The software industry is moving at breakneck speed, and SaaS (Software as a Service) has fast become the talk of the town. With the worldwide SaaS market expected to exceed $300 billion in the next years, it’s no surprise that everyone, from startups to industry giants, wants to get in on the action.
But how much does it cost to create a SaaS app? If you’re wondering about the price, you’re not alone! Before going in, it’s critical to understand the major cost drivers, development stages, and any hidden costs.
In this article, we’ll go over all you need to know about SaaS development expenses, so you can plan your project intelligently and confidently. Let’s start with a brief refresher: what is a SaaS application?
What’s a SaaS App?
- Accessed via the internet, no installations
- Subscription-based (monthly/yearly)
- Auto updates & easy scalability
- Used on any device (great for remote work)
New to SaaS? Check out our detailed guide on how to build a SaaS app. It offers a deeper dive into definition, architecture, and features.
What is the Average Cost of Building a Saas Application?
The average cost to build a SaaS application ranges from $30,000 to $150,000+, depending on features, complexity, and industry focus. A basic MVP may cost around $25,000 to $40,000, while a full-scale product with advanced capabilities can go much higher.
Costs also vary across industries, especially in healthcare, finance, and eCommerce, where stricter compliance and advanced features can significantly increase the budget.
Key Factors That Influence SaaS Development Costs
Estimating the cost of building a SaaS application isn’t just about crunching numbers – it’s about understanding what drives those numbers. From the features you dream up to the team you hire and the tech you choose, every decision shapes your budget and timeline.
Let’s break down the key factors that influence SaaS development cost, so you can plan smartly and avoid surprises.
Complexity and Scope of Features
The more features your SaaS app offers, the higher the cost.
For example, a simple tool for booking appointments might cost $25,000 -$80,000, while a complex CRM with analytics, real-time updates, and multiple user roles can exceed $150,000.
Each added feature – like AI-powered recommendations or advanced reporting – requires more development time and specialized expertise.
Design and User Experience
A polished, intuitive design isn’t just about looks; it can set your app apart and keep users engaged. Investing in a custom UI/UX design can range from $5,000 to $50,000+, depending on how interactive and unique you want your interface to be.
For instance, apps like Notion or Trello are known for their seamless user experience, which comes from thoughtful design investments.
Team Structure
Who builds your SaaS app matters. Hiring developers from North America or Western Europe typically costs more than working with skilled developers in Eastern Europe or Asia.
Outsourcing or hiring a dedicated development team can help manage costs, but always weigh expertise, communication, and reliability.
Technology Stack
The tools and programming languages you pick affect both cost and capability. Here’s a quick comparison:
Stack Type |
Example Technologies |
Cost Impact |
Open Source |
Node.js, React, PostgreSQL |
Lower initial cost |
Enterprise/Proprietary |
.NET, Oracle, AWS Enterprise |
Higher cost, but more features/support |
Cutting-edge |
AI/ML frameworks, Blockchain |
Highest cost, specialized skills needed |
Choosing advanced or niche technologies can drive up both development and long-term maintenance costs.
Development Timeframe
Tight deadlines often mean higher costs. If you need your SaaS app launched quickly, you might need to hire more developers or pay for overtime, which increases the budget.
Planning and prioritizing features for a Minimal Viable Product (MVP) can help control expenses.
Hosting and Infrastructure
Reliable hosting and scalable infrastructure are essential for SaaS. Cloud providers like AWS, Google Cloud, or Azure offer flexible pricing, but costs can add up as your user base grows.
For example, infrastructure scaling alone can range from $20,000- $50,000+, depending on traffic and data needs. Don’t forget ongoing expenses for maintenance, security, and compliance.
Understanding these factors gives you the power to make informed decisions and build a SaaS product that fits both your vision and your budget.
SaaS App Development Stages and Their Estimated Costs
After exploring the factors that shape the costs of SaaS app development, it’s time to break down the journey stage by stage. Each phase of building a SaaS comes with its tasks, timelines, and price tags – knowing what to expect helps you budget smartly and avoid surprises as your project progresses.
Advancements in AI Technology
Before you build the next big SaaS unicorn, you need to test whether your idea works – and whether people want it. That’s where SaaS MVP development comes in.
Instead of spending 6+ months building a perfect version of your app, an MVP lets you build just the core functionality your users need to solve a real problem. It’s lean, fast, and gives you feedback from real users early on.
- Want to know if your project management tool hits the mark? Build an MVP.
