MVP budget and cost estimation: how to calculate the cost of building an MVP

What an MVP really is, and why you should calculate costs upfront

An MVP (Minimum Viable Product) is the smallest set of features that helps a user complete one key job-to-be-done. It is not:

• a beta version
• a prototype (PoC - proof of concept)
• the final, full-featured product

An MVP is a tool to validate whether the idea makes business sense and whether it’s worth investing further.

Why an MVP cost estimate is essential

For two reasons:

• To understand what your budget can realistically cover - and what has to wait.
• To calculate your runway - how long the product can operate without additional funding.

A budget isn’t an obstacle. It’s a parameter that helps you make smarter product decisions.

What an MVP budget is made of: three main cost levers

Every MVP can be estimated based on three elements:

1. Feature scope

The more features and integrations, the higher the cost. In fintech and medtech, budgets often increase by 30–50% because you also need to account for:

• regulatory requirements
• additional audits
• data security
• legal liability

2. Technology stack

The most common approaches:

• full-stack (e.g., Next.js or TanStack)
• separate front-end and back-end (e.g., React and Java Spring)

You also need infrastructure:

• Vercel / Cloudflare / VPS - cheaper, less infrastructure setup, less DevOps work
• AWS / Azure / GCP - more expensive, but greater control and scalability

On top of that, include the cost of third-party services: payments, email, authentication, databases, CMS, monitoring, file storage.

3. Delivery model and team

This is the most important - and most often overlooked - budget lever. The way work is organised has the biggest impact on cost predictability, risk, and MVP delivery speed.

Why an agency is the most sensible choice for most MVPs

MVP pricing always comes down to three things: scope, technology, and team. And it’s the team - their skills, processes, and availability - that determines cost predictability and product quality.

Founders often underestimate this. But the difference between a freelancer, in-house, and an agency is real and critical.

1. An agency / software house is a “full product team”, not just development

The agency model works because it gives you access to specialists across areas that a single freelancer or a small in-house team can’t realistically cover. An MVP is not purely a programming job - it sits at the intersection of strategy, UX/UI, architecture, security, testing, and analytics.

Good agencies work with a design thinking mindset. They don’t just “deliver requirements” - they actively advise on which technologies, solutions, and MVP scope make sense for your business goals, budget, and future scaling. They run discovery workshops, help define the problem, prioritise features, and prevent costly early mistakes. In practice, they become a business partner, not just a vendor - you benefit from their experience because they’ve delivered dozens of similar MVPs.

An agency also provides long-term support: fixes, maintenance, product development, performance optimisation, and responding to production issues.

As a result, an agency doesn’t just help you build an MVP - it provides stability, predictability, and long-term development safety, which in tech projects often matters more than launch itself.

In practice, working with an agency means access to:

• a Project Manager who controls scope, priorities, and project risk
• a UX/UI designer who designs flows and usability, not just visuals
• front-end developers (e.g., Astro.js and Next.js) responsible for performance, Core Web Vitals, and consistent UX; they may use AI to speed up work, while consciously controlling code quality and structure so the interface stays scalable and maintainable
• back-end developers who design APIs, business logic, integrations, and security; AI may assist implementation, but architectural decisions, data modelling, and system stability remain fully owned by the team - so you build an MVP that’s ready to evolve, not a one-off build
• QA (quality assurance) who tests each feature before it reaches production
• DevOps who configures cloud, CI/CD, and monitoring
• an analytics specialist who sets up tracking, KPIs, and tools to measure user behaviour

In an MVP, this breadth simply means fewer bugs, fewer rewrites, fewer direction changes, and faster delivery.

Agencies cost more per hour - but you pay for a system, not improvisation

Agency processes are ready out of the box: code review, estimation, testing, QA, sprints, risk management, documentation.

For you, that means:

• more accurate estimates
• lower risk of budget overruns
• faster iterations
• fewer defects
• higher code quality and better UX
• no need to manage people day-to-day

That’s a major advantage over other models.

2. Freelancer = higher unpredictability and higher technical risk

A freelancer can be an excellent developer. But an MVP requires continuity and broad competence.

Common risks of relying on one specialist:

• no code review
• no test coverage
• inconsistent code quality
• no documentation
• limited skill breadth
• limited availability
• difficulty handing the project over to someone else

In 2024–2025, many rewritten MVPs were “post-freelancer” projects. Refactoring costs can be 2–3× higher than building the MVP properly from the start. That often ends with a burned budget and the need to rebuild from scratch. There’s also the maintenance risk - the freelancer may stop collaborating or change industries, leaving the company with code nobody wants to take over.

