Web Application Development Costs in 2025: Realistic Estimates

We’ve built more than 200 web apps at Clockwise Software, with budgets anywhere from $30,000 to over $1,000,000. So when you ask “How much does it cost to build a web application?” we have the answer.

We asked our sales and delivery teams about web application development cost estimation, and now we are ready to answer these (and other) cost-related questions:

• What is the minimal budget to start developing a web app?
• Is it possible to invest in web development step by step?
• Are software vendors’ estimates reliable?

Keep reading to learn what kind of web application you can get within different budget ranges:

• A modest budget of $15,000 to $50,000
• Something middle-of-the-road, from around $50,000 to $100,000
• A bigger investment of around $100,000 to $300,000
• Going all-in with $500,000 and up

In this article, we won’t concern ourselves with how web app development costs are calculated. We will simply provide examples and references to show you what’s possible at each budget level. By the time you’ve finished this article, you will know the real cost of developing a web application, along with tips on how to stretch your budget wisely. So, let’s dive in and explore how to turn your ideas into an app, no matter how much you’re planning to spend.

$15,000 to $50,000: A template-based web application to validate an idea

Let’s be honest: it is impossible to build a custom web application for as little as $15K.

You can, however, spend this sum of money on a simple prototype to validate your idea and then attract funding to implement it.

What if you dedicate this money to product discovery? Think of it as a strategic deep dive before you jump into full-scale development.

We won’t go into detail in this article, but we have a whole library of articles about the discovery phase. You might start with reading this one: What is the project discovery phase?

A discovery phase results in a handful of deliverables. Among them, you get a basic prototype — a template-based application that might not win any design awards but is functional. This prototype lets you test your concept. You might also use it to present your idea to investors.

In software development, a budget below $30,000 is rather modest. In exchange, you might get a simple app based on low-code/no-code solutions. These are tools designed to make app development faster and easier by offering pre-built components that you can customize.

Sounds too good to be true?

Yes, there’s a catch. Low-code and no-code solutions are just a temporary patch, as they can be pretty limiting. You’ll quickly run into constraints when your app starts to grow and needs to handle more complex tasks. You can forget about adding custom features, scaling, or integrating with other systems; template-based apps are not designed to grow.

A template-based prototype is just that — a prototype.

With this prototype, you can quickly and cheaply test your concept, pivot if needed, and then build a scalable app from scratch.

Real-world example of an app prototype

Want to see what discovery phase outcomes might look like?

One of our clients came to us with an idea for a cost estimation platform for large industrial projects. However, his budget was modest — not nearly enough to build even one full system module. What was the smartest way to spend those limited funds? You got it: We started with a discovery phase.

We knew that our client was planning to raise money for development. So we kept in mind the investors, who were the product’s main target audience at that moment. This is what we delivered:

• An interactive app prototype
  Our client’s request was specific and hard to cater to with existing constructors. So we decided to build a prototype in Figma. Custom design was also on us. As a result, the clickable prototype landed in the pitch deck.

• Project architecture scheme
  We designed an efficient and scalable architecture with the full-scale project in mind. This helped to prove that our client’s team had a plan on how to bring the idea to life. Moreover, the architecture supports the idea of a white-label app. Potential investors saw this as an opportunity to increase their ROI.

You can read more about how we tackled this project in our case study: Discovery phase for a cost estimation platform.

As you can see, even a small budget can give you a solid foundation.

But let’s be clear: project discovery is just the beginning. A simple prototype can help you get investors or co-founders excited about your idea, but don’t expect immediate returns at this stage.

If your idea proves viable, there’s still a long way to go, and building a custom application will be the next big step.

$50,000 to $100,000: Minimal initial investment in custom web app development

From what we’ve seen on our projects, custom web application development pricing starts at $50,000.

