SaaS development cost: how to work out the price

Why SaaS platform costs vary so much

Two SaaS ideas can look equally big at first glance, while the build time differs hugely. That's because a SaaS has many parts the user doesn't directly see. Think of keeping customer data separate, payments that run automatically every month, and security that grows with the number of customers.

That's why a question like 'what does an app like competitor X's cost' tells you little. That competitor has often spent years building it. You don't need to rebuild everything to get started.

The parts that determine the price

These are the building blocks that take the most time. The more of them you want in the first version, the higher the price.

• Accounts and login. Sign-up, forgotten password, possibly two-factor authentication.
• Multiple customers on one platform. Each customer only sees their own data. This is called multi-tenancy and has to be right from the start.
• Roles and permissions. An admin can do more than a regular user.
• Subscriptions and payments. Trial periods, monthly direct debit, invoices and cancellation.
• The core feature. The part customers pay for: planning, booking, calculating, reporting or something else.
• Integrations. With accounting packages, calendars, payment providers or other software.
• Admin area. A place where you manage customers, subscriptions and notifications.
• Design and ease of use. The simpler it feels for the user, the more thinking goes into it up front.

SaaS development in phases: MVP, launch and growth

The smartest way to keep costs under control is to build in steps. Each phase has its own budget and its own goal.

• MVP. A minimum viable product: the smallest version that lets real customers solve your core problem. The goal is to learn whether people will pay for it.
• Launch. You add what's needed to serve customers independently, such as payments, onboarding and a help page.
• Growth. New features, integrations and improvements based on what customers ask for.

That way you don't pay up front for features nobody ends up using. Read more about that first step in having an MVP built.

Running costs after launch

A SaaS is never finished. On top of the build you have recurring costs. Third-party prices change, so treat this as an indication and check the current price.

• Hosting and database. Grows with the number of users and the amount of data.
• Email. For confirmations, password resets and notifications you usually use a separate sending service.
• Payment provider. Often charges a fixed amount or percentage per transaction.
• Monitoring and backups. You want to know when something goes wrong, and be able to recover quickly.
• Maintenance. Updates to components, security patches and small fixes.
• Further development. New features, because customers only stay if the product keeps getting better.
• Support. Someone has to answer customers' questions.

Include these items in your pricing model. Your subscription price needs to do more than earn back the build; it must also cover these monthly costs.

How to keep your SaaS development costs under control

• Start with one target group and one problem. A SaaS for everyone is expensive and often good for no one.
• Write down your wishes and put them in order: must have, nice to have, later. Only the first list goes into the MVP.
• Use existing services for standard things like payments and email. Building those yourself is rarely necessary.
• Test your idea with real customers before you build further.
• Agree a fixed price per phase, so you know where you stand.
• Make sure you own the code and the data. Then you're not tied to one supplier.

What does a developer need to give you a good price?

The vaguer your request, the wider the margin in a quote. A developer who doesn't know what you mean will price in risk. With this information you'll get a sharper and fairer price:

• Who your customers are and which problem you solve for them, in a few sentences.
• The main tasks a user carries out on your platform, step by step.
• Which roles there are, such as admin, employee and customer.
• How customers pay: per month, per year, per user or per use.
• Which software your platform needs to talk to.
• Sketches or examples of screens, even if they're hand-drawn.
• When you want to start and whether there's a hard deadline.

You don't need to write a technical document. A clear list of wishes is enough to start the conversation. The developer can then say what each part costs, so you can move things around.

Common budgeting mistakes

Many SaaS plans don't get stuck on the idea, but on the numbers. Watch out for these pitfalls:

• Budgeting only for the build and forgetting the monthly costs.
• No marketing budget. A platform without customers earns nothing.
• Too many features in the first version, so the launch slips by months.
• Treating security and privacy as an afterthought. You process customer data, so the GDPR (AVG in Dutch) applies straight away.
• No room for changes after the first user feedback.

SaaS platform development with Violexa

At Violexa we build custom web applications and software, including SaaS platforms. A custom web application starts from €1,799 excl. VAT (€2,177 incl. VAT) per project. A SaaS is usually bigger than that, so larger projects get a fixed price in writing up front. That way you know exactly what each phase costs.

After launch you can choose a maintenance plan: Silver for €179 excl. VAT (€217 incl. VAT), Gold for €299 excl. VAT (€362 incl. VAT) or Platinum for €699 excl. VAT (€846 incl. VAT) per month. The first 12 months are fixed; after that you can cancel monthly by email with one month's notice. For a broader look at prices, also read what a web application costs.

Got a SaaS idea and want to know what the first version will cost? Book a free quickscan. In 30 minutes we discuss your idea, online or on site. Afterwards you get short written advice with a price indication. No strings attached.

Frequently asked questions