How Much Does SaaS App Development Cost in 2025?

The cost of developing a SaaS application typically ranges from $20,000 for a basic MVP to over $1,000,000 for an enterprise solution. Small startups can launch with $30,000-50,000 budgets, while mid-sized SaaS platforms usually require $100,000 - $300,000 (one-time cost). 

The final cost depends on your feature set, design complexity, and scalability needs. 

Here are key factors that’ll affect your SaaS app development cost:

• Type of Product: The specific purpose and target audience of your SaaS application.

   

• Feature Complexity: The number and sophistication of features, including custom integrations and APIs.

   

• Team Composition and Expertise: The size and skill level of the development team.

   

• Project Timeline: The timeframe for completion; tighter deadlines may increase costs.

   

• Technology Stack and Infrastructure: Choices of programming languages, frameworks, and hosting services.

   

• Maintenance and Ongoing Support: Post-launch services like updates and customer support.

   

• Scalability Requirements: The ability to handle growth in users and data efficiently.

   

• SaaS Marketing and SaaS SEO: Efforts to promote your SaaS product and optimize it for search engines.

Here is a general cost breakdown of SaaS Development based on the scale of development: 

Based on our hands-on experience in developing multiple SaaS products, we've identified the key factors that influence SaaS development costs. The key factors influencing SaaS development Costs are: 

• A SaaS product can have features ranging from basic to complex. Basic features require less time and resources, while advanced functionalities increase complexity and expenses.  The development of basic features requires shorter development time and lesser cost and vice versa.

Basic features may include:

• User registration and authentication
• Dashboard and basic reporting
• Simple data management
• Basic customer support tools

On the other hand, advanced features may include:

• Customization options for users
• Payment gateway integration
• Real-time data processing
• Artificial intelligence and machine learning algorithms
• Complex data analytics and reporting  

The features and their complexity can increase the development time and may even require you to hire specialized experts, which can impact the cost of developing the SaaS product.

💡 Pro Tip

 

Consider launching a Minimum Viable Product (MVP) in the initial release with core features to test the market and gather user feedback. 

 

This approach helps you refine your product based on real user needs while controlling initial development costs.
 

Get in touch
 

Based on our experience of designing and developing multiple SaaS products over the years, here is a rough breakdown of the cost of developing a SaaS product based on the scope and complexity of features:

Your choice of technology stack—including programming languages, tools, frameworks, and cloud platforms—significantly affects development costs.: 

Programming Languages & Frameworks

Programming languages and frameworks are key components of SaaS development, impacting parameters such as development speed, performance, scalability, and maintenance. Here is a breakup of how programming language can impact SaaS Development: 

Cloud Platform and Infrastructure

Selecting the right cloud platform is essential for scalability, performance, security, and cost-effectiveness. Choosing the correct cloud platform simplifies the process of developing, deploying, and managing SaaS applications while also assuring high availability, flexibility, and compliance.

Here is a breakup of how cloud platforms and infrastructure can impact the SaaS development:

Did you know? 🤔🤔

 

More than 88% of SaaS users will never return to a website after having a bad user experience. At the same time, a well-designed and executed UX can boost conversion rates by up to 400%.

 

Check out a SaaS project we recently wrapped 
 

This is a clear indication that optimal User Interface (UI) and User Experience (UX) designs are critical for attracting and retaining users. A well-designed interface enhances usability and satisfaction, directly impacting conversion rates and customer loyalty.

Here is a table summarising how UI/UX design impacts the cost of SaaS Development: 

When building a SaaS product, it is important to decide if 3rd party integrations are required for the optimal functioning of the product, as this can impact the overall cost of the development.

Third-party APIs can enhance functionalities and save development time as they allow developers to swiftly implement features without the need to build them from scratch. Some important considerations are:

• Development Time Savings: APIs allow for rapid implementation of features without building them from scratch.

   

• Expanded Feature Set: Integration can differentiate your product, help meet market demand, and increase user acquisition and retention.

   

• Complexity Management: Multiple integrations can complicate the architecture, requiring more development and maintenance efforts.

   

• Cost Implications: Subscription fees, licensing fees, and transaction fees associated with APIs can add up over time.

Ongoing fees and increased complexity can raise development and maintenance expenses while leveraging existing solutions, reduce initial development time, and make it more cost-effective if managed properly.

While investing money in the development of a SaaS product is one important aspect, getting the right Return on Investment (ROI) is another. One of the important pillars on which the ROI of SaaS development is the development team.

Having the right development team can be a game-changer. The right team can help bring your vision to life. Additionally, while creating a team, it is essential to ensure it has the right size and composition, as this can impact the development cost and time. 

For instance, senior developers have greater expertise but demand higher rates. The reduced time of development by senior developers offsets the increased cost. On the other hand, junior developers can take greater time and increase the development time.

Additionally, you can have three types of teams based on location. They are as follows:

The geographic location of the development team can also influence the development cost, as the hourly wages can vary across countries. It is as follows: 

The cost of testing and quality assurance (QA) is between $5,000 and $20,000, depending on the complexity of the app. Quality Assurance (QA) ensures your SaaS product is reliable, secure, and user-friendly, which is vital for customer satisfaction and retention. 

Testing can be of various types. It is as follows:

• Manual Testing: This testing involves checking the products for bugs and usability by humans. Hence, this process requires more labor hours and can be more expensive. 

   

• Automated Testing: This method involves using methods such as unit testing, functional testing, and end-to-end testing to automate repetitive tasks to check bugs regularly and automatically. It is costly compared to manual testing as it requires initial setup and may require licensing, but it can significantly reduce testing time and hence make it affordable in the long run. 

