How Much Does an Explainer Video Cost? And How to Save 99%

Explainer videos are a powerful tool for businesses, startups, and organizations, but costs can vary widely. On average, producing a 60-second professional explainer video ranges from $4,000 to $10,000, depending on factors like style, complexity, customization, and geographic location. Using AI video tools like Leadde, you can produce high-quality tutorial, training, or explainer videos in minutes, potentially saving up to 99% of traditional production costs.

Average Cost of an Explainer Video

Industry research shows that the average cost for a 60-second explainer video is $8,746, with prices ranging from $950 to $250,000. Key factors influencing cost include:

Production quality: Higher-quality animation, graphics, and storytelling increase cost.
Customization: Tailored scripts, characters, and visuals cost more than templates.
Geography: US-based providers average $12,667, while European providers average around $5,662.

For startups and small businesses, a budget of $4,000–$7,000 often achieves a good balance between quality and affordability.

Factors That Affect Explainer Video Costs

Understanding why explainer video costs vary helps businesses make informed decisions. Major factors include:

Video Length and Complexity

Short videos (<30 seconds) may cost more per second due to research and concept creation.
Longer videos (60–90 seconds) are more cost-efficient per second but require careful pacing to maintain engagement.

Animation Style

2D Motion Graphics: $4,500–$9,500 per minute; cost-effective for clear, engaging storytelling.
3D Animation: Starts at $5,500–$9,500 per minute, often exceeding $50,000 for high complexity.
Motion Graphics without Characters: $2,000–$3,500 per minute; simple infographics cost less.

Subject Matter

Complex or novel topics require more research, script writing, and visual planning, which increases cost.

Geographical Location

Providers in high-cost cities (e.g., New York, San Francisco) charge more than teams in regions with lower operational costs.

Additional Costs

Rush jobs: 15–30% premium
Extra revisions beyond initial rounds
Licensed voiceovers and stock assets

Pricing Options for Explainer Videos

Businesses can choose from four main approaches:

Option 1: Online Video Creators ($19–$500)

Online video creators are a quick and cost-effective solution for solo entrepreneurs or small businesses looking to produce basic explainer videos without hiring an agency. These platforms typically rely on pre-made templates, stock footage, and limited animation tools. While they are affordable, they come with restricted customization, meaning you must adapt your own scripts and adjust stock content to fit your brand and message.

A standout alternative in this category is Leadde, which offers a subscription starting at $19 per month. The Starter Plan provides:

Unlimited videos, each up to 30 minutes long
3 personal avatars to create lifelike AI presenters
3 personal voices to customize narration style
Fast video processing (first 60 minutes per month)
Ability to process up to 3 videos simultaneously

With Leadde, even small teams or solo entrepreneurs can produce high-quality tutorial, onboarding, and explainer videos quickly, without the high costs associated with freelancers or production studios. Its AI-driven workflow automatically generates structured outlines, scripts, and highlights key points, making the video creation process efficient and scalable.

Option 2: Freelancers ($2,500–$12,000)

Hire specialized freelancers for animation, voiceovers, or scriptwriting.
Coordination and quality control are challenging.
Costs vary based on experience and location.

Option 3: Video Production Companies ($4,500–$10,000+)

Full-service agencies handle script, animation, voiceover, and editing.
Recommended for most SMBs seeking professional quality and customization.
Provides project management, portfolio examples, and end-to-end service.

Option 4: Full-Service Marketing Agencies ($15,000–$100,000+)

Includes strategic marketing integration, but often outsources production.
Best suited for enterprises requiring both video and marketing campaigns.

How to Cut Explainer Video Costs by 99% with AI

Using AI video platforms like Leadde, businesses can produce professional explainer videos at a fraction of the traditional cost:

Step 1: Upload Your Content

Upload DOC, PDF, PPT, or text outlines. Leadde automatically analyzes structure, key points, and learning objectives.

Step 2: Auto-Generate and Edit Outline

Leadde creates a structured outline. You can modify sections, reorder steps, and add or remove content for clarity.

Step 3: Select AI Presenter and Voice

Choose from 200+ lifelike avatars and preview multiple voice options in professional, friendly, or instructional tones.

Step 4: Customize Video Template and Duration

Pick a template suited for tutorials, onboarding, or explainers, and adjust video length and depth of explanation.

Step 5: Generate Video Automatically

Leadde creates the full tutorial script and converts it into a complete video with highlighted key points, structured scenes, and your chosen AI presenter.

With Leadde, you can produce high-quality explainer videos in minutes, replacing costly agency services and saving up to 99% of traditional production expenses.

Practical Tips to Save Costs Further

Use motion graphics or 2D animation: More affordable than 3D or whiteboard animation.
Repurpose content: Use the same animation with different voiceovers for multiple campaigns.
Leverage AI transcription: Convert your audio to text or video to text for script adaptation.
Shorten scripts: Compress key messages into concise, 1–2 minute videos for maximum ROI.

Conclusion

Explainer video costs can range widely depending on style, complexity, and provider. Traditional production costs can easily reach $4,000–$10,000 per minute, but AI video platforms like Leadde empower businesses to create engaging, professional videos in minutes while saving up to 99% of the cost.

By combining AI-driven scripting, avatars, and auto-layout, companies can maintain high-quality content without breaking the budget, making AI tools the smart choice for modern businesses.