Introduction
Crafting a compelling and effective e-learning course requires careful planning and budgeting. For businesses, educators, and organizations, understanding e-learning content development costs is essential for ensuring that the course delivers its intended learning outcomes without overspending. With the right strategy, it’s possible to balance costs, time, and quality while meeting organizational goals and learner needs.
In this article, we’ll delve into the factors influencing the cost of e-learning course creation, outline strategies for accurate cost estimation, break down the components of e-learning expenses, and explore how to optimize costs without sacrificing quality. 🤓
Summary
- Factors influencing hourly rates
- Average e-learning content development rates per hour
- Calculate e-learning development cost
- Optimizing the costs of creating an online course
- How “Blue Carrot” can help your business
Factors influencing hourly rates
Answering the question, “How much does it cost to create an online course?” requires looking at all the steps and people involved in the process. E-learning projects are dynamic, involving multiple phases, from ideation to execution. Each stage has associated costs, and these costs vary widely based on factors such as the course’s length, complexity, and intended audience. By taking a comprehensive approach to estimating e-learning content and development costs, organizations can better prepare for success.
Understanding the elements that influence elearning development costs is the first step in managing expenses (Sabbione Juan. How Much Does It Cost to Develop an Online Course? Linkedin. 2020). These factors determine the resources required and set the foundation for the project’s budget.
#1. Length of the e-learning course
Longer e-learning courses require more content development and are often more complex than short e-learning courses. In longer courses, the content must be scaffolded, and different parts of the course must connect back to each other. That’s why the e-learning development cost per hour, often depends not just on duration, but on the overall complexity of the course. A 30-minute course can still have some complex content, but an 8-hour course on the same topic will be much more involved. Later in this article, we explain two ways to calculate time estimation for e-learning projects.
#2. Types of media and required skills
For projects that involve media development, the type of media and the tools needed to design them can impact the overall rate. It is important to consider the different media elements and the complexity of how they are created influences e-learning content development costs per hour. For example, Basic courses may use stock images, simple animations, or PowerPoint-like slides to keep costs low. On the other hand, custom illustrations, animated explainers, or professionally shot videos significantly increase production costs but also enhance the overall learner experience.
These resource-intensive tasks can raise the e-learning development cost per hour, especially if custom visuals, sound, or multilingual voiceovers are included.
E-learning synthetic video example
#3.Topic complexity and SME involvemen
In the e-learning industry, some content is considered easier to work with than others. More complex subjects usually need extra research and input from experts, which drives up elearning development costs. For instance, courses that address specialized or technical subjects often require input from Subject Matter Experts (SMEs). These experts provide insight and knowledge, which are essential for developing accurate and comprehensive content. While their involvement is invaluable, it also adds to the cost of the instructional design phase.
For simpler topics, instructional designers may not need SME input, which can help reduce expenses. However, the tradeoff lies in ensuring the course’s depth and accuracy align with the intended learning objectives.
#4. Level of customization and interactivity
Some projects may require more customization and interactive components, branching scenarios, or specially-built programs. These projects may require more time and a higher level of skill, which warrants more resources. The level of customization and interactivity is related to the type of media and skills required for the work. For more complex learning objectives or scenarios, the instructional design cost per hour may rise to reflect the additional planning, research, and strategy involved.
Basic courses with minimal interaction—such as simple click-through slides or quizzes—are less expensive to produce than those with advanced features like branching scenarios, gamified elements, or simulations.
Example of interactive slides
#5. Delivery timeline
Timeframes are a crucial consideration in e-learning projects. Frequently, training may need to be completed by a set date. Factors like course complexity, multimedia requirements, and team availability influence what can be developed within these timeframes. For example, if a project needs to be completed quickly, overtime or rush fees may increase the cost.
The project deadline can also influence the resources needed, impacting the overall development cost. A short turnaround time could necessitate hiring additional team members, engaging with subcontractors, or using technologies such as AI tools.
A realistic development timeline ensures quality while keeping elearning cost under control. Planning ahead and accounting for potential delays can help ensure that the project is completed on time without incurring many additional expenses.
Average e-learning content development rates per hour
Understanding how elearning pricing models translate into real costs can help you make informed decisions. On average, e-learning content development in the U.S., standard rates for beginner instructional content developers range from $30 to $ 50 per hour, while mid-level instructional designers charge between $50 and $ 100 per hour. The most advanced professionals in their careers charge $100-$150 per hour or more.
In Western Europe, average rates are about 15 percent less than in the U.S. In Eastern Europe, the rates are slightly lower, with mid-level e-learning developers’ hourly rates averaging between $30 and $ 55.
