How Much Does SaaS Development Cost?

With the significant rise in the demand for remote cooperation, the best software development services are getting all the more popular. Thus, the creation of SaaS or software as a service is likely to be a wonderful solution.

SaaS or software as a service is hosted on a cloud service provider infrastructure and is either web-based or on-demand. How much will a SaaS platform cost? Entrepreneurs across the globe are starting SaaS development companies because they provide recurring income and are significantly easier to scale than others.

The Cost of Building a SaaS Platform

For a minimum viable product, the SaaS development cost could be somewhere between $50,000-$150,000. Nonetheless, there are several factors that could contribute to these numbers. Let’s find out.

1. Complexity

The complexity of the solution could be a combination of different functionalities, relationships, user roles, or a degree of difficulty that developers face. Furthermore, factors such as high-level security, scalability, and others could influence the process and the timeline. Data security is another factor, which is paramount.

The higher the complexity, the more hours will be spent on the development, which leads to higher costs. Check these out:

Micro SaaS – $10,000-$15,000

Basic SaaS – $30,000- $35,000

Average SaaS – $50,000-$60,000

Complex SaaS – $140,000-150,000

2. Stages of Development

When determining the total cost, you should take into account the different software development stages. Every stage has a cost and time associated with it, which contributes to the final cost.

Validation and Planning Phase – could take from 30 to 200 hours, which could cost from $30,000 to $75,000.

MVP Creation Phase – could take from 250 to 300 hours, and could cost from $30,000 to $70,000.

UI/UX Design – could take 100 to 220 hours and will cost 00 to 00.
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Front-End – could take 350 to 550 hours and could cost from $10,000 to $30,000.

Back-End – could take 650 to 850 hours and will cost $16,000 to $56,000.

3. As per the Kind of SaaS Solution

You need to determine the kind it belongs to since the price varies a great deal. Some SaaS products would need a lot of effort, while others need basic features that developers could build in a short amount of time.

According to the type of SaaS solutions, the cost calculations are the following:

Accounting Solution – $70,000 to $80,000

CRM Solution – $50,000 to $60,000

Email Marketing – $60,000 to $70,000

ERP Solution – $110,000 to $120,000

Marketing Technology – $90,000 to $100,000

Visual Website Builder – $140,000 to $150,000

Project Management Solution – $60,000 to $70,000

4. As per the Type of Team

The type of development team could significantly influence the final cost of a SaaS app. You can hire have your own in-house team or outsource your project. Startups often have a tight budget, thus hiring an in-house team isn’t feasible. There are also freelancers with expertise in specific areas, including design, development, operations, and so on that save on costs.

The costs differ, based on these:

In-House Team – $130,000 to $140,000

Local Company – $170,000 to $180,000

Outsourcing Company – $70,000 to $80,000

Freelancers – $40,000 to $50,000

5. As per the Geographic Location

The country of the development team plays a big role in deciding the overall SaaS app development cost. Nevertheless, the price varies significantly across continents and regions. Let’s check out the breakdown of the development rate per different geographical locations:

USA – $170,000 to $180,000

Eastern Europe – $50,000 to $60,000

United Kingdom – $140,000 to $150,000

Australia – $110,000 to $120,000

Western Europe – $90,000 to $100,000

South Asia – $40,000 to $50,000

Factors that Impact the Cost of SaaS Application

Business Logic

It’s the processes involved with the overall working of the app. Furthermore, it consists of the purpose and the expected outcome of the app that resolves the demands of the target audience. It’s the base on which you decide the functionalities and features.

App Architecture

The SaaS app architecture involves the interactions and arrangements between different entities in accordance with technical and business requirements. The more complex an idea is, the more effort is required for engineers to build integration, which leads to a higher cost.

SaaS Product Scope

One of the first things to decide on is the project scope. Then, you have to decide if the app would be a tool or a platform as the functionality and features will accordingly change.
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The time required to develop the platform or tool also differs, which influences how much the implementation costs should be.


The type of features determines the cost and time of a SaaS product. The core features should be the focus when developing an MVP at the very start. After validation from customers, you could build a full-fledged product. The cost varies according to the number, type, and complexity of features.

API integration

There are APIs for standard functionalities, such as subscription, payment, login, and so on, which could save costs. An API integration is composed of API methods, which enable CRUD or Create, Read, Update, and delete operations. These operations have the primary techniques to access and manage data via RESTful APIs. Furthermore, APIs help share data as well as automate the system.


Similar to other apps, you can also decide on a SaaS platform. A B2B organization, for instance, needs a web app since most of the customers use laptops or desktops. B2C companies are more likely will opt for mobile apps since they expect their customers to access the product via their smartphones.

Post-Release Cost

After the development stage, there are related post-release expenses that should be taken into account. These could include hosting services, enhancement, databases, maintenance servers, and integrations. Therefore, the TCO or total cost of ownership would depend on these factors as well.


Developing SaaS without a doubt requires a lot of effort, specialization, and innovative thinking. If you’re looking to develop a SaaS app, there are reputable development companies that could cater to your specific requirements. They have best-in-class developers and industry experts that could build the right SaaS solution for your brand.