The true cost of building an MVP

Most founders drastically underestimate the true cost of building an MVP. They focus on development costs and forget about design, infrastructure, testing, and ongoing maintenance.

Let's break down the real costs so you can budget appropriately.

Development Costs

This is the obvious one, but even here founders get it wrong:

• Agency route: $50,000-$150,000 for 3-6 months
• Freelancer route: $25,000-$75,000 for 3-6 months
• In-house developer: $10,000-$20,000/month + benefits
• Subscription model: $1,000-$2,000/month, cancel anytime

Design Costs

Good design isn't optional for SaaS products in 2025:

• UI/UX research: $5,000-$15,000
• Wireframes and prototypes: $3,000-$10,000
• Visual design: $5,000-$20,000
• Design system: $3,000-$8,000

Infrastructure & Tools

Monthly costs that add up quickly:

• Hosting (Vercel/AWS): $20-$500/month
• Database (Supabase/Neon): $25-$200/month
• Authentication service: $25-$100/month
• Email service: $10-$50/month
• Analytics: $0-$200/month
• Monitoring: $20-$100/month

Hidden Costs

These are the killers that founders forget:

• Scope creep: Add 30-50% to any estimate
• Integration complexity: Third-party APIs always take longer
• Bug fixes: Budget 20% of dev time for fixes
• Security: Proper security measures add 15-25% to timeline
• Testing: QA should be 25% of development time

Ongoing Costs

After launch, the spending doesn't stop:

• Maintenance: 15-20% of initial development cost annually
• Feature updates: $2,000-$10,000/month
• Customer support: $3,000-$8,000/month
• Marketing: $5,000-$50,000/month

The Subscription Alternative

With a subscription development model, you pay a fixed monthly fee that includes:

• Development
• Design
• Infrastructure setup
• Ongoing maintenance
• Regular updates

Total cost for first 3 months: $3,000-$6,000 instead of $80,000-$200,000.

Smart Budgeting Tips

1. Always add 50% buffer for unknowns
2. Start with core features only
3. Use proven technology stacks
4. Consider subscription models to reduce risk
5. Budget for marketing from day one

The true cost of an MVP is significantly higher than most founders expect. Plan accordingly and consider models that reduce upfront risk.