How much does an explainer video cost in 2025?

Are you a business interested in explainer video production? If you are new to this, you must want to know how much an explainer video costs. 

As a video production company, we want to educate our potential customers. So, let’s look into this together. Find out whether video production is something you want to try. 

We analyzed explainer video pricing across 500 agencies worldwide. Most video production companies price their work based on 60 seconds. That’s why this article presents costs calculated for a 60-second video.

The cost of an explainer video depends on a lot of variables which we will soon discuss. Giving an accurate estimate is not really possible. 

On average, an explainer video costs from $2,000 to $20,000. That’s how much companies usually spend. Some projects can cost up to $50,000 due to the complexity and scope of work. The lowest quote we received was $750, while the highest reached $200,000 for 60-second video.

This range doesn’t tell you a lot. You want to know how much your project will cost. To answer that, we need to get into specifics. 

Breaking Down Explainer Video Costs

Prices differ from studio to studio. You will find animation studios both with cheap and expensive pricing models. What matters though, is the quality of the work. 

The reason why the cost differs so much is how studios operate. And, the clients they usually have. 

To put this in a better perspective, let’s see how studios calculate project cost. 

Producing the Video 

The project’s cost is largely based on the cost of production. Studios spend a lot of resources creating and finishing projects. 

A lot goes into the production. A team of animators, producers, illustrators, scriptwriters, and actors is included. There are several stages of production which take time and coordination. We’ll go over the stages of production thoroughly in a second.

The production spendings make up for most of the cost. The more resources it takes to produce the video, the higher the cost. 

The Length of the Video 

A very important aspect is the duration of the video. Studios price their services based on seconds. 

If you get in contact with a digital media studio. First thing they ask is about the duration of the video. How long do you want it to be? 

The more seconds it lasts, the more time it takes to produce. That’s why studios charge more for longer videos. 

Most explainer video companies price their work based on 60 seconds.If you’re looking for a 90- or 120-second explainer video, 85% of studios will price the extra length proportionally to the 60-second rate.

That means a 90-second video will cost 50% more, while a 120-second video will be double the price. About 15% of studios, however, offer discounted rates for additional length beyond 60 seconds, typically reducing the cost by 15% to 35%.

Based on our experience, the 60-120-second format is ideal for an explainer video. This length effectively conveys the core value and essence of your product while keeping the viewer engaged. The ideal duration depends on your product’s complexity — 60 seconds is often enough for simpler offerings, while more complex solutions may benefit from up to 120 seconds. So, that’s what most clients utilize and studios recommend. 

Animation vs. Live-action 

The format of the video affects the price as well. There are two options, the animated style or live-action. 

Live action usually costs more. Setting up everything we need to shoot the video takes time and resources. Companies need to arrange a location and a time to shoot. Hire actors, stylists, and makeup artists. A live-action shoot typically involves a large crew, including a director, producer, cinematographers, set designers, sound and lighting specialists, and an editor. 

There’s also additional inventory such as shooting equipment, outfits, and accessories. All of this makes live-action more expensive. 

Moreover, live-action videos can’t be easily updated over time, which can be a challenge when revisions are needed. In contrast, animated explainer videos allow for quick and cost-effective adjustments by simply modifying the source files.

Of course, live-action has its own advantages—but we’ll cover those in another article.

Animations are usually done in-house and don’t require as much resources. Making them the less expensive option. 

Script

Whether you need a script for your video will change the cost. If you don’t have a script, the studio will write one, but they will charge more.

Some companies already have a script, so they pay less. Hiring professionals is a slightly better option, however. Since it’s written with the help of experienced writers and marketing experts. With the intent to help your purpose.

Quality of Production

As in any industry, unique quality is valued. High-quality video production will cost more. If you are looking for the best in business, you will have to pay more. 

Studios keep up with their competition. The standard determines the cost. If a studio is known for its excellent service that gets results. They will charge more to stand out from the competition. Targeting high-value customers. 

Customer service also plays a part here. A good company will communicate closely. Understand your purpose and guideline. Working with you to get you the results you need. 

It’s not enough for the video to look good, it has to fit your purpose. This takes time and a lot of meetings. Which may further the cost of the project. 

Below is a chart outlining the key factors that influence the cost. The primary factors are the complexity of the project and the duration of the video. These have the most significant impact on the final price.

The Market Average 

Although it’s a competitive industry, most video production companies charge similar. According to our survey, customers on average pay $8,000 for a quality 60 sec animated explainer.  

There are some companies that have been around for a while. Their average is $12,000-$15,000 for the same video. 

You don’t have to pay above the market average for the same quality. CRFT designed a process that enables you to pay $5,000 for a high-quality explainer video.

Add-ons & Extras

Additional requirements specific to your project may increase the cost, or in some cases reduce it. 

Studios usually charge more for urgent projects that need a rush turnaround. Since they have to reallocate resources to deliver on time. 

Asking for multiple videos on the other hand may come with a discount. At CRFT, we offer a special service for bundle projects.

Adding subtitles or voice overs for local languages will cost you more. Those are not included in the main service package. 

Technical specification requirements can add to the price as well. If you need a specific resolution for a billboard for example. 

Studios will add additional fees for sharing source files. This can be 30% to 50% of the total video cost. With CRFT, you don’t have to worry about that. Sharing source files is included in our price, we do that for free.

Below is a chart featuring the main add-ons and extras that can increase the cost of video production, along with the average market price for such services. Studios offer these options for an additional fee.