A budget of $50,000 to $100,000 won’t give you a product ready to dominate the market. But it’s a good starting point for checking in with real users. Here’s what you can expect within this budget:

• Template-based design: Your app will have a basic design. We go with design templates, slightly adjusting them if needed.
• Barebones functionality: You’ll get core functionality. A limited budget requires keeping things simple and avoiding unnecessary bells and whistles.
• Third-party integrations: Give up on custom-built user authentication, chat, or order management. Let’s use third-party services instead. Basic LLM implementation is also possible in this tier.
• Basic security: Built-in security features from platforms like AWS or Google Cloud will do the job at this stage — no need for an extensive security setup yet.
• Limited use cases: The app will perform well for a few common scenarios. But it will fall short in some more sophisticated user flows.

While this type of app isn’t anything flashy in terms of features or design, it gets you into the game. You’ll be able to launch, start testing your idea with real users, generate some early revenue, and keep investing as your app grows and evolves.

Example of a basic custom application

One of our recent projects, BackupLABS, perfectly illustrates the case. BackupLABS lets users back up their data from a range of services.

The founder of BackupLABS came to us with a clear vision, knew the market, and understood the competition. As he had done his homework, we didn’t have to go through all stages of product discovery. Instead, we built a proof of concept (PoC) in just two weeks to prove the feasibility of his idea.

Once we mapped out the work, it was clear a full release would take months, pushing up web app development costs.

So, we scaled back and focused on key integrations that customers really needed and that competitors hadn’t nailed yet. The basic app launched in the UK and picked up early adopters fast, so we continued building out more integrations.

Curious about the details? Check out our BackupLABS data backup software case study.

The moral of the story is this: Your requirements might not correspond with your actual budget. But this is not a reason to give up on your idea or delay its implementation.

Web application development cost

You can kick off your web application with a $50,000 budget, but keep in mind it won’t cover every feature. Typically, a fully featured app release falls between $100,000 and $500,000, depending on the functionality you’re aiming for.

If a client has a large scope of work in mind but only $50,000 to invest at this stage, here’s what we do:

• Discuss the desired scope, budget, and deadline.
• Set clear, realistic goals for the first release.
• Prioritize features using our SaaS feature matrix.
• Develop a web application and launch it.
• Continue development as the client is ready to invest more.

The main goal at this stage is to get the app launched. BackupLABS entered the market with fewer features than originally planned. But it still worked! They attracted early adopters and secured funding for further development.

With $50,000 to $100,000, you can launch a basic app with plenty of potential. But realizing the app’s full potential will take further investment down the line.

$100,000 to $300,000: A market-ready web application

To create a web app ready to compete with established players, you should plan to invest between $100,000 and $300,000.

At this budget level, you’re building more than just a functional app. You’re creating a polished, market-ready solution. Here’s what you can expect with this level of investment:

• Custom design: You’ll get a professional design that is catchy and makes your app stand out.
• Broader, custom-built functionality: Basically, you’ll get more features. Your app will cover more needs for more target users.
• Third-party integrations: Your app will be able to connect with major services (e.g., payment gateways, CRM systems, analytics tools). You name the service, we’ll make it work.
• Support across multiple platforms: The app will work smoothly on smartphones, tablets, desktops, and any other devices.
• Enhanced security: You’ll get advanced security measures like data encryption, two-factor authentication, and compliance with industry requirements, ensuring user data and business operations are protected.

You might be thinking, “If I can build a functioning app for $50,000, why invest more?”

A smaller budget gets you a basic working product — a so-called MVP (minimum viable product). But this MVP won’t have the polish or flexibility needed to truly compete in today’s market. If you want your app to catch attention and generate revenue, you’ll need to increase your budget.

Professional appearance

Generally speaking, a solid app design falls into one of two categories:

• Colorful, catchy, and trendy. The user opens the app and thinks “Wow, they’ve spent loads of money to make it look so stylish.”
• Unnoticeable. The design is so slick and intuitive that no one even thinks about it when using your app.

And you need a whole lot of money to achieve either of these results.

We constantly study web design trends and how they influence user behavior. And we know that professional design may influence an app’s credibility and trust, increase conversions, and drive word of mouth.