- Curious if your automation platform saves businesses time? MVP it.
MVP development involves defining your core feature set, doing competitor research, identifying your ideal users, and deciding on your tech stack.
It also includes writing user stories (real-life scenarios your users will experience) and sketching out the rough idea of what your app will look like.
Estimated Cost: $20,000 – $30,000
UI/UX Design
Now that you’ve nailed down your MVP idea, it’s time to make it look and feel amazing.
This is where UI (User Interface) and UX (User Experience) design steps in. A great UI makes your app idea visually appealing – think sleek dashboards, intuitive buttons, and layouts that just make sense. UX, on the other hand, is all about how users flow through your app;
- Is it easy to sign up?
- Can users find what they need quickly?
- Does it feel effortless?
A well-designed SaaS app keeps users engaged and coming back. It doesn’t just look good – it feels good to use. There are some of the best SaaS app examples out there that you can draw design inspiration from when building your own app.
Designers at this stage follow UI/UX design principles and will create wireframes, user journeys, interactive prototypes, and polished visuals. This is also when you define your brand identity: colors, typography, icons, imagery, and tone of voice.
Catchy, modern visuals paired with seamless experience = trust + retention. People judge your product within seconds—make that first impression count.
Front-end Development
Next comes front-end development, the “face” of your app that users see and interact with. It’s where those beautiful UI designs are turned into real, clickable, responsive web pages and dashboards.
The goal here is to make your SaaS product feel smooth, intuitive, and responsive. Whether someone’s using a 27″ monitor or a smartphone, everything should load quickly and behave just right.
This stage involves coding with HTML, CSS, JavaScript, and frameworks like React or Vue Good front-end development also ensures accessibility and cross-browser compatibility (because not everyone uses Chrome).
Developers also integrate the app with the backend, so when a user clicks “Save,” that data is actually sent somewhere and stored properly.
Estimated Cost: $10,000 to $20,000
Backend Development
You’ve seen the showroom. Now, let’s look under the hood.
Backend development is what makes your SaaS app work. It’s the logic, database, servers, and APIs that power all the functionality. This stage ensures users can log in, save settings, process payments, upload files, and much more.
It’s also where you set up role-based access, security features, data encryption, analytics, and integration with third-party tools ( think Stripe, Slack, Zapier, etc.).
Great backend architecture means your app runs smoothly, can scale as your user base grows, and handles errors or issues without crashing.
Users may never see it, but they’ll feel it when the backend isn’t done right. A strong backend = a reliable app.
Estimated cost: $15,000 – $30,000
Support and Maintenance
Building your SaaS app is only the beginning. Once it’s live, you’ll need regular assistance to keep things working smoothly and your users satisfied.
Support and maintenance include anything from bug fixes and speed improvements to updating third-party integrations, introducing new features, and ensuring your app is secure against the most recent threats.
Assume a payment gateway changes its API. Alternatively, users request minor changes to the way notifications work. Alternatively, your program may crash under unexpected load. This is where your maintenance plan comes in.
Good support means that your SaaS program evolves alongside your users and keeps up with evolving technology. It’s more than simply a safety blanket; it’s a growth engine.
Some businesses manage this in-house, but many choose to keep their development partner on retainer to ensure regular updates and peace of mind.
Estimated Cost: $2,000 to $5,000 per month (depending on complexity and support level).
Now, let’s look at some sensible strategies to lower development costs without sacrificing quality.
Valuable Tips to Reduce SaaS App Development Cost
SaaS development does not have to be prohibitively expensive. Whether you’re starting from scratch or working with a tight budget, there are sensible methods to save money without sacrificing quality. Small decisions taken early on, such as strategic planning or the location of the development team, can result in significant savings later.
Here are some practical strategies to help you cut SaaS app development expenses without sacrificing product value.
- Start with an MVP
- Choose the right tech stack early
- Outsource to skilled but affordable talent
- Reuse existing solutions
- Focus on the must-have features list
- Automate testing and deployment
- Keep communication tight and clear
How Can RichestSoft Help You Build a SaaS App?
We hope this clarifies how much it costs to construct a SaaS application. Indeed, there is a long road ahead of you, from selecting the correct tech stack to assembling the ideal development team to deciding on features.
SaaS represents the present and future of business. With a one-of-a-kind product, you’ll be in business for a long time. Are you looking for a custom SaaS app development solution? Contact us – the RichestSoft team has a proven track record of creating creative SaaS products for entrepreneurs, and we’d be delighted to be your trusted SaaS development partner.