How Much Does an Explainer Video Cost?
Explainer videos. What are they? Like the name suggests, they ‘explain’ a concept, product or service. They can be used on your website, for training, presentations, or any sales and marketing purposes. One of the best benefits of explainer videos is that they are able to convey a lot of information in a very short amount of time. And they do it in a way that is easy to understand, engaging and entertaining.
Explainer videos have become an essential tool to convert customers for any brand or business. But how much do they cost in 2025? Based on current USA market data, a professional 60-second explainer video typically ranges from $1,000 to $8,500, with the average investment around $6,300 for US-based companies. However, the final price depends on several key factors.
Understanding the cost dynamics helps you budget appropriately and avoid the costly mistake of either overspending on unnecessary features or underinvesting in quality that drives results. Before diving into specific cost factors, it’s worth noting that launching a product without an explainer video can be significantly more expensive than creating one. The opportunity cost of lost conversions, increased support tickets, and poor market understanding often dwarfs production expenses.
Current Market Reality: 2025 Explainer Video Pricing
Recent industry surveys across 80+ companies and 12 production agencies reveal these pricing benchmarks for the USA market:
By Company Size & Stage:
Startups & Small Businesses ($1,100-$3,300):
Early-stage companies with limited budgets can access quality explainer videos in this range. This tier offers essential production quality suitable for initial market testing and MVP launches.
Growth Stage Companies ($3,300-$6,300):
Mid-market businesses typically invest in this range for polished, professional videos that represent their brand well across multiple channels. This is the sweet spot where quality meets affordability.
Enterprise Organizations ($6,300-$15,000+):
Established brands allocate larger budgets for premium production quality, complex animations, multiple revisions, and strategic consultation. Enterprise videos often require advanced features and extensive customization.
Primary Cost Factors That Determine Price
Length: The Foundation of Pricing
Explainer videos usually start from 30-seconds and can go up to two minutes. In the case of training videos, they may be even longer since there’s usually a large chunk of important information that needs to be conveyed. The sweet-spot for most explainer videos is 60-90 seconds. That allows for enough time to build a narrative while also keeping the message short and simple.
Production companies typically price by duration, with costs scaling proportionally:
- 30-second videos: $1,000-$4,000 (ideal for social media teasers)
- 60-second videos: $1,000-$8,500 (most popular, standard explainer length)
- 90-second videos: $3,000-$12,000 (comprehensive product explanations)
- 2+ minute videos: $6,000-$20,000+ (detailed tutorials, training content)
The strategic question of short or long videos which is the best explainer video length impacts not just cost but also effectiveness. Longer videos cost more to produce but might be necessary for complex products. Shorter videos save budget but must distill messaging efficiently.
Each additional 30 seconds typically adds 30-40% to the base production cost due to increased scripting, animation, voiceover, and editing time. However, some companies offer package pricing where length becomes less of a cost driver.
Quality: You Get What You Pay For
We live in a gig economy. You could hypothetically get an explainer video for as low as $150-$500 from freelance platforms. The catch? The quality will be noticeably low. We’re talking template-based designs, generic stock elements, computer-generated voiceovers, and characters that lack professional polish. With a low-quality video, you really can’t expect to make a good impression. Since videos have pervaded every nook of marketing today, when you cut corners on your explainer video it’s frightfully evident to your audience.
A high-quality video from a reputed animated explainer video company will start from $3,000, but the ROI is substantial. With custom illustrations, thoughtful animations, professional voice-overs, and smooth flow, they will delight, amuse and inform your audience. You get what you pay for in the explainer video world.
The practical difference between budget and premium production becomes clear when comparing $1K vs $5K explainer video what you really get at each price point. The visible quality gap often determines whether your video builds credibility or undermines it.
