Cost to Build a SaaS in 2026: The Honest $5k-$30k Guide

"How much will it cost to build my SaaS app?"

It's the first question every founder asks. And the answer you get is usually frustrating: "It depends."

But that's not helpful when you're trying to budget, raise money, or decide if you can even afford to build your idea.

After 20+ years building SaaS products for founders, I can give you real numbers. Not vague ranges—actual costs based on dozens of projects I've built from $0 to $100K+ MRR.

This guide breaks down exactly what you'll pay to build a SaaS in 2026, what affects the cost, and where you can save money without compromising quality.

Quick Answer (The Numbers)

Here's what SaaS development actually costs in 2026:

Discovery Sprint (Optional but Recommended)

• Cost: $1,500-$2,500
• Timeline: 1-2 weeks
• What you get: Validated specifications, wireframes, accurate cost estimate

MVP Development

• Validation MVP: $5,000-$10,000 (4-6 weeks)
• Growth-Ready Product: $10,000-$15,000 (6-8 weeks)
• Platform Build: $15,000-$30,000 (12-20 weeks)

Post-Launch (Ongoing)

• Maintenance & improvements: $2,500-$5,000/month
• Scales with your growth and feature needs

Total first-year investment: $20,000-$60,000+ depending on complexity and growth rate.

Now let's break down exactly where this money goes.

What Affects SaaS Development Cost

Not all SaaS apps cost the same. Here are the major factors:

1. Number of Features

Validation MVP (10-15 features): $5K-$10K

• User authentication
• One core workflow
• Basic settings
• Simple dashboard

Growth-Ready Product (20-30 features): $10K-$15K

• Everything above, plus:
• Payment integration (Stripe)
• Multiple user roles
• Email notifications
• Basic integrations
• Production-ready architecture

Platform Build (40+ features): $15K-$30K

• Everything above, plus:
• Real-time features
• Advanced permissions
• Multiple integrations
• Custom workflows
• Admin panel

Pro tip: Most founders try to build too much. Your MVP should have 20% of your eventual features, not 80%.

2. User Complexity

Single User Type: Add $0

• Everyone has same permissions
• One dashboard, one workflow

Multiple User Types: Add $5K-$10K

• Admin vs. user roles
• Different permissions
• Separate dashboards
• Different workflows per role

Multi-Tenant/Team Features: Add $10K-$20K

• Organizations or workspaces
• Team invitations
• Per-seat billing
• Complex permissions

3. Design Complexity

Template-Based Design: $0-$2K

• Use existing UI component library
• Functional but generic look
• Fast to build

Custom Design (Basic): $3K-$8K

• Custom branded interface
• Professional but straightforward
• Most MVPs

Custom Design (Advanced): $10K-$25K

• Fully custom UI
• Complex interactions
• Animations, illustrations
• Usually overkill for MVP

My recommendation: Start with custom basic design. Save the fancy stuff for v2.

4. Integrations

Each Third-Party Integration: Add $1K-$5K

• Simple (Stripe, Mailchimp): $1K-$2K
• Medium (Salesforce, QuickBooks): $2K-$4K
• Complex (Custom APIs, legacy systems): $5K+

Common integrations:

• Stripe payments: $1,500
• Email (SendGrid, Mailgun): $1,000
• Auth0/social login: $2,000
• Zapier: $1,500-$3,000
• Calendar (Google, Office365): $2,000-$3,000

5. Mobile Apps

Web-Only: Baseline cost

Responsive Web (Mobile-Friendly): Add $0

• Included in modern development
• Works on phones via browser

Native Mobile Apps: Add $15K-$30K per platform

• iOS: $15K-$25K
• Android: $15K-$25K

My recommendation: Start web-only. Most B2B SaaS doesn't need native apps.

6. Compliance Requirements

Standard Security: Included

HIPAA Compliance: Add $10K-$20K

• Additional security measures
• Audit logging
• Encrypted data handling
• Business Associate Agreements

SOC 2 Preparation: Add $15K-$30K

• Security controls
• Documentation
• Audit preparation

GDPR Compliance: Add $3K-$8K

• Privacy controls
• Data export features
• Cookie consent
• Privacy policy implementation

Real-World Examples: What You Get For Your Money

Let me show you actual projects and what they cost.

