How much does it cost to build an immersive experience using virtual, augmented, or mixed reality? The answer varies widely based on the scope, complexity, and the talent you hire. One of the biggest decisions you’ll make is whether to work with freelancers or a creative agency – and both come with their pros, cons, and cost implications.

In this guide, we’ll unpack what affects XR project costs and help you decide the best approach for your needs and budget.

What Influences the Cost of an XR Project?

Whether you’re building an AR app for retail or a VR simulation for training, the price tag will depend on several factors:

1. Project Complexity: Interactive features, number of scenes, AI integration, and hardware compatibility all add layers of time and cost.
2. Platform & Devices: Projects for mobile AR (e.g. iOS/Android) are generally cheaper than MR on HoloLens or full VR on Quest/PC.
3. 3D Assets & Design: Custom 3D models and environments take time to design and optimize.
4. Development Tools: Unity, Unreal Engine, WebXR, and their plugins vary in terms of licensing, speed, and developer familiarity.
5. Testing & QA: Cross-platform XR projects require rigorous testing to ensure compatibility and performance.
6. Timeline: Rushed timelines usually mean more cost due to overtime or prioritizing higher-cost resources.

Hiring Freelancers: Cost and Considerations

Freelancers are a popular option for businesses with tight budgets, smaller projects, or the need for very specific expertise.

Average Hourly Rates (2025):

• Unity/Unreal Developer: £40–£100/hr
• 3D Artist/Animator: £30–£70/hr
• UX/UI XR Designer: £35–£90/hr
• Technical Artist: £50–£110/hr

Pros:

• Cost-efficient: Lower overhead, no agency markups
• Specialist expertise: Hire niche experts for specific roles
• Flexibility: Scale team up/down depending on project needs

Cons:

• Project management required: You’ll need to coordinate communication, tasks, and deadlines
• Quality varies: Portfolio review and references are essential
• May require multiple freelancers: Need to build your own team for larger projects

Ideal For: MVPs, prototyping, short-term interactive campaigns, and startups testing ideas.

Working with an XR Agency: Cost and Considerations

Agencies/Consultancies offer full-service capabilities – strategy, design, development, QA, and project management – under one roof.

Typical Project Cost Ranges:

• Small AR/VR demo or POC: £15,000–£30,000
• Mid-range branded AR experience: £30,000–£70,000
• Enterprise-level training simulation: £75,000–£250,000+

Pros:

• Turnkey delivery: Strategy to deployment, handled for you
• Team coordination: Built-in producers and QA ensure smooth delivery
• Experience: Agencies often bring tried-and-tested workflows and polished outcomes

Cons:

• Higher cost: Agency fees cover overhead, admin, and profits
• Less flexibility: Harder to pivot or change direction mid-way
• May limit creativity: Larger agencies may steer you toward templated solutions

Ideal For: Large-scale enterprise projects, multi-stakeholder apps, compliance-sensitive use cases.

Freelancer vs Agency: Side-by-Side Comparison

Blended Approach: The Best of Both Worlds?

Some companies choose a hybrid strategy:

• Hire an agency for initial strategy and MVP
• Then work with freelancers for updates, assets, and expansions

This approach helps control costs while benefiting from both depth and agility.

How to Budget for Your XR Project

Start with your goals and work backward:

• What is the intended outcome?
• How will success be measured?
• What is the minimum viable experience?

Then ask:

• What skills will you need?
• Do you need ongoing updates post-launch?
• Is this a one-off or a long-term initiative?

These answers can guide whether you need a comprehensive agency or a few skilled freelancers.

Whether you go with freelancers or an agency, the cost of an XR project should be seen as an investment in innovation, engagement, and future-proofing your brand. Freelancers offer speed, flexibility, and budget-conscious execution. Agencies bring structure, full-service support, and enterprise-level quality.

Choose based on your goals, timeline, and team capacity—and don’t be afraid to experiment with a blended model that suits your unique needs.

Looking to post your XR project? Explore our extended reality work marketplace to find vetted freelancers or agencies that fit your scope and budget.