How Much Does It Cost to Build a SaaS Product?
Developing a SaaS app comes with a dynamic range of costs, typically spanning anywhere from $20,000 to $500,000. This financial range reflects the complexity of modern SaaS products, from simple MVPs with core functionality to enterprise-level platforms with advanced integrations and AI capabilities.
The SaaS development landscape has evolved significantly in 2024 and 2025, particularly with AI integration.
According to McKinsey, 46% of companies are now capturing financial impact from AI at scale, up from 33% a year ago. This shift affects costs in two ways: AI-powered tools can reduce development time by automating repetitive tasks, but adding AI features like predictive analytics to your product typically increases the initial investment. Understanding this balance is essential for accurate budget planning.
Brights SaaS development company has guided many businesses through the entire SaaS lifecycle, which has given us practical insight into where costs accumulate and how to optimize them. We also have deep expertise enhancing software with custom AI solutions, and know how it impacts expenses. But most importantly, we know how to build platforms that remain cost-effective to maintain and scale, avoiding expensive technical debt and infrastructure issues that often emerge after launch.
This guide breaks down the key factors influencing the cost of building a SaaS product — from team composition and feature complexity to infrastructure choices and ongoing maintenance — and offers practical strategies for controlling costs while building a product users love.
Key Takeaways:
SaaS software development costs range from $20,000 for basic MVPs to $500,000+ for enterprise platforms, with complexity, features, and team location as primary drivers.
Strategic planning during discovery and feature prioritization are the most controllable cost factors, determining whether you build efficiently or waste resources on unnecessary features.
AI integration creates a dual impact: it reduces development time through automation, while adding to baseline costs when building AI-powered features.
Starting with an MVP and using proven third-party services for non-core features can cut development costs by 30-40% without sacrificing quality.
Nova Assure, IoT management platform developed by Brights
SaaS development cost breakdown by product type and complexity
Understanding how different factors impact your SaaS development budget helps you plan effectively and avoid surprises. Let's break down costs by four key dimensions.
By product complexity
SaaS platform complexity refers to the intricacies associated with its functionalities, user roles, and their interrelations within an application. While "complexity" is subjective, categorizing it into micro, basic, average, and complex levels enhances understanding. Higher complexity generally means more advanced features and interdependencies, requiring additional time and resources, which in turn increases SaaS app development costs.
| Complexity | Description | Features | Cost range |
|---|---|---|---|
| Micro SaaS | Minimal scope with 1–2 core features. Suitable for niche problems or testing market fit. | Basic user login, limited screens with core functionality, simple admin panel | $15,000 – $30,000 |
| MVP SaaS | Essential features to validate your concept with early users. Common for startups. | User registration, core features, basic subscription model, profile management, 1–2 integrations, functional admin panel | $35,000 – $60,000 |
| Mid-level SaaS | Comprehensive platform with multiple user roles and moderate feature depth. | Advanced core functionality, multi-tier subscription model, role-based access, payment processing, 3–5 integrations, analytics dashboard | $60,000 – $150,000 |
| Complex SaaS | Large-scale deployment with advanced capabilities and extensive integrations. | Full feature suite, complex workflows, multiple workspaces, AI/ML capabilities, enterprise security, extensive third-party integrations, advanced analytics | From $150,000 |
By SaaS app type
Different types of SaaS applications require different levels of functionality, security, and integration. Here are typical development costs for common SaaS categories:
| SaaS type | Average MVP cost | Key considerations | Examples |
|---|---|---|---|
| Project management | $60,000 – $70,000 | Team collaboration features, task tracking, file sharing | Asana, Monday.com, Trello |
| CRM | $60,000 – $100,000 | Contact management, pipeline tracking, reporting, integrations | Salesforce, HubSpot, Pipedrive |
| Communication platform | $80,000 – $120,000 | Real-time messaging, video calls, file sharing, notifications | Slack, Microsoft Teams |
| Email marketing | $50,000 – $70,000 | Campaign management, automation, analytics, list management | Mailchimp, ActiveCampaign |
| Accounting | $70,000 – $80,000 | Financial tracking, invoicing, reporting, compliance features | Xero, QuickBooks, FreshBooks |
| ERP | $110,000 – $200,000+ | Multi-module system, complex workflows, extensive integrations | SAP Business One, Oracle NetSuite |
| E-commerce | $75,000 – $110,000 | Product catalogs, shopping cart, payment processing, inventory | Shopify, BigCommerce |
| Healthcare systems | $160,000 – $200,000+ | HIPAA compliance, patient management, EHR integration | Cerner, Epic |
Healthcare and financial SaaS application costs are typically higher to strict regulatory requirements and security standards. E-commerce and ERP systems require complex integrations with payment gateways, inventory systems, and third-party services.
