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Are you trying to determine the budget for LMS development, but after searching online, you find a wide price range, anywhere from $20K to $300K? Or alternatively, have you selected the developer with a fixed hourly rate, but cannot estimate how many hours the project will take? If so, we’re here to help.
In this article, we dive into the biggest question: how much does it cost to build an LMS? Learn about key stages of the development, effort estimation, and hidden expenses to look out for.
🚨If you need a refresher on what a learning management system is and what key features it includes, check out this article.
If in the past, the LMS market was heavily dominated by big players, now small and mid-sized businesses are the ones who drive the growth and bring innovation. Here we gathered 3 LMS platforms of different sizes to give you an idea of the market layout.
One of the most well-known LMS platforms in the world. Coursera has over 183 million registered users and thousands of courses in its catalog. However, because of this popularity, it’s much harder for businesses to publish and market courses: subscription costs are rising, and the content review process takes a long time.
The learning management system caters to both individual learners and companies through Udemy Business. Though having fewer users than Coursera, about 85 million, Udemy is still a highly competitive and expensive platform for e-learning.
This custom LMS is an internal platform for iZum, a chain of cell phone stores. iZumator is radically different from Udemy or Coursera in size: it’s an LMS software for employee training. However, the features are nearly the same, including course catalogues, student profiles, and a scheduler. You can read more about the iZumator case in our blog.
Let’s dive into the LMS pricing. If you Google “How much does an LMS cost,” you will discover the range of $20K to $300K. The price depends on the hourly rate of the developers: some charge $25/hour, while others bill at $150/hour. The rate is heavily determined by the team’s location: outsourcing LMS development to an Eastern European company is cheaper than U.S.-based developers.
If you take an average hourly rate of $50, which is what most skilled companies use, the total LMS cost will be from $102,000 to $403,000. Here is what the price consists of:
The overall LMS development process can be split into 6 steps, from planning to release and post-launch support. We’ve estimated the LMS cost and timeline for each stage, take a look below ⬇️
As the first step, we have to discuss your custom LMS idea and grasp the concept. The more you can share, the better: audience description, design references, brand identity — whatever you already have, bring it to the initial meeting. If you don’t have those details worked out, it’s also fine: we’ll ask leading questions and do our own research. Our team studies the market, looks at the competitors, and drafts the project scope.
If you want a more detailed dive-in, there is a separate service called project discovery or business analysis. It helps validate the idea and estimate profits before developing the actual learning management system. The project discovery can last 2–4 months and is available for an extra fee.
Deliverables: Technical requirements for the platform and a development roadmap of your custom LMS
Timeline: 1-2 weeks (without project discovery)
Cost: free at Purrweb (without project discovery)
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⭐️ Our experience
Once, project discovery helped our client save almost $40,000 by testing the idea for a travel planning app beforehand. The client had several different concepts in the works and finally landed on Journey Verse. It’s a travel planner with routes, guided tours, and recommendations from the locals.
We conducted user interviews, searched for the target audience, and modeled the unit economics to confirm: there is a real need for a product like this. Now the client can move forward with an MVP development with low risk, knowing that there is real potential behind the idea.
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Once we grasp the idea and define the scope, we start putting it into action and create visuals for a custom LMS. Based on your references and audience description, we draft a mind map, write use cases, and identify key features for a learning management system. Then, we create wireframes on Figma and visualize the style on 2–3 screens.
Once you approve the designs, we turn them into a clickable prototype and put together a UI-kit which contains visual elements like buttons, fonts, and a color palette.
Deliverables: Wireframes on Figma, a UI-kit, and brand identity
Timeline: 5-12 weeks
Cost: $10,000-$40,000
At the LMS development stage, the software engineers write the code based on design specifications. They use different programming languages and tools, depending on the app requirements and complexity.
Remember: the tech stack you choose can also affect the LMS cost. For example, if you plan to create LMS platforms for several operational systems, you need to choose whether to opt for native development or cross-platform tools.
