How Much Does MVP Development for Startups Really Cost?

Introduction

Are you a founder wishing to create an MVP for a SaaS startup? Before putting up a job opening trying to get a MVP engineer or developer for hire, it is important for you to evaluate the costs involved creating a minimum viable product or MVP.

To understand MVP costs, it is important you realize that MVPs are built to validate your ideas and create a real life, working prototype that is enough to gather initial user feedback. Think of it as a market validator or early foundational version of the product or service you are trying to build.

Startups often face the common problem of a financial crunch, which prevents them from launching a feature-packed, market-ready version of their product or service. This leads them to take the "next right step": starting with an MVP to get something tangible in hand.

MVP as a concept was first introduced by Frank Robinson focussing on the fact that MVPs are unique products, but Eric Ries simplified it as: “That product which has just those features and no more that allows you to ship a product that early adopters see and . . . pay you money for, and start to give you feedback on.”

10 Best Practices For Startup Founders looking to Build an MVP:

Start with "Why," Not "What."

Before you build anything, find the single biggest problem your product solves. Your MVP isn't just about features; it's also about validating a solution to a real customer pain point.

Your MVP Budget is Future Investment, don’t be shallow on it.

Think of your MVP budget as a strategic investment. By starting small, you're not just saving money, rather, you're minimizing risk. If the idea doesn't work, you've only risked a fraction of what a full product would cost. But, if you do not go full in to test your potential, some else may monetize your idea by a better MVP execution rate.

Build Only After Testing Your Idea

Don't spend a single dollar on coding until you've tested your idea. Simple things like a landing page or user interviews are your best friends. Remember, 42% of startups fail because they build a product no one wants.

Think "Lean Startup," Not "Dream Product."

An MVP is the bare minimum you need to get real user feedback. It’s not about perfection; it’s about learning. Your goal is to launch quickly, in just 1-4 months, not 9+ months.

MVPs Can Help You Secure Funding

You can talk all day about your grand vision, but nothing speaks louder to investors than a working product with real users. Y Combinator says startups with an MVP are 4 times more likely to get funding.

Learn "Less is More" Philosophy.

Every feature you add, no matter how small, increases cost and time. Be ruthless in your feature list. Focus on the core functionality that solves the main problem, and save the rest for later.

Quality Over Quantity.

Don't slack on quality assurance. A buggy, frustrating product will lose users faster than anything. A little extra investment in testing leads to a 60% higher user retention rate, according to a 2024 Startup Genome report.

It's a Marathon, Not a Sprint.

Your MVP isn't the finish line; it’s the starting block. Plan for post-launch costs like maintenance and updates. A successful MVP is one that's ready to evolve based on what your users tell you.

Build a Determined Team

The people you hire will make or break your MVP. Look for a partner—whether a freelancer or an agency—who understands your vision, communicates openly, and is committed to building a solid foundation, not just a flashy product.

Be Open to User Feedback

Be prepared to listen to your users and change direction. The beauty of building an MVP at your startup is that it lets you test and pivot quickly. It’s your chance to validate your dream and turn it into a reality.

Types of MVPs for Startups and Costs Associated with them.*

The cost of an MVP can change dramatically, ranging from a few thousand US dollars to well over $150,000. It's not a one-size-fits-all number. The price depends on the type of MVP you're building, how complex it is, and the type of team you have, or the agency that you have hired. Beware of agencies that inflate prices to trick non-tech founders that are looking for MVP development services.

To give you a better idea on the costs, we have broken down different types of MVPs and their price ranges.

*Disclaimer: The price ranges you're about to see represent the minimum industry standards for mid to large-sized IT companies. They do not reflect the prices of ByteHint. Our pricing is unique and is based on our proprietary Concept to Clarity model, which ensures every solution is tailored to your specific needs and goals. Know our story.

Startup Costs for a High Fidelity MVP

This is a fully functional, yet basic, version of your product with a clean and professional design. It's what most people think of when they hear "MVP."

Web Application MVP Cost

What's Included: Core features, user registration, database setup, basic UI.

Industry Standard Rate: $10,000 - $50,000

Cross-Platform Mobile App MVP Cost

What's Included: One core feature, user login, push notifications. Built with frameworks like Flutter or React Native to work on both iOS and Android.

Industry Standard Rate: $15,000 - $70,000

Native Mobile App MVP Cost

What's Included: One core feature, optimized for a single platform (either iOS or Android) for the best performance.