Quality Tier Breakdown (2025 USA Market):
DIY/Template Tier ($50-$1,000):
- Drag-and-drop online tools
- Template-based designs with minimal customization
- AI-generated or amateur voiceovers
- Stock characters and generic animations
- No strategic consultation
- Best for: Internal training, minimal budget situations
Budget Professional Tier ($1,000-$3,300):
- Semi-custom illustrations using existing assets
- Basic professional voiceover
- Standard 2D animation techniques
- 1-2 revision rounds
- Limited strategic input
- Best for: Startups validating concepts, simple explainers
Mid-Range Quality Tier ($3,300-$7,000):
- Fully custom artwork and character design
- Experienced professional voiceover talent
- Advanced animation techniques and transitions
- 2-3 comprehensive revision rounds
- Strategic script consultation
- Brand-aligned visual design
- Best for: Growing companies, primary marketing videos
Premium Professional Tier ($7,000-$15,000):
- Cinematic quality production
- Celebrity or industry expert voiceovers available
- Complex character animation or detailed 3D
- Unlimited revisions within scope
- Full strategic consultation and messaging development
- Multiple platform versions included
- Best for: Enterprise brands, product launches, investor presentations
Enterprise/Custom Tier ($15,000-$50,000+):
- Broadcast-quality production
- Multiple video variations and lengths
- Advanced 3D animation and visual effects
- Comprehensive production team
- Full creative agency support
- Complete brand integration strategy
- Best for: Major campaigns, global launches, Fortune 500 brands
Type: Animation Style Dramatically Affects Cost
There are different types of explainer videos including whiteboard, 2D-character animation, live-action, motion graphics, kinetic typography, 3D-animation, and screencast. The most common of these are whiteboard, where a hand draws images and text on a white background; 2D-character animations and motion graphics (shapes animated on-screen); and screencast (usually a walkthrough of an app or SaaS product on a phone or laptop screen).
An animated explainer video company may specialize in a particular type of animation too, so that could factor into the price. Usually though, a fully-fledged animated explainer video company like Motionvillee will offer different types of animation and will suggest which would be the most suitable for your explainer video. Since each type requires different amounts of effort and time, the costs differ significantly.
Understanding 6 explainer video styles and when to use each one helps you select a format that balances cost with effectiveness for your specific message and audience.
Cost by Video Type (2025 USA Pricing):
Whiteboard Animation ($1,000-$4,500)
- Simplest production process
- Fastest turnaround (2-3 weeks)
- Highly effective for educational content
- Minimal customization options
- Best value for budget-conscious brands
- Ideal for: Training, concepts, step-by-step explanations
2D Character Animation ($1,500-$8,000)
- Moderate production complexity
- Character design and rigging required
- Strong emotional connection through characters
- Popular choice for brand storytelling
- 3-5 week production timeline
- Ideal for: Brand stories, product introductions, customer journeys
Motion Graphics ($1,000-$7,500)
- Clean, professional corporate aesthetic
- Perfect for data visualization and statistics
- Scalable complexity based on needs
- Particularly effective for B2B audiences
- 3-4 week production timeline
- Ideal for: SaaS products, financial services, tech companies
Screencast with Animation ($1,500-$5,500)
- Software demonstration focus
- Combines screen recording with animated elements
- Essential for SaaS product onboarding
- Quick production (2-3 weeks)
- Easy to update when software changes
- Ideal for: App tutorials, software demos, user onboarding
Kinetic Typography ($1,000-$4,000)
- Text-focused animation
- Fast production timeline
- Cost-effective for quote-heavy content
- Strong for testimonials and statistics
- Best for: Social media, quotes, data-driven messages
Live-Action with Animation ($3,000-$18,000)
- Requires on-location filming
- Professional actors or company representatives
- Post-production animation overlay
- Weather and scheduling dependent
- Talent and crew costs included
- Ideal for: Brand authenticity, physical product demos, testimonials
3D Animation ($3,000-$25,000+)
- Highest production complexity
- Photorealistic rendering capabilities
- Longest production timeline (6-10 weeks)
- Excellent for product visualization
- Premium brand positioning
- Ideal for: Manufacturing, medical devices, architecture, luxury products
Additional Cost Factors Often Overlooked
Script Development ($250-$2,500)
Professional scriptwriting significantly impacts final video effectiveness. While basic production packages might include simple scripts, comprehensive script development with strategic messaging consultation typically adds $500-$2,000 to project costs.
A well-crafted script following proven frameworks, like the 4 building blocks of an explainer video script that converts, can dramatically improve conversion rates. This investment in quality scripting often delivers the highest ROI of any production element.
Script pricing structure:
- Basic script (client provides messaging): Included
- Standard professional script: $250-$750
- Strategic script with messaging development: $750-$1,500
- Comprehensive script with A/B testing variants: $1,500-$2,500
Voice-Over Talent ($150-$2,000+)
Voice-over quality ranges dramatically in both cost and impact. The voice becomes your brand’s literal voice, making this a critical quality decision rather than just a line item.