At CRFT Video, many add-ons are prepared for our clients free of charge upon project completion. When you order a video from us, you don’t just get one video—you get a whole package of content to grow your business. For example, we always provide source files, a cut-down version based on the main video, versions with different CTAs for cross-platform use, and subtitles—all at no extra cost.

How Much Should I Spend on an Explainer Video?

How much does an explainer video cost is maybe not the right question. You should be really asking about how much to invest. And that depends on the results you are trying to achieve. 

What is your purpose? What results do you aim to get? These are questions that matter. By the way, you can learn more about the benefits of explainer videos in our featured article.

For example, a startup spending $20,000 is just unnecessary. You have to think about what best suits your budget. 

Another thing to keep in mind is how many videos you need. If you are a big organization. Planning on establishing an online presence with a series of content. It makes sense to come in with a big budget. 

We recommend spending somewhere from $5,000 to $15,000. That’s a good range that will assure you get a service that will get you results. In fact, that’s a more accurate average for explainer video prices.

It all depends on your purpose. The CRFT Video will discuss the budget for you. Making sure it fits your purpose well, and you are getting value. 

If you really don’t want to spend anything, you can look into free video-making and editing tools. These can’t provide the quality you need, however. And they take a lot of time. 

We’ll talk about the production stages next so you can see why hiring professionals is the best option. 

What Are the Stages of Production? 

Before putting video production to use, you should know what you are paying for. That’s why you should get familiar with the production process. 

When a company provides you with an estimate, you will know if it’s a realistic one. This will also help the communication with you and the agency you hired. 

Scriptwriting

The process starts with writing a script. This determines what the narrative will be about, and the events that will happen. 

If you already have a script, this step is not necessary. Some businesses want professionals writing the script, so they leave that to the agency. 

The scriptwriting starts with a discovery call. You meet with the scriptwriter and share ideas. Here, you will decide on the tone, the style, and the language used. 

CRFT will send the script back to you. Asking for feedback and any revisions.

Storyboard

Every video needs a storyboard. An important part that you turn back to throughout each stage of production. 

With the storyboard, we plan out the visuals and the scenes. A sketch of what will happen based on the script. Playing around with the scenes to form a consistent explanation. 

We will include you in the creation of the storyboard. Making sure we are on the same page, and you are getting the service you paid for.

Creating the Illustrations & 3D Models

Depending on the project, the next stage is either creating illustrations or 3D models. 

The studio will create hand-drawn illustrations. Which later will be brought to life using computer software. 

If your project requires it, this stage will include creating 3D models. Designing the environment, objects, and characters. 

Shooting the Video

If you decide on the live-action style, shooting will start as soon as the storyboard is finished. 

The recording team will meet with the actors or your team, and execute to video. Although it can take some tries, the shooting is a pretty straight-forward process. Set the scene, say the lines, and record. 

Everything else will be done in the editing process, post-production.

Voice-Over

Once the scenes are planned out, voice actors meet to bring the script to life. You decide on the actors and the voice you want in your video. 

The more actors you want to hire, the more it will cost. Since the agency will have to pay more individuals for work. 

CRFT works with a number of talents, ready at your service. You can choose from multiple voice styles for your video.

Make the Animatics

Animatics are not the same thing as the final animations. They are just a sample of what the final product should look like. 

Here, the production team will expand on the illustrations and models made in the storyboard. This can be quite time-consuming, especially for larger projects. 

It’s an important stage since it helps improve the illustrations and helps with the animation. 

Animation

Finishing up the animations is one of the last stages in production. Here, the agency will use advanced softwares to make the animations as realistic as possible. 

Paying attention to every detail. This stage also takes a lot of time and more than one person to do the job. 

Making high-quality animations takes skill and experience. And that’s what you will be paying for. 

Sound effects & Music

In the final stage, your project will look exactly as you envisioned it. The team will work on music, and special sound effects. Adding those minor details that truly matter. 

Now, you are familiar with the stages of production. So you know what it will take to execute your project. And you know what you will be paying for. 

Explainer videos with CRFT Video 

If you are worried about your project, you should look into the CRFT agency. We are versatile, flexible, and willing to take on any challenge. 

Providing excellent services that leave clients satisfied. Our track record is proof of the success our clients get. 

CRFT has experience working with big organizations, small companies, and startups. So, your budget doesn’t really matter. We can make the video you need. 

Our Pricing Model

We provide quotes based on our client’s budget and purpose. When you contact us, we send out a questionnaire for you to fill out. Here you provide us with necessary briefing information. 

In our discovery call, we will discuss what we can do for you with the budget you have. CRFT offers transparency, so you know what you are paying for. 

Get Started

To get started with us, just contact us. We’ll get back to you in a timely manner. We will gladly answer any questions you have. Even if we don’t end up collaborating. 

We will make an effort to accommodate you, so don’t hesitate to get in touch with us. 

Closing Thoughts 

Let’s sum up everything we went through in this post. 

The cost of explainer videos largely depends on the size of the project. The video style, and the quality of production. Rush turnaround, multiple videos, language localizations, technical specifications.The length of the video, scriptwriting, and the format, all affect the cost. That’s why providing an accurate estimate for project cost is hard. 

On average, companies spend from $2,000 to $20,000. To find out how much your project will cost, get in touch with an agency. It’s important to explore multiple options, so make sure you don’t settle for less.

It’s all about getting the right value for the budget you have. A good video will bring tremendous results, no matter the cost.