The verdict in three sentences
In 2026, SaaS at 15-80 EUR/user/month costs 25,000-60,000 EUR over 3 years for 30 users, while a custom application (45,000-90,000 EUR) amortises with no recurring licence. SaaS wins when your process is standard and you want to start fast; custom wins when your processes are differentiating or your user count is high. The typical break-even sits between 24 and 40 months.
3-year TCO: SaaS vs custom
Total cost of ownership (TCO) includes licences, development, maintenance and migration. Here is a comparison for 30 users over 3 years.
| Item | Off-the-shelf SaaS | Custom build |
|---|---|---|
| Upfront cost | 0-5,000 EUR (setup) | 45,000-90,000 EUR |
| Licences 3 yrs (30 users) | 25,000-60,000 EUR | 0 EUR |
| Hosting 3 yrs | included | 3,000-9,000 EUR |
| Maintenance 3 yrs | included | 16,000-40,000 EUR |
| Customisation | limited | included |
| 3-year TCO | 25,000-65,000 EUR | 64,000-140,000 EUR |
Over 5-7 years the curve often flips toward custom because the SaaS licence keeps running.
Which criterion tips the balance
The choice is not only about price: it depends on process specificity and dependency risk.
| Criterion | Choose SaaS | Choose custom |
|---|---|---|
| Process | Standard | Differentiating / core business |
| User count | Low to medium | High (licences balloon) |
| Time to market | Immediate | 3-4 months |
| Specific integrations | Few / native | Many / bespoke |
| Lock-in risk | Accepted | To avoid (data/IP) |
| Usage horizon | < 3 years | > 4 years |
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Mini case study
Thomas, head of a services SME in Montpellier (35 users), compares a SaaS at 45 EUR/user/month with a custom build at 62,000 EUR. SaaS is 35 x 45 x 36 = 56,700 EUR over 3 years, excluding price hikes. Custom comes to 62,000 EUR + ~28,000 EUR maintenance = ~90,000 EUR over 3 years, but ~34,000 EUR in years 4-6 (maintenance only) versus ~57,000 EUR of SaaS licences over the same period. The tipping point lands around month 38: beyond it, custom becomes cheaper, especially as his billing processes are too specific for SaaS.
FAQ
Is SaaS always cheaper upfront? Yes, the upfront cost is near zero, but the licence runs indefinitely. Over a long horizon or with many users, the cumulative total often exceeds a custom build.
When does custom become profitable? Usually between 24 and 40 months depending on user count and the SaaS price avoided. Above 30-40 users, the maths tips quickly toward custom.
Can I go hybrid? Yes: SaaS for standard functions (accounting, email) and custom for the differentiating core. It is often the best cost/value ratio in 2026.
What is the real SaaS risk? Lock-in: price hikes, data dependency and customisation limits. Check export and reversibility terms before committing.
Is custom riskier to deliver? It is if the spec is vague; with a frozen scope and clear acceptance, risk is controlled. SaaS removes delivery risk but not process-fit risk.
Let's scope your project. Give us your user count, the SaaS considered and your specific processes, and we compute your 3-year TCO and tipping point. 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.
