TL;DR Summary:
- A 60-second explainer video typically costs $4,000-$10,000.
- Production is the most expensive phase (60-70% of budget).
- Pre-production (15-20%) and post-production (10-15%) are smaller but crucial investments.
- Factors like style, length, and complexity significantly impact the final cost.
How much an explainer video costs - we covered that inside and out in our in-depth explainer video cost research.
But here's what we didn't cover: where exactly does that money go?
As an explainer video agency with over 12 years of experience, we've worked with hundreds of clients. And one question keeps coming up: "Why does pre-production cost this much?" or "Can we skip the storyboard to save money?"
Fair questions. And they deserve transparent answers.
That's why we created this guide. We're breaking down every single phase of production: pre-production, production, and post-production, so you know exactly what you're paying for at each step.
No hidden costs. No vague line items. Just a clear, honest breakdown of where your investment goes.
By the end of this article, you'll know every small detail. And you'll be able to budget smarter, avoid costly mistakes, and make decisions with confidence.
Let's dive in.
Understanding the "Sweet Spot": What Should You Really Budget for an Explainer Video?
Let's get straight to it. The cost of an explainer video can swing wildly, from a few hundred dollars to over $250,000. So, what should you actually pay?
Based on our own research at Yans Media - where we analyzed 110 quotes from various creators - the average cost for a 60-second explainer video is $8,746. But the average doesn't tell the whole story.
For most startups and businesses, the “sweet spot” is between $4,000 and $10,000. Here’s why: this range gets you a video that is fully customized, high-quality, and delivers real value without the massive overhead of a big-name agency.
What happens if you go cheaper? Videos under $4,000 almost always use generic templates and stock graphics. They look cheap, and they make your brand look cheap. Period. On the flip side, is a $20,000 video better than a $7,000 one? Our research shows the quality difference is often minimal. You’re paying for the fancy office, not a better video.
Here’s how the costs stack up by provider type:
The bottom line: Aim for the sweet spot. It’s where quality and value meet.
Phase 1: Pre-Production – The Foundation of Your Video (15-20% of Budget)
The pre-production phase, which includes research, scriptwriting, and storyboarding, typically accounts for 15-20% of the total explainer video cost. Don't let the small percentage fool you. This is where you win or lose. A weak foundation means a weak video.
Research & Discovery (Cost: ~$500 - $1,000)
Think of this as the strategy session. Some agencies and clients underestimate this stage and don't consider it budget-consuming. But it is.
Everyone on the team should be involved in this process - production, animation, scriptwriting - learning every word included in the brief and doing additional research so deeply that they feel like part of your company.
At Yans Media, we start by digging deep into your brand, your audience, and your competitors. We find your USP, your client's pain points, and every small detail that matters. We need to understand your business inside and out to create a video that actually works.
This involves brand research, audience analysis, and stakeholder interviews. The goal? To produce a creative brief - a document that outlines the project's goals, messaging, and creative direction. It's the blueprint for everything that follows.
Here's why this matters: At first glance, you might think, "What's the big deal about gathering information?" But in our 12+ years producing over 650 explainer videos, we've learned that this stage is the most important. A solid creative brief is the cornerstone of any successful video project. It ensures that everyone - from our scriptwriters to our animators - is aligned on the vision. And that alignment? It minimizes costly revisions down the line.
Skip this step, and you're building on sand. Invest in it, and everything else falls into place.
Scriptwriting (Cost: ~$1,000 - $2,000)
The script is the heart of your video. It's the story that will either grab your audience by the collar or put them to sleep.
You might think, "So what's the problem? Any AI can write a script now." Yeah, that's true. But what about the quality?
AI is great. It makes our lives easier and speeds up routine tasks. But ask any professional, and they'll tell you the same thing: AI provides generic answers when it comes to creative work.
For example, every time we write a script for an explainer video, we take the research and turn it into a narrative that hooks viewers, presents the problem, and positions your product as the clear solution.
You might be wondering: why does a short script cost so much? Because writing a 60-second script (around 150 words) that is clear, concise, and persuasive is incredibly difficult. It's much easier to write a 5-minute script than a 60-second one. Every single word has to earn its place. If you want a deeper breakdown of what makes a short script truly effective, our guide on How to Write an Explainer Video Script walks through the exact structure professionals use to keep viewers engaged from second one.
This process takes 3-5 days and involves not only the scriptwriter but also the creative director and even storyboard artists - all working together to make sure the script is animation-friendly.
Storyboarding & Mood Board (Cost: ~$500 - $1,500)
Once the script is locked, it's time to visualize it. The storyboard is a frame-by-frame sketch of the entire video. It's the blueprint for the animators.This is your chance to see the video on paper before a single graphic is animated. It's a critical checkpoint to ensure the visual direction is right before you head into the most expensive phase of the project.
Depending on the project size and deadlines, 1-3 artists work on the storyboard. The timeline typically takes 3-5 days, and the budget is determined accordingly.
Phase 2: Production – Bringing Your Vision to Life (60-70% of Budget)
This is where the magic happens and where most of your budget is spent. The production phase covers illustration, voiceover, and animation. It’s the most labor-intensive part of the process, requiring a team of specialized artists.
Custom Illustration & Style Development (Cost: ~$1,500 - $3,000)
This is what separates a professional video from an amateur one. Custom illustration means every visual element - characters, backgrounds, icons - is created from scratch, exclusively for your brand. It ensures your video looks unique and aligns perfectly with your brand identity.
