Types of Explainer Videos and Which Fits Your Budget

You need an explainer video, but every website gives you a different price. One quote says $500. Another says $50,000. A YouTube tutorial says you can make one for free. Who is right?

They all are, because there are several types of explainer videos, each priced very differently, and picking the wrong one wastes your time or your money. This guide walks through each option, shows you real prices, and tells you which one fits a business like yours. By the end, you will know exactly what to buy and why.

There are 5 real types of explainer video: DIY tools, AI-assisted studio work, fixed-price animated packages, custom studio work, and live action. Prices run from about $99 to over $250,000. Most small businesses get the best value from a fixed-price animated package that includes a script, a human voiceover, and animation.

What Types of Explainer Videos Can You Actually Buy?

There are five types of explainer videos you can buy: DIY software, AI-assisted studio services, fixed-price done-for-you packages, custom studio animation, and live action. Each one trades price for control, speed, and polish.

DIY software is a video-editing tool that lets you build a video yourself, picking a template and typing in your own words. It is the cheapest option, but you do all the work, and it often sounds like every other template video out there.

AI-assisted studio services are companies that use artificial intelligence (software that can write, speak, or edit somewhat like a person) to speed up the script, voice, or animation, with a person checking the result. You get a faster turnaround than a full custom build, at a lower price.

Fixed-price done-for-you packages are a set price for a set product: a script, a real human voiceover, and animation, delivered in a set number of days. You know the cost before you start, and a person handles the work for you.

Custom studio animation is a video built from scratch for your brand: original art style, your own characters, a longer runtime if you need it. It costs more and takes longer, but nothing looks off-the-shelf.

Live action is video filmed with a camera crew, using real people, real products, or your real shop instead of drawings. It is the most expensive route, but nothing beats a real face when trust is the whole point of the video.

A short guide to style versus substance: whiteboard animation is the budget-friendly workhorse for step-by-step teaching and professional services, 2D motion graphics is the all-round style, and live action adds a real face or product. The rest of this guide breaks down what each of these types of explainer videos actually costs and which one fits your business and your budget.

Need an explainer video? Get a 30-second explainer for $297 → We write the script, record the voiceover and animate it, delivered in 7 days.

Which Type of Explainer Video Is Cheapest, and What Do You Lose?

DIY software is the cheapest type of explainer video, often starting around $99, but you pay for it with your own time and a template look. Explainer video prices range from about $99 for DIY tools to $50,000 or more for enterprise brand films, depending on style and provider.

When you go the DIY route, you write the script yourself, record or fake the voiceover, and drag stock animation pieces into a timeline. That sounds simple, but most business owners spend 8 to 15 hours getting a 60-second video to look right, and it still uses the same characters and backgrounds thousands of other companies use.

Time has a cost. If your time is worth even $50 an hour, a "free" or $99 DIY video that takes you 10 hours has already cost you $500 or more, before you count the hours you spend redoing it because the voice sounds robotic or the pacing feels off.

The next step up is an AI-assisted studio service, where software speeds up parts of the process but a person still checks the final cut. AI-assisted explainer videos from studios typically start around $1,500 to $4,000, which is a real jump from DIY but still short of full custom work.

That gap between cheap-but-it's-on-you and $1,500-plus is exactly where a fixed-price done-for-you package sits. You still get a real script and a real human voiceover, a set delivery date, and a set price, without doing the work yourself or paying custom studio rates.

The 5 Explainer Video Budget Tiers, Side by Side

Here is what each of these five types of explainer videos actually costs and what you get for it.

For scale, an average 30-second live-action video can run anywhere from $50,000 to $250,000, and a 60-second custom animated explainer from a North American studio typically costs $5,000 to $10,000, with premium 3D or character work above $10,000. One industry survey found across 45 agencies surveyed, the average explainer video price was £2,960, which is a wide, unpredictable range compared to a fixed-price package.

Our 30-second explainer video is $297 one-time (normally $497). The 60-second version follows the same simple, fixed-price model, and both include a written script, a human voiceover, animation, delivery in 7 days, 3 rounds of revisions, and a money-back guarantee. Custom and premium projects start at $1,299, after a free 30-minute planning call with a fixed quote in 24 hours.

What Do You Get From Our Fixed-Price Package Compared to a $5,000 Studio Video?

A fixed-price 30-second video gets you a full script, a real human voice, full animation, delivery in 7 days, 3 rounds of revisions, and a money-back guarantee if you are not happy. A $5,000-plus custom studio video adds an original art style built just for your brand, your own characters, and more room for a longer runtime.

Think of it like buying a suit. A fixed-price video is a well-made suit off the rack: it fits, it looks sharp, and it does the job. A $5,000 custom video is a suit made from your exact measurements, with fabric nobody else has. Both keep you covered. One costs a lot more for a difference most customers will never notice.

If 30 seconds is not enough time to explain what you do, the 60-second package gives you roughly double the runtime to walk through a process or answer an objection before your call to action.

And if your business genuinely needs a custom look, an original character, or a specific visual brand, custom and premium projects are available too. Those get planned on a free 30-minute call, with a fixed quote back to you in 24 hours, so you know the full price before you commit to anything.

Which Type of Video Fits a Dentist, Plumber, or Realtor?

The right type of explainer video depends on what your business sells and how much your customers need to trust you before they buy. Here is a simple map by industry.

