How Much Does It Cost to Develop a SaaS Product?

With digitalization becoming a core strategy of every other businesses operation, Saas apps have become a key aspect to create cloud-based applications. These apps are rapidly transforming the software industry and allowing startups and small businesses to build apps within a limited budget. Since these are highly complex opting for in-house development can be an expensive option. In this case, it’s best to opt for a trusted software development company that can build a tailor-made app for your specific requirements and target audience. To hire a dedicated partner and develop a Saas product another important consideration is the development cost. Hereby we will discuss the cost of Saas product development and the impacting factors.

Saas App Development Cost : An Overview

The cost of building a Saas application can range somewhere between $50,000-$200,000. However, the actual costof software development varies upon several contributing factors. Keep scrolling to find out the top factors that impact the cost of software development services. 

Factors Impacting Saas Product Development

  1. Complexity

The complexity of the app is a major contributor to the cost. A Saas app includes various factors such as scalability, payment gateway integration, data security, and high-level customization can influence the development timeframe and process. Moreover, SaaS products for several industries such as healthcare require complex functionalities and multiple integrations that usually contributes to the final development cost.

  1. Development Stages

As you learn about the development cost of a SaaS product, it’s also important to consider different development stages a product crosses to reach the final stage of development. Remember that each stage has its own associated timeline and cost that will contribute to the final cost calculation. 

The development phase includes stages:

  • Validation and Planning
  • MVP Creation
  • UI/UX Design
  • Front-End Development
  • Back-End Development


  1. Type of Saas Solution

The cost of development will also be impacted by the type of solution you’re building. Some solutions require high efforts while others might be built using simpler terminologies. 

The types of Saas solutions include:

  • Accounting
  • CRM
  • Email Marketing
  • ERP
  • Martech
  • Project Management
  • Visual Website Builder


  1. Type of Team

Another cost impacting factor is the type of team you choose for completing the project. Are you choosing an in-house team, local agency, a freelancer, or an outsourcing software development company. It’s important to note that choosing in-house development will be a costlier process as compared to hiring a outsourcing development agency. Moreover, the quality and efficiency of the project delivered by an experienced development partner will be comparatively better than the in-house team. This way, you can save additional development costs and focus on major business operations. Check out this guide on software development cost and understand the detailed development cost breakdown.

  1. Geographical Location

The geographical location of the development team will inversely impact the cost of software development services. The cost will be higher in the USA and the UK as compared to South Asia. For instance, the cost in the USA can go upto $180,000 while in South Asia the cost will be upto $50,000. Hence, it’s recommended to outsource a development partner that’s either globally present or based in South Asia. This will help you save the unnecessary costs and ensure you only invest in the essential factors.

Final Takeaway

Developing a Saas application has become need of the hour for businesses to improve their productivity and efficiency of their services. However to build such a complex product, you must partner with a reliable software development company. Another important factor to consider is the cost of development. The cost of development can range from as low as $50,000 to as high as $150,000. Also note that there are several contributing factors that adds up to the total project cost