How Much Does a SaaS App Cost To Build (2024 Estimate)

Published On April 4th, 2024 137Engineering
Learn About SaaS Development

Starting a SaaS platform in 2024 requires financial investment just like any other business venture. Cloud computing stands as a lucrative domain, with its market soaring to nearly 482 billion U.S. dollars. 

Among its primary tiers lies Software-as-a-Service (SaaS), which currently presents an even more promising outlook. 

SaaS, a cloud-based software delivery model, furnishes readily available solutions accessible via mobile apps or web browsers. 

Here, key cost components encompass UI/UX design, front-end and back-end development, and infrastructure, along with ongoing expenses for maintenance, support, and upgrades. 

In this blog, we will look into estimating the SaaS product development costs while outlining the pivotal factors influencing pricing dynamics. Before that, let us see the SaaS market overview. 

SaaS Market Overview and Trends

The SaaS market showcases robust growth, with projections pointing towards a staggering expansion to $328.03 billion by 2027, boasting a compound annual growth rate of 6.6%. 

End-user spending on SaaS is slated to ascend to $597.3 billion in 2023, a notable surge from $491 billion in 2022, evidencing a substantial 21.7% growth as indicated by Gartner. 

Such figures, ever on the rise, magnetize both large enterprises and smaller businesses towards SaaS development services. By 2028, market estimates soared to a staggering $2,34,900 million. 

In various industries, spanning from major firms to smaller businesses, cloud-based applications have become standard worldwide. The necessity and significance of SaaS platforms have grown significantly over time, a trend anticipated to continue strongly in 2024 and the years ahead.

Notably, SaaS development comprises two primary things: PC and Mobile. While ensuring accessibility across both platforms is optimal, it does entail a considerable cost investment. With this being clear now, let us checkout the top 6 factors that impact the SaaS development cost. 

 
Want to Know the Cost Breakdown To Build Your SaaS Application?

Factors That Impact SaaS Development Cost

Determining the cost of SaaS product development involves considering several 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 of these elements plays a significant role in shaping the overall budget for building a SaaS platform.

1. Complexity of Product and Scope of Work

The intricate 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 on 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

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 development costs may seem like a huge investment. But, it is quite worth the price you pay. Yes, it is! 

The SaaS development cost 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.

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.
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BrindaLakshmi

Brindalakshmi Rajkumar is a blogger cum digital transformation expert. She has several years of expertise in areas like full stack development, DevOps services, and everything related to Internet of things (IoT). You can reach out to her for all things related to digital engineering and product development.

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