A dentist or chiropractor is selling calm as much as a service, so a 30 to 60-second animated video that walks through what happens during a visit removes fear before it starts. A plumber or roofer is usually solving an urgent problem, so a direct 30-second video that names the problem and the fix works better on a homepage or in a paid ad than a long story. A realtor, coach, or gym owner is selling a bit more of an experience, so a 60-second video gives enough room to build interest before asking for the click.

How Do You Pick the Right Type Without Wasting Money?

You can choose the correct one of these types of explainer videos in about 10 minutes by working through five short questions in order.

Step 1: Write down where the video will run

Decide if the video's main home will be your homepage, a paid ad, or something you send during sales calls. Where it lives changes how long it should be and how much it needs to do on its own.

Step 2: Pick a length that matches that use

Shorter explainers of 30 to 45 seconds suit awareness campaigns and ads, while 60 to 90 seconds suits website and sales use. If your video needs to stop someone scrolling, go short. If someone is already reading your homepage, you have more room to explain.

Step 3: Decide if your brand needs a custom look

Ask yourself if a proven, professional template would hurt your brand, or if it would look completely normal for your industry. Most service businesses (plumbers, dentists, gyms) do fine with a template style. Brands built around a distinct visual identity often need custom work.

Step 4: Match your answer to one of the 5 budget tiers above

Once you know your length and your look, the budget tiers table above points you straight to a type: DIY, AI-assisted, fixed-price package, custom studio, or live action.

Step 5: Get a fixed price before you commit anything

Never start a video project on a vague quote or an hourly rate. Ask for one number, in writing, before any work begins.

Want something bigger? Book a free 30-minute video call → We plan your custom video with you and send a fixed quote within 24 hours.

When Does Live Action Beat Animation for a Small Business?

Live action beats animation when your customers need to see your real face, your real shop, or a real product in someone's hands to trust you, but for most small businesses, animation is the better default on price and clarity. An average 30-second live-action video can run anywhere from $50,000 to $250,000, which is far beyond what most small-business marketing budgets can justify for one video.

That cost jump is large enough that most small businesses only need live action for one specific moment, like a short, real-person intro or testimonial-style clip, not the entire video. The rest of the explanation, especially anything that walks through steps or a process, is usually clearer in animation anyway.

Whiteboard animation is the budget-friendly workhorse for step-by-step teaching and professional services, while 2D motion graphics works as an all-round style, which covers almost everything a plumber, dentist, gym, or realtor needs to say. Save live action for the rare case where your customers are buying trust in a specific person, like a surgeon or a high-end contractor, and even then, a short clip mixed into an animated video often does the job.

Real Example: A Roofing Company Picks a Type and Length

A roofing company wants more calls from its homepage, and works through the same five steps above to land on the right video. The owner starts with Step 1: the video will live on the homepage and get shared in Facebook ads during storm season.

For Step 2, storm-season ads need to grab attention fast, and the homepage needs a quick, clear pitch, so the owner picks 30 seconds over 60. For Step 3, roofing customers care about a fast fix and a fair price, not a custom art style, so a template-based look is fine. That lands the owner on the fixed-price package for Step 4, and a written quote confirms the fixed price for Step 5, no surprises.

The script follows the same four-part structure most good explainer videos use: hook, problem, solution, call to action. The hook opens on a leaking ceiling. The problem names what a delayed repair costs a homeowner. The solution shows the company's same-day inspection. The call to action tells the viewer to call now for a free quote.

At 30 seconds, the script runs short and tight, well under the roughly 140 to 160 words a full 60-second script would need, since finished video runs about 150 spoken words per minute. The company runs that video through the whole storm season, then reviews results before deciding if a longer or custom video is worth the upgrade next year.

Frequently asked questions

Do I need a different video type for Instagram ads versus my homepage?

Not a different type, but often a different length. A 30-second animated video works well for both an Instagram ad and a homepage, since 30 to 45 seconds suits awareness campaigns and ads, while 60 to 90 seconds suits website and sales use. Many small businesses just trim their 60-second video down for ads, or start with the 30-second package for both spots.

Can I upgrade from a fixed-price video to a custom one later?

Yes. Plenty of businesses start with a fixed-price 30 or 60-second video to test their message, then move to a custom studio project once they know what works. There is no penalty for starting small and upgrading once you have real customer feedback.

Is a whiteboard-style video cheaper than a 2D animated one at the same studio?

Not always. Whiteboard animation and 2D motion graphics are both common explainer styles, and price usually depends more on length, revisions, and turnaround time than on which of these two styles you pick. Ask for a fixed price for the exact style you want instead of assuming one is automatically cheaper.

What happens if I pick the wrong type for my business?

Usually you just end up with a video that does not match how or where you use it, like a slow, story-heavy video running in a fast-scrolling ad slot. That is a fixable mistake, not a fatal one, you re-cut it shorter, change the script, or move it to a different spot on your site.

Do I need to write the script myself, or is that included?

With a fixed-price done-for-you package, the script is written for you as part of the price, so you do not need marketing or writing skills. You will usually review a draft and ask for changes, rather than starting from a blank page yourself.

The short version

There are five types of explainer videos: DIY software, AI-assisted studio work, fixed-price done-for-you packages, custom studio animation, and live action, and they run from about $99 to over $250,000. Most small businesses, whether you run a dental office, a roofing company, or a gym, get the best value from a fixed-price package that starts at $297, because it includes a real script, a real human voice, and a set delivery date without agency-level pricing. Your goal is simple: match the video's length and style to where it will actually run, then get one fixed price before you start.

Ready to get your own video made? Order a 30-second explainer for $297 and have it in 7 days, or book a free call if you want a custom video from $1,299.

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