2025 USA Voice-Over Pricing:
AI-Generated Voices ($0-$150):
- Suitable only for internal drafts
- Lacks emotion and naturalness
- Not recommended for customer-facing content
Entry-Level Professional ($150-$350):
- Non-union voice talent
- Basic delivery and tone
- Limited revision rounds
- Suitable for basic explainers
Experienced Professional ($350-$750):
- Established non-union professionals
- Multiple takes and tonal variations
- 2-3 revision rounds included
- Recommended for most business videos
Premium Professional ($750-$1,500):
- Union (SAG-AFTRA) talent
- Extensive experience and range
- Unlimited takes within session
- Ideal for high-stakes videos
Celebrity or Expert Voices ($2,000-$20,000+):
- Recognizable names or industry authorities
- Significant credibility boost
- Complex licensing considerations
- Reserved for major campaigns
Additional voice-over costs:
- Multiple language versions: $200-$500 per language
- Rush recording (under 48 hours): 25-50% premium
- Broadcast rights vs. web-only: Can double costs
- Long-term licensing (3+ years): Additional 30-50%
Music and Sound Design ($200-$1,500)
Audio elements significantly impact video professionalism and emotional resonance. Budget appropriately for this often-underestimated component.
Music licensing options:
- Stock music libraries: $50-$200 (limited uniqueness)
- Premium stock with extended license: $200-$500
- Custom composition (30-60 seconds): $500-$1,500
- Sound effects and audio mixing: $200-$500
Professional sound design includes:
- Background music selection or composition
- Sound effects for transitions and emphasis
- Audio mixing and mastering
- Voice-over processing and enhancement
- Final audio output optimization
Revisions and Iterations ($200-$800 per round)
Most professional packages include 2-3 revision rounds across production stages (script, storyboard, animation). Understanding revision policies prevents unexpected costs.
Standard revision structure:
- Script revisions: 2 rounds included
- Storyboard revisions: 2 rounds included
- Animation revisions: 1-2 rounds included
- Additional revisions: $200-$500 per round
Revision best practices:
- Consolidate feedback from all stakeholders
- Provide specific, actionable feedback
- Approve stages promptly to avoid delays
- Major scope changes may require re-quoting
Some premium packages offer unlimited revisions within reason, but “unlimited” typically means unlimited refinement of the agreed concept, not unlimited scope changes.
Rush Fees (20-50% premium)
Standard production timelines run 4-6 weeks for animated explainers. Compressed schedules require additional resources and prioritization.
Timeline pricing impact:
- Standard (4-6 weeks): Base price
- Expedited (3 weeks): +20-30% premium
- Rush (2 weeks): +30-50% premium
- Emergency (1 week): +50-100% premium
Rush production risks quality compromises. When possible, plan video production well in advance of launch dates.
Hidden Costs That Impact Budget
Multiple Versions and Variations
Creating versions for different platforms requires additional rendering and often minor animation adjustments. Budget for these essential adaptations.
Version pricing (2025):
- Length variations (15s, 30s, 60s, 90s from single source): $300-$800 per version
- Aspect ratio variations (vertical 9:16, square 1:1, horizontal 16:9): $200-$500 per format
- Platform-specific optimizations (Instagram, TikTok, YouTube, LinkedIn): $150-$400 per platform
- Language versions with new voiceover only: $400-$1,000 per language
- Complete translations with text animation updates: $800-$1,500 per language
Most companies need at least 2-3 versions for comprehensive distribution, adding $600-$2,400 to base costs.
Updates and Refreshes
Consider future update costs when budgeting. Products evolve, brands refresh, and information becomes outdated.
Update pricing structure:
- Minor text or logo updates: $200-$500
- Voiceover replacement: $300-$700
- Significant content updates (20-30% of video): $1,000-$2,500
- Major refresh (new scenes, updated messaging): $1,500-$4,000
- Complete remake: 40-60% of original production cost
Plan for annual minor updates ($300-$800) and major refreshes every 2-3 years to keep content current.
Licensing and Usage Rights
Most explainer video pricing includes standard web and social media usage. Expanded rights cost significantly more.
