The verdict in three sentences
In 2026, off-the-shelf SaaS costs 15 to 80 EUR/user/month: fast to deploy but rigid and rented for life. Custom development costs 40,000 to 120,000 EUR: it is an owned asset, tailored to your processes, whose cost becomes marginal after amortization. The switch makes sense beyond 30 users or as soon as a structuring specific process is not covered by the standard offering.
The 2026 decision grid
The choice is never purely technical: it is a financial trade-off between recurring spend (OPEX) and amortized investment (CAPEX). Here are the benchmarks.
| Criterion | Off-the-shelf SaaS | Custom |
|---|---|---|
| Upfront cost | 0 - 5,000 EUR | 40,000 - 120,000 EUR |
| Recurring cost | 15 - 80 EUR/user/month | Maintenance 8-15% of build/yr |
| Rollout time | 1 - 6 wks | 3 - 9 months |
| Process fit | Limited | Total |
| Asset ownership | No (rental) | Yes |
| Exit cost | High (lock-in) | Low (owned code) |
The threshold rule: as long as you have few users and a standard need, SaaS wins. The tipping point appears when cumulative annual subscription durably exceeds an amortized custom cost, or when tool rigidity costs you productivity.
The 5-year TCO that changes everything
Comparing sticker prices is misleading. What matters is total cost of ownership over the tool's lifetime. Take a team of 40 users.
| Item | SaaS 45 EUR/user/month | Custom 90,000 EUR |
|---|---|---|
| Year 1 cost | 21,600 EUR + 8,000 setup | 90,000 EUR |
| Year 2 cost | 21,600 EUR | 9,000 EUR (maint.) |
| Year 3 cost | 21,600 EUR | 9,000 EUR |
| Year 4 cost | 21,600 EUR | 9,000 EUR |
| Year 5 cost | 21,600 EUR | 9,000 EUR |
| 5-year TCO | 116,000 EUR | 126,000 EUR |
At 40 users, SaaS stays competitive over 5 years. But at 60 users, SaaS rises to ~170,000 EUR while custom stays stable at ~126,000 EUR: the break-even is crossed. Add the exit cost: leaving a SaaS requires data migration (5,000 to 30,000 EUR), whereas you already own your code.
Mini case study
Claire, finance director of an industrial SME in Berlin (55 staff, 42 tool users), evaluates a production management system. The chosen vertical SaaS costs 52 EUR/user/month i.e. 26,208 EUR/year, plus 12,000 EUR implementation. Over 5 years: 143,000 EUR, without ever owning the tool.
Custom is estimated at 95,000 EUR build + 11,000 EUR/year maintenance, i.e. 139,000 EUR over 5 years. At near-equal budget, Claire picks custom because two specific processes (batch traceability, quality control) are not covered by the SaaS and would force a parallel spreadsheet. She also secures independence: no imposed price hikes, no lock-in.
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FAQ
Above how many users does custom become profitable?
Generally beyond 30 users, or sooner if the SaaS exceeds 60 EUR/user/month. The math depends on the per-seat price: the higher it is, the earlier the tipping point.
Isn't SaaS always cheaper?
Upfront yes, over 5 years no. A 45 EUR/user/month subscription for 60 people reaches 170,000 EUR over 5 years, often above an amortized custom build at 126,000 EUR.
What is the real exit cost of a SaaS?
Between 5,000 and 30,000 EUR for data extraction and migration, not counting internal time. Vendor lock-in is a major hidden cost of the SaaS model.
Can the two approaches be combined?
Yes, often optimal: SaaS for standard functions (payroll, accounting) and custom for the differentiating core business. The challenge is the quality of integrations between the two.
How long to deploy each option?
A SaaS deploys in 1 to 6 weeks, custom in 3 to 9 months. If the need is urgent and standard, SaaS bridges the gap; if it is structural and durable, custom pays off.
Let's scope your project. Give us your user count, your specific processes and the SaaS you are evaluating: we build the costed 5-year TCO comparison. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
