What’s the True Cost of an Explainer Video? Breaking Down the Numbers

Explainer videos have become a powerful tool for businesses to convey complex ideas in a simple, engaging way. Whether you’re a startup explaining a groundbreaking product or an established brand simplifying a service, these videos can capture attention and boost conversion rates. But if you’re considering investing in one, you’re probably wondering: What’s the true cost of an explainer video?

The answer depends on several factors, including video length, style, quality, and the production process. Let’s break it down step by step so you can better understand what to expect.

Key Factors That Influence the Cost

1. Video Length

One of the most significant cost drivers is the length of the video. Typically, explainer videos range from 30 seconds to 3 minutes. While shorter videos cost less, keep in mind that they may not provide enough time to explain complex ideas. On the other hand, longer videos require more time and effort to produce, driving up costs.

A good rule of thumb is to aim for 60–90 seconds, which balances engagement and cost-effectiveness.

2. Animation Style

The animation style you choose plays a big role in determining the cost of an explainer video. Common styles include:

  1. 2D Animation: A popular and versatile option. Costs typically range from $1,500 to $10,000, depending on complexity.

  2. 3D Animation: Offers a more dynamic, high-end feel but can be pricey, ranging from $7,000 to $20,000 or more.

  3. Whiteboard Animation: A simple, hand-drawn look often costs $1,000 to $5,000.

  4. Live Action: If you prefer live-action footage with actors or a spokesperson, expect costs to range from $3,000 to $50,000, depending on the production scale.

3. Scriptwriting and Storyboarding

Every great explainer video starts with a solid script and storyboard. Scriptwriting costs can range from $200 to $1,000, depending on whether you hire a freelancer or a professional agency. Storyboarding, which visually maps out the scenes, can add another $500 to $2,000 to the total.

4. Voiceover and Sound Design

A professional voiceover adds polish and clarity to your video. Prices vary based on the voice actor's experience and language requirements but typically range from $100 to $500. Adding background music and sound effects will cost another $100 to $500.

5. Revisions and Edits

Many video production companies include a set number of revisions in their pricing. However, additional edits beyond the agreed-upon revisions can lead to extra charges. These costs vary but usually fall between $100 and $500 per round.

Working with Professionals vs. DIY

If you’re working with a professional agency, you’re paying for expertise and a streamlined process. Agencies often handle everything—from scriptwriting to animation—at a cost of $3,000 to $50,000 or more, depending on the project scope.

Alternatively, DIY tools like Powtoon or Vyond allow you to create videos for a fraction of the cost. However, these tools require time, creativity, and technical know-how, which can be a challenge for busy professionals.

Hidden Costs to Watch Out For

When calculating the cost of an explainer video, remember to consider hidden expenses such as:

  1. Licensing fees for music or images

  2. Additional revisions or upgrades

  3. Project management time if you’re coordinating multiple freelancers

Getting the Most Value for Your Investment

To make the most of your investment, start by setting a clear budget and defining your goals. Look for a production company or freelancer with a strong portfolio and positive reviews. Be upfront about your expectations and ensure that the cost aligns with your business objectives.

While a high-quality video may require a significant upfront investment, it can deliver excellent returns by improving brand awareness, boosting conversions, and simplifying communication with your audience.

Conclusion

The cost of an explainer video can vary widely based on length, style, and production quality. While prices range from $1,000 for basic videos to $50,000 or more for high-end productions, understanding the factors involved can help you make informed decisions. By investing wisely, you can create an engaging explainer video that delivers real value for your business.

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