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June 26, 2025
Okay, real talk, figuring out how much it costs to build a SaaS app can feel like guessing the price of a mystery box. One blog says $30K, another says half a million. What is the reality?
The cost will vary based on what you’re generating, who’s building it, and how familiar you are with the entire process.
This is more than just creating code and adding a login page; it’s about strategy, scalability, and ensuring that your app doesn’t crash when ten people sign in at the same time.
In this guide, we’re breaking down the real cost of building a SaaS app — from MVPs and backend dev to post-launch maintenance and cloud hosting.
Whether you’re a startup founder, a tech nerd with an SaaS idea, this one’s for you.
What is the Estimated Cost to Create a Saas Application?
The cost of developing an average SaaS platform is between $50,500- $150,500 and above. The startup costs may go as high as $500,000 based on the scale and intricacy of the SaaS platform.
SaaS businesses have a high gross profit margin ranging from 68-75% and more. As long as your SaaS platform has a sustainable user base, you will reap good profits irrespective of the SaaS solution.
What Constitutes the SaaS Application Cost?
The price of building a SaaS application starts with something greater than code. Every phase of the process has its own expenses. Break it down, let’s:
Discovery & Planning
Before anything is built, your concept has to be well defined. That involves competitor research, technical viability, gathering of requirements, and planning. This phase avoids more problems down the road and usually costs between $2,000 and $10,000.
UI/UX Design
Engaging design attracts users. From wireframes and mockups to clickable final prototypes, design activities guarantee your SaaS is delightful and intuitive. Design ranges from $5,000 to $20,000 based on complexity.
Frontend & Backend Development
Most of your money goes here. Frontend develops the user-visible interface while backend addresses data, authentication, APIs, and so on. Your backend needs to be strong for functionality and scalability.
Testing & QA
Bypassing QA is like bypassing a parachute inspection before going skydiving. Testing captures bugs, performance delays, and usability problems. QA typically consumes 15-20% of the development budget.
Deployment
After testing and development, your app must be published. Deployment involves server configuration, domain setup, and CI/CD pipelines.
Post-launch Maintenance
SaaS is never really “finished.” There are always bug fixes, scaling requirements, new features to deploy, and improvements to make, which makes this an ongoing expense.
- Not sure where your SaaS development dollars are going?
- We break down every cost from backend logic to scaling infrastructure — so you know exactly what you're investing in.
Key Cost Factors of SaaS Application Development
Not all SaaS software is on the same scale. Some are tiny task managers, others are large-scale ERP systems. Here’s what has a significant impact on the cost of SaaS application development:
- Feature Set: A basic CRM with user authentication and a dashboard is much less expensive than a complete financial analytics application.
- Technology Stack: Leveraging bleeding-edge frameworks such as React or cloud-native platforms such as Firebase or AWS Lambda can maintain overhead on infrastructure and development low.
- Geographical Location of the Development Team: US-based developers may cost $100–$200/hr, while South Asian or Eastern European developers charge $25–$70/hr.
- Third-Party Tools and APIs: If your SaaS integrates with Stripe, Salesforce, or AI/ML engines, expect extra licensing and development costs.
- Security and Compliance: GDPR, HIPAA, and SOC2 compliance incur legal and technical fees.
- Infrastructure Requirements: Will your SaaS support 10K or 1M users? The price increases exponentially with volume.
The MVP Role in Decreasing Early SaaS App Cost
A Minimum Viable Product (MVP) is a barebones version of your end product with prime features. It enables market validation without breaking the bank.
Advantages of MVP:
- Quickly gather real user feedback
- Attracting early-stage investors
- Prevent throwing money at features nobody needs
- MVP Development Price Range: $15,000 – $50,000
In-House Team vs Outsourced Development: Who Affects Your Budget More?
When building a SaaS application, one of the most crucial decisions you’ll make is whether to hire an in-house team or outsource your development. Both have pros and cons — but from a budget perspective, the difference can be massive.
Let’s break it down to help you make the right financial and strategic choice.
1. In-House Development: What You’re Paying For
Hiring an internal team means building your own squad of developers, designers, QA engineers, and project managers. This typically involves:
Cost Breakdown:
| Expense | Estimated Cost (Annual) |
| Developer Salary (US Avg) | $90,000 – $150,000 per dev |
| Designer Salary | $70,000 – $120,000 |
| QA/Tester | $60,000 – $100,000 |
| Project Manager | $80,000 – $130,000 |
| Benefits & Taxes | +20% – 30% on top of salaries |
| Office Space/Hardware | $5,000 – $15,000 per person |
| HR, Training & Onboarding | $3,000 – $7,000 per hire |
Pros:
- Full control over the team
- Faster communication
- Long-term cultural fit
Cons:
- High upfront and ongoing costs
- Slower hiring process
- Limited scalability and flexibility
- Costly if you’re building a short-term or MVP project
2. Outsourced Development: What You’re Paying For
Outsourcing means hiring an external agency or offshore team (often from regions like Eastern Europe, South Asia, or Latin America) to build your product.