Example 1: Validation MVP – Task Management Tool

Budget: $8,000 Timeline: 5 weeks

Features:

• User sign-up and authentication
• Create projects and tasks
• Assign tasks to team members
• Mark tasks complete
• Basic dashboard

What was cut to hit budget:

• Team invitations (added in month 2)
• Stripe billing (added when ready to charge)
• File attachments (added later)
• Mobile apps (still web-only after 2 years)

Result: Launched in 5 weeks, got first 10 beta users in week 1, validated product-market fit before investing more.

Example 2: Growth-Ready Product – CRM

Budget: $14,000 Timeline: 7 weeks

Features:

• Contact management
• Deal pipeline
• Email integration
• Task management
• Reports and dashboards
• Team permissions
• Stripe subscription billing

What was cut:

• Mobile app
• Advanced automation (added later)
• Custom reporting (started with templates)
• API access (added in v2)

Result: Launched to beta users at week 6, public launch at week 8, reached $15K MRR within 4 months.

Example 3: Platform Build – Healthcare Scheduling

Budget: $28,000 Timeline: 14 weeks

Features:

• Multi-tenant architecture (clinics)
• Patient records with HIPAA compliance
• Appointment scheduling
• Provider/staff/patient roles
• Email notifications
• Detailed audit logs
• Basic reporting

What was cut:

• Billing and insurance integration (added later)
• Telemedicine video (planned for v2)
• Integration with every EHR system (started with top 2)
• Mobile apps (web-first)

Result: Launched to pilot clinic, signed 3 more clinics in first 2 months, expanded features based on real user feedback.

More Real Project Costs: By Industry & Complexity

Here are additional anonymized projects I've built or quoted recently. These show what you can achieve at different budget levels.

B2B SaaS Projects

Project 4: Lead Generation Platform

• Budget: $12,000 | Timeline: 6 weeks
• Features: Landing page builder, form builder, email capture, CRM integration, analytics dashboard
• Complexity: Growth-Ready (workflow automation, third-party integrations)
• Lesson learned: Start with one CRM integration, add more based on customer demand

Project 5: Proposal & Contract Software

• Budget: $18,000 | Timeline: 10 weeks
• Features: Template library, drag-drop editor, e-signature, client approval workflow, PDF generation, Stripe billing
• Complexity: Platform Build (document generation, legally binding signatures)
• Lesson learned: E-signature compliance varies by state—scope this early

Project 6: Team Communication Platform

• Budget: $14,000 | Timeline: 7 weeks
• Features: Real-time messaging, channels, file sharing, notifications, search, user presence
• Complexity: Growth-Ready (WebSockets, real-time infrastructure)
• Lesson learned: Use managed WebSocket services (Pusher, Ably) to reduce infrastructure complexity

Marketplace & E-Commerce

Project 7: Service Marketplace (Two-Sided)

• Budget: $25,000 | Timeline: 14 weeks
• Features: Provider/buyer accounts, service listings, search/filters, messaging, booking calendar, Stripe Connect, reviews, admin panel
• Complexity: Platform Build (two-sided marketplace, payment splits)
• Lesson learned: Marketplace payments (Stripe Connect) add complexity—budget extra time

Project 8: Subscription Box Platform

• Budget: $13,000 | Timeline: 8 weeks
• Features: Product catalog, subscription management, recurring billing, shipping calculations, customer portal
• Complexity: Growth-Ready (subscription logic, fulfillment)
• Lesson learned: Use ShipStation or similar for shipping calculations rather than building custom

Vertical SaaS

Project 9: Restaurant Reservation System

• Budget: $11,000 | Timeline: 6 weeks
• Features: Table management, reservation booking, waitlist, SMS reminders, customer database, reporting
• Complexity: Growth-Ready (real-time table status, scheduling logic)
• Lesson learned: SMS costs scale with usage—factor Twilio costs into pricing model