By feature scope
Your feature set is one of the most controllable cost factors. Here's the overview of the common features impacting your budget to help you answer the question “How much does it cost to build a SaaS platform?”.
| Scope | Feature set | How it affects the cost |
|---|---|---|
| Essential features | User authentication and registration Basic user profiles Core functionality (1-2 primary features) Simple admin dashboard Basic email notifications | $15,000 – $25,000 |
| Standard features | Multi-tier subscription management Payment gateway integration Advanced user roles and permissions Analytics and reporting dashboard 3-5 third-party integrations Mobile responsive design | Add $25,000 – $60,000 |
| Advanced features | AI/ML capabilities (recommendations, predictions, automation) Real-time collaboration features Advanced security and compliance (SOC 2, HIPAA, GDPR) Complex workflow automation Multiple workspaces or multi-tenancy Custom integrations with enterprise systems Advanced analytics and BI | Adds $60,000 – $150,000+ |
Adding AI features deserves special attention. As AI capabilities become more central to SaaS products, they significantly impact development budgets while also differentiating your product in the market.
By the team model and region
In estimating the SaaS development cost, the team model plays a crucial role, offering three primary options: in-house, freelance, and outsourcing. Each option carries distinct advantages and drawbacks, influencing the overall project cost.
| Team type | Pros | Cons | Best for |
|---|---|---|---|
| In-house. Full-time employees within your organization | Complete control, direct communication, strong alignment with company culture | Higher salaries and overhead, limited expertise pool, longer hiring process | Companies with ongoing development needs and established budgets |
| Freelance. Individual contractors working remotely | Flexible engagement, pay only for work done, access to specialized skills | Variable quality, limited availability, challenging for complex projects, coordination overhead | Small projects, specific expertise needs, budget-constrained startups |
| Outsourcing agency. External development team or company | Cost-effective, established processes, broad expertise, faster start, scalable resources | Time zone differences, requires clear communication, less day-to-day control | Most SaaS projects, especially MVPs and products needing quick market entry |
As for the regional cost differences, development rates vary dramatically by geography, creating significant budget flexibility for companies willing to work with global teams.
In 2024, Deloitte reported that 96% of organizations leverage third-party outsourcing as part of their talent strategy, and only 28% turned to other talent options like freelancers, interns, and volunteers. This widespread adoption spans all industries and company sizes, demonstrating that outsourcing has become a strategic necessity rather than just a cost-cutting measure.
Here are typical hourly rates by region:
North America (US, Canada): $100–$150/hr. Highest rates globally, with strong English proficiency. Ideal for companies requiring close oversight and immediate collaboration.
Western Europe (UK, Germany, France, Netherlands): $60–$110/hr. High-quality output with excellent communication, strong regulatory compliance knowledge, and cultural alignment with Western markets.
Eastern Europe (Poland, Ukraine): $35–$90/hr. Exceptional technical education, good English proficiency, and reasonable time zone overlap with both Europe and US. This region offers a balance between cost and quality.
Latin America (Mexico, Brazil, Argentina, Colombia): $35–$70/hr. Growing tech talent pool with time zone overlap for US companies.