So how can you know whether you should invest in a trendy or minimalist design? Your business analyst (BA) and UI/UX designer will tell you. To do so, they’ll dive into your target audience — what they like, what they don’t, and how they behave. From there, the BA and UI/UX designer can figure out which design will click with your users and help you hit your goals.

Plus, they’ll check out your competitors and industry trends. Their goal is to make your app stand out while staying easy to use.

Enhanced functionality

Your $50,000 app will include only the essentials to launch. But it won’t be enough to compete.

It’s like offering an old-school bicycle for rent when everyone wants an electric scooter. Yes, you will find a few customers who like retro or are low on money. But if your goal is to scale your rental business, you’ll have to start offering faster and more convenient options.

By increasing your development budget, you can deliver more functionality to your users.

Note that we are still not talking about the level of Amazon or HubSpot software. Their budgets go into the hundreds of millions of dollars. But you don’t have to copy them either.

Your $100,000 app may perfectly cover some specific user scenario that market leaders neglect. Thoughtful functionality can allow you to compete with giants and take their unsatisfied users.

With this investment, you’re not just testing an idea anymore — you’re building a product that’s ready to compete and grow in a real-world market.

Example of a full-featured application

One of our bigger projects with a budget between $100,000 and $300,000 was a social media management platform for a marketing agency. They needed one tool for everything: content creation, approvals, automated posting, analytics, project management, and seamless client communication.

And since the app handled sensitive data like social media credentials, we needed to make sure it was built with advanced security. Ready to see how we did it?

Here’s how our software development team structure shaped up:

• Business analyst (part-time)
• Project manager (part-time)
• UI/UX designer (part-time)
• Full-time QA engineer
• 4 full-time software engineers

In 13 months, we delivered exactly what the agency needed. Impressed with the results, they thought of taking the product further and launching it as a SaaS app. Investor interest followed, unlocking exciting new opportunities.

Catch the full case study for all the details, including the product’s high-level architecture and the security measures we implemented: SMM Platform for a Marketing Agency.

Important note: You won’t need the entire six-figure budget up front.

With Agile development, we split the project into sprints, and you only pay for each completed sprint. Plus, we’re flexible. If you need to adjust the scope, we’ll work with you to build your app step by step. You can start a new sprint whenever you’re ready.

And one more thing: Hitting product–market fit is just the beginning. As your app grows, you’ll likely want to invest in scaling, new features, or performance boosts. Successful apps pay for themselves, taking you to the next level!

$500,000 to Millions: The Cost of Enterprise-Level Web Apps

Developing an enterprise-level web app? It’s a whole new ballgame — and a big investment, starting at $500,000 and reaching into the millions.

But for this price, you’re not just getting functionality — you’re getting a powerhouse that drives your entire business forward. It’s about creating a solution that can grow with you, not just solve today’s problems.

Such a budget can secure you with:

• A multi-module architecture that supports interconnected departments, creating a seamless workflow across your business
• Custom functionality crafted to meet your exact needs, avoiding the limitations of generic software
• A hands-on business analyst who is deeply involved, ensuring every feature aligns with your goals and saving you from costly oversights
• Integrated third-party services: CRM, accounting, and other tools that work smoothly together
• A responsive and intuitive design that offers a user-friendly experience across devices, making complex systems easy to navigate

This setup is built to manage large teams and vast data volumes while ensuring high reliability, making it perfect for companies that need a scalable and resilient solution.

In short, this investment goes beyond solving today’s issues; it prepares your enterprise to grow, adapt, and stay competitive globally.

Enterprise-Level App for a Global Exchange Programs Provider

We partnered with a company offering educational, work, and volunteer programs worldwide. As they outgrew Salesforce, they needed a scalable, custom ERP solution to streamline operations and support growth.

We gathered a dedicated tech team who joined forces with the client’s in-house designers.

