The verdict in three sentences
SaaS wins while your headcount is moderate, because the spend stays proportional to usage. Custom becomes profitable beyond a seat threshold because its cost is fixed while SaaS grows linearly. The right call comes from a 5-year TCO model, not a gut feeling.
The 5-year TCO model
Assume 2026 inputs: SaaS at 30 EUR/user/month, custom at 90,000 EUR build + 12,000 EUR/year maintenance (i.e. 150,000 EUR over 5 years, regardless of headcount).
| Users | SaaS 5 yrs (30 EUR/month) | Custom 5 yrs | Cheaper |
|---|---|---|---|
| 20 | 36,000 EUR | 150,000 EUR | SaaS |
| 30 | 54,000 EUR | 150,000 EUR | SaaS |
| 50 | 90,000 EUR | 150,000 EUR | SaaS |
| 83 | 149,400 EUR | 150,000 EUR | Break-even |
| 100 | 180,000 EUR | 150,000 EUR | Custom |
| 150 | 270,000 EUR | 150,000 EUR | Custom |
Break-even here lands around 83 users. Beyond that, each extra user costs 1,800 EUR over 5 years in SaaS versus 0 in custom.
What the sticker price hides
TCO isn't just licenses. These items shift the tipping point either way.
| Hidden item | SaaS impact | Custom impact |
|---|---|---|
| Annual price increase | +5-10%/year | None (fixed cost) |
| Add-on modules | +10-40 EUR/user/month | Included in scope |
| Third-party integrations | Often billed | Built once |
| Accounting amortization | No (expense) | Yes (asset 3-5 yrs) |
| Exit / migration cost | High (lock-in) | None (you own it) |
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Mini case study
Sophie, CFO of a 90-person consulting firm in Bordeaux, models her project-management tool. In SaaS at 30 EUR/user/month: 30 × 90 × 60 = 162,000 EUR over 5 years, before price hikes. In custom: 90,000 EUR + 12,000 EUR/year = 150,000 EUR, with an amortizable asset and zero extra license cost per hire. At 90 people she's above the break-even (83), and custom saves her 12,000 EUR while removing annual-increase risk.
FAQ
At how many users does custom pay off? With these 2026 inputs, around 83 users. The threshold drops if your SaaS cost includes add-ons or price hikes.
How do I compute my own threshold? Threshold ≈ (build + 5 years maintenance) ÷ (monthly price × 60). Adjust for add-ons and expected headcount growth.
Doesn't SaaS hide costs? It does: 5-10% annual hikes, paid modules, integrations and exit cost. They pull the tipping point closer.
Is custom an asset? Yes, capitalizable and amortized over 3-5 years, improving your balance sheet unlike a SaaS expense.
Should I switch everything at once? No. Migrate first the module costliest in licenses or most differentiating, then measure before going further.
Let's scope your project. Give us your headcount, current SaaS price and horizon: we build your 5-year TCO model and break-even 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.
