How to Calculate the Cost of an MVP for my App

Elo Sandoval
11 minutes ago
3 min read

Let’s face it—building an MVP (Minimum Viable Product) is exciting, but figuring out how much it will actually cost? That’s where things can get fuzzy. Whether you’re a product manager trying to plan your next sprint or a founder mapping out your runway, knowing how to calculate the cost of your MVP is critical to getting buy-in, budgeting smart, and launching faster.

At Hristov Development, we’ve helped dozens of startups and scale-ups get their MVPs off the ground, and we’re here to cut through the noise. Here’s a breakdown of what really goes into the cost of building a functional, user-ready MVP—without the fluff.

1. Start with the Core Features (Not the Wishlist)

Every product starts with a vision—but your MVP should start with a razor-sharp focus.

Why this matters: The MVP isn’t your final product—it’s a lean version that delivers just enough value to early adopters while allowing you to learn from their feedback.

The first step is ruthless prioritization. What’s the absolute minimum set of features your app needs to deliver value and validate your idea?

This could include:

User authentication
A core functionality (e.g., file upload, messaging, booking, etc.)
A simple UI/UX to support usability
Admin or analytics dashboard (if needed)

Skip the bells and whistles for now. Every feature you add increases complexity, dev hours, and cost. Keep it lean, keep it focused.

2. Estimate Dev Hours by Role

Once your feature list is clear, the next step is estimating how much time each role will need to build the MVP.

The main roles involved:

Frontend Developer – Builds the interface users interact with
Backend Developer – Handles data storage, APIs, logic
UI/UX Designer – Crafts flows, wireframes, and user experience
QA Engineer – Ensures the product works as expected across scenarios
Project Manager – Coordinates the team, timelines, and scope

How to approach this:

Break your MVP into user stories or features
Estimate how many hours each role will need per feature
Use historical data or velocity estimates from similar projects

Example Estimate:

Authentication (30 hrs backend, 25 hrs frontend, 10 hrs design, 8 hrs QA)
Dashboard (40 hrs backend, 30 hrs frontend, 12 hrs design, 10 hrs QA)

Totaling hours and multiplying by hourly rates gives you a grounded cost estimate.

3. Know Your Development Model: In-House, Freelancers, or Agency?

Each comes with trade-offs:

In-house team: Full control, higher cost over time
Freelancers: Flexible, lower cost, but often inconsistent
Development agency (like us): End-to-end delivery, project-tested teams, predictable cost

The key is to balance budget with speed and quality. Time is money—especially in early-stage development.

We recommend startups go with a specialized agency for their MVP—it’s cost-effective, scalable, and faster to launch if you choose the right partner.

4. Factor in Tech Stack Choices

Not all stacks are created equal. Choosing the right tools impacts both development time and long-term scalability.

Choose a stack that:

Matches your team’s expertise
Is well-documented with large community support
Has mature tooling and integrations
Open-source frameworks can reduce licensing costs
Avoid bleeding-edge tech unless it’s core to your product

Popular MVP-friendly stacks:

Frontend: React, Next.js, Flutter (for mobile)
Backend: Node.js, Firebase, Ruby on Rails
Databases: PostgreSQL, MongoDB, Supabase
Infrastructure: Heroku, Vercel, AWS (with managed services)

Why this matters:

A well-chosen stack reduces development friction, limits bugs, and supports faster iteration. For example, using Firebase may reduce backend time significantly but could increase long-term platform lock-in risk.

Your tech choices today will influence your costs tomorrow.

5. Don’t Forget the “Hidden Costs”

These are often overlooked but can significantly affect your MVP budget.

Key items to include:

Cloud services & hosting: AWS, Firebase, DigitalOcean (from $20/mo to $300/mo depending on usage)
Third-party APIs: Stripe (payments), SendGrid (emails), Twilio (SMS)
App Store fees: Apple ($99/yr), Google ($25 one-time)
Testing tools: BrowserStack, Postman
Maintenance: Bug fixes, minor updates, support—typically 10–20% of the initial build cost per month
Legal & compliance: Especially for fintech, healthcare, etc.

Pro Tip: Budget a buffer—usually 15–30% of the estimated dev cost—for these operational and post-launch items.