How much does a custom app cost a small business?
Build prices, the ongoing costs nobody mentions, and when you shouldn't build one at all.
Ask ten developers what an app costs and you'll get ten answers, from a few thousand dollars to six figures. That's not because anyone's hiding anything. "An app" can mean a simple quote calculator on your website or a full platform with logins, payments and a cloud backend.
This guide breaks down what small business apps actually involve, what they cost to build, and what they cost to keep running. The build prices are mine at Wayward Vector, including GST. Agencies and other developers price differently, so use these to understand the scale of each option.
First: what kind of app do you need?
Most small business "apps" fall into one of three types, and the type decides most of the price.
| Type | Good for | Relative cost |
|---|---|---|
| Web tool (runs in a browser) | Quote calculators, booking or enquiry forms, internal job trackers, dashboards | Lowest. One version works on phones and computers, no app store needed |
| Phone app (iPhone and Android) | Things customers use often, need offline, or that use the camera, GPS or notifications | Higher. Two platforms, app store reviews and accounts |
| App plus backend | Logins, shared data between staff, payments, syncing across devices, connecting to equipment | Highest. A server and database to design, secure and run |
A lot of businesses ask for a phone app when a web tool would do the job just as well for less. If your staff or customers use it a few times a week, a web tool saved to the home screen is often enough.
What it costs to build
My small business apps and web tools are $1,650 to $3,300 including GST. That covers a focused tool built around how your business actually works, such as:
- a quote calculator that turns customer inputs into a price
- a booking or enquiry form that sends you the details you actually need
- a job tracker or checklist for your team
- a simple dashboard pulling together numbers you currently chase by hand
Bigger builds with multiple user types, payments, phone apps on both stores and a cloud backend are full product builds, which start from $16,500 and are paid in milestones. The smart pool controller I built is an example of that end: iPhone, Android and web apps, guest access by QR code, and a secure cloud database so technicians can manage many controllers remotely.
What pushes the price up
- Logins and user roles. Owners, staff and customers each seeing different things.
- Connecting to other systems. Accounting software, booking systems, payment providers, or hardware.
- Both app stores. Building, testing and publishing for iPhone and Android.
- Offline use. Making it work with no signal, then syncing later.
- Unclear scope. Changing direction halfway is the single most expensive thing in software.
The ongoing costs
The build is a one-off. These keep coming, and it's worth knowing them before you start:
Running costs to plan for
- Hosting. Web tools and backends need a server. For a small business tool this is often modest, and it grows with users and data.
- Apple Developer Program. Needed to publish on the App Store. It's a yearly fee, A$149 a year in Australia.
- Google Play developer account. A one-off US$25 registration fee.
- Store commission. If you sell subscriptions or digital content inside the app, Apple and Google take a cut. For smaller developers it's generally 15% (Apple's Small Business Program, and Google's rate on the first US$1 million of earnings each year), otherwise 30%.
- Updates. Phones and operating systems change every year. Apps need occasional updates to keep working and stay in the stores.
- Domain and email. Small, but easy to forget.
A web tool avoids the app store fees and commissions entirely, which is another reason it's often the right first step.
Off-the-shelf or custom?
Sometimes the cheapest app is the one you don't build. There's good off-the-shelf software for bookings, invoicing, job management and CRM, and if one of them fits how you work, a monthly subscription is usually better value than a custom build.
Custom makes sense when:
- you've tried the off-the-shelf options and they force you to work around them
- you're paying for several subscriptions to do one job
- the tool is part of what makes your business different, like a quoting method or a service your competitors can't offer
- it needs to talk to equipment or sensors that off-the-shelf software doesn't support
- you want to own the tool outright, with no per-user fees
If none of those apply, I'll tell you to use the off-the-shelf option. That's a better outcome for you than a custom app you didn't need.
Fixed price or hourly?
Hourly billing sounds flexible, but it puts all the risk on you. If the job takes longer than expected, you pay for it. A fixed price for a clearly written scope means you know the cost before work starts, and the developer carries the risk of their own estimate.
The catch is that a fixed price only works when the scope is clear. That's why I ask a lot of questions up front, and why larger builds start with a scoping stage. Changes are still possible along the way. They're just quoted separately, so nothing gets added to the bill without you agreeing to it first.
Also ask who owns the finished app. You should receive the code, the design files and the store accounts in your own name. If a developer keeps those, moving to someone else later can be hard and expensive.
How to get an accurate quote
The more clearly you can describe the job, the more accurate and lower the quote will be. Before talking to any developer, write down:
- the problem in one sentence, and who has it
- who will use the app, and what each of them needs to do
- what you use now (a spreadsheet, paper, another app) and what's wrong with it
- anything it must connect to
- whether it needs to be on the app stores, or a web tool will do
A screenshot of your current spreadsheet or a photo of the paper form you use is often more useful than a long description. I built BookForge, my own writing app, the same way: start with the job the user is trying to get done, then design the screens around it.
Common questions
How much does a simple business app cost in Australia?
A simple, focused business app or web tool such as a quote calculator or job tracker typically costs a few thousand dollars. At Wayward Vector small business apps are $1,650 to $3,300 including GST.
Is a web app cheaper than a phone app?
Yes, usually. A web app is built once and works on phones and computers, with no app store fees or reviews, while a phone app needs iPhone and Android versions and developer accounts.
What are the ongoing costs of an app?
Expect hosting, occasional updates, and app store accounts if you publish to the stores: Apple charges A$149 a year in Australia and Google a one-off US$25. If you sell inside the app, the stores also take a 15% to 30% commission.
Should I use off-the-shelf software instead of a custom app?
If an existing product fits how you work, off-the-shelf software is usually better value. Custom makes sense when existing tools force workarounds, you're paying for several subscriptions to do one job, or the tool is part of what makes your business different.
Want a quote for your app?
I build small business apps and web tools from $1,650 to $3,300 including GST, with a fixed quote up front and you owning the finished product. Send me a sentence about the problem and what you use now, and I'll tell you honestly whether to build or buy.
Get a fixed quote