Latin America has skilled developers yet lower labor costs than North America.

• Average team cost for MVP development – $45,000 - $100,000

South Asia

Countries like India and Pakistan are significant hubs for development outsourcing. The cost of living there is low, reducing team costs. However, companies hiring developers from South Asia often face issues with time zones and project management due to cultural differences.

• Average team cost for MVP development – $30,000 - $80,000

Southeast Asia

Vietnam and the Philippines are some of the most cost-effective regions to which to outsource development. They offer competitive rates within the region while maintaining high quality of work.

• Average team cost for MVP development – $25,000 - $70,000.

Team Members

However, the main determining factor is the hourly rate of a team member. The rate of a specialist can vary based on seniority and directly affect the MVP development cost: 

Type of Contract

Picking the right type of contract is essential for answering the question, “How much does it cost to develop an MVP?” The reason is – that the kind of contract directly influences the project’s structure, budget, and flexibility. Let’s take a closer look at two main types of contracts used in software development.

Fixed Price Contract

This type is ideal for projects with clearly defined requirements. The scope should be clear, and the probability of change should be near zero. Fixed-price contracts are outstanding for smaller and shorter projects. They provide benefits such as predictability in budgeting but suffer from a lack of flexibility in tasks after the development begins.

Time & Materials Contract

This highly flexible model leaves enough space for ongoing solution revisions based on evolving requirements. Times and materials contracts are perfect for MVP development, where new insights can quickly shift the development direction. 

DBB Software works primarily with the times and materials model. It promotes a fair pricing framework and ensures the client can participate in the project if they choose to. We favor this model for its transparency and flexibility. 

The MVP development cost can increase even after the core process is wrapped up. The reason is in the post-development expenditures that appear in the MVP’s lifecycle. Many startups usually forget to consider this part of MVP development; however, it is imperative to consider the long-term fate of one’s project. 

While the post-development costs include expenditures such as marketing, we will focus on the technical aspects.

Maintenance & Support

Regular maintenance and ongoing support are crucial for ensuring the MVP's sustained success. This post-development step involves routine updates, bug fixes, and technical support to address user issues arising from consumers' active product use.

Effective maintenance helps companies retain users and further build trust and satisfaction with the product. These factors are essential for an MVP’s growth. Setting them into one’s long-term plan ensures the MVP stays functional, efficient, and relevant.

Let’s take a hypothetical example of an online marketplace. Some of the key processes that you will need to cover include:

• Routine Updates – regular deployment of new features based on user feedback and market demand.
• Bug Fixes – resolution of any functional or security issues to maintain operational stability.
• Technical Support – providing helpdesk support for users experiencing difficulties, which improves user satisfaction and trust.

To cover these tasks, you will need the following specialists:

• Software developers – $50/hour with 80 hours per month;
• QA engineers – $30/hour with 40 hours per month;
• Customer support representatives – $20/hour with 160 hours per month.

Evolution to a Full Product

The final goal of an MVP is often to transform into a complete product. The transition is not immediate and includes the expansion of MVP’s core functionalities, refinement of existing features based on feedback, and integration of new technologies.

The evolution to a full product requires strategic planning and additional financial resources. This is a significant investment, but it transforms a successful MVP with a solid user base into a robust, full-featured solution that can reach broader markets.

Time is an essential factor when it comes to how much it takes to develop an MVP. Depending on the complexity of the future solution, the development timeline ranges from 3 to 6 months in the majority of cases. DBB Software can speed up the development process by up to 50% through the use of DBBS Pre-Built Solutions.

The DBBS Solutions consist of pre-built components, ready-to-deploy environments, and app generators. We leverage streamlined processes and our unique tools to enable faster development without compromising quality. Let’s take a look at the development process stages for an MVP using DBBS Pre-Built Solutions.

Discovery & MVP Planning

This stage focuses on understanding the client’s needs and identifying the market's needs. We conduct thorough market research, competitor analysis, and user interviews to set the course for the future MVP. 

Our team communicates with the client to set success metrics for the solution. These metrics will guide developers and assist them in measuring product performance. We focus on effective planning to create a solid foundation for the whole project to ensure that the MVP tests the client’s hypotheses as intended.

DBB Software specialists also prepare a Software Design Document. It allows the client to:

• Catch System Problems Early: Prevent costly issues by identifying and fixing problems before they grow.
• Align Tech with Business Goals: Ensure your tech strategy supports your overall business objectives.
• Keep Development on Track: Provide your team with a clear, structured plan to follow.
• Improve User Experience: Make sure your product is intuitive and enjoyable for your customers.

Proof-of-Concept & Rapid Prototyping

After completing the MVP planning process, our next step is to create a proof-of-concept (PoC). With PoC, we can quickly and effectively test the feasibility of the whole MVP concept. Our team follows up with rapid prototyping to visualize how an MVP will work and interact with actual users.

At this stage, we effectively use DBBS Pre-Built Solutions to speed up the rapid prototyping process by providing:

• Platform setup;
• App generators for Back-end, Front-end, or Mobile apps;
• UI components, storybooks, and configurations;

Pre-Built Solutions allow our team to cut PoC and rapid prototyping time by up to 30%.

MVP Development Project Planning

With the discovery and prototype complete, we break down product features into sprints with clear milestones. Our team closely communicates with the main stakeholders to set priorities for an MVP. This way, we can optimize the development process to bring the solution to market quickly and effectively. 