The alternative is using templates. But think about it: do you want your video to look like a dozen others, or do you want it to stand out? The choice is obvious.
Here's the thing: one variable is critical when budgeting. Custom illustrations can be created by an amateur or by a highly experienced visual artist supervised by a creative director. There's a massive difference.
For example, at Yans Media, our creative director has over 17 years of experience, and our illustrators have at least 5 years of intensive, high-quality work under their belts. And they need at least 1–1.5 weeks to create a custom style from scratch.This, and other factors like complexity and revisions, determines the budget. So the next time you're quoted a couple hundred dollars, think twice about what you're actually getting.
Professional Voiceover (Cost: ~$150 - $1,500+)
The voiceover is the soul of your video. A professional voice artist can convey trust, authority, and emotion in a way that a text-to-speech robot or an amateur cannot. The voice over cost varies wildly based on two key factors: talent experience and usage rights.
Usage rights are critical. A non-broadcast license (for your website or organic social media) is affordable, typically starting around $150. But if you plan to use the video in paid ads, you’ll need a broadcast license, which can cost $500 to $1,500 or more.
For a deeper look at pricing, licensing, and talent tiers, our Comprehensive Guide to Explainer Video Voiceover Costs breaks down exactly what to expect and how to budget wisely.
Here’s a quick breakdown:
Pro Tip: Finalize your script before recording the voiceover. Re-recording due to script changes is expensive and entirely avoidable.
Animation (Cost: ~$2,000 - $5,000+)
Animation is where everything comes together. It’s the process of taking the static illustrations and bringing them to life with movement, transitions, and effects. The animation cost is directly tied to complexity.
- 2D Motion Graphics: The most common and cost-effective style. Perfect for most corporate explainer videos.
- Character Animation: More complex and expensive, as it involves animating fluid character movements and expressions.
- 2D with 3D Elements: Adds a layer of sophistication and depth, but also increases the cost.
This is the most time-consuming part of production, often requiring 1-2 animators working for several weeks.
Useful resource:
How Much Does Motion Graphics Cost?
Phase 3: Post-Production – The Final Polish (10-15% of Budget)
Post-production is the final 10% that makes 100% of the difference. This is where the video gets its final polish, ensuring it’s seamless, professional, and ready for the world.
Sound Design & Music (Cost: ~$250 - $750)
Sound design is the secret weapon of great videos. It includes the subtle sound effects - the whooshes, clicks, and dings - that make the video feel alive. It also includes a licensed music track that sets the tone and drives the emotional energy.
A good production company will handle the music licensing for you, typically from services like Artlist or Epidemic Sound. This is a small cost that has a huge impact on the final product.
Revisions & Final Delivery (Cost: Varies)
Most production companies include 2-3 rounds of revisions in their quote. This is your opportunity to provide feedback and request minor tweaks. To avoid extra costs, provide clear, consolidated feedback. Vague notes like "make it pop more" are not helpful and lead to wasted time and money.
Once the video is approved, you’ll receive the final files in various formats and aspect ratios, ready for you to deploy across all your marketing channels.
Common Mistakes to Avoid When Budgeting for an Explainer Video
Now that you know where the money goes, let's talk about how to avoid wasting it. Here are the most common budgeting mistakes we see:
- Falling for the $500 Video Trap. A $500 video is not a marketing asset; it's a liability. It will look cheap and make your brand look cheap. If your budget is that tight, you're better off having no video at all.
- Ignoring Usage Rights. You find a great voiceover for $150, but you don't realize it's for non-broadcast use only. Six months later, you want to run it as a YouTube ad. Now you have to go back and pay for the broadcast license, which could be another $500 or more.
- Making Major Script Changes Late in the Game. Your script should be set in stone before production begins. Changing the script after the voiceover is recorded and animation has started is the fastest way to blow your budget. It can cost you 70-100% of the original fee to fix.
- Not Clarifying the Revision Policy. You assume revisions are unlimited, but your contract only includes two rounds. Now you're stuck paying extra for every small change. Always clarify the revision policy upfront.
- Prioritizing Price Over Value. A $1,500 video that no one watches is a waste of $1,500. A $7,000 video that increases your conversion rate by 20% is an incredible investment. Stop looking for the cheapest option and start looking for the best value.
Conclusion: Investing in Quality for a Higher ROI
An explainer video is not an expense; it's an investment. It’s a tool that can drive conversions, educate customers, and build your brand 24/7. But like any investment, you get what you pay for.
Trying to cut corners will only lead to a cheap video that fails to deliver results. By understanding the explainer video cost breakdown, you can budget intelligently and partner with a production company that will deliver a high-performing asset, not just a pretty video.
Stop wasting time and money on marketing that doesn't work. Every day without a powerful explainer video is a day you're losing customers.
Ready to fix it? Contact Yans Media for a free consultation. We'll give you a transparent quote and a clear plan to create a video that drives results.
Key Takeaways
- Budgeting for an explainer video requires understanding the costs of each production phase.
- Investing in a quality production process leads to a better ROI.
- Be wary of prices that seem too good to be true.
References
[1] Yans Media. "The Secrets Behind Explainer Video Pricing."
[2] Yans Media. "Cheap Explainer Video: Do I Need it?"
[3] HubSpot. "The Ultimate Guide to Video Marketing."
[4] Vidyard. "Video in Business Benchmark Report."
[5] Voices.com. "Voice Over Rates."