Project 10: Fitness Studio Booking Platform

• Budget: $14,000 | Timeline: 8 weeks
• Features: Class schedules, instructor management, booking/waitlist, member check-in, recurring memberships, mobile-responsive
• Complexity: Growth-Ready (capacity management, recurring billing)
• Lesson learned: Push notifications require PWA setup—decide early if needed

Data & Analytics Tools

Project 11: Marketing Analytics Dashboard

• Budget: $18,000 | Timeline: 10 weeks
• Features: Multi-source data integrations (Google Ads, Facebook, Analytics), custom dashboards, automated reports
• Complexity: Platform Build (data pipeline, multiple APIs)
• Lesson learned: API rate limits require caching strategy—plan for this upfront

Project 12: Inventory Management System

• Budget: $12,000 | Timeline: 7 weeks
• Features: Product catalog, stock tracking, low-stock alerts, purchase orders, supplier management
• Complexity: Growth-Ready (integrations, real-time stock sync)
• Lesson learned: Barcode scanning works well as PWA—no native app needed

Internal Tools & Automation

Project 13: Custom CRM for Niche Industry

• Budget: $15,000 | Timeline: 9 weeks
• Features: Contact management, custom fields, pipeline tracking, email integration, task automation, reporting
• Complexity: Growth-Ready to Platform Build (workflow customization)
• Lesson learned: Industry-specific compliance requirements—scope these during Discovery Sprint

Project 14: HR Onboarding Portal

• Budget: $10,000 | Timeline: 6 weeks
• Features: Document management, task checklists, e-signatures, employee profiles, notifications, admin dashboard
• Complexity: Growth-Ready (document security, multi-step workflows)
• Lesson learned: PII compliance (GDPR/CCPA) requires encryption planning early

Timeline Estimates by Feature Complexity

Here's how long common features actually take to build (based on 160 hours/month, ~$20K-$24K/month at $125-$150/hr senior developer rate):

Authentication & User Management

• Basic email/password auth: 8-12 hours ($1,000-$1,800)
• Social login (Google, LinkedIn): +6-8 hours per provider ($750-$1,200 each)
• Password reset flow: 3-5 hours ($375-$750)
• Two-factor authentication: 8-12 hours ($1,000-$1,800)
• Role-based permissions (3-5 roles): 16-24 hours ($2,000-$3,600)
• Multi-tenant organizations: 24-40 hours ($3,000-$6,000)

Payment Processing

• Basic Stripe integration (one-time): 12-16 hours ($1,500-$2,400)
• Subscription billing (Stripe): 20-32 hours ($2,500-$4,800)
• Stripe Connect (marketplace splits): 32-48 hours ($4,000-$7,200)
• Invoice generation & management: 16-24 hours ($2,000-$3,600)
• Coupon/discount codes: 8-12 hours ($1,000-$1,800)

Core Features

• Dashboard with charts/metrics: 16-24 hours ($2,000-$3,600)
• Search functionality (basic): 12-16 hours ($1,500-$2,400)
• Advanced search (filters, facets): 24-40 hours ($3,000-$6,000)
• File upload (basic, S3): 8-12 hours ($1,000-$1,800)
• File upload (with preview, processing): 16-24 hours ($2,000-$3,600)
• PDF generation: 12-20 hours ($1,500-$3,000)
• Email notifications (transactional): 8-12 hours ($1,000-$1,800)
• In-app notifications: 16-24 hours ($2,000-$3,600)

Real-Time Features

• Real-time messaging (WebSockets): 32-48 hours ($4,000-$7,200)
• Live collaboration (like Google Docs): 80-120 hours ($10,000-$18,000)
• Presence indicators (who's online): 12-16 hours ($1,500-$2,400)

Integrations

• Simple REST API integration: 8-16 hours ($1,000-$2,400)
• OAuth API integration: 16-24 hours ($2,000-$3,600)
• Webhook setup & processing: 12-20 hours ($1,500-$3,000)
• Zapier integration: 16-24 hours ($2,000-$3,600)
• Calendar sync (Google/Outlook): 24-32 hours ($3,000-$4,800)