Usage rights pricing:
- Web and social media (standard): Included
- Paid advertising rights: +$500-$2,000
- TV broadcast rights: +$2,000-$10,000
- Trade show and event usage: +$300-$1,000
- White-label rights (removing producer branding): +$1,000-$3,000
- Full buyout (unlimited perpetual rights): +30-50% of project cost
Clarify usage rights upfront to avoid licensing conflicts later.
Strategic Considerations Beyond Price
Choosing a production partner involves more than comparing quotes. These factors impact long-term value and success.
Portfolio Quality and Relevance
Review previous work quality carefully. The portfolio reveals execution capability better than any sales pitch. Look for:
- Work in your industry demonstrating audience understanding
- Consistent quality across multiple projects
- Visual style alignment with your brand
- Storytelling effectiveness and engagement
- Technical execution and polish
Request 3-5 samples similar to your project vision. Poor portfolio fit predicts disappointing results regardless of price.
Production Process and Communication
Understanding the process of creating animated explainer video from concept through delivery helps set realistic expectations and identify potential bottlenecks.
Evaluation criteria:
- Clear project milestones and timelines
- Defined approval points and stakeholder involvement
- Revision policy transparency
- Communication frequency and methods
- Project management tools and accessibility
Companies with structured, transparent processes typically deliver on-time and on-budget more consistently.
Company Selection Strategy
Selecting the right partner dramatically affects results. This advanced guide on how to choose the best explainer video production company walks through evaluation criteria beyond just price considerations.
Key selection factors:
- Industry specialization and expertise
- Company size and production capacity
- Geographic location and timezone compatibility
- Contract terms and payment structure
- Post-delivery support and revision policy
- Client references and testimonials
The cheapest option rarely delivers the best value. The most expensive doesn’t guarantee results. Target the intersection of quality, experience, and fair pricing.
Smart Budgeting Strategies for 2025
Start with Clear Objectives:
Define specific business objectives before requesting quotes. Conversion increase? Brand awareness? Support ticket reduction? Demo bookings? Clear goals help production companies recommend appropriate solutions and appropriate budget allocation.
Consider Package Deals:
Many companies offer multi-video packages at significant discounts. If you need several videos over time, package pricing saves 20-40% versus individual projects.
Typical package savings:
- 3-video package: 15-25% discount
- 5-video package: 25-35% discount
- Annual retainer (10+ videos): 30-40% discount
Prioritize Strategic Elements:
Invest in script quality, professional voice-over, and core animation excellence. These foundational elements impact effectiveness more than complex animation flourishes or premium add-ons.
Investment priority order:
- Professional script development
- Quality voiceover talent
- Core animation quality
- Music and sound design
- Additional versions and variations
- Premium features and effects
Plan for Distribution:
Budget doesn’t end at production. Reserve 20-30% of total video budget for distribution, promotion, and optimization efforts. Even the best video fails without strategic distribution.
Understanding how to effectively promote and distribute explainer videos ensures your investment delivers measurable returns.
Test Before Scaling:
For first-time video buyers, start with one mid-tier video ($4,000-$6,000) to test messaging, style, and ROI before committing to larger packages or premium production.
What Founders Need to Know About Video Costs
New founders and startup teams often struggle with explainer video budgeting. These 5 things every founder should know about explainer video costs address common misconceptions and budgeting pitfalls specific to early-stage companies.
Critical founder insights:
1. Don’t Wait for Perfection
Launch with a good video ($3,000-$5,000) and iterate based on real user feedback. Perfect is the enemy of launched. Many successful companies started with simple explainers and upgraded as they grew.
2. Test Messaging Before Expensive Production
Validate your core message with simple video tools or low-cost tests before investing $10,000+ in premium production. Script testing costs $200-$500 and can save thousands in ineffective video production.
3. Quality Matters More Than Quantity
One excellent $6,000 video that converts outperforms three mediocre $2,000 videos that don’t. Prioritize quality over volume, especially for primary homepage and landing page videos.
4. Factor Video Into Launch Budgets From Day One
Product launch budgets should allocate 5-10% for video production. Planning video costs upfront prevents last-minute compromises that hurt quality.
5. ROI Justifies Investment When Execution Is Right
Well-executed explainer videos typically deliver 3-10x ROI through increased conversions, reduced support costs, and faster sales cycles. The investment pays for itself when done strategically.
Making the Investment Decision
Now you know what to take into consideration when setting a budget for an explainer video for your brand or business. We’re not going to lie, an explainer video represents a significant investment, but not having one costs even more in the long run.