The Purrweb team tried many options and opted for the JavaScript frameworks React Native for mobile apps, React for the web, and Electron for desktop.
These technologies are designed for cross-platform development, so we can reuse some code and release two versions of the learning management system for iOS and Android simultaneously. It’s more cost-effective and less time-consuming: one React Native team is cheaper than two development teams for native app development, and the launch is faster.
Deliverables: A fully working custom LMS ready to be launched
Timeline: 8-30 weeks
Cost: $75,000-$300,000
Picture this: the software engineers spend 400 hours writing the code, bill you for this work, and then, at the testing stage, they discover serious bugs that make them redo the coding stage. Sounds like a nightmare for a paying client, doesn’t it?
That’s why it’s essential to start testing the learning management system as early as possible in the development process and make sure that bugs are caught early on. At Purrweb, we prefer to test the app in parallel with LMS development and avoid situations like the one in the example earlier. We test each component as it gets ready, using a combination of integration testing, system testing, and acceptance testing.
Deliverables: A bug-free custom LMS that runs smoothly
Timeline: 8-30 weeks
Cost: $15,000-$60,000
Now it’s time to show your learning management system to the world. This involves uploading your product to the App Store or Google Play if you have a mobile app. The stores have specific requirements when it comes to app submission and have to get approved before they become available to the public.
Alternatively, for web-based LMS platforms, we install, configure, and launch them on a web server so they can be accessed through a domain name.
Deliverables: The custom LMS is available for all users
Timeline: 1-2 weeks
Cost: $2,000-$3,000
This is an optional service if you want your learning management system to be active and secure. At the release, we’ll provide you with the tools to collect user feedback about the LMS. If, based on this data, you decide to add new features or discover bugs that need to be fixed ASAP, the initial team will help with these tasks, usually at a discounted rate.
Deliverables: Update release, scale-up, bug fixes
Timeline: per agreement
Cost: per agreement
LMS pricing depends on much more than developer rates. Platform type, design, integrations, security, and long-term support all play a role in the final budget.
We’ve put together the list of 7 factors that can drive your development costs up or down, depending on the choices you make for the product.
One of the first decisions is where your learning management system will live: web, mobile, or both. A web app is usually cheaper since it works across devices through a browser. Mobile apps can require separate development for iOS and Android, which can double the hours and testing time. But now many software engineers use cross-platform frameworks to reuse some of the code and cut the LMS pricing in half.
The more features you want, the higher the development costs are. A simple LMS with course creation and user profiles will be much cheaper than a platform with gamification, AI-driven recommendations, or video conferencing. Each extra feature adds design, development, and testing time. That’s why it’s best to prioritize must-have features for your MVP and leave nice-to-haves for post-launch updates.
Design complexity has a direct correlation with the development costs. A basic interface with ready-made components is quick and affordable. But if you want a custom design that includes accessibility features or animations that work across different screens, be ready for more billable hours and higher LMS pricing.
When you add third-party integrations to your custom learning management system, it can both increase and decrease your development costs. Yes, linking Stripe for payments is easier and more cost-effective than building a payment gateway from scratch. However, you have to account for recurring software fees and subscription prices that can end up costing you more in the long run.
If your learning management system has to follow GDPR, ISO, or SOC 2 standards, the cost to develop will rise. Compliance and security mean extra testing, encryption, documentation, and sometimes extra features to protect the users. This is not the place to cut corners, especially if you plan to handle sensitive student data like payment details or ID scans.
The choice between a custom LMS and an off-the-shelf product also affects the development costs. More about it below, but in short: off-the-shelf is cheaper at first, but you’ll have to pay recurring license fees in the long run, while custom LMS development is more expensive upfront. Many edtech companies start with off-the-shelf and later invest in customized LMS platforms when they need flexibility and unique features.
