Building a SaaS product typically costs anywhere from $10,000–$25,000 for a basic MVP to $250,000–$1 million+ for a scalable, enterprise-grade platform. The final price depends on your features, technology choices, team structure, and how big you want to scale.
Here’s why there’s so much confusion around SaaS costs: unlike building a simple website, SaaS products are complex systems that need to handle user accounts, process payments, store data securely, and work smoothly for hundreds or thousands of users at once. Every SaaS is different, so there’s no one-size-fits-all price tag.
This guide is for Startup founders planning their first SaaS product, business owners exploring digital transformation, and product managers who want honest, clear answers about SaaS development costs.
What Is Included in SaaS Development Costs?
SaaS development isn’t just about writing code. It’s about building a complete product that people will actually use and pay for.
Product Planning & Discovery ($5,000–$15,000): Market research, product roadmap, feature prioritization, and wireframes. This phase takes 2–4 weeks but saves you from building the wrong thing.
UI/UX Design ($8,000–$25,000): User flows, dashboard design, mobile responsiveness, and design systems. Good design reduces support costs and increases conversions.
Frontend Development ($15,000–$80,000): The web app interface users interact with, performance optimization, and browser compatibility. This is typically 30–40% of your total development cost.
Backend Development ($20,000–$120,000+): APIs, business logic, authentication, and role-based access. This is the most expensive part, often 40–50% of development costs.
Database & Infrastructure ($3,000–$10,000 initially): Database design, cloud hosting, storage, and load balancing. These costs continue monthly even after launch.
Key Factors That Affect SaaS Development Cost
Type of SaaS Product
B2B SaaS (project management tools): More complex with team features and integrations. MVP cost: $30,000–$150,000.
B2C SaaS (fitness apps): Often simpler to start but need to handle more users. MVP cost: $15,000–$75,000.
Internal tools: Built for your own company. MVP cost: $10,000–$40,000.
Marketplaces: Two-sided platforms are most complex. MVP cost: $75,000–$300,000+.
Complexity of Features
Basic CRUD features (add, edit, delete): $2,000–$8,000 per module.
Real-time data (live chat, collaboration): $10,000–$30,000 extra.
AI/ML features (recommendations, predictions): $25,000–$100,000+.
Integrations (Stripe, CRMs, analytics): $3,000–$15,000 each.
Platform Choice
Web-only SaaS: Most cost-effective. $15,000–$100,000.
Web + mobile apps: Adds $25,000–$80,000 for iOS and Android.
Cross-platform vs native: Cross-platform (React Native) saves money. Native apps cost 1.5–2x more but perform better.
Scalability & Performance
Building for 100 users versus 100,000 users makes a huge difference. High-scale architecture adds $15,000–$50,000+ to initial costs. If you need 99.9% uptime, budget an extra $10,000–$30,000 for proper DevOps.
Security & Compliance
Basic encryption: Always included in good development.
GDPR / SOC2 compliance: Adds $20,000–$60,000 for proper implementation.
Payment security: Using Stripe helps, but custom payment flows cost $10,000–$25,000.
SaaS Development Cost Breakdown (Stage-Wise)
MVP SaaS Development Cost: $10,000–$50,000
What’s included: User registration, 2–4 core features, basic dashboard, simple admin panel, payment integration, email notifications.
Timeline: 2–4 months
Who should build an MVP: First-time founders testing product-market fit, startups with limited budgets, anyone validating their idea before heavy investment.
An MVP isn’t meant to be perfect—it’s meant to test if people actually want what you’re building.
Ready to build your MVP? Get a free SaaS development consultation from Alottt and turn your idea into reality.
Growth-Stage SaaS Cost: $75,000–$250,000
What’s included: Advanced features, automation, analytics dashboards, API integrations, mobile apps, enhanced security.
Timeline: 6–12 months
This is where your SaaS becomes a real product that can compete in the market.
Enterprise-Level SaaS Cost: $250,000–$1,000,000+
What’s included: Custom workflows, 99.99% uptime, dedicated infrastructure, advanced compliance, white-labeling, dedicated support features.
Timeline: 12–24+ months
Enterprise SaaS is a marathon. You’re building for stability, security, and massive scale.
SaaS Development Cost by Team Model
In-House Development Team
Total first-year cost: $250,000–$500,000+
You’ll need 2–3 developers ($80,000–$150,000/year each), a designer, product manager, plus recruiting fees (15–25% of salary), infrastructure, and office costs.
Best for: Companies with long-term roadmaps and steady funding.
Freelancers
Cost: $25–$150/hour. Typical MVP: $15,000–$40,000.
Pros: Lower upfront cost, flexibility, specialized skills.
Cons: Quality varies, communication challenges, less accountability, potential code quality issues.
Best for: Specific features or short-term projects, not entire products.
SaaS Development Agency
Cost: $50,000–$300,000 for complete product.
Advantages: Predictable pricing, faster delivery (experienced teams ready to go), full-service design and development, best for non-technical founders.
Best for: Founders who want quality, speed, and don’t want to manage individual developers.
Want a reliable SaaS development partner? Alottt specializes in building scalable SaaS products from concept to launch.
SaaS Development Cost by Region
India: $10,000–$75,000 for MVP. Lowest cost due to lower cost of living, but consider time zone differences (9–12 hours) and communication overhead.