Testing helps identify bugs at an early development stage and reduces the overall cost of fixing them later. It also helps in the effective usage of resources, as early testing can help identify the issue at the early stage and then at the end. 

After the launch of the SaaS product, it is also essential to provide regular maintenance and support for your product to have a good user experience. Regular maintenance of the SaaS product assists in:

• Timely bug fixation that keeps the product relevant and functional. 
• Minimizing downtime increases user satisfaction and customer trust.
• Scanning for security flaws and implementing updates, which are critical for safeguarding user data and complying with legislation.
• Minimizing the potential long-term expenses that may result from neglect, such as significant overhauls or extensive troubleshooting.
• Ensuring that the SaaS solution adheres to industry norms and laws, lowering the likelihood of legal disputes and penalties.
• Getting more predictable operating costs, making it easier to budget for continuing spending, and lowering unexpected expenses.

This feedback helps the development team identify new features and upgrades based on user input and industry developments, ensuring the product's competitiveness. 

It is also important to note that maintenance can increase operational costs, but they also reduce customer churn, increase customer satisfaction, and improve brand reputation. 

Before hiring a developer or an agency for your SaaS Product Development, you must know about the ongoing pricing models.

 The section below gives a detailed insight into the popular pricing models: 

How it Works: In a project-based pricing model, the price is fixed at the beginning of the project based on the expectations, timeline, and deliverables. 

Best for: Best for well-defined projects as they have precise requirements and a fixed scope of work.

Pros

• Focuses more on project competition and outcomes rather than tracking hours or processes.
• Clients are aware of the total cost upfront, which makes it easier to budget and avoid any future surprises.
• Clients focus on the results and do not keep track of their daily activities, which ensures more autonomy for the provider. 

Cons

• Any changes in the project scope can lead to additional work without any compensation until re-negotiated. 
• Providers may look for ways to cut costs and stay within the budget, which can impact the project's overall output.

Typical Cost: $10,000 to $100,000+

How it Works: In an hourly pricing model, the hourly rates are defined based on the scope of work. The client pays the freelancer or agency for every hour they use their services. The total cost of the project is calculated by multiplying the total hours worked by the hourly rates. 

Best for: This price model is suitable for small ongoing tasks or projects with evolving requirements.

Pros

• Simple to understand for all the parties involved 
• Offers greater flexibility, as it allows you to change the scope of the project.
• Provides greater transparency as it allows you to monitor the aspect on which you are spending money.

Cons

• Difficult to forecast the total cost of a project since the entire cost is determined by the number of hours performed which can increase the overall budget.
• For lengthier projects, the scope can easily be expanded when new tasks or obstacles occur, which results in increased expenses over time.

Typical Cost: $25 to $150 per hour

How it Works: In this model, the price is decided based on the value that the SaaS solution will provide to the client’s business. The greater the value their product offers, the greater you can charge. 

Best for: Suitable for complex projects with benefits for the client and ROI-driven solutions

Pros

• Clients are prepared to pay more when they perceive the service's actual value and effect, which leads to increased satisfaction and deeper connections.
• Prices are determined by the perceived worth of the product or service to the customer, ensuring that the client believes they are paying for results rather than simply effort.
• Helps distinguish services from rivals by emphasizing results and client-specific advantages above hours or resources.

Cons

• Determining the precise worth of a service to a customer is difficult and subjective, which may lead to conflicts.
• At the outset, considerable time and effort may be required to understand the client's company, objectives, and how much they value the service.

Typical Cost: $25,000 – $150,000+

To calculate the total estimated cost for your next SaaS development project, you can use the following formula:

Total Estimated Cost = Development Hours*Hourly Rate + Third-Party Integration Costs + Maintenance and Support Costs + Marketing Cost + Miscellaneous Costs

Tenet stands out in the market - because when you hire us, you will be working with a team that has delivered more than 450 solutions, creating an impact on over  20M+ across 15+ countries. 

Our clients choose us over our competitors because of our deep understanding of the work and the project ownership we bring to the table. We’re not the cheapest in the market, but what we do is ensure that you reach where you wish to. 

We ensure that we don’t just deliver what you want but also what your brand needs. You need experts to guide you, and we ensure that we bring the best of everything to your project. All you have to do is bring your idea, explain the vision, and leave the rest to us.

Still unsure? Take a peek at how we helped our client. To see our past work, check out our portfolio of SaaS development projects.

Contact our expert developers and learn how we can help you in SaaS app development.

The cost of developing a SaaS product is estimated based on the scope of the project, the complexity of the features, the need for infrastructure, the technology stack, and team expertise. Depending on the type of project, there might be a few hidden development costs.

Development costs can vary significantly depending on the region. For example, North America and Europe might have higher hourly rates than Southeast Asia or Eastern Europe. At Tenet, we balance this difference by leveraging our international team to offer you reasonable costs for your project.

Integrating APIs in your SaaS product adds functionality, but it also requires additional development. Consider the complexity of APIs, possible licensing fees, and the extra time required for integrating APIs. At Tenet, we help you choose the most suitable API or find an existing solution to keep the price in check.

Some of the ongoing costs after launching a SaaS product include server hosting, customer support, marketing, SEO, maintenance, and ongoing support. These services are crucial for the product's smooth performance and customer experience. 

It usually takes 3 to 6 months to develop the MVP, while developing an advanced featured SaaS may require 9-12 months.The timeline for developing a SaaS product solely depends on the scope of the project and requirements.

The cost of a SaaS app can vary depending on its architecture, complexity of features, and integration requirements. A complex ERP with extensive data management and integration might require more development and resources than a simple note-taking app. Complex B2B platforms usually cost more than basic B2C apps.