With DBBS Pre-Built Solutions, we  reduce the MVP project planning step timeline by up to 50% through the use of:

• Prepared template documentation for PRD and EDD;
• Pre-configured environments.

MVP Development

The MVP's development process involves coding, designing, and integrating it with third-party services. Our specialists use the agile methodology to create a loop of iterative development, continuous testing, and feedback integration. They focus on developing prioritized features while collaborating with designers and testers.

The DBBS team maintains a balance between speed and quality, while the DBBS Pre-Built Solutions allow us to reduce development time by 50%. The Solutions come with 

• Monorepo is set to handle and build multiple complex apps;
• Application generators;
• Templates for the CI/CD pipelines;
• Cloud Hosting Integration;
• Configured environments;
• Unit, Integration, and E2E Testing tools;
• Pre-built UI components;
• Ready-to-use plugins for integration with CMS, ERP, CRM, Payment providers, Delivery providers, Analytics, etc. 

As a result, we have access to a repository with time-tested and proven elements that fit into MVPs.

MVP Launch and Future Iterations

MVP launch is an important milestone for a company. However, it is essential to understand that the focus shifts from development to feedback collection. This information is imperative for future iterations. It will assist developers in refining the product and later evolving it into a fully functional solution.

When addressing the question how much does it cost to develop an MVP, startups and other companies look for workarounds to reduce expenditures. This is where cost management comes into play. Companies can use different strategies to try to reduce the cost of development, but we will explain some of the most effective ways to cut the cost of MVP.

Create a Software Design Document

Before any kind of coding, our specialists prepare a Software Design Document (SDD). This specialized paper is crucial for organizing and executing our software projects. It is a comprehensive guide that includes technical and design aspects of the future MVP. Here is a breakdown of its components.

Technical Audit

The technical audit involves a thorough analysis of the existing technology, including software, hardware, and network components that a future MVP will interact with. We use this audit to identify potential technical challenges and limitations in the early stages of development. An audit also assists us with preparing an optimal tech stack according to the client’s wishes.

Product Requirements Document

The product requirements document focuses on the business idea. It outlines the purpose of the future solution, what business needs it will cover, and what problems it will solve. We use this document to bridge the gap between non-technical stakeholders and developers. The document includes descriptions of features, user flows, and functional requirements.

Engineering Design Document

This document features a detailed plan for the technical development of an MVP. We use EDD to outline system architecture, algorithms, APIs, and various other technical specifications. The document is a technical deep-dive, and the engineering team uses it to guide product development. 

UI/UX Design Audit

Our team uses the following document to evaluate the user interface and experience plans for an MVP. This audit aims to ensure that the design meets the demand of best industry practices for usability and accessibility while matching the client’s expectations. We use the feedback from the audit to refine both UI and UX before and during the development process.

Use Pre-Built Solutions

DBBS Pre-Built Solutions offer a paradigm shift in creating, managing, and scaling development ecosystems. They are designed with efficiency in mind and provide our team access to a repository of pre-built and ready-to-use tools, components, and elements. 

Considerable time savings come in the form of a structured and documented repository of Solutions. This lets you quickly get all the required information and tools configured according to best practices. There’s no need to build infrastructure from scratch or research different approaches – the DBBS Pre-Built Solutions covers these aspects.

As a result of using Pre-Built Solutions, you can achieve:

• 50% reduction in the development time;
• 50% less planning time;
• 30% faster PoC development.

Cooperate With Trusted Partners

Partnering with a reliable, experienced software development company like DBB Software can significantly reduce MVP development costs. Our specialists bring expertise to MVP development, DBBS Pre-Built Solutions, and advice to assist clients with making informed decisions about priority features, tech stack choices, and more.

A client approached DBB Software to develop an MVP. The client’s vision was to create an application that would provide users with a convenient way to create dynamic presentations using data directly from Google Sheets. 

The solution had to include:

• Seamless export capabilities to Google Sheets, Google Presentations, and PowerPoint.
• Live editing features with data synchronization during the presentation modification.

A team of two DBB Software specialists provided comprehensive project management and development services. As a result:

• We created a roadmap for the project and established a tech stack that included Express, ReactJS, MongoDB, Google APIs, Heroku, and Sentry.
• Our team completed the MVP ahead of schedule.
• We established a scalable framework for the future development of an MVP based on user feedback and engagement metrics.

The client was highly satisfied with the results and left positive feedback. They received a functional and feature-rich MVP according to their requirements in just two months of cooperation with DBB Software.

The MVP development process is a standardized practice for validating business ideas and preparing for a full solution release. An MVP usually costs between $25,000 and $75,000, but we use Software Design Documents to specify every aspect of a future solution and reduce costs where possible.

A typical MVP takes around 3 to 6 months to complete. However, DBB Software specialists use proven methods and DBBS Pre-Built Solutions that include:

• App generators;
• Pre-built environments;
• Testing tools;
• Integratable 3-rd party instruments;
• Ready-to-use UI elements.

As a result of using DBBS Solutions, we can achieve: 

• 50% reduced development time;
• Up to 30% faster PoC and prototype stages progression;
• 50% lower planning time.

Contact us to receive a consultation and begin developing your MVP cost-effectively and quickly.