Explainer Video Cost: What Drives the Price and How to Scope It

Two quotes for the same explainer video can differ several times over. The difference is almost always scope. Here is what drives the cost and how to write a brief that gets comparable quotes.

Written by
MyCTO Team — Marketing
Published
Reading time
7 min read
Category
Marketing
A video editor working on an animated explainer timeline on a large monitor

Explainer video cost is hard to pin down because "explainer video" covers everything from a narrated screen recording to a fully custom 3D animation. Ask five providers for a price on the same one-line brief and you will get five very different numbers, not because anyone is being dishonest, but because each one has imagined a different video.

So instead of a price list, this guide explains what actually drives the cost, how the work breaks down, and how to write a brief that makes quotes comparable. That is the fastest way to a fair number for your project.

What drives explainer video cost

Every explainer is a stack of decisions, and each one moves the price. The biggest are the production style and how much of the visual material is made from scratch for you.

A small production team reviewing storyboard frames pinned to a wall beside an editing workstation
Cost driverLower-effort endHigher-effort end
Production styleScreen recording with light motion graphicsCustom character animation or 3D
Visual assetsStock footage, icons and templatesIllustrations and scenes designed for your brand
ScriptYou supply a final scriptResearch, drafting and several rounds of script edits
VoiceoverFounder or team member records itProfessional voice actor, multiple languages
Music and soundRoyalty-free library trackLicensed or custom music, sound design
RevisionsOne round at storyboard, one at finalOpen-ended changes after animation starts
DeliverablesOne horizontal master fileCut-downs, vertical versions, captions, localized versions
The main explainer video cost drivers, from lower-effort to higher-effort choices.

Explainer styles and what each demands

Screen recording and product walkthroughs

Best for software products. The raw material is your own product, so most of the effort goes into scripting, clean capture, zooms and callouts, and editing. It is usually the most affordable route and the easiest to update when the interface changes.

2D motion graphics

Animated text, icons, shapes and simple illustrations. It suits abstract services where there is nothing physical to film. Cost rises with the number of unique scenes and how much is designed from scratch versus adapted from templates.

Character animation and 3D

Custom characters, scenes and movement take far more design and animation time per second of finished video. Worth it when the story depends on people or products in motion; overkill for a feature overview.

Live action

Filming people, places or physical products. The cost profile is different: crew days, locations, talent and equipment, then editing. It can be efficient if you shoot several videos in one day.

Where the money goes: the labor behind a video

An explainer is mostly skilled hours. Understanding who does what makes quotes easier to read:

  1. Discovery and script: understanding the product and audience, then writing a script that fits the target length.
  2. Storyboard and style frames: sketches or designed frames that show every scene before animation starts.
  3. Voiceover: recording, cleanup and timing.
  4. Animation or filming: the longest stage for animated work.
  5. Editing, sound and music: assembling the final cut, mixing voice and music, adding effects.
  6. Versions and captions: cut-downs, aspect ratios, subtitles and exports for each channel.

For a sense of the underlying labor rates in the US, O*NET, which publishes US Bureau of Labor Statistics wage data, lists 2025 median wages of $36.26 an hour for film and video editors and $49.06 an hour for special effects artists and animators, a group that includes motion graphics artists. Those are employee wages, not studio prices: a provider's rate also has to cover software, equipment, project management, revisions and time between projects.

Explainer video cost items people forget

  • Captions and transcripts. The W3C's accessibility guidance treats captions for prerecorded video as a Level A requirement, the most basic conformance level. Budget for accurate captions from the start.
  • Audio description. If important information is only shown visually, WCAG also covers audio description for prerecorded video. Writing the script so the narration explains what is on screen often avoids a separate track.
  • Music licensing terms. Check that the license covers paid ads and every platform you plan to use.
  • Source files. Ask whether project files are included, so you can update the video later without starting over.
  • Localization. New voiceover, translated on-screen text and re-timed scenes for each language.
  • Late changes. A product rename or pricing change after animation starts can cost more than the original scene.

