Explainer videos are the most commissioned type of animation in business. They sit on homepages, in pitch decks, in onboarding flows and in ads, and they usually have one job: make a product or idea clear in about a minute. Because they are so common, the price range is enormous. You can find offers from under $100 to well over $30,000 for what looks like the same thing on paper.
This article explains where that spread comes from. It covers the three broad market tiers, what each one typically includes, how cost changes with length, the costs that often appear after you sign, and how to compare quotes. If you are new to the format, start with what an explainer video is.
All prices below are typical market ranges for orientation, not quotes. They vary by region, studio and deadline.
The three tiers
Template tier
Online platforms and some freelancers assemble videos from pre-made character kits, scene libraries and animation presets. You pick scenes, swap text and colours, add a voiceover.
Typical range: under $100 for do it yourself tools, up to roughly $1,500 for a done for you template video.
Usually includes: pre-built scenes and characters, stock music, a synthetic or budget voiceover, one or two quick revisions.
Usually does not include: a custom script, original illustration, a storyboard stage, sound design, or anything that looks specifically like your brand.
Good for: internal communication, testing a message before investing, very tight budgets.
Mid-range studio tier
An animation studio writes or refines the script, designs custom illustration in your brand style, builds a storyboard and animatic, animates, and adds professional voice and sound.
Typical range: roughly $3,000 to $12,000 for 60 to 90 seconds.
Usually includes: script development, custom style frames, storyboard, animatic, custom 2D animation, professional voiceover in one language, licensed stock music, basic sound design, two revision rounds per stage, delivery in one or two formats.
Good for: homepage videos, product explainers, sales enablement, crowdfunding pages. Most businesses land here.
Premium tier
Agencies and high end studios with a strong creative department. Expect a concept phase with several creative routes, illustration and animation at a level close to broadcast work, original music, detailed sound design, and often 3D or frame by frame elements.
Typical range: roughly $12,000 to $40,000 or more for 60 to 90 seconds.
Usually includes: everything in the mid-range tier plus concept development, creative direction, original score, more detailed character acting, a fuller package of versions, and often a dedicated project manager.
Good for: brand campaigns, broadcast or cinema placements, flagship product launches.
What each tier includes at a glance
| Item | Template | Mid-range studio | Premium |
|---|---|---|---|
| Script | You write it | Written or refined by studio | Concept and script by creative team |
| Visual style | Pre-made kit | Custom, on brand | Custom, highly crafted |
| Storyboard and animatic | No | Yes | Yes, often more detailed |
| Characters | Library characters | Custom designed | Custom, more acting and detail |
| Voiceover | Synthetic or budget | Professional, one language | Professional, often casting options |
| Music | Stock | Licensed stock | Licensed or original score |
| Sound design | Minimal | Basic to good | Detailed |
| Revisions | Limited | Two rounds per stage, typical | Defined per stage, often more |
| Versions | One | One or two formats | Full package |
Cost by length
Length matters, but less than people assume. Concept, script, style development and setup are mostly fixed costs. The table shows typical mid-range studio pricing for custom 2D explainers.
| Length | Typical mid-range studio range | Script length (approx.) | Comment |
|---|---|---|---|
| 30 seconds | $2,500 to $6,000 | 70 to 80 words | One core message, few scenes |
| 60 seconds | $3,500 to $9,000 | 140 to 160 words | The most common length |
| 90 seconds | $5,000 to $12,000 | 210 to 230 words | Room for a short problem and solution story |
| 120 seconds | $6,500 to $15,000 | 280 to 310 words | Often better split into two videos |
What pushes a project to the top of its range: several characters with lip sync, many distinct locations, detailed illustration, complex transitions, original music. What keeps it at the bottom: one narrator, icon or flat illustration style, reused environments, stock music.
Word counts assume a voiceover pace of about 140 to 150 words per minute, which is comfortable for most explainers. Packing more words into the same time makes the video feel rushed and usually needs more scenes, so it costs more and works worse. Our guide to explainer video scripts goes into how to cut a script to length.
Hidden costs to ask about
These items are often missing from a first quote, or listed in small print. None of them are unreasonable. The problem is only finding out about them late.
Localisation
A new language version needs a translated and adapted script, a new voiceover, re-timed animation (languages differ in length, German and Spanish often run longer than English), and re-rendered on-screen text. If the video has a lot of text baked into the visuals, localisation costs more. Ask the studio to keep text on separate layers from the start if you plan other languages.
Cutdowns and aspect ratios
A 15 second social version is not just the first 15 seconds of the main video. It needs its own edit, sometimes new transitions and a new ending. A vertical 9:16 version needs scenes recomposed, not just cropped. Each version is extra work.
Music licence scope
A standard stock licence often covers web and social use. Paid advertising above a certain reach, broadcast TV and cinema may need an extended licence. Check that the licence covers every place you plan to use the video.
Voiceover usage rights
Voice actors often price by usage: web only, paid ads, broadcast, and for how long. Using a web voiceover in a TV spot later can mean paying the actor again.
Source files
Many studios deliver only the final rendered video. Project files (After Effects, illustration files) may be an extra charge, or not available at all. If you want to update the video yourself later, agree on this before signing.
Extra revisions and late changes
Revisions beyond the included rounds, and any change to an approved stage, are normally billed. Changing the script after the animatic is approved is the most expensive kind.
Subtitles and accessibility
Burned in captions, separate SRT files and audio description are small costs but worth listing.
How to budget
- Decide the job of the video. Homepage, ad, onboarding, investor pitch. This decides tier and length more than anything else.
- Pick the length from the message, not the other way around. Write the key message in one sentence. If it needs a story to land, plan 60 to 90 seconds. If it is one idea, 30 seconds may be enough.
- List every version you will need in the next year. Languages, cutdowns, aspect ratios. Price them now.
- Keep a reserve. 10 to 15 percent of the budget for extra revisions or an extra cutdown is sensible.
- Share the budget range with studios. It lets them propose the best result for the money instead of guessing.
How to compare quotes
Totals are only comparable when the scope is the same. Put the quotes side by side and check:
- Script: included, and who writes it?
- Storyboard and animatic: included as separate approval stages?
- Style: custom design or adapted templates? Ask to see style frames from a past project at the same price.
- Voiceover: professional actor, how many languages, what usage rights?
- Music: stock or original, and which licence?
- Revisions: how many rounds, at which stages?
- Deliverables: which formats, resolutions, aspect ratios, cutdowns?
- Ownership: who owns the final video and the source files?
- Timeline: is it realistic for the scope? A custom 90 second explainer in one week usually means templates.
- Payment terms: deposit and milestones tied to approved stages.
If one quote is far below the others, find out which of these items it leaves out. If one is far above, ask what extra it includes. Both differences are usually explained by scope, not by margin.
Where the money is best spent
If budget is tight, protect the script and the storyboard. A clear message with modest animation outperforms a beautiful video that says too much. The storyboard and animatic stage is where most expensive mistakes are caught early. After that, spend on voice and sound: a good voice and well placed sound effects lift a simple animation more than extra illustration detail does.
You can see examples of our explainer and 2D animation work in the portfolio, and our current rates on the price page. When you are ready to scope your video, send a few lines about your product and audience through the contact page.