The full team working on the ERP system looks like this:

• Business analyst
• Software architect
• 3 designers
• 3 frontend engineers
• 4 backend engineers
• Quality assurance engineer
• Project manager

After a year and a half of development, we’re getting ready to launch the MVP. Through this project, we’ve confirmed some key insights about ERP development for real businesses:

1. ERPs aren’t for testing concepts. Your team is the user, with clear needs and expectations, so a small launch isn’t practical. You have to deliver a functioning solution.
2. A business analyst is essential. The BA and the core team need to understand your business and domain as deeply as the product owner. A good BA digs into every detail, getting the team up to speed on your operations so each feature truly fits your goals. This level of insight cuts down on rework and keeps development laser-focused on what matters most.
3. Stakeholder management is key. Large companies mean multiple stakeholders and extended feedback loops. Strong project management and clear communication keep things on track.

For nearly a decade, our client’s business was like a machine running on outdated parts, limited by Salesforce constraints. Now, they’re just a step away from powering their operations with a custom ERP built for efficiency and growth, ready to run at full speed.

Software has no set budget limits. You need to keep investing as long as you want it to stay competitive and be aligned with your needs. Over time, this investment could reach millions of dollars, but the potential ROI can far exceed the cost.

What you can get from the same app concept at different price points

Now, let’s break down what you can expect to build at different budget levels. Below, we give a side-by-side comparison that shows you exactly what you’re paying for and how your investment shapes the final product.

Let’s say you want to build an online marketplace. Here’s what we can develop for you within different web app pricing categories:

Up to $50,000: Online marketplace app discovery and prototype

With a budget of up to $50,000, we’ll focus on the early stages of marketplace development, validating your concept before moving to full-scale development.

• Discovery phase: Together, we’ll refine your idea, dive into market research, and set clear goals. You will receive detailed documentation to set the stage for future development.
• Prototype development: Using Sharetribe or another similar prototype building platform, we’ll create a working prototype with essential marketplace features. Here’s what it will include:
  • User registration
  • Simple listings management allowing users to list items or services
  • Basic payment integration: Simple payment functionality using tools available within the platform
  • Optimization for different devices: Mobile responsiveness as provided by the platform

This approach is a smart way to showcase your app idea to users, investors, or potential co-founders. It lets you test the waters before diving into full-scale development.

$50,000 to $100,000: Simple marketplace app

In this price range, we can build a basic custom marketplace. It will be simple yet effective for attracting early adopters and validating your business model.

• Core features:
  • User accounts: Registration and profile management for buyers and sellers
  • Listings and search: Ability to create listings and use basic search/filter functions
  • Payments and transactions: Integration with a payment gateway like Stripe or PayPal for basic transactions
  • Rating and reviews: Functionality for buyers to leave feedback on sellers or products
  • Basic admin panel: A simple admin dashboard for managing users and listings
• Design: A clean, functional design with minimal customization, focusing on usability rather than aesthetics
• Architecture: Designed for future scaling

This kind of app is perfect for gaining real-world traction and generating early revenue while controlling the web application development cost.

$100,000 to $300,000: Full-featured marketplace

For this budget, we can develop a fully customized, feature-rich marketplace app that’s ready to compete with established players in your industry.

• Custom design: A professional, visually appealing design tailored to your brand and user experience
• Advanced features:
  • Advanced search and filters: Ability to search listings with detailed filters and sorting options
  • Messaging system: Built-in communication between buyers and sellers
  • Multiple payment options: Support for various payment gateways, including multi-currency options
  • Wishlist and favorites: Functionality that allows users to save their favorite products or services for later
  • Comprehensive admin dashboard: A robust admin panel to manage users, listings, payments, and site activity
  • Analytics integration: Integration with tools like Google Analytics to track user behavior and business performance
  • Security features: Enhanced security features like SSL encryption, fraud detection, and two-factor authentication
• Scalability: The app will be built with a scalable web application architecture, allowing you to grow your user base and add new features without performance issues.

This level of investment delivers a marketplace that looks polished, works seamlessly, and is capable of handling thousands of users as your business grows.