Industry Standard Rate: $20,000 - $80,000

Complex App

What's Included: Requires advanced features, third-party integrations, or sophisticated backend logic.

Industry Standard Rate: $50,000 - $150,000+

Startup Costs for Low-Fidelity MVPs

These are more about validating a core idea or user demand before you even write a single line of code. They are much cheaper and faster to create.

Landing Page MVP Cost

What's Included: A simple webpage with a signup form to gauge interest in your product. Think of it as a "smoke test."

Industry Standard Rate: $500 - $5,000

Explainer Video MVP Cost

What's Included: An animated video demonstrating how your product works. Dropbox famously used this to get initial signups.

Industry Standard Rate: $1,000 - $10,000

Concierge MVP Cost

What's Included: You manually perform the service your product is meant to automate. This lets you learn from customers directly.

Industry Standard Rate: Minimal cost, mostly labor

Single-Feature MVP Cost

What's Included: A product with only one critical feature. For example, a note-taking app that only lets you create notes, nothing else.

Industry Standard Rate: $5,000 - $30,000

How much time does it take to build a Custom MVP for startups?

For a startup founder, time isn't just money—it's everything. While many in our industry will tell you to expect a project to take 2-4 months, we believe that’s far too slow for a founder who needs to move fast.

Our Promise is Simple: Under 30 Days.

We've thrown out the old rulebook. Our process is designed for speed and efficiency, not long timelines. For most projects, we build your full, testable application and get it live in under a month.

What About Complexity?

For more complex projects with advanced features, the timeline might stretch to 4-5 weeks. But we’ll give you a clear, honest timeline from day one. No surprises.

How Do We Do It So Fast?

Simple: we work smart, not slow. Our system cuts out the wasted time and bureaucracy so we can focus on what matters—building your product. We don’t cut corners on quality; we just build in a way that’s fast and efficient.

Why Does This Matter to You?

Because a month from now, you won’t have just an idea. You’ll have a live product you can show to investors, get real user feedback on, and start building your company on. We get you from vision to reality, fast.

Why Choose a Young MVP Agency with Clean Code Over an Experienced Giant?

When it comes to building your startup's MVP, it's easy to assume that bigger is better. You might think an experienced giant agency offers more security and expertise. However, for a fast-moving startup, that's often the wrong conclusion. A newer, more agile MVP agency can MVP development process for startups much better than a giant which deals with bigger enterprise level projects.

Here’s why you should consider a young, focused agency like ByteHint for your project:

• We are faster and more agile because we have less bureaucracy.
• We build with the latest technology to ensure your product is scalable and bug-free.
• We give you dedicated attention and direct access to a team invested in your success.
• Our lower overhead allows us to offer top-tier quality at a more affordable price.

MVP Development Cost FAQs

Is a microservice necessary for an MVP startup?

No, a microservice architecture is typically not necessary for an MVP. A monolithic architecture is often faster and more efficient for a small team to manage, allowing for quicker market validation.

In lean startup methodology, what does MVP stand for?

In the lean startup methodology, MVP stands for Minimum Viable Product. It is the version of a new product that allows a team to collect the most user feedback with the least amount of effort.

Is a front-end framework necessary for a startup MVP?

Yes, a front-end framework like React or Vue is highly recommended. It provides a structured foundation that accelerates development, ensures a clean codebase, and helps create a better user experience.

Do we provide MVP validation for startups?

Yes, we provide MVP validation for startups. Our process is designed to help you test your business idea, gather crucial user feedback, and make data-driven decisions to refine your product.

Have we created software for a startup MVP?

Yes, we have created software for numerous startup MVPs. We specialize in building and launching products that are ready for market validation and investment.

Why does Concierge MVP not have a cost range?

A Concierge MVP doesn't have a cost range because its primary "cost" isn't a billable expense. It is a manual service, not a product.

Instead of hiring a development team for a monetary cost, the founder invests their own time and effort to manually perform the service. This approach is designed to validate the product idea and business model with a minimal financial outlay. The main investment is labor, not a fixed project price. Therefore, a specific dollar amount or range would be misleading and inaccurate.

Final words

The true cost of an MVP isn't a fixed price tag, but a strategic investment that minimizes risk and provides a foundation for growth. By focusing on the core problem and building a lean, quality-driven product, you can effectively validate your idea without draining your resources. Ultimately, the wisest approach is to think of your MVP not as a final product, but as the essential first step on your journey to success.