Admin & Management

• Admin panel (user management): 24-40 hours ($3,000-$6,000)
• Reporting & analytics: 32-48 hours ($4,000-$7,200)
• Audit logs: 16-24 hours ($2,000-$3,600)
• Settings/configuration UI: 12-20 hours ($1,500-$3,000)

Pro tip: Add 20-30% buffer to these estimates for testing, bug fixes, and edge cases. A "16-hour feature" usually takes 20-24 hours in reality.

2026 Developer Market Rates: What's Actually Changed

Market rates have shifted significantly in 2026. Here's the current landscape:

Senior Developer Rates (6+ years experience)

US/Canada - High Cost Areas (SF, NYC, Seattle, Toronto)

• Freelance: $150-$200/hour
• Contract: $175-$250/hour
• Agency: $200-$300/hour (but junior devs often doing the work)

US/Canada - Mid-Tier Cities (Austin, Denver, Portland, Vancouver)

• Freelance: $125-$175/hour
• Contract: $150-$200/hour
• Agency: $175-$250/hour

US Remote / Lower Cost Areas

• Freelance: $100-$150/hour
• Contract: $125-$175/hour

Western Europe (UK, Germany, Netherlands, France)

• Freelance: €90-€150/hour ($95-$160/hour)
• Contract: €110-€180/hour ($115-$190/hour)

Eastern Europe (Poland, Romania, Ukraine)

• Freelance: $60-$100/hour
• Contract: $75-$125/hour

Latin America (Argentina, Mexico, Brazil)

• Freelance: $50-$90/hour
• Contract: $60-$110/hour

Asia (India, Philippines, Vietnam)

• Freelance: $40-$80/hour
• Contract: $50-$100/hour

What Changed in 2026?

1. Remote-first normalized rates: Geographic arbitrage is shrinking. Senior US remote devs charge similar to their city-based peers now.

2. AI tools increased productivity: Devs using AI coding assistants (Cursor, GitHub Copilot, Claude Code) are 30-40% faster, which should reduce project costs—but many devs kept rates the same and just deliver faster.

3. Specialization premium: Niche expertise (AI/ML, real-time, compliance, marketplace architecture) now commands 20-30% premium over general full-stack rates.

4. Overseas quality improved: Top-tier Eastern European and Latin American developers now rival US quality at 60-70% the cost, but finding them requires extensive vetting.

What This Means for Your Budget

For a $30K MVP project:

• Senior US developer ($150/hr): 200 hours = ~5 weeks (fast, experienced)
• Mid-level US developer ($100/hr): 300 hours = ~7.5 weeks (slower, needs more direction)
• Senior overseas developer ($75/hr): 400 hours = ~10 weeks (communication overhead, time zones)

My 2026 recommendation: Pay for senior expertise. The 30-40% time savings outweighs the 30-50% higher rate. A $30K project done in 5 weeks is better than a $20K project done in 12 weeks.

Interactive SaaS Development Cost Calculator

Want to know exactly what YOUR SaaS will cost to build? Use our interactive calculator below to get instant pricing based on your specific features.

How to Use the SaaS Cost Calculator

The calculator below helps you estimate development costs by selecting the features you need:

Step 1: Select Your Features

• Browse through Core Features, Advanced Features, Integrations, and Compliance options
• Check the boxes for features your SaaS needs
• Each feature shows estimated development hours

Step 2: Review Your Estimate

• The calculator shows your cost range (low and high estimates)
• See projected timeline in weeks
• Understand team size needed

Step 3: Get Detailed Quote

• Enter your email to receive a comprehensive breakdown
• We'll send you a detailed PDF with specific recommendations
• No obligation - just helpful information

What the calculator includes:

• ✅ Real development hours from 50+ projects
• ✅ 2026 market rates ($140/hour average)
• ✅ Timeline estimates for full-time development
• ✅ Feature complexity multipliers
• ✅ Hidden infrastructure costs

How Much Does It Cost to Build a SaaS Platform?

