The cost of building a SaaS product: Step by Step Expenses Calculation 

People fancy the word “SaaS” a lot, and there is a reason behind that: money. What you get is a consistent revenue stream that you can utilize to build an “empire”, or at least that’s what you are supposed to do. But how much does it cost to build a SaaS product?

This is an interesting question that we are about to answer in this article, and you’re about to see if the cost of building a SaaS product will be worth your attention.

What is SaaS?

​Software-as-a-Service (SaaS) is a scalable model of delivering consumer-facing software over the internet. It provides businesses with agility since it costs less, allows faster delivery times by using pre-built solutions, and allows for shorter delivery times within its ecosystem by providing easy integration options.

In addition to those benefits, SaaS applications also offer the added benefit of being cloud-based. This allows companies that opt for SaaS solutions to not worry about much in terms of maintenance as every element of their product is driven off a centralized network which means they are continually updated and always safeguarded.

The cost to build a SaaS product – crucial factors to consider

There are many factors that affect the cost to develop SaaS software. Before you get started, you will definitely need to see your SaaS app cost to make; otherwise, you might well forget about profits.

Factor #1: Your product features

Map out the core requirements of your product and the components you wish to include. Complex app features will need more time and money as compared to simple app features. You can cut costs by cutting back on complex features in your app, provided that you don’t lose features that are necessary for a valuable or quality experience.

Typically, simpler UIs and less complex solutions are cheaper to develop. A small example of SaaS product development costs will be a platform with 10 basic features plus 5 complex ones, compared to the same platform with 15 complex features. The latter might cost twice as much, even though it offers the same amount of goodies.

Factor #2: License costs

Businesses need to consider a variety of factors when deciding whether to release a mobile app. Legal obstacles can create delays, which not only take up time and money but — perhaps more importantly — make companies seem unprofessional. But licenses can also be painful. You might forget about patents, and this might be a huge roadblock, as you may end up paying ludicrous money without having an option.

Factor #3: Your development team

Even if you don’t have a team of developers on your payroll, you still have to pay for their time. The fewer the developers involved in your project, the more prone it is to errors and delays — but larger teams tend to come with bigger price tags as well.

As a business owner, you need to make sure that any developer you bring in can actually do the job well — after all, not only will large teams translate into higher cost estimates, but they also might drag the entire process down.

Factor #4: Continuos support

Most businesses don’t move their workloads to the cloud without first checking their budgets. While cloud computing benefits are plenty, the proper SaaS application can be an expensive investment — both in time and money. No one can predict how much you will pay for extensive development support or for security updates, and especially for marketing costs, as costs may rise drastically in no time.

Factor #5: The unpredictable and ever-changing market

The unpredictable nature of the market is often one of the most forgotten factors when it comes to determining the price of SaaS development. This can have enormous implications for businesses, as market changes can suddenly make a project unviable or significantly increase the cost.

Summary

You cannot calculate the precise cost to build a SaaS product, but with some good measurements, you can help yourself a lot. With careful planning and execution, you can reduce the cost of building a SaaS product. And while the cost to craft a SaaS product is a variable, there is always a way to predict the outcome.