What Is Included in the Cost of Development? And What Are Ongoing Costs?

Published

10 Jun 2026

Author

Akash Shakya

The build cost is the deposit. The ongoing cost is the mortgage. Founders who budget for the deposit but not the mortgage run out of money before the product finds its market.

Editorial note: Founder quotes throughout this article are composites drawn from multiple EB Pearls engagements. The numbers and decisions are real. Identifying details have been changed.

Why We Wrote This

The most common budget mistake founders make is treating the build cost as the total cost. The build is typically 65 to 75% of the first-year cost. The remaining 25 to 35% covers infrastructure, maintenance, iteration, and the third-party services that keep the product running. This article provides a transparent breakdown of both.

Part 1: What Is Included in the Development Cost

The development cost covers everything from the Discovery Workshop to launch day. Here is exactly what it includes, with no line items hidden in assumptions. If you are raising capital, see our guide on how to be investor-ready.

Discovery Workshop (AU$3K to $8K)

The workshop produces the Locked Scope Document, Fixed-Price Proposal, and RAT design. This cost is separate from the build cost because it precedes the build commitment. If the workshop reveals the project is not ready, you have spent AU$3K to $8K instead of AU$50K to $200K.

UX/UI Design (15 to 20% of build cost)

User research, wireframes, mockups, and interactive prototypes. Design is not a decoration phase. It is where the user experience is tested before code is written. Includes 2 to 3 revision cycles.

Frontend Development (25 to 30% of build cost)

The user-facing application. Mobile (React Native, Flutter, or native), web (React, Next.js), or both. Includes responsive design, accessibility compliance, and performance optimisation.

Backend Development (25 to 35% of build cost)

Server-side logic, database design, API architecture, authentication, and business rules. Includes CI/CD pipeline setup, environment configuration (dev, staging, production), and infrastructure-as-code. For detailed build timelines, see how long it takes to build software.

QA and Testing (10 to 15% of build cost)

Unit tests, integration tests, end-to-end tests, and manual QA. Includes the Production Readiness Review (PRR) that scores the product across reliability, measurability, usability, and scalability.

Project Management (8 to 12% of build cost)

Sprint planning, daily standups, retrospectives, demos, stakeholder communication, and scope management. At EB Pearls, this is not a passive overhead role. The PM actively manages the Locked Scope Document and the change request process. Without scope discipline, budgets can overrun. See the cost of scope creep.

The Standish Group's research consistently shows that projects with active, engaged project management have a 2.5x higher success rate than those with passive or absent management. The PM cost is not overhead. It is insurance.

Build Cost by Product Type

Product Type	Typical Build Cost (AU$)
Simple app (1 core feature)	AU$25-50K (8-12 weeks)
Medium app (3-5 features)	AU$50-120K (12-18 weeks)
Complex app (10+ features)	AU$120-250K (18-28 weeks)
AI product (pre-built API integration)	AU$40-120K (10-16 weeks)
AI product (custom model)	AU$80-200K (14-24 weeks)
Full platform (marketplace/SaaS)	AU$150-400K+ (22-36 weeks)

"I budgeted AU$80K for the build and was surprised when the proposal included AU$6K for the Discovery Workshop, AU$12K for design, and AU$8K for QA. I thought the AU$80K was all development. In reality, development was AU$54K of the AU$80K. The rest was the work that ensures the AU$54K of code actually works, looks right, and solves the right problem. After seeing the breakdown, I realised the non-code costs were the highest-ROI items in the budget."

Part 2: What Are Ongoing Costs After Launch

Infrastructure and Hosting (AU$200 to $10,000+/month)

Cloud hosting (AWS, GCP, or Azure), database hosting, CDN, SSL certificates, domain registration, and email infrastructure. Costs scale with users and data volume.

MVP stage: AU$200 to $500/month. Scale stage: AU$500 to $2,000/month. Enterprise stage: AU$2,000 to $10,000+/month. Auto-scaling prevents over-provisioning but requires monitoring to avoid surprise bills.

Third-Party Services (AU$100 to $2,000+/month)

Payment processing (Stripe: 1.75% + AU$0.30 per transaction), email delivery (SendGrid: AU$20 to $90/month), SMS (Twilio: usage-based), analytics (Mixpanel: AU$0 to $200/month for MVP), monitoring (Datadog: AU$50 to $300/month), error tracking (Sentry: AU$25 to $100/month).

