How Much Does It Cost to Make an Explainer Video?

Explainer videos have become a standard tool for businesses looking to communicate complex ideas, showcase products, or onboard new customers. Before investing in one, most companies want to understand what they’ll spend. The answer depends on several factors, including video length, animation style, production timeline, and who creates it.

Professional explainer videos typically range from $4,000 to $25,000 per finished minute when working with a production studio. Explainer video experts at Vidico, for example, scale video production with top global talent to deliver quality at various budget levels. DIY tools and freelancers offer lower price points, though the final product may not deliver the same results. Understanding what drives these costs helps you budget effectively and get the most value from your investment.

Understanding How Length Affects Pricing

Production studios calculate explainer video costs per finished second or minute. A 60-second video requires scripting, storyboarding, voiceover recording, animation, and revisions—all of which take time and skilled labor.

The first minute of any video typically has the highest per-second cost. Studios must establish the visual style, design characters or graphics, and set up the project foundation. Additional minutes often come at a reduced rate because the groundwork is already complete.

Shorter videos also tend to perform better with audiences. Viewer attention drops significantly after the first minute on most platforms, so keeping your explainer concise serves both your budget and your engagement goals.

Choosing an Animation Style

Different animation techniques require varying levels of time and expertise, which directly impacts pricing.

Whiteboard Animation

This style uses simple black-and-white drawings that appear to be sketched in real time. It’s the most budget-friendly option and works well for educational content or straightforward explanations. However, quality varies widely across providers, so reviewing a studio’s portfolio before committing is important.

Motion Graphics

Motion graphics animate shapes, text, and icons rather than characters. This approach suits brands that prefer abstract visuals or want to highlight data and processes. Costs fall in the mid-range, and the style works for both 2D and 3D execution.

2D Character Animation

Traditional 2D animation offers a classic, approachable look. Creating smooth character movement requires frame-by-frame work, which takes considerable time. Some studios cut corners by sliding static images around the screen—this looks cheaper and performs worse than proper animation.

3D Animation

3D videos deliver depth and realism that 2D cannot match. Product demonstrations and technical explanations often benefit from this style. Pricing depends heavily on complexity, though 2D and 3D projects can cost similar amounts when the scope is comparable.

Live Action

Filming real people and locations introduces additional variables, such as talent fees, set design, and travel. Post-production editing and potential integration of animated elements add to the total. Live-action can quickly exceed animation costs, depending on the scope.

Managing Your Production Timeline

Rush projects cost more. Studios charge premiums when clients need delivery faster than the standard production schedule allows. Starting the process months before your launch date gives you flexibility and keeps costs predictable.

High-quality studios often book projects weeks or months in advance. If you have a preferred production partner, reach out early to secure your spot on their calendar.

Minimizing Revision Costs

Changes become more expensive as production progresses. Adjusting the script during the drafting phase costs little or nothing. Requesting animation changes after the team has completed that work requires them to redo potentially hours of labor.

Review all materials carefully at each stage—scripts, character designs, storyboards, and rough cuts. Catch issues early when they’re easy to fix. Designate one person within your organization to communicate with the production team to avoid conflicting feedback and last-minute executive requests.

Weighing Cost Against Value

The cheapest explainer video isn’t always the best investment. When a video is poorly executed, it can create a negative brand impression and fail to drive conversions. A well-made video continues generating leads and sales for years.

Before finalizing your budget, consider what return you expect from the video. Calculate how many additional conversions or sales would pay back the production cost. This perspective helps justify spending more upfront for quality that delivers results over time.
When comparing studios, request detailed quotes and review their previous work. The lowest bid rarely produces the best outcome. Look for a balance between cost, quality, and the studio’s experience with your type of project.