How Much Should an MVP Cost?

Let's cut to the chase – if you're reading this article, you're probably wrestling with one of the most anxiety-inducing questions of early-stage entrepreneurship: "How much is this MVP going to set me back?"

I get it. You're trying to balance the need to build something meaningful with the reality of your bank account. And everyone seems to have a different opinion: your technical co-founder says one thing, that agency you talked to quoted something wildly different, and your friend who "knows a guy" has yet another number.

So let's break down what MVP development actually costs in 2023, without the sugar coating or the upsell.

The Four Paths to MVP Development

When it comes to building your MVP, there are four main approaches, each with their own cost implications:

1. Hire In-House Developers

Cost Range: $30,000 - $100,000+ for initial development

The Reality: This is generally the most expensive option upfront. You're looking at:

$10,000 - $20,000 per month per senior developer
Benefits, equipment, office space
Recruiting costs and time (often overlooked but substantial)
2-3 months minimum to build an initial MVP

When It Makes Sense: You're well-funded and building a technically complex product that will require ongoing development and iterations for the foreseeable future.

Hidden Costs: The opportunity cost of the time spent recruiting and managing, plus the financial commitment extends well beyond the initial MVP.

2. Hire Freelance Developers

Cost Range: $15,000 - $50,000

The Reality: Quality varies dramatically. You'll typically pay:

$50-150/hour for experienced Western developers
$25-75/hour for developers from emerging markets
200-500 hours for a reasonably complex MVP

When It Makes Sense: You have technical knowledge to manage developers and clear specifications for what needs to be built.

Hidden Costs: Management overhead, quality issues, potential disappearing acts, and future maintenance challenges.

3. Work with an Agency

Cost Range: $25,000 - $150,000+

The Reality: Traditional agencies bring process and reliability, but at a premium:

Design, development, and project management all built in
Lower risk of project failure
Higher upfront costs
Timeline typically 3-4 months

When It Makes Sense: You have the budget and prefer a "set it and forget it" approach where experts handle everything.

Hidden Costs: Agencies have significant overhead that gets passed on to you. You're paying for their fancy office, their sales team, and their hierarchical structure.

4. Use No-Code/Low-Code Tools

Cost Range: $1,000 - $15,000

The Reality:

Quick to market
Limited functionality
Technical debt if successful
Typically requires rebuilding if the product gains traction

When It Makes Sense: You're testing a simple concept or building something that doesn't require custom functionality.

Hidden Costs: The rebuild costs if successful, ongoing subscription fees, and limitations when you need to customize.

What Affects MVP Cost The Most?

Beyond your development approach, these factors will move your cost estimate up or down:

1. Feature Complexity

Each complex feature can add $5,000-$15,000 to your MVP cost. The most expensive features typically include:

Payment processing and financial calculations
Real-time functionality (chat, live updates)
Complex search or filtering
Third-party integrations
Custom algorithms

2. Design Requirements

Basic functional design: $3,000-$5,000
Custom, branded design: $5,000-$15,000
Complex interactions and animations: $10,000-$20,000+

3. Platform Choices

Web application only: Baseline cost
Add iOS native app: +30-50%
Add Android native app: +30-50%
Add both mobile platforms: +60-80%

4. Engineering Quality

This is the part no one talks about. There's building something that works in a demo, and then there's building something that:

Won't break when real users start using it
Can be maintained and extended easily
Has proper security practices
Handles edge cases appropriately

The price difference? Often 2-3x. But the long-term cost difference works in the opposite direction.

The Real MVP Cost Trap

Here's what most articles won't tell you: the most expensive MVP is the one that:

Takes so long to build that you miss your market window
Is so poorly built that you have to throw it away and start over
Never gets built because you're paralyzed by sticker shock

The goal isn't to minimize the dollar amount – it's to maximize what you learn per dollar spent.

Our Approach at CraftNow

After years of building MVPs (both over-engineered and under-built), we've developed a streamlined process that delivers a production-quality MVP in 4 weeks for $9,000.

This isn't some cut-rate hack job. It's a full-featured MVP with:

Professionally engineered codebase
Comprehensive test coverage
Modern, responsive design
Core features implemented properly
A professional landing page included in the price

We can do this because:

We've eliminated the traditional agency overhead
Our process is specifically optimized for MVPs (not enterprise projects)
We leverage AI for repetitive tasks while maintaining human quality control, with our human team working during the day and our AI systems continuing progress throughout the night – creating a true 24-hour work cycle
We're maniacally focused on the features that actually matter for validation

The MVP Cost Decision

The right approach depends on your specific situation:

If you're technical and bootstrapping: Consider the no-code approach for initial validation, then freelancers or build it yourself
If you're funded but non-technical: The agency or specialized MVP builder approach makes sense
If you're building a tech company with ongoing development: Start with an agency or specialized MVP builder, then transition to in-house team

Whatever you choose, remember this: the purpose of an MVP is to learn, not to build. Optimize for speed to learning, not feature completeness.

If you're figuring out your MVP budget and want to chat through options, drop us a line at: founders@craftnow.ai. We're happy to provide insight even if we're not the right fit for your project.