Frequently Asked Questions
To calculate the cost of your SaaS app, you need to take into account the main aspects of SaaS development. They include the scope of your project, the functionality you want to implement, development costs, API integration, and TCO (total cost of ownership).
For a highly-scalable SaaS app, it is suggested to include CDN, ELB, multiple web servers, caching, and database clustering in your setup. The costs of AWS hosting vary depending on the network bandwidth and instances used. Thus, it may cost you $200-800 per month to host your SaaS application with AWS.
To calculate the payback period for your SaaS app, your first step will be to measure the CAC (customer acquisition cost). The next step will be to define the MRR (monthly recurring revenue) and ACS (average cost of service). Then, use the following formula: CAC payback period = CAC / (MRR – ACS).
The costs of creating a SaaS app from scratch and migrating an existing product to SaaS differ vastly. Also, there is no magic formula for the costs of SaaS development. It largely depends on the project scope, the functionality, your development provider choice, and also the total cost of ownership.
The cost of building a SaaS platform highly depends on the functionality you need to implement. Thus, there is no magic formula for every SaaS app. However, you can calculate the sum of the main aspects of SaaS development. These include project scope, functionality, development, and TCO.