How Much Does It Cost to Start a App Development Company?
Last updated: May 2026
National Average
Low
$10,000
Medium
$30,000
High
$80,000
Start a mobile and software application development company building iOS, Android, and cross-platform apps for businesses.
Time to Launch
1-3 months
Profit Margins
25-50%
Break-Even Timeline
3-9 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
App Development Company in Nationally
Budget:
$600
$125
$1,000
$2,000
$600
$800
$2,500
$1,500
$15,000
Options
Employees:
Startup Costs
$24,125
Monthly Costs
$8,000
First Year Total
$120,125
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $7,700 | $23,100 | $61,600 | $50 | 7.0% |
| West Virginia | $7,700 | $23,100 | $61,600 | $100 | 6.0% |
| Oklahoma | $8,000 | $24,000 | $64,000 | $100 | 4.5% |
| Alabama | $8,100 | $24,300 | $64,800 | $200 | 4.0% |
| Arkansas | $8,100 | $24,300 | $64,800 | $45 | 6.5% |
| North Dakota | $8,200 | $24,600 | $65,600 | $135 | 5.0% |
| Iowa | $8,300 | $24,900 | $66,400 | $50 | 6.0% |
| Kansas | $8,300 | $24,900 | $66,400 | $160 | 6.5% |
| Missouri | $8,300 | $24,900 | $66,400 | $50 | 4.2% |
| South Dakota | $8,300 | $24,900 | $66,400 | $150 | 4.2% |
| Kentucky | $8,400 | $25,200 | $67,200 | $40 | 6.0% |
| Louisiana | $8,400 | $25,200 | $67,200 | $100 | 5.0% |
| Wyoming | $8,400 | $25,200 | $67,200 | $100 | 4.0% |
| Nebraska | $8,500 | $25,500 | $68,000 | $105 | 5.5% |
| Indiana | $8,600 | $25,800 | $68,800 | $95 | 7.0% |
| Michigan | $8,800 | $26,400 | $70,400 | $50 | 6.0% |
| Ohio | $8,800 | $26,400 | $70,400 | $99 | 5.8% |
| New Mexico | $9,000 | $27,000 | $72,000 | $50 | 4.9% |
| South Carolina | $9,000 | $27,000 | $72,000 | $110 | 6.0% |
| Wisconsin | $9,100 | $27,300 | $72,800 | $130 | 5.0% |
| Tennessee | $9,200 | $27,600 | $73,600 | $300 | 7.0% |
| Texas | $9,200 | $27,600 | $73,600 | $300 | 6.3% |
| Georgia | $9,400 | $28,200 | $75,200 | $100 | 4.0% |
| Minnesota | $9,400 | $28,200 | $75,200 | $155 | 6.9% |
| Illinois | $9,500 | $28,500 | $76,000 | $150 | 6.3% |
| Idaho | $9,600 | $28,800 | $76,800 | $100 | 6.0% |
| North Carolina | $9,600 | $28,800 | $76,800 | $125 | 4.8% |
| Pennsylvania | $9,600 | $28,800 | $76,800 | $125 | 6.0% |
| Montana | $9,700 | $29,100 | $77,600 | $35 | 0.0% |
| Utah | $10,000 | $30,000 | $80,000 | $54 | 6.1% |
| Delaware | $10,400 | $31,200 | $83,200 | $110 | 0.0% |
| Nevada | $10,500 | $31,500 | $84,000 | $425 | 6.8% |
| Virginia | $10,700 | $32,100 | $85,600 | $100 | 5.3% |
| Vermont | $10,900 | $32,700 | $87,200 | $125 | 6.0% |
| Arizona | $11,000 | $33,000 | $88,000 | $50 | 5.6% |
| Colorado | $11,000 | $33,000 | $88,000 | $50 | 2.9% |
| Florida | $11,200 | $33,600 | $89,600 | $125 | 6.0% |
| Oregon | $11,200 | $33,600 | $89,600 | $100 | 0.0% |
| Rhode Island | $11,200 | $33,600 | $89,600 | $150 | 7.0% |
| Maine | $11,400 | $34,200 | $91,200 | $175 | 5.5% |
| New Hampshire | $11,700 | $35,100 | $93,600 | $102 | 0.0% |
| Washington | $11,800 | $35,400 | $94,400 | $200 | 6.5% |
| Connecticut | $11,900 | $35,700 | $95,200 | $120 | 6.3% |
| Maryland | $12,100 | $36,300 | $96,800 | $100 | 6.0% |
| New Jersey | $12,500 | $37,500 | $100,000 | $125 | 6.6% |
| Alaska | $12,700 | $38,100 | $101,600 | $250 | 0.0% |
| New York | $13,900 | $41,700 | $111,200 | $200 | 4.0% |
| California | $15,200 | $45,600 | $121,600 | $70 | 7.3% |
| Massachusetts | $15,400 | $46,200 | $123,200 | $500 | 6.3% |
| Hawaii | $19,300 | $57,900 | $154,400 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$23,100
- West Virginia$23,100
- Oklahoma$24,000
- Alabama$24,300
- Arkansas$24,300
5 Most Expensive States
- Hawaii$57,900
- Massachusetts$46,200
- California$45,600
- New York$41,700
- Alaska$38,100
Frequently Asked Questions
An app development company typically requires a low-to-mid five-figure investment to start, covering business formation, developer accounts, development tools, test devices, and working capital. The largest cost is often skilled developer salaries if hiring beyond the founder.
Simple apps land in the low-to-mid five-figure range; medium-complexity apps in the six-figure range; enterprise or complex custom apps run well into six figures and can reach into seven figures. US hourly rates are typically a healthy three-figure range. Maintenance and updates add a low-to-mid four-figure monthly retainer after launch.
No — app development is highly remote-friendly. Most successful agencies operate distributed teams. A professional home office with a quality video-call setup (a low-to-mid three-figure to low-four-figure outlay) is sufficient. Some agencies maintain coworking memberships for client meetings and team collaboration.
Estimate hours by phase (discovery, design, development, testing, deployment) then multiply by your blended hourly rate — typically a healthy three-figure rate for a US-based team. Always add a meaningful buffer for unknowns. Most agencies use fixed-price contracts with defined scope to reduce client payment disputes.