Breaking Down the Numbers
Cost is often the deciding factor for US startups. The price of app development varies wildly depending on *where* the code is written. Here is a realistic comparison for 2025.
US-Based Agency
- Hourly Rate: $150 – $250+
- Average MVP Cost: $75,000 – $150,000
- Pros: Time zone alignment, cultural fluency, legal recourse.
- Cons: Extremely high cost. Talent competition with Big Tech drives up rates.
Eastern Europe / Latin America
- Hourly Rate: $50 – $100
- Average MVP Cost: $30,000 – $60,000
- Pros: Strong engineering culture, manageable time difference.
South Asia (Pakistan/India)
- Hourly Rate: $25 – $50
- Average MVP Cost: $15,000 – $35,000
- Pros: Most cost-effective, large talent pool, 24/7 development cycle.
- Cons: Time zone difference, varying quality (requires careful vetting).
The Strategic Hybrid
Many successful US companies use a hybrid model: A US-based Product Manager and Lead Architect to define the vision, managing a skilled offshore team for execution. This delivers US-quality product management at offshore development prices.