Based on the calculator above and our 50+ client projects, here's what a SaaS platform typically costs to build in 2026:

Validation MVP (Core features only):

• User authentication, dashboard, basic CRUD operations
• Cost: $5,000-$10,000
• Timeline: 4-6 weeks
• Good for: Testing product-market fit, beta testing

Growth-Ready Product (Core + production features):

• Everything above + Stripe payments, user roles, notifications, security
• Cost: $10,000-$15,000
• Timeline: 6-8 weeks
• Good for: B2B tools, productivity apps, workflow automation

Platform Build (Full-featured):

• Everything above + real-time features, API access, integrations, analytics
• Cost: $15,000-$30,000
• Timeline: 12-20 weeks
• Good for: Enterprise software, marketplaces, complex workflows

The difference between "platform" and "product": A SaaS platform typically includes multi-tenancy (multiple customers sharing infrastructure), robust admin controls, and API access. A simpler SaaS product might serve one customer or use case.

Cost to Build a SaaS Product vs Platform

Many founders ask: "What's the difference between building a SaaS product vs a platform?"

SaaS Product (Single-purpose application):

• Solves one specific problem
• Single customer type
• Fixed feature set
• Example: Email marketing tool, invoicing app
• Cost: $5,000-$15,000

SaaS Platform (Extensible system):

• Supports multiple use cases
• Multiple customer types or roles
• API for integrations
• Example: CRM, project management system
• Cost: $15,000-$30,000

The 2x cost difference comes from:

• Multi-tenancy architecture (data isolation between customers)
• Role-based access control (RBAC)
• API development and documentation
• Scalability requirements
• Admin dashboard for platform management

The Hidden Costs Most Founders Forget

The development cost is obvious. These other costs catch people by surprise:

1. Hosting & Infrastructure

Small Scale (MVP, fewer than 1,000 users): $50-$200/month

• Vercel, Heroku, or AWS
• Database hosting
• File storage
• Email sending

Medium Scale ($10K-$50K MRR): $200-$1,000/month

• Larger database
• CDN for assets
• Monitoring tools
• Backup systems

Large Scale ($50K+ MRR): $1,000-$5,000+/month

• Dedicated servers or scaled cloud
• Advanced caching
• Multiple regions
• Security monitoring

Pro tip: Start small. You can scale hosting as you grow. Don't over-provision.

2. Third-Party Services

Essential services:

• Email sending (SendGrid): $15-$100/month
• Error monitoring (Sentry): $26-$80/month
• Analytics (if not using Google Analytics): $0-$200/month
• Customer support (Intercom): $74-$500/month
• Payment processing (Stripe): 2.9% + $0.30 per transaction

Total: Plan for $200-$500/month in services once you have customers.

3. Ongoing Development

This is the big one people miss: building the MVP is just the beginning.

After launch, you need:

• Bug fixes
• Performance optimization
• New features based on customer feedback
• Security updates
• Scaling infrastructure

Budget: $2,500-$5,000/month for ongoing development

That's usually 10-20 hours per week of developer time. As you grow and add features, this increases.

4. Marketing & Customer Acquisition

Not technically development cost, but you need to budget for it:

• Landing page & marketing site
• Content marketing
• Paid ads
• Sales tools

Budget: $2,000-$5,000/month minimum to grow

Many founders spend all their money on development and have nothing left for customer acquisition. Big mistake.