While hourly rates provide a useful benchmark, keep in mind that the final offer often bundles design, media production, and quality assurance into comprehensive packages. The total cost will also depend on course length, interactivity level, and optional add-ons such as localization, voiceovers, or gamified learning elements.
Calculate e-learning development cost
A successful e-learning project requires attention to detail across several areas in order to determine how much an e-learning development agency must charge for their services. Each component represents a unique expense, contributing to the overall cost of online course development. Each of these e-learning development factors needs to be considered to determine the cost of an online course development project. Some cost ranges for the different elements of e-learning development are given as examples, although they can vary depending on many factors.
👉 Instructional design
The instructional design phase is the foundation of the e-learning course. It involves organizing content, structuring lessons, and crafting assessments to align with learning objectives. On the high end, instructional design will take about 50 hours of work for each hour of training content, while the minimum number of hours is 20 per hour of content. Instructional design cost per hour has an average range of $30–75 per hour. The expenses on those experts can also vary depending on the complexity of the topic and the type of content required.
Instructional designers often collaborate with subject matter experts (SMEs) to ensure accuracy, particularly for technical or complex topics. Working with an SME adds up to 20 hours to a project if they are starting the instructional materials from scratch and starts at 6 hours if the SMEs already have materials ready. Hourly rates for SMEs can vary widely depending on the industry and the individual’s level of experience, but frequently they are 2–3 times more expensive than instructional designers, especially for technical topics.
👉 Multimedia production
Multimedia elements—such as videos, animations, interactive slides, graphics, and voiceovers—are key to creating engaging and interactive courses. Custom multimedia, such as 2D animations, is more expensive than using stock assets but often results in a more polished and professional course. Different animation styles used in e-learning can take around 10–30 hours of work per minute of animation. The most complex animations, such as 3D animation, can take up to hundreds of hours per minute to complete animation.
2D animation example
3D animation example
Live filming tends to be the least expensive multimedia investment. The costs for live filming vary depending on requirements, such as type of equipment, studio space, actors, and graphic overlays. Animation overlays may also be required, and these costs are calculated based on the percentage of the length of the video that includes animation overlays and the type of animation.
Interactive slides can be an innovative solution to making courses engaging. It usually takes from 30 minutes to a couple of hours to complete one slide. Basic slideshow e-learning animations are another option with a relatively low per-minute rate and would take about 3 hours of illustrator and animation work per minute.
Rates for interactive slides and animations differ depending on the region. In the U.S. and E.U., rates are about $100–150 per hour, while in Eastern Europe, they average $35 per hour.
Whether using live filming, interactive slides, or animations, voiceover talent is often needed to record the e-learning content. Voiceover artists charge for services in different ways: costs can range from $20–150 per finished minute of voiceover and $50 or more per hour of work performed. Alternatively, you can use AI-generated voiceover (VO) for a fraction of human VO costs. Nowadays, AI-generated VOs are sometimes indistinguishable from human-recorded. Localization further increases multimedia production costs by 30–70%, depending on the scope of the project. This is an upfront investment, but one that pays off by helping your course connect with a global audience and potentially boosting revenue.
👉 Platform setup and integration
Once the course is developed, it needs to be delivered effectively. Configuring a Learning Management System (LMS) or integrating the course into an existing platform incurs additional expenses. While some LMS platforms are straightforward to set up, others require customization, especially if the course includes advanced tracking or reporting features. Basic platform setup can range from $500–3,000, but advanced setup and integration with existing systems can increase those costs. Customization and branding can range from $1,000–5,000, while advanced features can add another $3,000 or more. Another cost to keep in mind is ongoing technical support and maintenance, which can vary widely depending on the vendor.
👉 Project management
Coordinating various stakeholders, timelines, and deliverables is critical to e-learning development. Dedicated project managers oversee the workflow, ensuring deadlines are met, and resources are utilized efficiently. For large or complex projects, effective project management is essential to avoid cost overruns. Depending on the size, duration, and requirements for the e-learning development, project management usually accounts for about 10–20% of the total hours needed to complete the project.
👉 Technical staff
Many e-learning projects require the help of people with specific technical skills in addition to multimedia. These can include web designers, software developers, content managers, quality assurance engineers, and others who ensure the project specifications are met. These costs and the time required vary widely depending on the project. For example, content managers who oversee the storage and use of content assets for a course can require 20–40 hours of work and may charge between $20–75 per hour.
