How Much Does it Cost to Build a SaaS Platform in 2025

It’s quite easy to create a SaaS platform and turn it into a profitable business if you’re doing it right. However, if the technical side of things seems confusing and you’re struggling to figure out the cost to build a SaaS platform, we’re here to help you.

As long as we have challenges to solve, processes that could be accelerated, and business costs that could be reduced, there’s always room for more SaaS platforms.

In fact, SaaS apps have made up over 70% of companies’ applications in recent years. This allows them to cut operating costs significantly and promotes centralization across all departments and teams.

From enterprises to SMBs, companies of all sizes prefer SaaS platforms to build custom, in-house applications. 

As a forward-thinking business owner, if you plan to build your own SaaS platform and wonder how much it’ll cost you, this blog is all you need. 

Our experts will provide you with a detailed breakdown of SaaS development costs to help you create an actionable product roadmap.

What is a SaaS Platform?

A SaaS (Software as a Service) platform is like having your favorite apps in the cloud instead of installing them on your computer. Think of it as “renting” software rather than buying it outright – you pay a regular fee to use it through your web browser.

Imagine Netflix but for business software. Just like you stream movies without downloading them, SaaS lets you use powerful software tools through the internet. Common examples include:

• Gmail for email
• Slack for team chat
• Zoom for video calls
• Salesforce for customer management
• Microsoft 365 for office work and productivity

Factors Influencing SaaS Development Costs

1. Scope and Features

The scope and features of your SaaS directly impact the cost. Developing a simple SaaS tool with basic functionality takes less time and money than a complex SaaS platform.

Micro SaaS tools with simple features can be built for $10,000 to $45,000. However, larger SaaS platforms with extensive capabilities need bigger teams and robust infrastructure, easily costing over $100,000.

The number and type of features also matter. Common SaaS features like role-based access, dashboards, CRM, etc., are easier to deliver. However, complex features like AI/ML capabilities and predictive analytics will require more specialized skills.

Take an MVP approach and focus on must-have features first. Then, you can add advanced functionality later through phased development.

2. Underlying Technology

The technology stack and frameworks used to build your SaaS influence the effort and expertise needed during development.

For example, developing a web-based SaaS with React or Angular is simpler than creating a highly interactive and responsive mobile app with React Native or Flutter.

The underlying database architecture also impacts cost. Relational databases like MySQL are easier to use than robust NoSQL databases that handle big data applications.

3. Team Experience

The skill and experience level of the engineering team creates a big difference in output. Expert SaaS developers who are well-versed in relevant tech can architect and build highly scalable platforms faster.

They can also anticipate issues and bottlenecks early, optimizing development iterations. Partnering with a specialized SaaS development company is recommended for building cutting-edge products.

Location is also key, as developer salaries and billing rates vary hugely across different regions.

4. User Interface and Design

An intuitive, seamless user interface improves user experience and drives SaaS adoption. Therefore, it’s important to invest in skilled UX/UI designers upfront for visual design, wireframing, prototyping, and testing.

For a highly responsive SaaS platform, budget at least $4,200 to $10,500 solely for well-researched UI/UX design. This additional yet vital investment pays rich dividends via higher customer satisfaction.

5. Third-Party Integrations

Rather than building every part of your SaaS technology stack from scratch, using reliable pre-built components through platform integrations or APIs speeds up development significantly while reducing costs.

Common SaaS integrations include payment gateways like Stripe, messaging APIs like Twilio, mailing services like Mailchimp, and cloud storage like AWS S3. Just ensure robust integration handling.

6. Hosting and Infrastructure

As a cloud-native SaaS business, your hosting, network, storage, and infrastructure costs are recurring and form a sizable portion of operational expenses.

To scale efficiently, using established and specialized SaaS-focused cloud platforms like AWS, Azure, or GCP could be prudent rather than owning hardware. Therefore, you should continuously optimize these expenses.

7. Data Protection

Collecting and securing customer data safely is vital for SaaS companies today. During development, building adequate data security capabilities like role-based access, encryption, backups, access controls, etc., is a must.

Non-compliance can lead to breaches, lawsuits, and loss of trust. Invest in robust security infrastructure and processes right from the start.

8. Ongoing Product Improvement

Releasing your SaaS platform is just the beginning. Proactively improving functionality, introducing new features, and fixing issues quickly are essential for customer retention and growth.

Allocate a substantial budget for ongoing product engineering and maintenance. Agile, iterative development while continually gathering user feedback is advisable here.

9. Marketing Expenses

No matter how amazing your SaaS product is, strong marketing efforts are crucial for attracting and converting customers cost-effectively. Invest heavily in content, digital ads, emails, SEO, social outreach, and PR.

Allocate at least 2-3x your initial development budget annually for diverse SaaS go-to-market strategies. Make sure you fine-tune campaigns according to customer response and interests.

A Detailed Breakdown of SaaS Development Costs in 2025

Basic Development Costs

In 2025, building a basic SaaS product typically costs between $50,000 and $300,000. This wide range exists because each product is different and has unique needs. Think of it like building a house – a small, simple house costs less than a large, fancy one.

Here’s what your basic costs usually include:

• Frontend development (what users see): Around 240 hours of work
• Backend development (how it works): About 560 hours of work
• Testing and launch: About 80 hours of work
• Total development time: Usually around 880 hours, or about 6 months of work.

Development Team Options and Costs

Individual Developers

• Average cost: $60 per hour
• Total cost: Around $52,800 (880 hours × $60)
• Best for: Simple projects with clear requirements

Development Agencies

• Average cost: $90 per hour
• Total cost: Around $80,000
• Best for: Complex projects needing full team support

Design Costs

Good design is crucial for SaaS success. Users expect clean, easy-to-use, and feature-rich software in 2025.

Basic design package: $8,000 – $15,000 includes

• User interface design
• User experience planning
• Screen layouts
• User flow diagrams
• Design system creation

Per-screen design costs

• Simple screens: $250-$500
• Complex screens: $500-$1,000

Running Costs

Server and Hosting

• Starting costs: $30-$50 monthly
• Increases with more users
• Cloud service fees (AWS, Google Cloud, etc.)

External Services

• Payment processing: $100-$500 setup
• Email services: $20-$200 monthly
• Analytics tools: $50-$300 monthly
• Customer support tools: $50-$200 monthly

Maintenance Costs

• Regular updates: $2,000-$5,000 monthly
• Bug fixes
• Security patches
• Performance improvements

Wrapping Up

We hope this detailed cost breakdown for building a SaaS app or platform will help you craft a custom roadmap for your initiatives. 

However, if cost is not the only confusing thing about your SaaS journey and you need a partner to assist you along the way, you can always count on Cubix.

We’re a trusted product development company helping entrepreneurs and business owners like you drive product owners and build SaaS platforms that make lives easier and processes faster.

Contact our representatives, and we’ll see how we can bring your SaaS product vision to life.