Who this article is for (and who should skip it)
This piece is aimed at founders who’ve moved past the napkin-sketch phase. You’ve validated your idea through customer conversations, early traction, or even a waitlist. You have a real budget—maybe from bootstrapping or seed funding—and you’re serious about building a SaaS product that solves a meaningful problem for paying users. If you’re non-technical but understand that software isn’t just code, and you’re worried about pouring money into the wrong team or scope, this is for you.
On the flip side, if you’re still brainstorming ideas without any validation, treating this as a hobby project, or hunting for a “₹5L MVP” that magically launches overnight, skip ahead. This isn’t a tutorial on no-code tools or a guide for side hustles. We’re talking about building something substantial, where decisions today affect your runway and growth tomorrow. If that doesn’t sound like you, no hard feelings—plenty of other resources out there for the early stages.
Why SaaS cost estimates are almost always wrong
You’ve probably seen those blog posts or agency sites throwing out ranges like “₹10L to ₹50L for an MVP.” They sound straightforward, but they’re often misleading at best and harmful at worst. The truth is, most estimates are wrong because they treat SaaS development like buying a car—pick a model, pay the sticker price. But software isn’t a commodity; it’s a custom build shaped by your specific needs, risks, and choices.
Agencies underquote to win the deal, focusing on the shiny upfront number while burying extras in fine print. They’ll quote for the “core features” but gloss over integration work, testing, or the inevitable changes once users get involved. Founders, especially non-technical ones, underestimate too—they focus on the coding part but forget that a viable SaaS involves design, security, data handling, and ongoing tweaks. Non-code costs like legal reviews for compliance or marketing setup to acquire those first users can easily add 30-50% to the bill.
I’ve seen this play out repeatedly: a founder gets excited by a low-ball quote, signs on, and six months later, they’re over budget with a product that’s half-baked. It’s uncomfortable to hear, but accepting this early saves you from bigger headaches. Costs aren’t fixed; they’re a reflection of tradeoffs. Get comfortable with that, and you’ll make better decisions.
The 5 cost drivers that actually matter
Forget the hype around “agile” or “scalable”—let’s talk about what really moves the needle on your bill. These aren’t just line items; they’re choices that ripple through your project.
Product complexity (not feature count)
It’s not about how many buttons or screens you have; it’s about how intertwined everything is. A simple tool for tracking internal expenses might seem basic, but if it needs to pull data from multiple accounting systems, handle real-time updates, and ensure data privacy across borders, complexity spikes. Think of it like building a house: a one-room cabin is cheap, but adding plumbing that connects to city lines changes everything.
Founders often miscount this by listing features without considering dependencies. A payment gateway isn’t just “add Stripe”—it’s handling failed transactions, refunds, and fraud detection. Higher complexity means more testing and iteration, pushing costs up by 2-3x compared to straightforward builds.
Quality expectations (internal vs customer-facing)
Are you building something for your team to use quietly, or a polished product that delights paying customers? Internal tools can cut corners on user experience—clunky interfaces are fine if they get the job done. But customer-facing SaaS demands intuitive design, accessibility, and reliability to reduce churn.
This driver is about longevity. Skimp on quality early, and you’ll pay later in fixes or lost users. Expect to allocate 20-40% of your budget here if you’re aiming for something users love, not just tolerate.
Speed vs sustainability
Rushing to launch might save money short-term, but it often leads to shortcuts that bite back. A team pushing 60-hour weeks can deliver faster, but code quality suffers, leading to bugs and rework. Sustainability means building with clean architecture, documentation, and tests—slower upfront, but cheaper to maintain and scale.
If your market window is tight, speed makes sense, but weigh it against future costs. I’ve advised founders to add 1-2 months to timelines for sustainability; it typically saves 50% on post-launch expenses.
Team composition (freelancers vs agency vs hybrid)
Freelancers might seem cheapest at ₹1,000-3,000/hour, but managing them yourself adds hidden founder time. Agencies offer structure at ₹2,000-5,000/hour per team member, handling project management and quality control. Hybrids—say, an agency for core work and freelancers for specialties—balance cost and reliability.
Location matters too: Indian teams are cost-effective, but if you need domain experts in fintech or healthcare, you might pay more for experience. The key is alignment—pick based on your involvement level, not just rates.
Decision clarity (founder readiness)
This one’s on you. Vague requirements like “make it user-friendly” lead to endless revisions. Clear decisions—defined user flows, prioritized features, and quick feedback—keep things on track.
Non-technical founders struggle here, but preparation pays off. Unclear scopes can inflate costs by 30-50% through scope creep. Get your ducks in a row before starting, and you’ll avoid the “we didn’t think of that” surprises.
Realistic SaaS cost ranges (by scenario)
Here’s where we get specific, but remember: these are ranges based on real projects I’ve seen or advised on in 2026’s market. Costs assume an Indian development team with solid experience—adjust up for international hires. Timelines are for full-time teams of 4-8 people. Use these as starting points, not quotes.