The cost of an explainer video represents an investment in clearer communication, higher conversions, and more effective marketing. When executed well, a single video can deliver ROI many times its production cost through reduced support needs, increased conversion rates, and improved brand perception.
Expected ROI indicators (industry averages):
- Landing page conversion increase: 20-80%
- Email click-through improvement: 200-300%
- Support ticket reduction: 20-50%
- Sales cycle compression: 10-30%
- Social media engagement boost: 120-300%
- SEO improvement from video content: 50-157% increase in organic traffic
Consider the lifetime value of customers acquired through video-enhanced marketing. If your average customer is worth $5,000 and your video helps close even two additional customers per month, a $6,000 video investment pays for itself in one month and continues delivering returns for 2-3 years.
Real-world ROI example:
- Video investment: $6,000
- Landing page conversion improvement: 40% (conservative)
- Monthly landing page visitors: 1,000
- Previous conversion rate: 2% (20 conversions)
- New conversion rate: 2.8% (28 conversions)
- Additional conversions: 8/month = 96/year
- Customer LTV: $5,000
- Additional annual revenue: $480,000
- ROI: 8,000% first year
Even modest conversion improvements justify the investment when numbers are calculated honestly.
Common Budgeting Mistakes to Avoid
Focusing Only on Initial Cost:
Consider total cost of ownership including updates, variations, and distribution. A $3,000 video requiring $2,000 in updates annually costs more long-term than a $5,000 video with easy modification.
Ignoring Usage Rights:
Clarify licensing upfront. Discovering you need broadcast rights after production adds significant unexpected costs.
Underestimating Timeline Needs:
Rush fees destroy budgets. Start video projects 8-10 weeks before needed delivery date for standard pricing.
Choosing on Price Alone:
The cheapest bid often indicates inexperience, poor quality, or missing services. Evaluate total value, not just initial quote.
Not Planning for Distribution:
A great video sitting unwatched provides zero ROI. Budget 20-30% of production cost for strategic distribution.
Skipping the Script Phase:
Poor scripts doom even beautifully animated videos. Invest in professional scriptwriting for messaging that converts.
Market Trends Affecting Pricing
AI Tools Reducing Costs:
Advanced AI assists with script optimization, storyboarding, and animation acceleration, reducing production timelines 15-21% compared to 2024. These savings pass to clients through lower pricing for similar quality.
Remote Production Maturity:
Established remote workflows reduce overhead costs. Remote production agencies charge $250-$500 per minute versus $1,000+ for traditional local studios, democratizing access to quality video production.
Increased Demand Driving Volume Discounts:
62% of businesses plan to increase video spending in 2025. Production companies respond with package deals and retainer options offering 25-40% savings for multiple videos.
Return Client Pricing:
Established client relationships command 28-33% average discounts. Building long-term partnerships with quality producers provides significant savings over time.
Platform Specification Requirements:
Social platforms increasingly require multiple formats (vertical, square, horizontal). Budget for 2-3 versions of each video to maximize distribution effectiveness.
Conclusion: Investing Wisely in Video Content
Explainer video costs in 2025 range from $1,500 for basic professional quality to $20,000+ for premium enterprise production, with most businesses investing $3,000-$8,500 for quality work that drives results.
Your ideal budget depends on:
- Business stage and available resources
- Video purpose and distribution strategy
- Target audience expectations and competitor quality
- Expected ROI and lifetime value of acquired customers
- Long-term video content strategy
The right investment level balances affordability with quality sufficient to achieve business objectives. A startup might wisely invest $3,500 for their first explainer while an enterprise allocates $12,000 for premium brand positioning.
Key takeaways:
- Average 60-second professional explainer: $3,000-$8,500
- Quality tiers range from $1,500 (basic) to $20,000+ (premium)
- Type of animation significantly impacts cost
- Voice-over, script, and revisions add $500-$3,000
- Multiple versions and updates increase total investment
- ROI typically justifies costs when executed strategically
Ready to create an explainer video that drives real business results? Partner with Motionvillee’s explainer video production services for transparent pricing, proven execution, and measurable ROI that makes every dollar count.
Want to know exactly how much your explainer video will cost? Contact us for a detailed consultation and custom quote tailored to your specific goals, or leave a comment below and we’ll get in touch with you.
