Chat with us, powered by LiveChat Hourly vs. Fixed: Which is better for Less App Development Cost?

Don't miss the chance to work with top 1% of developers.

Sign Up Now and Get FREE CTO-level Consultation.

Confused about your business model?

Request a FREE Business Plan.

Hourly vs. Fixed: Which is better for Less App Development Cost?

4890 Views | 1 min | Published On: August 10, 2018 Last Updated: October 4, 2019
cost to mobile app development

How much does it cost to make an app? This is one of the most burning questions that people asked Google this year. And, the answer to this question depends on what pricing model you select for the development of your Mobile App. Will it be hourly or fixed? What will be better for less app development cost?

The cost of development of an app is hard to predict. But, depending on the required features of the final product, we can select one of the two pricing models – Fixed-price or Hourly. A few projects run well with a Fixed Price model, while others don’t because of high-risk possibilities for both the parties.

So, what are the advantages of fixed rates and hourly rates? What are their disadvantages? And which is needed to be selected in which situations? Let’s figure out:

less app development cost

Fixed Price: When to Use and Why?

Suppose you have an app idea in your mind with clearly defined features. There is almost nothing left to decide or discuss with developers and you are very clear about what you require – you are simply ready to give developers a precise vision of what you’d like to get in form of the final product.

There are two possibilities in this case: either the final product has no complex features or it is an MVC or prototype with some basic features.

In such conditions, both clients and app development companies would like to agree on a specific fixed app development cost for the project. Furthermore, when the task is entirely easy to accomplish, developers are ready to set a specific date when the final product can be readied.

But, as a client, while selecting the fixed price model, you should remember that any of your requirements are not going to be changed amid the project – they are final from the very beginning. And that’s why you need to be very sure about features that you need to incorporate in your product before even finding the perfect software development company if you wish to pay less app development cost.

We would like to add here that the fixed price model is always a risky path to follow. As when you deal with deadlines, something always goes wrong.

Key Points of Fixed Cost Model

  • Based on a fixed budget
  • Pre-selected and well-defined features of the final product
  • Fixed deadlines and any changes in requirements are not entertained

When Should You Go With the Fixed Cost Model?

  • When you have a clear and simple app idea in mind without complex features
  • When your requirements and preferences are sorted and pre-defined
  • When you want to have a simple app or MVP and have time constraints
  • When the budget is the conclusive factor

Hourly Rate: When to Use and Why?

The hourly model is the best choice if you like to know everything about each phase of the development procedure and some of the times want to make changes in your requirements. In this manner, even a project with the highest complexity would turn into an ideal product for the market as all features will precisely be in their places (as you need them to be).

These types of projects are generally completed by using agile methodologies. Agile teams work within small periods of time where the product goes through each stage one after the other. The stages incorporate development, testing, discussion with the client and then refining the product. It implies the client won’t miss even a single feature that he wants to add in the product.

Key Points of the Hourly Model

  • Includes a flexible deadline with estimated timelines
  • Follows the Agile methodology for development
  • Dynamically manages the unexpected changes and adequately handles change in requirements
  • The app development cost is calculated based on hours spent on the task

When Should You Consider Hourly Model?

  • When your application idea still needs consideration
  • When it’s a major project with unpredictable dependencies and complexities
  • When you are not sure about what features you require
  • When you need to have a superior control over the development processes

So, What to Select for Less App Development Cost? Here is the Conclusion

Like one size does not fit all, one model will not suit all situations splendidly. There are both great and terrible sides to the two models. Everything relies upon your situation and your inclinations with building the application, as to which model will prove more beneficial for your situation.

If budget is a conclusive factor and your requirements are all well-defined and sorted, a fixed-cost model will be an ideal fit for less app development cost. However, if you want to have a superior control over assets and would prefer not to risk your product quality, restricting it to certain development decisions, selecting hourly or time and material model bodes well.

Rate this article!

Bad Article
Strange Article
Boring Article
Good Article
Love Article

Join 60,000+ Subscribers

Get the weekly updates on the newest brand stories, business models and technology right in your inbox.


App Monetization Strategies: How to Make Money From an App?

Your app can draw revenue in many ways. All you need to figure out is suitable strategies that best fit your content, your audience, and your needs. This eGuide will put light on the same.

Download Now!

Subscribe to Unlock
Exclusive Business

And we will send you a FREE eBook on Mastering Business Intelligence.

Discuss your Idea with a CTO!

Get a Call Back