I’ll break it down into buckets with a table for clarity:
| Scenario | Cost Range (₹) | Timeline | What’s Included | What’s NOT Included |
|---|---|---|---|---|
| Simple Internal SaaS | 20L – 50L | 2-4 months | Basic features like user login, data entry, simple reporting. UI/UX design, basic testing, cloud hosting setup. | Advanced integrations (e.g., AI analytics), custom mobile apps, ongoing maintenance, marketing tools. No scalability for high traffic. |
| MVP with Real Users | 50L – 1Cr | 4-6 months | Core functionality tested with 100-500 users, payments if needed, basic analytics. Security basics, responsive design. | Full compliance (e.g., GDPR), advanced features like automation, dedicated support team. Assumes no major pivots mid-project. |
| Revenue-Generating SaaS | 1Cr – 2Cr | 6-9 months | Multi-user roles, integrations with tools like CRM or email, A/B testing, initial scaling prep. Full QA, performance optimization. | Enterprise-level security audits, custom AI/ML, international localization. Doesn’t cover marketing or user acquisition costs. |
| Scale-Ready SaaS | 2Cr+ | 9-12+ months | Everything above plus high-availability architecture, advanced analytics, API for partnerships. Stress testing for 10k+ users. | Ongoing operations team, major expansions post-launch, legal for patents. Budget for iterations based on user data. |
These assume a balanced approach—no extreme speed or luxury features. For example, a simple internal tool might track team expenses with Google Sheets integration; an MVP could be a booking system for freelancers with Stripe payments. What’s not included is crucial—things like app store fees (₹1-2L/year) or third-party APIs (₹50k-2L) add up fast. Always factor in 10-20% buffer for surprises.
The hidden costs founders don’t budget for
Even with solid estimates, sneaky expenses creep in. These aren’t “gotchas” from shady teams; they’re patterns from real builds.
First, rework from bad early decisions. Change your mind on a key feature midway? That’s not free—it could add 20-40% to the bill as teams rip out and rebuild code. I’ve seen founders skip proper planning and pay double.
Technical debt is another: Quick hacks to hit deadlines work now but slow future updates. Fixing it later might cost as much as the original build. Think of it as interest on a loan you didn’t know you took.
Then there’s your time as founder. Non-technical folks especially—reviewing designs, giving feedback, handling vendors—it’s easily 10-20 hours/week. If your hourly value is ₹5,000 (common for seed-stage), that’s ₹4-8L over six months, opportunity cost included.
Vendor switching hurts too. Start with a cheap host or tool, then outgrow it? Migration isn’t plug-and-play; expect ₹5-20L and downtime risks.
Finally, scaling pain. Your MVP handles 100 users fine, but at 1,000, servers crash. Proactive scaling (like database optimization) isn’t cheap—budget ₹10-50L early or pay more in emergencies.
Spot these patterns, and you’ll protect your runway.
When “cheap” SaaS development becomes expensive
Going low-cost isn’t always wrong, but it often backfires for serious products. Cheap teams—freelancers at rock-bottom rates or offshore mills—optimize for speed and volume, not your outcomes. They deliver code that works on demo day but crumbles under real use.
Long-term? You end up with a product that’s hard to update, insecure, or unscalable. One founder I know saved ₹20L upfront but spent ₹50L fixing bugs and lost months of revenue from downtime. Consequences include higher churn, bad reviews, and even legal issues if data breaches occur.
That said, cheap makes sense in rare cases: prototyping a throwaway idea or adding a minor feature to an existing app. If your product’s lifespan is under a year and low stakes, go for it. But for revenue-generating SaaS, cheap feels elitist to avoid only because it’s pragmatic—quality compounds over time.
How to estimate your SaaS cost more accurately
Don’t jump into quotes blind. Use this checklist to sharpen your thinking:
1. Define your must-haves vs nice-to-haves. List 5-10 core features with user stories (e.g., “As a manager, I can approve expenses to avoid delays”).
2. Map dependencies. What external systems (APIs, databases) are needed? Estimate integration time.
3. Assess your readiness. Do you have wireframes, user personas, or a prototype? If not, add time for discovery.
4. Calculate team fit. How hands-on are you? Need project management included?
5. Budget for post-launch. Allocate 20% of dev cost for first-year maintenance.
Before asking for quotes, answer: What’s your timeline pressure? User scale goal? Revenue model? These frame realistic numbers without a full calculator—get those from pros after.
Our honest advice before you spend ₹30L+
Look, building SaaS isn’t about finding the cheapest path; it’s about making decisions that don’t haunt you later. If you’re eyeing ₹30L+ spend, prioritize clarity over haste. Rush into a team without aligning on tradeoffs, and you’ll burn cash on fixes. Instead, focus on sustainability—build for where you want to be in 12 months, not just launch day.
Be opinionated about your vision but flexible on how it’s built. Non-technical founders: partner with teams who explain choices in plain terms, not jargon. And remember, the real cost isn’t just money—it’s the opportunity if things go wrong. We’ve seen too many solid ideas fail from poor execution. Take the time to vet properly; it’s the best insurance.
Get a realistic SaaS cost breakdown
If you’re planning to spend serious money on SaaS development, we’ll review your idea, scope, and constraints and give you a realistic cost and risk assessment – before you commit.