Learn How Much SaaS Development Costs

• A regular SaaS app that supports one main workflow (e.g., a telemedicine app, a general ledger system) costs $150,000–$300,000.
• AI-driven automation, the need to process millions of transactions in real time, or blockchain integration can push SaaS costs to $500,000–$2M+.

It's important to note that each additional feature and user role significantly increases complexity with an exponential, and not linear, effect.

For a detailed breakdown of software development costs by stages, refer to this guide by ScienceSoft’s PM team.

• Web vs. mobile apps: while initial development costs seem comparable, web apps typically have lower maintenance costs, whereas mobile apps require frequent OS updates and compliance checks.
• Enterprise platforms require additional security audits, performance testing, and scalability considerations, which adds to the budget.
• The number of tenants: in a single-tenant SaaS, each client has a dedicated database and instance, which increases hosting costs. In a multi-tenant SaaS, multiple clients share the same infrastructure, reducing hosting costs but necessitating a more complex architecture and stricter data isolation mechanisms.
• Tenant customization: unique configurations, permissions, or branding per tenant add extra development complexity.
• Regulatory compliance: meeting standards like PCI DSS, HIPAA, GDPR, and GLBA incurs extra costs.
• Data storage and processing needs: large-scale data handling and real-time processing significantly increase cloud and infrastructure costs.
• Disaster recovery and failover mechanisms: high requirements for app availability drive up the costs for redundant servers and failover solutions.
• Subscription management and billing complexity: implementing tiered pricing, usage-based billing, or custom enterprise agreements expands the development scope and requires specialized integrations.

• In-house development means higher costs due to employee salaries, benefits, and infrastructure, but provides more control.
• Outsourced development is more cost-effective, but success depends on choosing the right vendor and defining clear deliverables.

Hidden truth: The biggest stumbling block of outsourcing is not the code quality — it’s misaligned expectations, poor documentation, and inefficient project management. Outsourced developers can be highly skilled, but without mature project management that’s focused on reaching business goals rather than solely hitting Scrum milestones, there’s no guarantee of success. Learn more about mature PM practices here.

Nearshore and offshore destinations offer 2–3x lower talent rates compared to the US:

• North America — $119–$209 per hour (high expertise and familiar culture but premium pricing).
• Central and Eastern Europe — $47–$82 per hour (a balance between quality and cost, with the region’s strong engineering talent and a solid outsourcing track record).
• Latin America — $53–$82 per hour (overlapping time zones and a growing tech talent pool).
• South Asia — $35–$53 per hour, Southeast Asia — $27–$45 per hour (lowest rates, but quality varies and may require additional investment in project oversight).

Hidden truth: The cost per hour is misleading — what matters is the cost per delivered feature. A $20/hour developer taking 3x longer than a $50/hour developer doesn’t save you money.