LMS development costs don’t stop at the release. Your learning management system will need regular updates, bug fixes, and technical support. Some companies also want help with content uploads, new integrations, or design refreshes after launch. Post-launch support is usually billed monthly or weekly, depending on what you decide with your IT team, and at a lower hourly rate.
Learning management system development is the biggest chunk of the final cost. Not planning, not design, not deployment, but actual coding and testing. You can generally choose one of the two development approaches: custom or off-the-shelf. The decision will impact the budget. Here is how.
Off-the-shelf LMS platforms are pre-built, ready-to-use software that comes with a limited set of features, like course creation, discussion boards, or quiz functionality. Imagine buying a coffee table from IKEA: someone else prepared the standard parts and selected screws. You just need to assemble the tabletop and legs together. You can paint it in a different color and customize some parts, but you can’t easily change its size or shape to fit your exact needs.
The off-the-shelf systems are the same way: they’re cheaper and quicker to implement, but often lack flexibility.
Custom LMS development is like hiring a carpenter to build a coffee table from scratch. You choose the exact size, shape, materials, color, and details you want. These LMS platforms can integrate with existing systems and scale with future needs. While they take longer and development costs are higher, they give providers full control over features and compliance requirements.
At Purrweb, we’ve delivered over 550+ successful projects, and we know firsthand what development costs come most unexpectedly to our clients. Below, we’re sharing the top 3 hidden expenses with you, so you know what to pay close attention to.
Many LMS platforms use outside services for video calls, payment processing, or email notifications, instead of creating custom features. But it’s important to remember that tools like Zoom, Stripe, or Twilio charge fees for every transaction or usage level. These development costs are easy to overlook in the early stages, but they add up quickly once the system goes live.
Some industries require strict compliance, especially if you handle sensitive data like student records, payments, or IDs. Meeting standards such as GDPR or ISO means implementing secure logins, setting up encryption, and access controls, which takes developer time. These steps cannot be skipped or delayed for a better time. They keep your custom learning management system secure and compliant.
After you launch a custom learning management system, you’ll need regular updates, bug fixes, and improvements. Even simple user requests, like adding a new integration or refreshing the design, require developer time. Companies that skip maintenance often end up paying more later when small issues turn into major problems.
If our cost estimation seems higher than what you planned for, it’s not the end. There are ways to still build your solution and spend less money on the learning management system development. Just use these 3 tips.
MVP, or a minimum viable product, is a blueprint of the software that includes only the core LMS features needed to test your idea and collect feedback from users. This approach has a shorter development time and lower initial cost to develop an MVP than full-on custom development. The goal is to validate whether your learning management system meets real business needs.
Custom LMS development doesn’t mean we need to code every feature. It’s costly and unnecessary. Instead, we can find existing tools to plug into your learning management system. Need a video conferencing feature? Why custom-build it from scratch in 300 hours when developers can set up an integration with Zoom or Jitsi in 4 hours? Remember, those hours are what determine your final cost.
Even if you’re starting small, like with an MVP or an off-the-shelf solution, your learning management system should be built with growth in mind. A scalable architecture allows you to add LMS features later on and handle more users without rebuilding the whole platform. Think about it from the start, even if expansion seems too far away, to save money in the long run.
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⭐️ Our experience
We developed KEM, a mobile P2P payment app, the first of its kind on the Kuwaiti market. The founders came to us for an MVP they could use to pitch banks and investors. We were on a tight deadline and also decided to start small: the basic app with mock data and core features like QR payments, PIN login, and group-based contacts.
Now, with the MVP, the founders secured access to real banking APIs and raised $1 million in seed funding. KEM is now live with over 100,000 users and is preparing to expand to neighboring countries.
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Looking for a partner to execute an LMS development? Purrweb’s team has completed over 550+ projects, including cases in edtech, retail, and enterprise. You can check our full portfolio here.
➡️ Share your idea with our team to get a <a class="blog-modal_opener">free consultation and cost estimation</a> in 48 hours.
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