3. In-house is the most expensive model - and only makes sense later

Many startups think: “we’ll hire our own developer”. The problem is that development is only part of the competence you need at the MVP stage.

In-house typically means:

• high fixed costs
• limited competence breadth (UX, UI, QA, DevOps, strategy, analytics)
• lack of established processes
• one-person architectural decision-making

In-house makes sense once the product has traction and stable revenue. At the MVP stage it usually increases cost, slows delivery, and lowers effectiveness.

Hiring a full team (frontend, backend, UX, QA, DevOps) is a major permanent cost - plus recruitment, onboarding, and management. An agency gives you wide competence exactly when you need it, without building a full payroll team.

4. An agency as an “efficiency multiplier”

An MVP is the result of good decisions and efficient execution. The best outcomes come from teams that:

• have worked together for years
• know proven patterns
• anticipate pitfalls
• estimate based on dozens of MVPs
• use mature processes and boilerplates (starter templates: files, configurations, and baseline code that accelerate project setup)

That’s why the difference between an agency and a freelancer often disappears after 1–2 sprints: speed × quality = lower total cost.

5. You get an ecosystem of skills, not one person

Building an MVP is not only code. It’s UX, architecture, testing, analytics, security, cloud, and post-launch iteration. An agency can assign specialists exactly at the stage they’re needed - without employing them full-time. That’s one reason why with an agency you pay for outcomes, not for experimentation.

Realistic MVP cost ranges in 2026

MVP cost depends heavily on scope, delivery quality, and whether you treat it as a one-off experiment or as a foundation for future development. The market is more competitive, and AI has reduced some operational effort - but a well-designed MVP still requires time, experience, and team collaboration.

In practice, ranges look like this:

• Simple MVP (PLN 30,000–45,000) - one core feature, basic backend, limited integrations, basic design, focus on fast validation with users.
• Medium MVP (PLN 45,000–80,000) - several key features, user login, integrations, thoughtful UX and architecture that supports growth without rewriting everything.
• Complex MVP (PLN 80,000–150,000+ ) - SaaS products, multi-user platforms, advanced business logic, high security requirements, scalable architecture, genuine preparation for growth.

Typical delivery time is 2–4 months with a small team: UX/UI designer, 1–2 experienced developers (frontend and backend), QA, and someone overseeing product priorities and business goals.

One important point: a cheaper MVP is often not cheaper in the long run. Cutting corners in design, architecture, or code quality quickly comes back as refactoring, delays, and rebuilding. A well-planned MVP is not a cost - it’s an investment in speed and safer scaling.

How to calculate an MVP budget: a step-by-step formula

1. List all features.
2. Assign complexity to each:
   • low: 5–10 hours
   • medium: 20–30 hours
   • high: 50–80 hours
3. Sum total hours.
4. Multiply by an hourly rate (PLN 200–300/hour).
5. Add +25% for QA and project management.
6. Add a contingency buffer (more on that below).

Example

• 10 features × 40 hours = 400 hours
• 400 hours × PLN 250/hour = PLN 100,000
• +25% (QA/PM) ≈ PLN 125,000

After product workshops and initial tests, adjust the estimate - only then do you truly know which features are actually necessary.

Scope drives the budget: how to cut smartly

The key rule: an MVP validates a thesis - it’s not a final application.

What helps:

1. User Story Mapping

User Story Mapping plans an MVP starting from the user goal, not from a feature list. The process looks like this:

• define the user goal (e.g., “book an appointment”, “issue an invoice”, “compare offers”)
• map the essential action flow (must-flow) - step by step, how the user reaches the goal
• only then assign specific features to each step

This prevents an MVP from becoming a random pile of features. Instead, you ship a working end-to-end path the user can actually complete. It often cuts 30–40% of “nice-to-have but unnecessary” features that wouldn’t impact initial business value anyway.

2. MoSCoW prioritisation

MoSCoW forces real decisions instead of trying to include “a bit of everything”. Features are grouped into:

• Must have - absolute minimum; without this, the product doesn’t work (core value)
• Should have - very important, but can be temporarily worked around
• Could have - comfort improvements, not MVP-critical
• Won’t have (for now) - consciously postponed

In a well-designed MVP:

• the first release includes Must and selected Should items
• Could and Won’t go into the backlog for later iterations

3. Impact/Effort scoring

Pick features with high impact and low effort. In practice, 40–60% of cost comes from “just in case” features.

