The verdict in three sentences
For a language school with 1,500 learners in Montreal, custom management software costs 12,000 to 30,000 USD in 2026, against 200 to 600 USD a month for a specialised SaaS. Custom development is justified when your instalment plans, in-house placement tests and group organisation do not fit a standard tool. Either way, leaving Excel reduces unpaid fees and frees dozens of administrative hours every month.
SaaS or custom: the 5 year calculation
The first reflex is to compare purchase prices. The right calculation covers 5 years and how well the tool fits your processes. A SaaS deploys quickly but imposes its own payment schedule and group model. Custom software costs more upfront, belongs to you and follows your commercial rules.
| Criterion | Specialised SaaS | Custom software |
|---|---|---|
| Initial cost | 500 to 2,000 USD setup | 12,000 to 30,000 USD |
| Monthly cost | 200 to 600 USD | 150 to 350 USD (hosting and maintenance) |
| Total cost over 5 years | 12,500 to 38,000 USD | 21,000 to 51,000 USD |
| Instalments and reminders | Standard model, limited flexibility | Fitted to your schedules and discounts |
| CEFR placement test | Generic module | Your own test, automatic marking |
| Online payments (Stripe, Moneris) | Depends on vendor | Built in from day one |
| Data ownership | Per contract | You own it |
| Time to go live | 2 to 4 weeks | 3 to 4 months |
Custom software therefore costs more over 5 years in most cases. It pays off when it earns more than a SaaS would: fewer unpaid fees thanks to tailored reminders, better filled groups, or corporate training sales with specific invoicing.
Modules and their price
A school of this size needs seven building blocks. The budget concentrates on group building and payment schedules, the two areas where Excel causes the most errors.
| Module | 2026 cost (USD) | Expected gain |
|---|---|---|
| Online enrolment and placement test | 2,000 to 4,500 | Automatic routing to the right level |
| Group building, room and teacher scheduling | 2,500 to 6,000 | Groups filled at 12 to 15 learners |
| Attendance sheets and tracking | 1,000 to 2,500 | Alerts after 2 consecutive absences |
| Instalment plans, online payment and overdue reminders | 2,500 to 6,500 | Unpaid fees halved (target) |
| Learner portal (schedule, materials, certificates) | 2,000 to 5,000 | Fewer calls to the front desk |
| Management dashboards | 1,000 to 3,000 | Fill rate, revenue, collections |
| Excel data migration and training | 1,000 to 2,500 | History preserved |
| Total | 12,000 to 30,000 |
These amounts are 2026 ballpark figures, before GST and QST. Quebec's Law 25 on personal information requires a privacy officer and a privacy impact assessment when you process learner data, including data on minors.
How the 3 to 4 month project runs
The first month is scoping: level progression rules, types of payment plans (monthly, quarterly, upfront with discount), reminder policy. Months 2 and 3 cover development in increments, with a demo every two weeks for the teaching team and front desk. The last month is dedicated to migration and a pilot term on a single campus or level. Avoid switching mid-session: the September or January intake is the best time.
Mini case study
Nadia runs a 1,500-learner language school in Montreal. Average spend is 450 USD per learner per year, or 675,000 USD in revenue. Unpaid fees reach 8 %, or 54,000 USD. With automatic SMS and email reminders at D-3, D+3 and D+10, she targets 4 %: 27,000 USD recovered a year. Her two front desk staff save 15 hours a week over 46 weeks, valued at 18 USD an hour, or 12,420 USD.
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The estimated annual gain is about 39,400 USD. For 22,000 USD of software and 3,000 USD of yearly running costs, the investment pays back in 7 to 8 months. A SaaS could deliver the same gain if it accepted her quarterly plans with a sibling discount, which the tools she tested did not.
FAQ
Is a SaaS enough for a small school?
Below 300 learners, yes in most cases. A 200 USD monthly subscription is far cheaper than 12,000 USD of development.
Can we accept cash and cheque payments?
Yes, the software records every payment method and matches collections against the schedule. Online card payments usually cost 2 to 3 % per transaction depending on your processor.
How many users can log in?
Custom software has no per-user licence: 40 teachers and 5 administrators log in at no extra cost. Hosting stays around 80 to 150 USD a month for this volume.
Can placement tests be marked automatically?
Multiple-choice comprehension and grammar sections, yes, with CEFR placement from A1 to C1. Speaking is still assessed by a teacher in 10 to 15 minutes.
What if we open a second campus?
Plan multi-campus support during scoping: it adds 1,500 to 3,000 USD if designed upfront, against twice that if added later.
Let's scope your project. We compare your current organisation with a SaaS and a custom build, then price the most profitable option with a schedule aligned to your next intake. 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.