South/Southeast Asia (India, Vietnam, Philippines): $20–$50/hr. Large talent pool with the most cost-effective rates. India graduates over 1.5 million IT specialists annually.
Africa (South Africa, Nigeria, Kenya): $25–$60/hr. Emerging market with competitive rates and English-speaking talent. The region is experiencing rapid growth.
At the same time, it’s important to keep in mind the lowest hourly rate doesn't always deliver the best value. Time zone alignment, English proficiency, communication practices, and technical expertise all factor into the total cost of ownership.
Many companies find success with hybrid models, keeping project management local while leveraging cost-effective development talent in regions like Eastern Europe, where strong technical education and cultural compatibility combine with competitive pricing.
“As the landscape of SaaS app development evolves, outsourcing has surged in popularity due to its potent blend of cost-effectiveness and access to specialized expertise. Organizations are increasingly drawn to the outsourcing model, finding that it not only optimizes the SaaS software development cost but also ensures their projects benefit from the latest industry knowledge and trends. Therefore, outsourcing emerges as a strategic choice for those seeking a competitive edge in SaaS innovation.”
— Lera Umen, CBDO at Brights
SaaS app development stages and their cost
SaaS app development costs are linked to the various stages of the development process, each defining both the time and investment required. To gain a comprehensive understanding, let's delve into the average SaaS app development stages and their associated calculations.
| Phase | Description | Cost range |
|---|---|---|
| Discovery | Shaping the project vision by eliciting and collecting business and system requirements | $2,000 – $5,000 |
| UI/UX design | Developing wireframes and layouts to create a compelling user interface and experience | $3,000 – $6,000 |
| Front-end development | Building the client-side of the product by coding interactive and responsive elements | $10,000 – $40,000 |
| Back-end development | Implementing server-side logic and database management, developing APIs, ensuring security protocols, and more | $18,000 – $60,000 |
| Quality assurance | Testing the product to ensure its quality and functionality during the whole SDLC | $5,000 – $10,000 |
| Post-release maintenance | Ongoing support, bug fixes, and updates after the product is released | $10,000 – $30,000 per year |
When researching SaaS software development costs, keep in mind the final quote will vary significantly based on your specific requirements, chosen technology stack, development team location, and project complexity. The key to controlling costs is clear planning during the discovery phase and prioritizing features that deliver the most value to users.
Hidden and additional SaaS development price
Beyond the core development expenses, several ancillary costs significantly influence SaaS product development. These include but are not limited to:
Infrastructure costs: Hosting, server maintenance, and cloud service subscriptions contribute to infrastructure expenses, typically ranging from $1,000 to $5,000 monthly, depending on the scale and complexity.
Licensing fees: Depending on the use of third-party software or libraries, licensing fees may apply, ranging from a few hundred to several thousand dollars, based on the software's complexity and features.
Security measures: Implementing robust security protocols, encryption technologies, and compliance with data protection standards may involve an additional investment of $5,000 to $10,000 or more, depending on the project's specific security requirements.
Marketing and launch: Introducing a SaaS product to the market involves marketing efforts, branding, and promotional activities. A marketing budget of $10,000 to $50,000 or more is common, depending on the scale of the launch.
Considering these additional expenses is crucial for businesses to understand the overall investment required for successful and sustainable SaaS product development. However, at Brights we know a few ways to cut the SaaS development cost, which we share further in the article.
How to reduce SaaS development costs without losing quality
Reducing SaaS software development costs without compromising on the quality and functionality of the product is a common objective for businesses. Here are five effective ways to achieve cost savings in SaaS development.
Explore outsourcing opportunities
In the quest to optimize SaaS development costs, exploring outsourcing opportunities stands out as a strategic approach for businesses seeking efficiency without exceeding budget constraints.