Accurately budgeting e-learning course development helps prevent scope creep and ensures profitable project outcomes for both the e-learning provider and the partner.
|
Category |
Course A (basic topic, interactive slides basic level 30 mins, synthetic videos — 30 mins) |
Course B (technical topic, interactive slides advanced level 30 mins, animated videos — 30 mins) |
|
Instructional Design |
$1,000 (20 hours x $50/hour) |
$2,000 (50 hours x $50/hour) |
|
Subject Matter Expert |
$700–$900 (~6–10 hours x $100/hour) |
$1,000–$2,000 (10–20 hours x $100/hour) |
|
Multimedia Production |
$2,287 (15 slides for 30 min x 1.5 hours per slide x $35/hour + Synthetic video: 30 mins x $50/min) |
$21,000 to $26,250 (15 slides for 30 min x 3 hours per slide x $35/hour + animated video: 30 mins x $500/min) |
|
Voiceover |
$120 (60 mins x $2/min) — Synthetic voice |
$1,200–$9,000 for 60 mins ($20–150 per minute) — Human Voice Actors |
|
Total Estimated Content Cost |
On average: $4,100–$5,000 |
On average: $25,200–$39,250 |
|
Project Management |
10–20% of Total Estimated Cost Content On average: $410–$1,000 |
10–20% of Total Estimated Cost Content On average: $2,520–$7,850 |
|
Platform Integration |
Basic LMS setup — $1,000 |
Advanced LMS setup — up to $10,000 |
|
Localization |
Can increase the costs by 30–70% (based on the requirements) $1,653–$4,900 |
Can increase the costs by 30–70% (based on the requirements) $11,316–$39,970 |
|
GRAND TOTAL |
$7,163–$11,900 (with localization) |
$49,036–$97,070 (with localization) |
Optimizing the costs of creating an online course
While e-learning development can be resource-intensive, there are strategies to optimize costs and maximize value.
✏️ Utilize AI tools
Leveraging AI tools in e-learning development offers significant cost-saving benefits—up to 70% of total costs in some cases—by streamlining key processes. For example, Large Language Models (LLMs) assist instructional designers in creating instructional content more efficiently. Synthetic video tools enable rapid and cost-effective production of high-quality media, eliminating the need for expensive studio setups or live actors. AI-driven localization tools, such as DeepL, automate translation and cultural adaptation, drastically reducing the time and expense of reaching global audiences.
✏️ Involve SMEs early and often
Incorporating SME feedback at each stage of development ensures content is accurate and aligned with learning objectives. Frequent interim reviews minimize the risk of major changes later in the process, saving both time and money.
✏️ Leverage existing resources
If your organization already has training materials, consider repurposing them for e-learning. Existing presentations, videos, and manuals can form the basis of your course, reducing content creation time and costs.
✏️ Use rapid development tools
Authoring tools like Articulate 360, Adobe Captivate, and iSpring Suite streamline the course creation process. These tools offer pre-built templates, asset libraries, and drag-and-drop interfaces, making it easier to develop professional-quality courses without extensive coding or design skills.
✏️ Build reusable asset libraries
Creating a library of reusable visual elements, templates, and modules allows for efficient scaling. These assets can be used across multiple courses, reducing production time and costs in the long run.
✏️ Start with estimating costs for e-learning design project success
Estimating and managing the cost of online course development is a critical step in creating successful e-learning projects. By understanding the factors influencing costs, leveraging estimation tools, and implementing cost-saving strategies, organizations can deliver high-quality e-learning experiences within their budgets. The average cost for training providers to create training content varies depending on course complexity, media format, and localization needs
A very simple example: imagine a course that needs to be translated into three languages and includes an online simulator and animated videos for the technical component of the training. In this case, localization typically adds 20–30% to the total cost, while developing such interactivity can add another $16,000–26,000. It’s also essential to consider how niche or specialized your topic is, and whether custom materials must be created — or if existing resources can be reused. Naturally, a soft skills course in one language with interactive slides will cost less per production hour than a highly technical, multilingual one. The most effective way to understand budgeting e-learning course development is to clearly outline your needs and the amount of work the production team will have to complete.
✏️ Outsource to experts
Partnering with agencies like Blue Carrot ensures high-quality results while optimizing resources. Agencies bring expertise and proven workflows that enhance efficiency, making them ideal for handling complex or large-scale projects. Opting to outsource certain tasks, such as video production or localization, can also help manage costs effectively.
How “Blue Carrot” can help your business
At Blue Carrot, we specialize in creating impactful e-learning solutions that balance quality, time, and cost. Since 2014, we’ve helped clients like the United Nations and the International Republican Institute develop engaging and effective educational content.
Our services include:
- End-to-end course development: From instructional design to multimedia production, we handle every stage of the process.
- Localization expertise: We adapt courses for global audiences, ensuring cultural relevance and accessibility.
- Advanced multimedia production: Our team creates videos, animations, and interactive elements that captivate learners.
With a focus on innovation, we leverage AI-powered tools and reusable asset libraries to optimize costs without compromising quality. Explore our case studies or contact us today to discuss your project.