Eastern Europe: $30,000–$120,000 for MVP. Strong technical education, reasonable time zone overlap with US (6–9 hours), good English proficiency.
Western Europe: $60,000–$200,000 for MVP. Premium quality, similar time zones to East Coast, cultural alignment.
USA / Canada: $75,000–$300,000+ for MVP. Highest cost but same time zone, no language barriers, easy legal processes, face-to-face meetings possible.
The bottom line: Cheaper doesn’t always mean better value. Consider communication needs, project complexity, and long-term relationships.
Hidden & Ongoing SaaS Costs Founders Often Miss
Cloud & Hosting Costs
Starting costs: $50–$200/month, but they scale with usage.
- 1,000 users: $200–$500/month
- 10,000 users: $800–$2,000/month
- 100,000 users: $3,000–$10,000+/month
Budget 20–30% more than estimates for traffic spikes.
Maintenance & Updates
Bug fixes: $2,000–$5,000/month Performance tuning: $3,000–$10,000 quarterly Feature updates: $5,000–$20,000/month
Total maintenance: 15–20% of initial development cost annually.
Third-Party Tools & APIs
Payment gateways: Stripe charges 2.9% + $0.30 per transaction Email tools: $10–$500/month Analytics: $0–$2,000/month Other integrations: $200–$2,000/month
Annual cost: $5,000–$25,000 for a growing SaaS.
Customer Support & DevOps
Monitoring tools: $100–$1,000/month DevOps engineer: $90,000–$150,000/year or managed service at $500–$3,000/month Support tools: $50–$500/month
How to Reduce SaaS Development Costs (Without Cutting Quality)
Start with an MVP: Launch with core features, get feedback, then expand. Cuts initial costs by 60–70%.
Avoid over-engineering: Don’t build for scale you don’t have. Use proven, simple solutions. Savings: 30–50%.
Reuse proven components: Use Auth0 for authentication, ready-made admin templates, Material-UI or Tailwind CSS. Savings: $10,000–$30,000 and weeks of development time.
Choose the right tech stack: Modern, popular technologies (React, Node.js, PostgreSQL) are faster and cheaper to develop with.
Build only what users need: Talk to 10–20 potential customers before building features. Savings: 40–60% by avoiding unused features.
SaaS Development Cost Example (Real Scenario)
The Problem: Small marketing agencies struggle managing client social media with 5+ different tools.
The Solution: AgencyPost—manage all client social accounts, schedule posts, and generate reports in one platform.
Core MVP Features:
- Connect social accounts (Facebook, Instagram, Twitter, LinkedIn)
- Schedule posts with calendar view
- Basic analytics dashboard
- Client management
- Team permissions
- Post preview
Cost Breakdown:
- Discovery & Planning: $5,000
- Design: $12,000
- Frontend Development: $25,000
- Backend Development: $35,000
- Testing & Launch: $8,000
Total MVP Cost: $85,000
Timeline: 20 weeks (5 months)
Monthly costs after launch: $3,650 (hosting, APIs, maintenance)
Revenue potential: At $99/month per agency, 200 customers = $19,800/month. MVP pays for itself in 6–9 months with good marketing.
Is SaaS Development Worth the Cost?
The Economics
Year 1: Probably losing money (development + marketing) Year 2: Might break even with steady customer growth Year 3+: Recurring revenue compounds—this is where SaaS shines
Example: Invest $100,000 in year 1. Gain 500 customers at $50/month by year 2 = $300,000 annual recurring revenue with only $50,000 ongoing costs.
Scalability Advantage
Serving 10 customers costs almost the same as serving 1,000. Your costs grow only 20–30% when revenue doubles.
When SaaS Is a Bad Idea
Skip SaaS if you:
- Can’t commit 2–3 years to development and growth
- Don’t have $50,000–$150,000 to invest
- Have fewer than 10,000 potential customers
- Won’t provide ongoing support
- Are building something people only need once
How to Estimate Your SaaS Development Cost Accurately
1. Define the core problem: One sentence: “I’m solving [specific problem] for [specific people].”
2. List must-have features: Aim for 3–7 features maximum for launch. Each major feature costs $3,000–$15,000 (average $8,000).
3. Decide your launch version: What’s the absolute minimum someone needs to pay you for this?
4. Talk to developers early: Get 3–5 quotes. Developers who ask lots of questions give better estimates than those with instant answers.
Conclusion: What Founders Should Focus On
Cost clarity > cheapest option: A $50,000 project done right beats a $20,000 project done wrong that costs $40,000 to fix.
Speed to market matters: Launch in 3–4 months with core features. Every month building is a month not learning from real users.
Build for users, not investors: Features that wow investors often aren’t what customers want. Talk to target users weekly.
Spend smart, not big: You need a team that understands your vision, reliable technology, a product that solves real problems, and enough runway to reach product-market fit.
The real cost of SaaS isn’t just money it’s time, focus, and commitment.
Ready to Build Your SaaS Product?
Building a SaaS product is one of the most rewarding things you can do as an entrepreneur. With the right plan and partner, you can build something that generates revenue for years.
Alottt specializes in helping founders turn SaaS ideas into reality. We’ve built dozens of successful products and know how to launch efficiently without cutting corners.
Schedule your free consultation with Alottt →
Questions? Email us at hello@alottt.com
The best time to start building your SaaS was yesterday. The second best time is today. Let’s get started.
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