Businesses often create explainer videos for their work, which focus on the company, products and services, or employees. These videos are created to raise awareness, market the business, or simply break down a complex concept into visual learning. When these videos are created professionally, they yield better results and higher engagement rates.
If you are also looking for a business that can help you create an explainer video, then you need to first sort out the budget. The budget of any explainer video is based on duration, type of video, script, revision rounds, and delivery deadline. Before directly requesting a quotation from your vendor, you need to first understand the basics of production options, general price range, and expenses that they might include additionally.
How Much Does an Explainer Video Cost?
The price range of an explainer video can be anywhere from a few hundred dollars to several thousand. There are some companies that charge the price of such projects based on the type of video you want to create.
You can also create a video for your business by using ready-made templates or a basic structure. These can be created by someone who possesses simple video editing skills and are a cost-effective solution. On an average, template-based videos can cost around $1000, or even less. If you want to have a more detailed and original, then you can either hire a freelancer, or partner with a production team. However, this type can cost more than template-based video, it will also help you create a video with unique design and can make changes as per your guidelines. These type of studios can charge upto $2000-2500, depending on their capabilities and your video requirements.
However, if you have a high budget and wish to create a video that is created with expertise, have 3D elements in it, and work on all platforms and players, then try connecting with a high-end studio who can work with 3D animation. High-end studios often charge the highest for their videos, and the quotation can be upto $5000.
Explainer Video Pricing by Video Type
Another factor that determines the cost of an explainer video is the type of video you want to create. Every type has a different process, QA round, delivery time, and even tools used in the process. All these elements directly affect the price of the entire project.
| Video type | Indicative budget | Best suited for |
| 2D animation | 1,000–15,000+ | Product explanations, brand stories, and services |
| Whiteboard animation | 500–4,000+ | Training, educational content, and simple processes |
| Motion graphics | 2,000–7,000+ | SaaS products, data, processes, and business presentations |
| 3D animation | 5,000–30,000+ | Physical products, technical concepts, and detailed product views |
| Live-action | 1,500–15,000+ | Company introductions, demonstrations, and customer-facing stories |
| Screencast or product demo | 500–5,000+ | Software walkthroughs and feature demonstrations |
| AI-assisted video | Tool subscription to several thousand dollars for managed production | Drafts, internal communication, and selected marketing content |
Cost of Animated Explainer Video
Animated video is the most common type used for creating explainer content. This type can be created by either using ready-to-use templates, or can be created from scratch where every element is created by the artist.
The original cost of these animated explainer video is based on the length, elements, type of animation, and sound design added to the video. If your expectation is to simply use a template, make basic changes in the text and voiceover, then it can be a relatively cheaper option. But, if you want to create animation from scratch, add all the elements as per your preference, and make necessary changes in the background, sound and designing, then it will cost more despite being a simple animated video.
On a ground level, 2D animation is relatively simpler, more affordable, and easier to make as compared to 3D videos. But if you wish to create a 3D explainer, then consult the budget and have a pilot video before starting with the actual animation project.
Explainer Video Prices for 2D, 3D, Whiteboard, and Motion Graphics
The prices of 2D, 3D, whiteboard animation, and motion graphics are all different. You can consult a vendor that can work on any type of video, or you can look for experts that can work on specific projects and styles.
Whiteboard animated videos are a common type that is used for explainer videos. As the name suggests, the background of these videos is similar to a whiteboard, and basic animation is created on it. These are relatively cheaper in cost if the requirement does not include extra elements or graphics. Motion graphics are another type that includes animating static elements. These static elements can include text, icons, images, and character sketches as per the script. A vendor can charge more for a motion graphics video than a whiteboard video, depending on their expertise and the elements animated in the video.
Custom 2D animation is when the characters, icons, or elements added and animated in the video are also designed by the production team. This makes the process more complex and can be expensive compared to a simple whiteboard animation or motion graphics. 3D videos are the most expensive videos due to the labour, tools, and time spent on creating a single slate. Before working on the video, the client should have complete clarity on how each type is presented on digital platforms, and how much each type costs.
Explainer Video Cost Per Minute: Why Length Changes the Budget
Duration is one of the most important factor that determines the budget of any video. The lengthier a video is, the more effort, time, and invested is used to create the video. Thus, some vendors often charge for a video based on the type of animation required, and expected duration of the video.
| Video length | Indicative budget |
| 30 seconds | 1,000–5,000 |
| 60 seconds | 2,000–10,000 |
| 90 seconds | 3,000–15,000 |
| 2 minutes | 4,000–20,000+ |
These numbers are not fixed rates for any vendor or project, but an estimate of how much you might have to spend on a simple video for your explanatory content. It is highly recommended to consult your partnering vendor about their expertise in each animation and how much time and money they would charge for any video, specifying the type and duration.
What Affects Explainer Video Rates?
There are several factors that affect the rates of an explainer video, such as the production tools, delivery date, revisions, and duration. Other than this, some common elements include:
Script, Storyboard, and Creative Direction
The script is the first step in any video creation project. It helps in laying the foundation for the task and executing the ideation into a plausible idea. The script also helps in determining the estimated duration of the video and decides what elements, characters, and on-screen text will be used. Once the script is approved, the production team then works on storyboarding and creative direction. Storyboarding is the process of creating all the scenes in a static visual. This is done to help visualize the script and make any changes necessary in the visual description. During this process, the role of the creative director is important.
Animation Style and Visual Complexity
Finalizing the animation style and visual complexity of the video is important and should be done before working on the scripting and storyboarding. This is because, based on the animation style and visual description, the writers are often asked to work on the script.
A visual description or complexity also includes illustrations, user interface, background, transitions, and 3D elements, if used any. All these factors are generally predetermined and can affect the overall pricing of the project.
