Augmenting my research yesterday into how many APIs does the average company have, I am working to answer how much does it cost to build an API. It is a very different but related question, with a whole different set of actors answering the question. I would say that I get a lot more concrete answers with a pretty clear range of costs of what it takes to produce an API these days.
- Plenks - 2-3 months, with an average cost of API development ranging from $10,000 to $25,000
- DreamFactory - The cost of building an API can vary depending on the complexity of the project, but it typically ranges from $10,000 to $50,000.
- RichestSoft - The cost to build an API can be between $17k and $25k, with expenses influenced by multiple factors.
- Crowdbotics - An API app usually costs about $37,500 to build. However, the total cost can be as low as $25,000 or as high as $50,000. An
- DecipherZone - API development cost in 2023 can be from $1000 to $35,000 depending on the complexity, security, features, and documentation.
- Apptunix - The estimated cost could range between $25,000 to $80,000 or more depending on its complexity and features.
- PlektonLabs - While there are no hard-and-fast numbers or definitive costs, when estimated, a functional, fully documented, and secure API costs around $20,000 when built by an experienced developer.
I would say that 25-50K is the sweet spot in there for a production-grade API. There are also other interesting things to consider as part of Nordic APIs as well as Superface’s breakdown of costs which I will continue to factor and layer into the discussion. I have to also note that Dreamfactory actually provides an API cost calculator which has some interesting data points to think about. All of the references I found provide very interesting lists of what can increase or decrease the cost of an API, which reflect the experience areas I am looking to attach a price tag to.
Now, sticking with my research process, I couldn’t forgive me myself if it didn’t ask the three AI stooges ChatGPT, Gemini, and Claude:
ChatGPT broken it down as:
- Simple API: CRUD operations (Create, Read, Update, Delete) for basic data manipulation, minimal endpoints. Estimated cost: $5,000 - $15,000
- Moderately Complex API: Includes user authentication, rate limiting, data validation, and multiple integrated services. Estimated cost: $15,000 - $50,000
- Highly Complex API: Real-time updates, advanced security, third-party integrations (e.g., payment gateways, social logins), large data handling. Estimated cost: $50,000 - $150,000+
Gemini responded with the following:
- Simple API: A basic API with a few endpoints and straightforward functionality can be developed for as little as a few thousand dollars.
- Complex API: A complex API with many endpoints, advanced features, and robust security measures can cost tens of thousands of dollars or more.
Claude return the following:
- Small/Simple API: $5,000 - $20,000
- Medium Complexity API: $20,000 - $50,000
- Enterprise/Complex API: $50,000 - $250,000+
I love how vague Gemini has been answering this question and yesterday’s. I would say there is no new information there, except maybe the high end offered by ChatGPT and Claude. AS all the references state, as well as the AI ones, it will vary based upon many different factors. These are areas of API experience for producers and consumers that I will be attaching more price tags to, but for right now I was just looking for a price range. Similar to my per person number for how many APIs a company has, I just want an average cost — which I’m going to set 50K.
As with all of this, there are a lot of “it depends”. I will work through those things, and gather everyone’s opinions on why the cost of delivering an API goes up or down. I like some of the ongoing looks at costs, as well as the platform view of how you can share resources to bring costs down. Many of the references also mention how long it takes along with the costs, and even begin to break down developer hours, gateway costs, and other elements. I will get to this part of the equation shortly as we look at velocity and time to deliver new APIs and features, but first I think I need to better understand the direct and indirect revenue opportunities associated with an API, to help counterbalance the money we spend on our APIs.
