The verdict in three sentences
The break-even point hinges on one dominant variable: the number of users times the monthly price. Below a certain threshold, SaaS is unbeatable; above it, amortized custom becomes more profitable and makes you the owner. The formula is simple: compare annual SaaS cost to annualized custom cost (dev amortized over 4-5 years + maintenance).
The break-even formula
Annual SaaS cost = users × monthly price × 12. Annualized custom cost = (dev ÷ amortization period) + annual maintenance. Custom becomes profitable when the former exceeds the latter.
| Variable | Example 2026 value |
|---|---|
| SaaS price | 40 EUR/user/month |
| Custom development | 60,000 EUR |
| Amortization period | 5 years |
| Annual maintenance | 12,000 EUR (20%) |
| Annualized custom cost | 60,000 ÷ 5 + 12,000 = 24,000 EUR/year |
| Break-even threshold | 24,000 ÷ (40 × 12) = 50 users |
In plain terms: at 40 EUR/month, you need around 50 users for a 60,000 EUR custom build to become more profitable. Below that, stay on SaaS.
User-count sensitivity
The threshold shifts sharply with the SaaS unit price. The pricier the SaaS per head, the faster custom pays off.
| SaaS price/user/month | Annual cost at 30 users | Annual cost at 60 users | Custom (24,000 EUR/year) profitable from |
|---|---|---|---|
| 20 EUR | 7,200 EUR | 14,400 EUR | 100 users |
| 40 EUR | 14,400 EUR | 28,800 EUR | 50 users |
| 80 EUR | 28,800 EUR | 57,600 EUR | 25 users |
| 120 EUR | 43,200 EUR | 86,400 EUR | 17 users |
| 200 EUR | 72,000 EUR | 144,000 EUR | 10 users |
At 200 EUR/user/month (specialized business tools), custom becomes profitable from around ten users. At 20 EUR (mass-market tools), you need a hundred.
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Mini case study
Sean, COO of a 40-employee fintech scale-up in Dublin, pays for a compliance-management SaaS at 90 EUR/user/month for 35 users, i.e. 37,800 EUR/year. Over 5 years: 189,000 EUR, owning nothing, with a projected 12% hike. A custom build is quoted at 70,000 EUR + 14,000 EUR/year, an annualized cost of 28,000 EUR — below the current 37,800 EUR. Break-even confirmed: over 5 years, custom ≈ 140,000 EUR vs 189,000+ EUR on SaaS, plus code ownership and the end of dependency. Sean launches the build and plans to add 15 users at no licence cost.
FAQ
What's the typical break-even point? Around 40-50 users for a 40 EUR/month SaaS against a 60,000 EUR custom build. But it drops to about ten users for pricey SaaS (100-200 EUR/month) and rises to 100+ for cheap SaaS.
Should you amortize custom over 4 or 5 years? 5 years is prudent and common for a well-maintained business tool. Over 4 years, the annualized cost rises and slightly pushes back break-even, but the asset remains yours beyond it.
Does the calculation account for growth? It must. Each new user costs 40-200 EUR/month on SaaS but nothing on custom: if you plan to hire, custom becomes profitable faster than the static threshold suggests.
What if my users decrease? SaaS scales down, that's its advantage: you only pay for real usage. If your headcount is volatile or shrinking, SaaS often remains the safest choice.
How do you factor in SaaS price hikes? Add 5 to 15%/year to the SaaS cost in your model. These hikes, common in 2025-2026, mechanically move break-even in favor of custom.
Let's scope your project. Give us your user count, current SaaS price and horizon: we calculate your exact break-even point and the 5-year 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.