Cost Breakdown:
| Region | Avg Hourly Rate |
| North America | $100 – $200/hr |
| Eastern Europe | $40 – $70/hr |
| South Asia (e.g., India, Pakistan) | $25 – $50/hr |
| Latin America | $30 – $60/hr |
Pros:
- Significantly cheaper for startups and MVPs
- Access to global talent and niche experts
- Scalable up or down as needed
- Faster time to market
Cons:
- Time zone and communication gaps (if unmanaged)
- Less direct control
- Risk of choosing the wrong vendor (always vet carefully)
Which Option Affects Your Budget More?
| Criteria | In-House | Outsourced |
| Initial Cost | Very High | Low to Medium |
| Long-Term Cost | High | Scalable/Variable |
| Ideal For | Long-term projects | MVPs, startups, testing ideas |
| Hiring Time | Weeks to Months | Days to Weeks |
| Flexibility | Low (fixed team) | High (on-demand scaling) |
Backend, Frontend, and DevOps: Where the Real Development Cost Lies
Frontend Development is building the pieces of your SaaS that users interact with — the dashboard, buttons, charts, and UI animations. React, Angular, or Vue.js are common technologies used. Frontend expenses vary based on how interactive and complex the interface is.
Backend Development is all about the logic, database management, user authentication, payment gateway integration, and so much more. A clean, scalable backend design makes your app run smoothly even as you grow. Node.js, Python (Django), Ruby on Rails, and Laravel are popular options.
DevOps & Infrastructure consists of the processes and tools required to maintain your app’s availability, CI/CD pipelines, scaling servers, and automated testing. Properly managed DevOps configuration makes it easier to update, deploy quickly, and maintain high availability.
Development costs for all these elements tend to be quite diverse but usually consist of more than 70% of your total SaaS application cost.
How Much Does It Cost to Build a SaaS Application on AWS Cloud?
AWS is a well-loved choice because of its reliability and scalability. But let’s get the monthly charges right:
- Compute (EC2): $50 – $200/month, depending on server
- Database (RDS): $30 – $100/month
- Storage (S3): $0.023 per GB stored
- CloudFront, Lambda, Route53: Varies based on usage
Monthly AWS Cost for a Mid-size SaaS: Approximately $300 – $1000, maybe more with scale.
Total SaaS Application Development Cost Based on Complexity
Here’s a rough estimate based on app size:
| Project Type | Estimated Cost |
| Basic (MVP) SaaS App | $15,000 – $50,000 |
| Mid-level Complexity | $50,000 – $120,000 |
| High Complexity | $120,000 – $300,000+ |
The more modules, integrations, and security features you build in, the more expensive it will be.
- Planning to build a SaaS app without blowing your budget?
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Maintenance & Scaling: The Post-Launch Budget You Need to Keep in Mind
As soon as your SaaS is live, the expenses don’t stop. Maintenance involves debugging, patching security holes, updating APIs, and pushing out new features. Your app must also adjust as user load increases, so scaling infrastructure, optimizing code, and refactoring pieces of your architecture from time to time are necessary.
You’ll also have a support system to implement — whether it’s a help desk, live chat, or full customer success team. Throw in license renewals, system monitoring, and the occasional issue, and you’re facing significant annual costs.
Estimated Annual Maintenance & Scaling Cost: 15% to 25% of your overall development spend.
Actual SaaS Costs to Keep in Mind
In addition to development and infrastructure, SaaS startups should consider these too-often-ignored costs:
- Marketing & Customer Acquisition: Content, SEO, paid advertising
- Customer Support & Success Tools: Zendesk, Intercom, HubSpot
- Subscription and Licensing Fees: For third-party APIs, SDKs, and compliance products
- Legal & Administrative: Terms of service, tax filing, privacy policies, etc.
These will depend on your growth initiatives and will range from $5,000 to $30,000+ per year.
How Long Does It Take to Build a SaaS Application?
Money is time, particularly in SaaS. Development cycles depend heavily on complexity:
- Simple MVP: 2–4 months
- Moderate SaaS Product: 4–8 months
- Enterprise-level Platform: 9–18 months
Rapid prototyping with agile approaches can cut down on time-to-market, but careful planning is still necessary to prevent future roadblocks.
Is Using No-Code/Low-Code Platforms Less Expensive for SaaS?
No-code and low-code platforms such as Bubble, OutSystems, or Glide provide an inexpensive means of creating SaaS apps without the need to write much code.
Pros:
- Shorter development time
- Less initial capital
- Suitable for MVPs and internal tools
Cons:
- Limited customization
- Performance bottlenecks at scale
- Potential vendor lock-in
They are good for validation but are least likely to be appropriate for large-scale, sophisticated SaaS applications.
How TekRevol Can Help
At TekRevol, we help create high-performing SaaS platforms to suit your business objectives. Whatever your goal is in validating a startup concept or expanding an enterprise solution, we’ve got your back through each step with our development team, designers, and strategists.
We handle:
- Market analysis & product discovery
- Full-cycle SaaS design & development
- AWS/GCP cloud deployment
- Maintenance, DevOps, and growth strategies
Ready to begin? Let TekRevol assist you in developing a profitable, scalable SaaS application today.
- Ready to build a SaaS app that stands out and scales fast?
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