And here’s the promised side-by-side comparison:

Check out our article on building a marketplace for a detailed look at the entire development process. That article includes a web application development cost breakdown that gives you a time and cost estimate for each feature of an online marketplace.

Our client Workerbee offers a great example of how to spend your budget smartly. Curious about the details?

How to spend your web development budget wisely: Workerbee case study

At Clockwise Software, we partnered with an IT consulting firm to build their Workerbee online marketplace. Together, we tackled every budget stage, maximizing value each step of the way. Here’s how the development unfolded:

1. Starting with a small budget: Initially, the client allocated a modest budget, so we began by validating their marketplace concept. We kicked things off with a discovery phase, analyzing business needs and user personas and crafting a detailed development roadmap.

Note that we didn’t build a prototype for Workerbee. There was no need to validate this idea with users or investors. Why? Because the company was solving their internal business needs with this app, so their requirements were clear and didn’t need to be tested. With the discovery phase, we set the stage for custom web app development.

2. Building a simple app: Once the company was ready to boost their budget, we developed a Minimum Viable Product (MVP) with key features like user profiles, listings, and payment integration. Though simple, the MVP let our client make their first sales and start generating revenue.

The platform was a great success, drawing in 1,000 users within its first year — an impressive outcome, especially given the niche market.

3. Scaling with further investment: Once the marketplace showed real promise, the client upped their investment to take it further. We introduced features for a new user role, added advanced payment options, and optimized the platform to seamlessly handle more users and services.

Three years in, we’re still enhancing Workerbee. New features keep rolling out on the web app, and now we’re expanding into native mobile apps to take things up a notch. The platform keeps growing and adapting to meet the client’s needs and always be ready for what’s next.

Our successful cooperation with Workerbee has three pillars:

• Expense planning
• Budget reporting
• Transparency

From start to finish, we keep communication open. The client is involved in every decision and has a clear view of the project’s financials.

The Workerbee case shows how starting small can lead to big success. With gradual investment, a simple idea may turn into a competitive product.

Web app development estimates: Reliable or not?

Web application development cost estimations from vendors are a great starting point, but it’s important to remember they’re just that — estimates. How accurate they are depends on a few things, including the clarity of your software requirements documentation, the team’s experience, and the complexity of the features you need.

We use risk assessment to provide accurate optimistic and pessimistic estimates to plan for best- and worst-case scenarios. How does it work?

Risk assessment is a big part of our discovery phase. We identify potential risks, estimate their likelihood, and create strategies. We then organize all of this information into a risk register for better planning.

After we calculate the impact, probability, and exposure of certain risks, we decide on a strategy to handle them and factor those risks into our estimates. We include mitigation time in our optimistic estimates, while we add the potential risk impact to our pessimistic estimates.

Here’s an example of part of an estimate for a marketplace app:

You can download the full marketplace app estimate example here.

The realistic cost of web application development is usually close to the optimistic estimate, but it includes project-specific risk exposure. When managed well by an experienced service provider, risks have minimal impact on both the development process and the overall web app cost.

Having these detailed estimates in front of you helps you include both optimistic and pessimistic scenarios in your business plan for your startup so there are no surprise expenses along the way.

Custom web application development pricing

Here’s a quick recap of web app pricing levels:

Each level builds toward a more robust and scalable solution tailored to the needs of growing businesses and larger enterprises.

Our experience in software product development started over 10 years ago.

Over the past decade, we have worked on projects with really low budgets as well as projects worth beyond $1 million. What have we learned? You always get what you pay for.

A tight budget and a focus on cutting the cost of web app development won’t make you the next Netflix. But smart planning and an iterative approach give you a chance to compete. We know how to maximize the value from your current budget and can help you grow your app as you’re ready to invest more.

If you like what you’ve read, we would be glad to get to know you. You can start with exploring our about us page and find out more about how we work. Or maybe you are ready to schedule a call? We are just a few clicks away.