The verdict in three sentences
Over 3 years at 25 users, the SaaS license stays cheaper on cash: 54,000 EUR versus ~77,400 EUR for custom. But custom is a capitalized asset with near-zero marginal cost per user, whereas the license grows linearly with headcount. Break-even lands around 45 users: beyond that, custom costs less every year and the gap widens.
Detailed 3-year TCO (25 users)
| Item | SaaS license (60 EUR/user/mo) | Custom SaaS |
|---|---|---|
| Initial build | 0 | 45,000 EUR |
| Year-1 cost | 18,000 EUR | 45,000 + 10,800 = 55,800 EUR |
| Year-2 cost | 18,000 EUR | 10,800 EUR (support) |
| Year-3 cost | 18,000 EUR | 10,800 EUR (support) |
| 3-year total | 54,000 EUR | 77,400 EUR |
| Cost per extra user | +720 EUR/year | ~0 |
| Asset at end of period | None | Proprietary software |
The license has a lower 3-year TCO at constant headcount. Custom wins the moment headcount climbs, because its support cost stays flat while the SaaS bill tracks every new user.
Break-even by user count
| Users | License 60 EUR/mo (3 yr) | Custom 45,000 + 900/mo (3 yr) | Advantage |
|---|---|---|---|
| 15 users | 32,400 EUR | 77,400 EUR | License |
| 25 users | 54,000 EUR | 77,400 EUR | License |
| 35 users | 75,600 EUR | 77,400 EUR | Near tie |
| 45 users | 97,200 EUR | 77,400 EUR | Custom |
| 60 users | 129,600 EUR | 77,400 EUR | Custom |
| 80 users | 172,800 EUR | 77,400 EUR | Custom |
Custom cost is nearly flat; the license is a rising line. The more you grow and the longer you keep the tool, the more custom wins. At 60 users over 3 years, the gap already reaches ~52,000 EUR in custom's favor.
Mini case study
The executive committee of a 30-person scale-up evaluates both options for its core tool, planning for 55 users within 3 years. License at 60 EUR/month: year one costs 21,600 EUR (30 users), year three 39,600 EUR (55 users), for a total of about 97,000 EUR. Custom: 45,000 EUR build + 900 EUR/month, i.e. 77,400 EUR over 3 years, regardless of headcount. 3-year saving: ~20,000 EUR, plus an asset on the balance sheet and zero vendor price-hike risk. The committee picks custom.
FAQ
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Is custom always more expensive than a license?
No. At low headcount and over a short horizon, the license wins. Once you pass ~45 users or keep the tool more than 3-4 years, custom becomes cheaper every year.
What does the 900 EUR/month support cover?
Bug fixes, functional evolutions, security updates and hosting. It's a stable cost, unlike the license which rises with every user and every vendor price bump.
Why call it a capitalized asset?
A custom SaaS belongs to you: it sits on your balance sheet, holds value at resale and carries no lock-in. A license is a recurring expense with no asset in return.
How do I factor in growth?
Project your 3-year headcount. Multiply the per-seat rate by users year over year for the license; keep support nearly constant for custom. The crossover point gives your decision.
What if the need changes a lot?
Custom absorbs evolutions via support or evolution batches, with no per-user surcharge. A license limits you to the vendor's roadmap and often charges advanced modules extra.
Let's scope your project. Give us your current headcount, your 3-year projection and the license rate under consideration: we'll compute your TCO and precise break-even. 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.