The United States, Canada, and Australia tend to have the highest hourly rates, followed by Western Europe. Eastern Europe and Asia present more budget-friendly alternatives. Leveraging global outsourcing strategically enables businesses to tap into the expertise of skilled professionals while effectively managing costs, resulting in a substantial reduction in SaaS product development expenses.
Prioritize MVP development
For businesses on a budget, we suggest starting with an MVP for SaaS to bring essential features to market quickly. This approach allows you to validate your product concept, gather user feedback, and make informed decisions about additional features. By avoiding the development of extensive features initially, you can significantly reduce both time and costs.
Select the right technology stack
Choose a tech stack for SaaS that aligns with your project's requirements and goals. Opting for proven and widely adopted technologies can lead to faster development cycles, reduced debugging efforts, and a more extensive developer community for support. This strategic selection helps in streamlining development and minimizing unexpected costs.
Embrace Agile methodology
Implementing Agile development practices enhances collaboration, flexibility, and responsiveness to changes throughout the development process. Agile allows for iterative development, reducing the risk of costly rework and ensuring that adjustments can be made efficiently based on evolving project needs and user feedback.
Use third-party services
API integrations play a pivotal role in reducing SaaS development costs by offering a streamlined and efficient way to incorporate essential functionalities without building them from scratch.
Examples of widely used APIs include payment gateways like Stripe for secure and efficient online transactions, Twilio for integrating messaging and communication services, and Google Maps API for embedding location-based features.
Integrating with the Amazon S3 API facilitates scalable and cost-effective cloud storage solutions, while the OAuth API simplifies user authentication processes. Additionally, services like SendGrid API enhance email functionality and integrating with social media APIs, such as Facebook or X, facilitates seamless user interactions.
How AI impacts SaaS development costs
AI is fundamentally changing the economics of SaaS development, creating both cost-saving opportunities and new investment requirements. According to McKinsey's 2025 State of AI report, 88 percent of respondents report regular AI use in at least one business function within their organizations, compared with 78 percent a year ago. This widespread adoption is transforming how SaaS products are built and what they cost to develop.
Source: McKinsey
AI as a cost reducer
Gartner research shows that organizations implementing AI report an average of 15.2% cost savings and 22.6% productivity improvement. For SaaS development specifically, AI-powered coding assistants and automation tools can significantly reduce development time — and at Brights, we use those too. Recently, Gartner also predicted that by 2028, 90% of enterprise software engineers will use AI code assistants (up from less than 14% in early 2024), enabling teams to build features faster and with fewer resources.
AI as a cost driver
At the same time, adding AI capabilities to your SaaS product increases development complexity and investment. Gartner reports that deploying generative AI can cost between $5 million to $20 million for enterprise-scale implementations Gartner, though smaller SaaS products can integrate AI features for significantly less. The key cost factors include AI model development or licensing, computing infrastructure for AI workloads, data preparation and management, and ongoing model training and optimization.
The strategic balance
McKinsey found that only 6% of organizations qualify as “AI high performers” generating 5% or more EBIT impact from AI, demonstrating that successful AI integration requires careful planning rather than simply adding features.
For SaaS startups and mid-sized companies, the smart approach is starting with focused AI use cases that deliver clear value (intelligent search, personalized recommendations, or automated customer support) rather than attempting instant comprehensive AI transformation.
When budgeting for AI-enhanced SaaS development, expect AI features to considerably add to your baseline cost of developing a SaaS platform. However, you need to also factor in potential long-term savings from reduced operational expenses and improved user engagement that can justify the initial investment.
How Brights can help you in SaaS app development
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Understanding SaaS development costs is one thing. Controlling them while building a product that actually works is another. At Brights, we've spent years helping companies navigate this challenge, and we've learned that successful SaaS development is about making strategic decisions that balance quality, speed, and cost.
Strategic cost optimization without compromise
Since we are outsourcing tech partners located in Eastern Europe, our affordable hourly rates may be the first factor that attracts businesses. However, that’s not the only reason our clients save money with us.