Cost to Start a SaaS Company: Total First-Year Budget

Beyond just development, here's what it actually costs to start a SaaS company in 2026:

Pre-Launch Costs (One-Time)

Legal & Formation: $2,000-$5,000

• LLC or C-Corp incorporation: $500-$1,500
• Startup lawyer consultation: $1,500-$3,000
• Terms of service, privacy policy: $500-$1,000
• Trademark filing (optional): $1,000-$2,000

MVP Development: $5,000-$30,000

• See calculator above for your specific estimate
• Discovery sprint (recommended): $1,500-$2,500
• Design & branding: $2,000-$5,000

Initial Marketing Assets: $3,000-$10,000

• Landing page & marketing site
• Email sequences
• Initial content
• Brand assets (logo, colors, fonts)

Tools & Software: $500-$2,000

• Domain name: $10-$50/year
• Design tools (Figma): $144/year
• Project management: $0-$500/year
• Development tools: $0-$1,000/year

Pre-Launch Total: $12,500-$50,000

Post-Launch Costs (Monthly Recurring)

Hosting & Infrastructure: $50-$500/month (scales with growth)

Third-Party Services: $200-$800/month

• Email (SendGrid, Postmark)
• Analytics (Mixpanel, Amplitude)
• Customer support (Intercom)
• Error monitoring (Sentry)
• Payment processing (Stripe fees)

Ongoing Development: $2,500-$5,000/month

• Bug fixes and improvements
• New features based on feedback
• Performance optimization
• 10-20 hours/week of developer time initially

Marketing & Growth: $2,000-$10,000/month

• Content marketing
• Paid advertising
• SEO tools
• Email marketing platform

Post-Launch Monthly: $4,750-$16,300/month

First Year Total SaaS Startup Cost

Lean Approach (bootstrapped, minimal spend):

• Pre-launch: $12,500
• 12 months post-launch: $57,000 ($4,750/mo)
• Total Year 1: ~$70,000

Standard Approach (funded, sustainable growth):

• Pre-launch: $30,000
• 12 months post-launch: $84,000 ($7,000/mo)
• Total Year 1: ~$114,000

Well-Funded Approach (raised seed round):

• Pre-launch: $50,000
• 12 months post-launch: $144,000 ($12,000/mo)
• Total Year 1: ~$194,000

Important: These numbers assume you're not taking a salary. If you need to pay yourself, add $50K-$100K to your Year 1 budget.

What Most Founders Actually Spend

Based on tracking 50+ client projects:

Pre-revenue (Months 0-6): $15K-$40K

• Mostly development
• Minimal marketing
• Essential tools only

Early traction (Months 6-12): $25K-$60K

• Split between development and marketing
• Hiring begins (contractors)
• Increased tool spending

First year median total: $50K-$100K for founders who reach $10K+ MRR

Key insight: Founders who spend less than $25K in year 1 rarely reach significant revenue. Those who spend $50K+ (invested strategically) typically hit $20K+ MRR faster.

Cost to Develop SaaS Software: Development-Only Budget

If you're just asking "How much does it cost to develop SaaS software?" (excluding other startup costs), here's the development-specific breakdown:

Discovery & Planning: $1,500-$2,500

• Requirements gathering
• Wireframes & user flows
• Technical architecture
• Cost estimation

MVP Development: $5,000-$30,000

• Based on complexity (use calculator above)
• Includes backend, frontend, database
• Basic admin dashboard
• Core features only

Quality Assurance: Included

• Manual testing
• Automated test setup
• Bug fixes
• Performance optimization

Deployment & DevOps: Included

• Server setup
• CI/CD pipeline
• Monitoring configuration
• SSL certificates, domains

Development-Only Total: $6,500-$32,500

Most founders spend $10K-$20K on development alone for a solid MVP.

How to Reduce Costs Without Sacrificing Quality

You can build for less without cutting corners. Here's how:

1. Start Smaller Than You Think

Instead of: Building every feature you can imagine Do this: Build the absolute minimum that solves the core problem

Ask: "If I removed this feature, would customers still get value?" If yes, remove it. Build it later after you have paying customers.

Potential savings: $5K-$15K

2. Use Existing Solutions for Non-Core Features

Instead of: Building custom authentication, payment processing, email sending Do this: Use Auth0, Stripe, SendGrid

Yes, there are monthly fees. But the development time saved is massive.

