How to estimate and break down e-learning content development costs

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.

Let’s explore how to make e-learning budgeting effective and efficient. 🤓

Summary

1. Factors that shape e-learning costs
2. Estimating the costs of online course development
3. Breaking down the costs of e-learning course production
4. Optimizing the cost of creating an online course
5. Creating cost-effective e-learning courses with Blue Carrot

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 those costs vary widely based on factors like 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.

Factors that impact e-learning costs

Understanding the elements that influence the cost to develop an online course 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. 

📌 Topic complexity and SME involvement

The complexity of the course topic plays a significant role in determining costs. 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.

📌 Course length

Course duration is another factor that influences e-learning content and development costs. A longer course naturally demands more resources, including time, effort, and tools. For instance:

• More instructional design work is required to create additional modules, lessons, and assessments.
• Multimedia production efforts increase proportionally, as longer courses typically require more videos, animations, and interactive content.

The time required to produce a course often directly correlates with its length, making it a key consideration during the budgeting process.

📌 Interactivity and engagement

Interactivity has become a hallmark of effective e-learning. The degree of interactivity in your course impacts both learner experience and the overall cost. 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.

While interactive elements boost learner engagement and retention, they require more development time and often involve specialized tools or software. These factors add to the costs of creating an online course but are frequently worth the investment for their impact on learning outcomes.

📌 Multimedia and visual elements

Multimedia is a powerful tool in e-learning, transforming static information into dynamic and engaging experiences. High-quality visuals, animations, and videos help keep learners engaged but can also represent a substantial portion of the e-learning content development cost.

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.

Localization further adds to multimedia costs if courses need to be adapted for multiple languages or cultural contexts. Re-recording voiceovers, translating on-screen text, and adjusting graphics for different audiences are vital for global training programs.

📌 Project timeframes 

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 costs under control. Planning ahead and accounting for potential delays can help ensure that the project is completed on time without incurring many additional expenses.

Methods for estimating e-learning development costs

Accurately estimating the cost of online course development involves combining industry benchmarks, tools, and tailored assessments. Understanding these methods ensures that your budget aligns with project goals and avoids unpleasant surprises.

✅ Industry benchmarks

Studies by experts like Karl Kapp and Bryan Chapman provide valuable insights into development timeframes and costs. Their research highlights that:

• Basic e-learning courses take an average of 49 hours to develop one hour of content.
• Intermediate courses, which include moderate interactivity, can take up to 127 hours per hour of learning.
• Advanced courses with simulations or gamification require 716 hours or more per hour of learning.

These benchmarks serve as a starting point for calculating e-learning costs estimates. Keep in mind that actual development time may vary based on team expertise and tools used.

✅ Custom quotes from agencies

Partnering with e-learning development agencies like Blue Carrot allows for tailored quotes that reflect your specific project needs. Agencies can assess your goals, technical requirements, and timelines to provide accurate cost projections and ensure alignment with your budget. The hourly rates for e-learning development will vary depending on location, industry, and project requirements.

Keep your e-learning development project within your budget without compromising quality by partnering with Blue Carrot. With rates customized to your unique requirements, Blue Carrot helps you maximize value while staying aligned with your expected cost and timeline. Request a quote from us to learn how we can partner with you to create efficient, affordable e-learning experiences.

Breaking down the costs of e-learning development

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. Hourly rates for instructional designs (IDs) have an average range of $30–75 per hour. Costs for paying instructional designers 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.

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.

✏️ 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.

✏️ Start with estimating costs for e-learning design project success

Estimating and managing e-learning content development costs is a critical step in creating successful online courses. 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. Ideally, costs are regularly evaluated to account for market changes.

Partnering with a full-cycle agency like Blue Carrot ensures expertise, efficiency, and innovative solutions tailored to your goals. Ready to take your e-learning to the next level? Reach out today to start your journey.

Create cost-effective e-learning courses with Blue Carrot

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.