How Much Does a SaaS App Cost To Build (2024 Estimate)
Published On July 24th, 2024 Engineering
As the demand for cloud-based solutions continues to grow, one question comes to your mind!
How much does it cost to build a SaaS app in 2024?
Put yourself in the shoes of an entrepreneur or a visionary product manager who has many ideas that could change their industry.
You have observed an unoccupied space in the market, and you strongly believe that your SaaS app could be a great idea.
But, it’s very important to first grasp the financial side of things before you start developing.
Around $25,000 to $250,000+ is the typical expense for developing a SaaS app. The cost was revealed by a new survey from Clutch.co
Yet, these numbers are merely a starting point, and the final expense can differ greatly due to various elements like the complexity of the application, features, and functionalities, along with team skills.
In this blog post, we delve into how to estimate the costs of developing a SaaS product while exploring the key elements that impact pricing in this domain.
Before that, let’s understand what an overview of the SaaS market looks like
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SaaS Market Overview and Trends
In the SaaS market, a prediction shows that it will grow to $328.03 billion in 2027 with a compound annual growth rate of 6.6%.
In the year 2023, people’s spending on SaaS will likely reach $597.3 billion. This is considerably higher compared to the estimated figure of $491 billion in 2022, showing a significant growth rate of 21.7% as highlighted by Gartner.
These numbers, always growing, attract big companies and small businesses alike to SaaS development services. In 2028, market predictions reached an incredible $2,34,900 million.
According to the above statistics, from big companies to small ones, cloud-based applications are now a usual thing all over the world.
The need and importance of SaaS platforms has increased greatly with time, this trend is expected to continue strongly in 2024 and beyond.
Certainly, when it comes to SaaS development, there are two main things: Web and Mobile.
Your service should be available on both of these platforms but this involves a big cost investment. Now that we understand this more clearly, Let us check out the top 6 factors that impact the SaaS development cost.
What Factors Influence the Cost of SaaS Development?
Determining the cost of SaaS product development involves considering many key factors.
These include the complexity of the product, geographic location, integration requirements, security needs, functionalities offered, and the composition of the development team.
Each element shapes the overall budget for building a SaaS platform.
1. Complexity of Product and Scope of Work
The nature of SaaS development, encompassing features and functionalities, significantly impacts overall expenditure. Projects loaded with numerous features and complex workflows demand additional time and resources, thereby taking up the developmental costs to a whole different level.
Nevertheless, streamlining the product’s scope can facilitate cost management without compromising much on the quality.
2. Geographical Considerations
The geographical location of the development team profoundly shapes SaaS development costs. Disparate regions offer divergent labor costs and overhead expenses, bringing influence to the project’s financial blueprint.
While offshore development entities might promise cost efficiencies, factors like cultural alignment and communication efficacy are crucial for ensuring project success.
3. Third-party Integrations
Incorporating third-party services and APIs enriches SaaS functionality but injects intricacy into the overall SaaS development process.
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The cost implications of integrating third-party services depend on variables such as integration complexity and maintenance requisites. Prioritizing integrations based on their core impact can streamline the entire SaaS product development costs.
4. Security and Compliance
Ensuring security compliance and data integrity is of utmost importance in SaaS product development. Robust security measures entail additional expenses, alongside the upkeep of regulatory adherence.
Yes, you have got it spot on! Initiating early investment in robust security measures helps mitigate the risks associated with data breaches and regulatory non-compliance.
5. Functionalities Offered
The breadth and depth of functionalities bundled with the SaaS product significantly influence developmental costs. Each added feature necessitates comprehensive efforts across design, development, testing, and maintenance domains, contributing to overall expenditure.
Prioritizing features aligned with user needs and scalability aids in containing long-term developmental costs.
6. Development Team Composition
The makeup and proficiency of the development team exert a tangible impact on SaaS developmental cost. In-house hiring practices translate to escalated overheads while outsourcing potentially yields cost efficiencies.
Assessing the expertise and experience of the outsourcing development team is crucial for optimal outcomes within budget constraints.
How Much Does It Cost To Build A SaaS Platform?
Now comes the main question – How much does it cost to build a SaaS platform? There, you have your answer — Building a Software as a Service (SaaS) platform comes with several considerations, each directly or indirectly impacting the overall cost of the platform.
Let’s explore the diverse facets of SaaS development costs and uncover strategies for cost optimization in this part of the blog. Let’s go!
At first glance, SaaS application development costs may seem like a huge investment. But, it is quite worth the price you pay. Yes, it is!
The cost to build a SaaS platform can range from $50,000 to $500,000, depending on project specifics or requirements. Small-scale applications might start at a reasonable $10,000, but larger and more intricate projects could easily surpass $100,000.
Nonetheless, understanding the intricacies of cost breakdown is crucial for effective budgeting and resource allocation.
Transitioning to team composition, businesses face a critical decision —- In-house development or outsourcing? Confused right? Here is the answer: In-house teams offer greater control but often come with higher expenses. Agreed right!
On the other hand, outsourcing the developers from lower labor cost regions, like south asian countries, to be very specific, from India can yield a good amount of savings. However, we would suggest maintaining a balance between the both i.e In-house and outsourced.
Moreover, it is important to select SaaS developers who have diverse skill sets and are experts in creating innovative SaaS platforms and are quick in project execution.
That’s not all about…
Have you ever thought about starting with a Minimum Viable Product (MVP) to test if people want what you are actually offering, without spending too much money? If not, then you can have a go. Furthermore, this step will help you save a lot by hiring specialized agencies or freelancers for tasks that aren’t the main focus.