Example:

• Custom payment system: $4K-$6K to build
• Stripe integration: $500 to integrate + $0-$100/month

Potential savings: $3K-$10K

3. Template-Based Design (Initially)

Instead of: Fully custom design from scratch Do this: Use a high-quality component library (Tailwind UI, Material UI, Chakra)

You can always redesign later with revenue. Get to market faster.

Potential savings: $2K-$5K

4. Web-First, Mobile Later

Instead of: Building native iOS and Android apps from day 1 Do this: Build a responsive web app that works great on mobile browsers

Add native apps when customers are asking for them and you have revenue.

Potential savings: $15K-$30K

5. Phased Development

Instead of: Building everything before launch Do this: MVP first, then monthly feature releases

Launch faster, learn from real customers, build what they actually need.

Potential savings: Months of wasted development on features nobody uses

Developer Rates: What You'll Actually Pay

Location and experience level dramatically affect cost:

Hourly Rates by Experience

Junior Developer (0-2 years)

• US: $40-$60/hour
• Europe: $30-$50/hour
• Asia: $20-$40/hour

Mid-Level Developer (3-5 years)

• US: $75-$125/hour
• Europe: $50-$90/hour
• Asia: $30-$60/hour

Senior Developer (6+ years)

• US: $100-$200/hour
• Europe: $75-$150/hour
• Asia: $40-$80/hour

Fixed-Price vs. Hourly

Fixed-Price Project

• Pros: You know total cost upfront, predictable budget
• Cons: Less flexible, change requests cost extra
• Best for: Clear, well-defined MVPs

Hourly/Time & Materials

• Pros: Flexible, can adjust as you learn
• Cons: Budget can grow, requires more management
• Best for: Exploratory work, ongoing development

My recommendation: Fixed-price for MVP, hourly for post-launch improvements.

Agency vs. Freelancer vs. Technical Partner

Development Agency

• Cost: $150-$250/hour (team rate)
• Pros: Full team, can scale quickly
• Cons: Expensive, often junior devs doing the work
• Best for: Large budgets ($100K+)

Freelance Developer

• Cost: $50-$150/hour
• Pros: More affordable, direct communication
• Cons: If they disappear, you're stuck (see my developer left mid-project recovery guide)
• Best for: Simple projects, tight budgets

Technical Partner (like me)

• Cost: $100-$150/hour or fixed-price projects
• Pros: Senior expertise, long-term relationship, understands business
• Cons: More expensive than junior freelancers
• Best for: Founders who want a partner, not just a contractor

Payment Structures That Protect You

Never pay 100% upfront. Here are fair payment structures:

For Fixed-Price Projects

Structure 1: 25/25/25/25

• 25% to start
• 25% at milestone 1 (usually week 3-4)
• 25% at milestone 2 (usually week 6-7)
• 25% at completion

Structure 2: 33/33/33

• 33% to start
• 33% at midpoint
• 33% at completion

Structure 3: 20/30/30/20

• 20% deposit
• 30% at milestone 1
• 30% at milestone 2
• 20% at final delivery

Structure 4: 50/50

• 50% to start
• 50% at completion
• Common for smaller projects ($5K-$15K)
• Simple but provides less protection than milestone-based structures

For Ongoing Work

Monthly Retainer

• Pay monthly for ongoing development
• Usually includes X days or hours per month
• Common for post-launch

Weekly or Bi-Weekly

• Shorter payment cycles
• Good for building trust initially
• More administrative overhead

Budget Planning Template

Here's exactly how to budget for your SaaS:

Year 1 Budget Example ($12K Growth-Ready MVP)

Pre-Development:

• Discovery Sprint: $2,000
• Legal (contracts, ToS): $1,500

Development:

• MVP Build: $12,000
• Months 2-12 (ongoing): $30,000 ($2,500/month × 12)

Infrastructure:

• Hosting (avg): $100/month × 12 = $1,200
• Third-party services: $300/month × 12 = $3,600

Marketing:

• Landing page design: $2,000
• Content/SEO: $1,500/month × 12 = $18,000
• Paid ads: $1,500/month × 6 = $9,000

Total Year 1: $79,300

Revenue needed to break even: Depends on pricing

• At $50/month per customer: 1,586 customer-months (132 customers for full year)
• At $100/month per customer: 793 customer-months (66 customers for full year)

Common Questions

"Can't I just use no-code tools like Bubble and save money?"