Voiceover, Music, Subtitles, and Localization
After the script, storyboarding, and visual description is finalized and completed, the next step is to work on the voiceover, music, subtitles, and localization, if needed. These elements are not fixed at the first stage and can be done after working on the visual elements. However, the integration of these can affect, and sometimes increase the pricing of the project.
Revisions, Turnaround Time, and Final Deliverables
There are many vendors that charge extra for revisions, and if the delivery date is expected to be sooner than quoted. There is also a possibility that a vendor can allow a certain number of revisions to be free of cost and only charge extra when this number is exceeded. Every vendor always quotes how many revisions are included in the plan. If you ask them for an early delivery of the video, then the vendor might also ask you to pay extra. Always confirm all these factors with the vendor you are working with, before working on the actual project.
Freelancer vs Agency vs AI Tools: Which Option Fits Your Budget?
The correct option for your explainer video depends on your budget and your requirements.
Freelancers can be an excellent choice for a brand that is new to the video production industry, does not have a stringent list of requirements, and has a limited budget. Freelancers generally have expertise in a single animation type, and would take longer than AI tools a production agency for the delivery of the video. Freelancers might not help you with ideation and scripting though. Confirm first before making any decisions.
AI tools can be used to create a video when you only want to have basic animation, use a template based content, or do not want to create a lengthier video. It is a cost-effective and faster way to produce a video for your business, especially if you do not have explicit expectations and requirements. But AI cannot always be accurate and might create logical and illogical mistakes throughout the production process.
Agency and production studios are the best option available for your brand if you have a decent budget and timeline for your video. These agencies can help you with researching, ideation, scripting, storyboarding, video creation, feedback, and even updating the content if required. Although this option can be a little expensive for small and medium enterprises, it is also a great option if you are looking for one-time investment.
How to Estimate Your Explainer Video Budget Before Asking for a Quote
A clear brief helps providers give more accurate estimates. Before requesting a quote, define the following:
- Video goal: Is it intended to explain a product, introduce a service, support sales, or train employees?
- Target audience: Who will watch it, and what do they need to understand?
- Video length: Is a 30-second overview enough, or does the subject need 60 to 120 seconds?
- Video style: Do you need 2D animation, motion graphics, live-action, 3D, or a product demonstration?
- Script readiness: Is the script final, or do you need research, writing, and storyboarding?
- Languages: Will the video be published in one language or several?
- Deadline: How much time is available for production and approvals?
- Final deliverables: Do you need different aspect ratios, short edits, subtitles, or source files?
- Revision expectations: How many review rounds are needed, and who will approve the work?
How to Reduce Explainer Video Cost Without Reducing Quality
Having a limited budget does not necessarily mean poor quality. You can spend a limited amount of money and time on an explainer video and still get desired results. You can start by working on the ideation and scripting yourself. If you are working with an agency, they sometimes charge extra only for script writing. If you can do that by yourself or with the help of AI tools, a lot of money can be saved.
The next idea is to ensure that you look for a normal animation style. If your purpose is to simply explain a concept to an internal team, or create regulatory videos, spending a hefty amount on 3D animation might not be needed. Decide the purpose of the video and consult your studio about which animation style would look best without actually spending a lot.
When Paying More for an Explainer Video Makes Sense
A higher budget can be more reasonable when the purpose of the video is higher. If the video is used for a product launch, investor presentation, sales campaign, or a high-end landing page video, then investing money in storytelling, animation, and a longer duration makes more sense.
These events can help you regenerate revenue and make your investment profitable. But if you are simply looking for a video for employee orientation, or to explain a service on simple social media platforms, spending too much money would not be the best choice.
Why Brands Consider VerboLabs for Explainer Video Production
VerboLabs is a leading brand in the localization and content production industry. This makes video creation one of their strongest assets. The company has immense experience and expertise in special video production, such as 2D animation, whiteboard, motion graphics, and even shoot-based videos. If you are also looking for an agency that has over a decade of experience, has previously worked on similar projects and familiar industry, and can help you scale your video, then connect with VerboLabs today.
Conclusion
Before investing your money in any project, understanding the basics of it, and how the quotation is segmented is very important. Similarly, if your agenda is to create an explainer video for your business with a limited budget and high-end quality, look for a vendor that meets your expectations, has great experience, and can still deliver desired results within your budget.
Expand your global reach with VerboLabs! Get accurate, culturally adapted localization services to connect with new markets. Contact us today for expert solutions!
FAQs
The cost of an explainer video depends on various factors such as the animation style, the length of the video, and the stages involved in creating the video. It can also change based on the vendor.
There is no single average that applies to every project, and can change depending on the market, vendor, and animation style.
The pricing can change due to various reasons, like complexity, originality, script writing, and production cost.
A basic 60-second video may cost a few hundred to a few thousand dollars, while custom animation from a professional studio can cost several thousand dollars or more.
Animated explainer video production can range from relatively affordable template-based work to premium custom 2D and 3D projects. Original character design, complex scenes, detailed motion, voiceover, and sound design generally increase the cost.
Yes, the tools and effort invested in 2D animation are comparatively cheaper than 3D animation.
Providers may charge a fixed project fee, an hourly rate, or a rate based on the finished video’s duration.
Not necessarily. Some providers include these services in their per-minute price, while others charge separately.
Keep the script focused, finalise the storyboard early, reuse suitable brand assets, select an appropriate animation style, and agree on revision rounds.
A freelancer may suit a small project with a clear brief. An agency can be a better fit when the video needs several creative services, structured reviews, or multiple deliverables. AI tools may help with simple drafts and template-based content, but human editing and quality checks remain important for professional use.