Plus, when you add services from other companies and use tools that work automatically, it makes things run smoother and saves time as well.
Nonetheless, figuring out SaaS development costs needs careful planning. By looking at all the parts that affect how much money you will need and thinking about them together, you can make a budget that makes sense and doesn’t put your business at risk.
In the end, if you plan well and do things carefully, you can build a SaaS platform that doesn’t cost too much. This helps your business grow and come up with new ideas more easily.
Estimated Cost Range for Building a SaaS Platform
The below table provides an estimation of the cost of building a SaaS (Software as a Service) platform.
| Stage | Description | Estimated Cost Range |
| Discovery & Planning | Defining project scope, requirements gathering, feasibility analysis | $5,000 – $20,000 |
| UI/UX Design | User interface and user experience design, wireframes, prototypes | $8,000 – $30,000 |
| Front-end Development | Building the user-facing part of the application | $25,000 – $100,000 |
| Back-end Development | Building the server-side logic, APIs, and database integration | $40,000 – $150,000 |
| Third-Party Integrations | Integrating with external services, APIs, or libraries | $3,000 – $20,000 |
| Testing & QA | Unit testing, integration testing, user acceptance testing | $5,000 – $40,000 |
| Deployment & Hosting | Setting up the production environment, hosting, and deployment | $2,000 – $15,000 |
| Maintenance & Support | Ongoing updates, bug fixes, and technical support | $10,000 – $60,000 (annually) |
These cost ranges are approximate and can vary significantly depending on the following factors:
- The complexity of the SaaS platform
- Number of features and functionality
- Technologies and frameworks used
- Size and experience of the development team
- Location of the development team
- Project timeline and deadlines
- Ongoing maintenance and support requirements
The cost range mentioned in the table is for a typical SaaS platform with medium complexity, having common features and functions.
More intricate or attribute-loaded platforms can be found towards the higher range of costs, and simpler ones may locate themselves on the lower end.
You should have in-depth conversations with potential development partners or service providers to comprehend their way of working, pricing forms and obtain precise cost estimates according to your particular needs and project size.
Why CONTUS Tech For Building A SaaS Platform?
At CONTUS Tech, we understand the challenges and complexities of SaaS development. With over 300 senior developers and years of experience in delivering all types of software solutions, we stand ready to help you build a successful SaaS platform.
Count on our expertise and dedication to ensure that your project is completed efficiently and surpasses industry standards. Trust CONTUS Tech to be your partner in SaaS development!
Talk With Our Team, Share Your Requirements To Get The SaaS Development Cost For Your Project, And Kickstart The Process Within 24 Hours.
Mohan Ram is a seasoned blogger and digital transformation expert. With extensive experience in SaaS development, OTT services, and the Internet of Things (IoT), he brings a wealth of knowledge to the field. Reach out to him for insights on digital engineering and product development.
Hi, Looking to develop a Fintech based SaaS product development and deploy it on cloud.. Please suggest if you can help us to start our project with the cost of SaaS development.
Hello, We are looking for a SaaS Developer with 3-5 years of working experience on SAAS Multi Tenancy Application with working knowledge of SAAS Architecture, Authentication and Authorization and the SaaS development cost. Please let me know if you can provide a quote for the same.
Hello, as a start-up, we are looking for the next step in the development of our SaaS platform. Identifying development partners who are appropriate for us and let me know how much does it cost to build a saas platform with features. Reach out ASAP
Hey good morning, I want to build a SaaS app which compose of other apps but will end up with a different UI. Please let me know if this is possible with a cost estimate for the development.
Hi, This is a very insightful article. I’m curious, though, about the integration of biometric authentication in SaaS apps. Are there any notable examples where biometrics have been successfully implemented? If yes please share the Cost of SaaS software development.
I’ve been thinking about launching a SaaS platform, and this article is exactly what I needed. Your detailed explanations on each phase, from planning to deployment, are incredibly helpful. Thanks for sharing!
I appreciate the detailed cost analysis for a SaaS marketplace. It’s great to know what to expect in terms of initial setup and ongoing expenses. Very useful for early-stage entrepreneurs!
This article offers a comprehensive look at the expenses involved in developing a SaaS product. From initial development to long-term support, you’ve covered all the bases. It’s a must-read for anyone planning to launch a SaaS application and looking to understand the financial commitment required.
Your blog post couldn’t have come at a better time. We’re in the planning phase of our SaaS platform and your points about selecting the right payment gateway and ensuring smooth integration are invaluable.
Excellent read! We’re currently developing a SaaS platform and your insights on customer feedback loops and iterative development are crucial. Will definitely incorporate these into our process.
Great breakdown of the costs involved in building a SaaS platform! It’s really helpful to see the estimated ranges for different components. This will definitely help us budget our upcoming project more effectively.
Understanding the costs involved in building a SaaS product is crucial, and this post does an excellent job breaking it down. Thanks for the insights!
I found this article very useful in understanding the costs associated with SaaS development. It’s important to be prepared for these expenses.
Thank you for the detailed breakdown of SaaS product costs. Understanding the various expenses is key to successful project planning.
The cost analysis here is really helpful. I hadn’t considered all the factors that can affect the price of building a SaaS product. This is a must-read for anyone starting out.
Interesting read! I appreciate the comprehensive overview of costs associated with SaaS development. It really helps to see where the major expenses come from.