You can for simple MVPs, but most SaaS businesses outgrow them quickly. Then you're rebuilding anyway. Better to build custom from the start if you're serious about scaling.

"Why are developers so expensive?"

Good developers are expensive because:

• Years of training and experience
• High demand, limited supply
• They prevent costly mistakes
• They build things that scale
• They maintain code quality

A cheap developer who builds poorly costs more long-term than an expensive one who does it right.

"Can I build it cheaper overseas?"

Maybe, but be careful:

• Communication challenges cost time and money
• Time zone differences slow everything down
• Quality varies wildly
• Less recourse if things go wrong

I've seen plenty of founders pay $5K overseas, get unusable code, then pay $15K to have someone rebuild it properly.

"Should I use revenue-based financing to fund development?"

Pipe, Clearco, and similar services can work if you have some revenue already. But remember:

• You're paying back more than you borrow
• Creates pressure to grow fast
• Better than equity, worse than bootstrapping

Only use if you're confident in quick ROI.

"How much should I budget for year 2?"

Plan for $5K-$10K/month in year 2:

• Ongoing development: $2,500-$5K/month
• Infrastructure (growing): $200-$1K/month
• Services: $300-$800/month
• Marketing: $2K-$4K/month

As revenue grows, so do these costs—but so does your ability to pay for them.

Red Flags: When a Quote Is Too Good (or Bad) to Be True

Too Cheap Warnings:

🚩 Someone quotes $2K for something similar projects cost $10K

• They don't understand the scope
• They'll cut corners
• They'll disappear mid-project (if this happens, follow my 48-hour recovery plan)
• You'll get unusable code

Too Expensive Warnings:

🚩 Someone quotes $50K for a simple MVP

• They're overbuilding
• They're padding the estimate
• They don't understand lean startup principles

Good quotes include:

• ✅ Detailed breakdown by feature/phase
• ✅ Assumptions clearly stated
• ✅ Timeline with milestones
• ✅ What's included and what's not
• ✅ Payment structure
• ✅ Post-launch support terms

Your Action Plan

Step 1: Define Your MVP (This Week) List every feature. Now cut 70% of them. What's left is your real MVP.

Step 2: Get 3 Quotes (Weeks 2-3) Contact 3-5 developers. Share your spec. Get detailed quotes. (See my guide on how to hire a developer when you don't know code for specific questions to ask.)

Step 3: Compare Apples to Apples (Week 4) Make sure quotes include the same features. Adjust for differences.

Step 4: Check References (Week 4) Talk to 2-3 past clients for your top choices.

Step 5: Start Small (Week 5) Do a 1-2 week paid trial project before committing to full build.

Step 6: Budget Realistically If quotes average $12K, budget $15K. Things always cost a bit more than estimated.

What It Actually Costs: The Bottom Line

Validation Budget: $5K-$10K

• Validation MVP
• Web-only
• Clean design
• Core features only

Growth-Ready Budget: $10K-$15K

• Production-ready MVP
• Custom design
• Stripe payments
• Key integrations

Platform Budget: $15K-$30K

• Full-featured platform
• Custom design
• Multiple integrations
• Mobile-friendly web app
• Buffer for changes

Don't start if you have less than $5K. You'll run out of money mid-build and end up with nothing.

Next Steps

Now you know what SaaS development actually costs. No more "it depends"—you have real numbers.

Ready to Get Started?

More Resources

• MVP Developer Cost Guide — Detailed pricing by region and experience level
• Cost to Start a SaaS Company — Full first-year budget breakdown
• Technical Partner for SaaS — How I work with founders

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Frequently Asked Questions

Related Guides

• I Have a SaaS Idea But I'm Not Technical: Complete Action Plan
• How to Hire a Developer When You Don't Know Code
• Developer Left Mid-Project? 48-Hour Recovery Plan