These costs compound. A product with 5 third-party services at AU$100/month each costs AU$500/month before a single user interaction. Map these costs before launch.

Maintenance and Bug Fixes (AU$2K to $8K/month)

Dependency updates (libraries, frameworks, OS patches), security patches (critical within 24 hours, non-critical within 1 week), performance monitoring and optimisation, bug fixes reported by users, and compatibility updates (new browser versions, new mobile OS releases). For a deeper dive, see our guide to maintenance and ongoing project work.

Feature Iteration (Variable, typically AU$5K to $20K/month)

The ongoing development that keeps the product competitive. Data-driven improvements based on user behaviour, new features requested by retained users, and competitive responses evaluated through the change request process. For revenue model guidance, see how to monetise your software.

"Our infrastructure bill in month 1 was AU$180. By month 6, with 3,000 users, it was AU$1,400. By month 12, with 12,000 users, it was AU$4,200. We had budgeted AU$200/month for the entire year. The lesson: infrastructure costs are not linear. They follow user growth, and user growth (if the product works) is exponential in the early stages. Budget for the growth you are building toward, not the usage you have today."

The First-Year Budget Model

65-75%

Build cost (of first-year total)

25-35%

Ongoing costs (first 12 months)

AU$200-500

Monthly infra at MVP stage

AU$2-8K

Monthly maintenance cost

Non-Obvious Truth: The Ongoing Cost Is Where the Product Gets Good

The build delivers the MVP. The ongoing investment delivers the product. Feature iteration based on real user data is where mediocre products become excellent ones. The founders who budget generously for post-launch iteration build products that improve every month. The founders who spend everything on the build ship a product that never evolves.

Common Mistake: Treating Maintenance as Optional

Maintenance is not optional. It is the cost of keeping the product secure, stable, and compatible. Skipping security patches creates vulnerability. Skipping dependency updates creates technical debt that compounds. Skipping performance monitoring means you discover problems when users report them (or when they leave without reporting). Budget maintenance as a fixed cost, not a discretionary one.

Build cost broken down by category: design, frontend, backend, QA, PM
Discovery Workshop cost budgeted separately from build
Post-launch budget: 25-35% of build cost for first 12 months
Infrastructure costs mapped by growth stage (MVP, Scale, Enterprise)
Third-party service costs itemised and totalled
Maintenance budget: AU$2-8K/month as a fixed line item
Feature iteration budget: based on post-launch data priorities

Frequently Asked Questions

What is included in the development cost?

Discovery Workshop, UX/UI design, frontend and backend development, QA/testing, project management, infrastructure setup, deployment, and the first sprint of post-launch iteration.

What are ongoing costs after launch?

Hosting/infrastructure (AU$200-2,000/month), maintenance and bug fixes (AU$2-8K/month), feature iteration, third-party service fees, monitoring tools, and security updates.

How much should I budget for post-launch?

25-35% of the initial build cost for the first 12 months. If you built for AU$100K, budget AU$25-35K for year one operations and iteration.

Why do ongoing costs seem high?

Because software is a living system. Infrastructure, security patches, dependency updates, user support, and feature iteration are not optional. A static product loses users to competitors who iterate.

Can I reduce ongoing costs?

Yes. Invest in automated testing (reduces bug-fix costs by 40-60%), choose managed infrastructure (reduces DevOps overhead), and prioritise features based on data (reduces wasted development).

Free Founder Resources

First-Year Budget Calculator (Google Sheets)
Input your product type and complexity. The calculator produces a build cost estimate, monthly ongoing costs by category, and a 12-month budget projection.
Third-Party Service Cost Mapper (Notion)
A checklist of common third-party services with pricing tiers. Map your specific needs and calculate the monthly total.
Infrastructure Scaling Guide (PDF)
How cloud costs scale with users: cost curves for AWS, GCP, and Azure across MVP, Scale, and Enterprise stages.

Final Thought

The total cost of a software product is not the invoice from the development team. It is the build cost plus the ongoing cost of keeping the product secure, stable, competitive, and improving. Budget for the full picture, and the product has a chance to find its market.

The build cost gets the product to launch. The ongoing cost gets the product to success. Budget for both, or budget for neither.

Akash Shakya Chief Operating Officer and Co-Founder

Discover app development insights and AI trends with Akash Shakya, COO of EB Pearls. Learn how we build successful digital products.

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