We help reduce SaaS development costs through several approaches. First, we prioritize ruthlessly during discovery, helping you identify which features are essential for launch versus what can wait.
Second, we leverage proven technologies and existing solutions where it makes sense, so there's no need to build payment processing and functionality alike from scratch.
Third, we build with scalability in mind, avoiding expensive rebuilds as you grow. Finally, we implement efficient development practices that reduce bugs and rework, keeping your project on time and on budget.
More than outsourcing
The outsourcing landscape has fundamentally shifted. According to Deloitte's Global Outsourcing Survey, only 34% of organizations now cite cost savings as their main reason for SaaS outsourcing, down from 70% four years ago. Instead, 42% prioritize improved access to talent, with service quality, agility, and specialized capabilities taking center stage.
While we do offer competitive rates, what keeps our clients working with us for an average of 3+ years is our collaborative approach. We don't just execute specifications but also challenge assumptions, suggest improvements, and act as an extension of your team. We've built SaaS products across various sectors, bringing cross-industry insights that help you avoid common pitfalls and adopt proven solutions faster.
Our SaaS expertise
At the core of what we do is solving specific problems for real businesses. From content protection to IoT unification, here's how we've helped companies across different industries.
Showcase, content protection platform for digital creators
Working closely with the client, Brights developed a website builder specifically for digital artists who want to publish galleries without social media censorship. The platform integrates IMATAG's digital watermarking technology to protect and track content, with monetization features including subscription tiers and locked content.
Even before the official launch, the platform attracted its first paying customers, with one creator gaining 237 subscribers and 99% converting to paid subscriptions. The watermarking system successfully identified the first cases of leaked photographs, proving the technology works in practice.
Signal Intent, financial calculator builder
The client needed a platform that would let anyone, regardless of technical skill, create, customize, and embed calculators into web pages. We built a solution with over 35 customizable templates, real-time calculation updates, and a complete admin system.
Businesses can modify calculations, styling, and formulas without developer assistance, then integrate calculators into their sites in one click. The result is a unique, self-serve product that runs and updates in real-time.
Caption: Signal Intent, SaaS platform developed by Brights
Nova Assure, IoT management platform
The client came to us with a common IoT challenge: smart devices from different manufacturers that wouldn't work as a unified system. We built a centralized platform that connects diverse IoT devices, processes their data, and presents everything through one customizable dashboard.
The solution includes a web-based management interface, native mobile apps with real-time monitoring, geofencing for transportation management, secure role-based access control, and dynamic reporting capabilities. This eliminated the need for multiple monitoring systems and gave operators a unified command center for all their connected devices.
All these projects share a common thread: clients who needed a team for building a SaaS product within realistic budgets without losing the quality. We achieve this by being honest about what's essential for launch versus what can wait, leveraging proven solutions instead of reinventing the wheel, and building systems that won't require expensive rewrites six months down the line.
Wrapping up
So, how much does it cost to build a SaaS product? As we've explored throughout this guide, the investment ranges from $20,000+ for a focused MVP to $500,000+ for complex enterprise-level platforms. The cost of SaaS development is shaped by factors like feature complexity, team expertise, technology choices, and ongoing maintenance needs. The shift toward value-based outsourcing relationships reflects a mature understanding that successful SaaS development balances budget efficiency with quality, speed, and technical excellence.
If you're planning a SaaS project and want a realistic assessment of what it will take to build, we're happy to help. Brights know how to translate business goals into accurate cost estimates and an efficient SaaS development roadmap. We've spent years developing SaaS products across various industries, including fintech, education, insurance, manufacturing, and e-commerce.
Our SaaS consulting services and development expertise support companies at every stage and focus on finding the right balance between your vision, timeline, and budget. So, if you'd like to discuss your project — reach out without hesitation.
FAQ.
The SaaS development cost is primarily influenced by feature complexity, team composition and location, and project scope. Backend development typically accounts for the largest portion of SaaS application costs, especially for products requiring advanced security, multi-tenancy, or complex integrations.