How no-code, low-code, and AI affect MVP cost

No-code and low-code can be tempting for speed, but in most projects they:

• create vendor lock-in
• constrain architecture
• make integrations harder
• don’t scale well into a commercial-grade product

AI, on the other hand, increases developer team efficiency:

• faster component generation
• less repetitive work
• quicker setup of technical foundations

The result: better quality, shorter time, lower cost - as long as a professional team is using it.

Costs people forget (and that increase the budget by 20–40%)

This is one of the most important lists in the article:

• UX/UI design and screen design
• DevOps, CI/CD configuration, monitoring
• security, authentication, password storage
• product analytics and crash reporting
• post-launch bug fixes and feedback-driven changes
• technical support and updates
• integration work, paid APIs, and cloud resources

All of this should be added to CapEx and included in OpEx planning.

SaaS budgeting: CapEx vs OpEx

CapEx (one-off)

• UX/UI design and MVP development
• domain registration
• initial cloud setup
• starter licences
• baseline launch marketing

OpEx (monthly)

• COGS: cloud, APIs, helpdesk
• R&D: developer/contractor costs, testing
• Sales & Marketing: CRM, automation, ads, content
• G&A: accounting, banking fees, insurance, office

OpEx splits into fixed costs (e.g., cloud, licences) and variable costs (e.g., advertising). The right cost structure determines how long you can operate and develop before funds run out.

KPIs that drive SaaS growth and budget decisions

SaaS products live on numbers. The key ones are:

• MRR/ARR - monthly and annual recurring revenue
• ARPU/ARPA - average revenue per user/account
• CAC - customer acquisition cost
• LTV - customer lifetime value
• Churn - customer churn rate

The goal is simple: LTV:CAC ≥ 3:1. Anything worse means the product consumes cash instead of generating it.

Cashflow, runway, and an emergency buffer

Budgeting isn’t the same as cashflow. Cashflow tracks real money in and out. Runway is your cash balance divided by monthly burn rate.

A reasonable buffer is:

• 5–10% of OpEx for stable projects
• 10–15% for products with technical/regulatory risk or dependency on a single supplier

Typical risk events include: cloud cost spikes, critical API outages, security incidents, sudden loss of a key team member.

Budget control after launch

The biggest overruns often don’t happen during MVP build - they appear after launch.

That’s why it’s worth using:

• monthly variance reviews, especially for deviations above 10%
• rolling forecasts - updating the budget on a 12-month horizon
• tying variance to KPIs (e.g., increased marketing spend vs higher CAC)

Tools for estimation and planning

A simple stack is enough:

• Notion - requirements structure, backlog, MoSCoW
• Google Sheets / Excel - feature-hour-rate matrices; CapEx/OpEx/KPI sheets
• estimation calculators (e.g., MVPFactory, Toptal) - useful as a sanity check, not as a real pricing source

Mini case: how much does an MVP really cost?

Assume a forward-looking MVP with user login and 6–8 features.

• One feature averages 20–35 hours, supported by AI (+43% efficiency).
• Total estimate: 300–500 hours.
• Average hourly rate in Poland: PLN 200–300/hour.
• Total: PLN 60,000–150,000.
• Add QA/PM (+25%): PLN 75,000–187,500.
• Add “hidden” costs (+10–20%): PLN 82,000–225,000.

Cutting three “Could” features reduces budget by 20–35% and can speed up launch by several weeks.

FAQ: the most common questions about MVP costs

How long does it take to build an MVP?

Most often 2–4 months. An MVP in 3–4 weeks is possible, but only with a very small scope - that’s usually closer to a PoC (proof of concept) than a fully viable MVP.

Is it worth starting an MVP in no-code?

For micro-projects, yes. For commercial applications, usually not. Migration costs can erase any initial savings - especially now that AI has significantly reduced the cost gap.

What’s a good contingency buffer for an MVP?

Typically 10–25%, depending on risk and product uncertainty.

What drives MVP cost the most?

Integrations, complex logic, security requirements, lack of scope decisions, and… changes mid-project.

Does AI reduce MVP cost?

Yes - it can reduce development time by 20–40% depending on the team. But it won’t replace strategy or UX. AI is only as good as the person using it; experienced engineers work with AI differently and can validate key architectural elements properly.

Key takeaway

An MVP is a validation tool - not a final product. The most important things are:

• a well-defined scope
• a realistic budget
• conscious decision-making
• an experienced team

A solid plan lets you build an MVP faster, cheaper, and without “mysterious” cost explosions later on.