In today’s digital world, explainer videos have become a must-have for businesses that want to simplify complex and tricky ideas and present them in an engaging, easy-to-understand format. Whether you’re a startup launching a new product or a well-established company explaining your services, explainer videos are an effective and easy way to communicate your message quickly and clearly.
However, one question many businesses still ask is: How much does an explainer video cost?
The Average Cost of Explainer Videos in 2025
After reviewing data from over 500 agencies worldwide, we found that the typical cost of a 60-second explainer video in 2025 ranges from $2,000 to $20,000. But the price can vary a lot:
- Budget options: Some simple explainer videos can be made for as low as $750.
- Premium productions: High-end explainer videos may cost up to $50,000 or even more.
- Luxury tier: At the extreme, the most expensive explainer videos can hit $200,000 for just a minute of video.
For most businesses, expect to pay around $8,000 for a good quality, 60-second animated explainer video. Well-established production companies with strong reputations might charge somewhere between $12,000 and $15,000 for similar work.
These are just averages, though, and the exact price for your video will depend on various factors specific to your project.
Key Factors That Impact the Cost of an Explainer Video
Several elements play into how much an explainer video will cost. Here are the main factors:
Video Length
How long your video is will directly affect the price. Most video production companies base their pricing on a standard 60-second video. If you want a longer video, expect to pay more:
- 90-second video: Typically costs 50% more than a 60-second video.
- 120-second video: Usually costs twice as much as a 60-second video.
Some studios (around 15%) offer discounts for additional time beyond the initial 60 seconds, which can save you 15-35% on the extra length.
Experts suggest keeping your explainer video between 60 to 120 seconds for the best engagement. A simpler product can likely be explained in 60 seconds, while more complex solutions might need up to 120 seconds.
Animation Style vs. Live Action
The format you choose plays a huge role in how much your video will cost:
- Animated Explainer Videos are generally more affordable because:
- They’re created in-house with fewer physical resources.
- It’s easier to make updates and revisions.
- Pricing varies by animation type:
- 2D animation: Costs around $2,500 to $7,000 per minute.
- 3D animation: Costs about $5,000 to $15,000+ per minute.
- Motion graphics: Falls in the middle, costing $3,000 to $10,000 per minute.
- Live-Action Explainer Videos tend to be pricier due to:
- Costs for locations, permits, and hiring actors, makeup artists, and other crew members.
- More complex logistics and scheduling.
- The need for renting equipment like cameras, lights, and sound gear.
- Less flexibility for future changes.
Expect to pay around $5,000 or more for live-action explainer videos, with some projects going above $20,000 depending on quality.
Production Quality
The quality of your video will also affect the price. Higher-quality productions generally come with a higher price tag, but they also deliver better results:
- Budget tier: Basic animation with stock music and limited revisions.
- Standard tier: Professional animation, custom illustrations, and voiceovers.
- Premium tier: Advanced animation, custom music, more revisions, and strategic input.
Your choice should depend on the video’s importance to your brand. For example, a video that represents your flagship product or your core message should justify a larger investment.
Script Development
If you don’t already have a script, the production company will need to write one, adding to the cost. Professional scriptwriting can range from $500 to $2,000, depending on the length and complexity of the video.
While writing your own script can save money, hiring a professional scriptwriter ensures your message is structured effectively for maximum impact.
Additional Services and Add-ons
There are some extras that can increase the price of your video:
- Rush delivery: If you need your video fast, expect to pay 25-50% more.
- Multiple language versions: Adding voiceovers and subtitles for different markets.
- Source file access: Some studios charge an extra 30-50% for source files.
- Technical specifications: If you have specific resolution or format requirements.
- Extra revisions: Most packages only include a set number of revisions.
Some studios offer discounts for multiple videos or bundle additional services like subtitles and source files for free.
Explainer Video Costs by Production Type
The type of company you choose to work with will significantly affect the cost structure:
- Freelancers: Generally charge between $500 and $3,000 for a 60-second video. They’re often more flexible and cheaper, but may have fewer resources and less consistency.
- Best for: Small businesses with simple projects and tight budgets.
- Agencies and Studios: Price ranges from $3,000 to $15,000 for a 60-second video. They bring creative expertise and professional management.
- Best for: Mid-sized businesses looking for high-quality and reliability.
- Full-Service Video Production Companies: These tend to charge anywhere from $10,000 to $50,000 or more for a 60-second video. They offer comprehensive services and the highest quality production.
- Best for: Large companies with bigger budgets and more complex needs.
How to Determine Your Explainer Video Budget
Instead of asking, “How much does an explainer video cost?” it’s better to ask, “How much should I invest based on my business goals?” Here are some ways to figure out your budget:
ROI Approach
Consider the return your explainer video could generate:
- If it’s for driving sales, calculate how many conversions the video could lead to.
- Think about the lifetime value of new customers if you’re focusing on customer acquisition.
- For training videos, consider how much time could be saved by employees.
Competitive Analysis
Look at what your competitors are doing. What quality level are they offering? How can you make your video stand out?
Strategic Importance
Consider the role of the video in your overall marketing strategy. Is it for a core product? Will it be used for many years, or just a short-term campaign?
Cost-Saving Tips for Explainer Videos
If you’re on a tight budget, try these tips to cut costs without sacrificing quality:
- Keep it short: A concise message will save you money.
- Simplify the animation style: Flat design or minimalist animation can be cost-effective.
- Limit revisions: Provide clear, comprehensive feedback early to avoid extra charges for small changes.
- Prepare your content: Have a clear brief and script ready.
- Consider package deals: If you need multiple videos, ask for a discount.
- Plan ahead: Avoid rush jobs to save on expedited fees.
The Production Process and Timeline
Here’s a general idea of how the production process works:
- Discovery and Briefing (1-2 weeks): Initial consultations, setting goals, and analyzing the target audience.
- Pre-Production (2-3 weeks): Scriptwriting, storyboarding, and selecting voiceovers.
- Production (3-6 weeks): Animation development, voiceover recording, and the initial draft.
- Post-Production (1-2 weeks): Revisions, final edits, and delivery.
The entire process typically takes 7-13 weeks, depending on the complexity of the video.
Questions to Ask Before Hiring an Explainer Video Company
Before committing to a production company, ask these questions to ensure you’re making the right choice:
- What’s included in the base price? (Music, revisions, etc.)
- Can I see examples of videos at my price range?
- What’s your revision policy?
- Do you offer the source files after completion?
- What’s the typical timeline for a project like mine?
- Who will be my point of contact?
Is an Explainer Video Worth the Investment?
Explainer videos can be a big investment, but they offer incredible value:
- They can increase conversion rates by up to 80%.
- Websites with video content are much more likely to rank on the top and first page of Google.
- Videos are perfect for explaining complex information.
- They have a broader reach since people share videos more often than text.
If done well, an explainer video can serve as a long-term asset for your business.
Conclusion
The cost of an explainer video in 2025 can vary significantly, ranging from $2,000 to $20,000 for a 60-second video. The right budget for you depends on your specific goals, the importance of the video to your marketing strategy, and your target audience.
By understanding the factors that impact pricing, you can make an informed decision about your explainer video investment. And remember, while it’s tempting to go for the cheapest option, investing in a high-quality video that meets your objectives will deliver far greater value in the long run.
Whether you’re working with a small budget or planning for a high-end production, it’s all about finding the right production partner who can bring your vision to life.