How to scope a brief that gets comparable quotes

The single best way to control explainer video cost is to decide the scope before anyone quotes. A useful brief covers:

  1. Goal and audience: what the viewer should understand or do after watching.
  2. Where it will play: homepage, sales calls, ads, social, app onboarding. This decides aspect ratios and cut-downs.
  3. Target length and whether the script is supplied or needs writing.
  4. Style references: two or three existing videos you like, and one you do not.
  5. Brand assets: logo files, colors, fonts, product screenshots or footage.
  6. Voice and languages: who narrates, and which languages you need now or later.
  7. Revision rounds: how many, and at which stages (script, storyboard, final).
  8. Deliverables: file formats, versions, captions and source files.

Script quality matters as much as visuals. A clear script is shorter, cheaper to animate and easier to follow. The same principles we cover in our guide to SEO copywriting, answer first and cut anything that does not serve the viewer, apply to a 90-second script. If the video is part of a wider brand refresh, settle the visual identity first, with graphic design that gives the animator finished logos, colors and illustration rules to work from.

How to compare explainer video quotes

Once quotes arrive, compare them line by line rather than on the total. The questions that expose real differences in scope:

  • Is the script included, and how many rounds of script edits are allowed before storyboarding?
  • Will you see a storyboard or style frames before animation starts? Changes are cheap on paper and expensive in motion.
  • How custom are the visuals? Designed for your brand, adapted from a template library, or stock?
  • Who is the voice, and are retakes included if the script changes?
  • What exactly is delivered: aspect ratios, cut-downs, caption files, source files?
  • What counts as a revision, and what happens to the timeline and price if you need more?

A higher quote that includes scripting, storyboards, captions and source files can be better value than a lower one that treats each as an extra. Ask for the assumptions in writing so the comparison is fair.

When a DIY explainer is good enough

Not every explainer needs a production budget. A founder-narrated screen recording, edited cleanly with captions, often works well for product onboarding, help docs and early sales demos, where clarity matters more than polish. Invest in professional production when the video will carry paid traffic, sit on the homepage for a long time, or represent the brand to people who have never heard of you.

Getting an explainer made

Our video editing service handles explainers, product walkthroughs and cut-downs for ads and social, and we price each project from a scoped brief rather than a rate card, so you see exactly what drives the explainer video cost before work starts. If you have a product that needs explaining, tell us what you're building and we will reply within one business day with the questions that shape the scope.

Frequently asked questions

How much should a 3 minute video cost?

It depends far more on style than on length. A three-minute narrated screen recording needs mostly scripting and editing time, while three minutes of custom animation needs many times more design and animation hours. Fix the style, the number of revisions and the deliverables in a brief, then compare quotes on the same scope.

How to make an explainer video for free?

Write a short script, record your screen or slides with free recording software, narrate it yourself with a decent microphone, and edit it in a free video editor. Add captions, keep it under a few minutes and focus on one clear message. It will not look like a studio production, but for onboarding and demos clarity usually matters more than polish.

How much is a 3 minute animation?

Three minutes is long for an animated explainer, so the cost is driven by the number of unique scenes, how custom the illustration is, and whether it involves characters or 3D. Animation time grows with every second of custom motion, which is why many teams cut the script to 60 to 90 seconds before commissioning animation.

How long should an explainer video be?

As short as the message allows. Most explainers work best when they cover one problem, one solution and one next step, which usually fits in one to two minutes. A shorter script also lowers the explainer video cost, since every extra second needs design, animation and editing time.

Is animation or live action cheaper for an explainer?

Neither is always cheaper. Simple 2D motion graphics or screen recordings are often the most affordable, while live action can be efficient when several videos are shot in one day. Custom character animation and 3D are usually the most time-intensive options per second of finished video.

MyCTO Team — Marketing

Senior engineers, designers and growth specialists at MyCTO Innovations — the fractional CTO and AI product studio behind the work in our case studies.

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