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Vertical SaaS: build vs subscribe cost in London (2026)

Mohamed Bah·Fondateur, Kolonell
September 3, 2026
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Vertical SaaS: build vs subscribe cost in London (2026)

Vertical SaaS: build vs subscribe cost in London (2026)

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The verdict in three sentences

An off-the-shelf vertical SaaS costs between EUR 50 and 200 per user per month: fast to start, but the bill scales linearly with seats. A custom SaaS runs EUR 60,000 to 180,000 excl. tax in initial build, amortised over 3 to 5 years, plus EUR 800 to 2,000/month of maintenance. The break-even falls around 25 to 40 active users: below, subscribe; above, build.

Subscription: the real per-user cost

Ready-made SaaS wins on time-to-value: a few days of setup and the team is live. But the invoice is linear to seats, and advanced modules (API, SSO, reporting) are often billed extra.

Team sizeAvg price / user / monthAnnual cost3-year cost
5 usersEUR 90EUR 5,400EUR 16,200
15 usersEUR 90EUR 16,200EUR 48,600
30 usersEUR 85EUR 30,600EUR 91,800
50 usersEUR 80EUR 48,000EUR 144,000
80 usersEUR 75EUR 72,000EUR 216,000

On top come limited customisation (you adapt to the tool, not the reverse), an annual price-hike risk of 5 to 12%, and vendor lock-in over your data.

Custom build: upfront investment and TCO

A vertical SaaS tailored to your business spreads cost over time. Investment is concentrated in year 1, then limited to hosting and evolutionary maintenance.

Item2026 estimate (order of magnitude)
Scoping + UX designEUR 8,000 - 20,000
MVP developmentEUR 45,000 - 120,000
Advanced modules (API, roles)EUR 10,000 - 40,000
Cloud hostingEUR 200 - 800/month
Maintenance (fixes + evolutions)EUR 800 - 2,000/month
Delivery time5 to 9 months

Over 3 years, a custom build at EUR 110,000 upfront + EUR 1,300/month maintenance + EUR 400/month hosting totals about EUR 171,200, regardless of user count. That is where the equation flips.

Mini case study

Sarah, COO of a 60-person industrial SME in London, runs an off-the-shelf SaaS at EUR 85/user/month for 45 users, i.e. EUR 45,900/year and EUR 137,700 over 3 years. She prices a custom equivalent: EUR 115,000 build, EUR 1,400/month maintenance and EUR 450/month hosting, i.e. EUR 181,600 over 3 years. Over 3 years custom is EUR 44,000 dearer, but over 5 years the subscription reaches EUR 229,500 versus EUR 226,000 custom — and Sarah gains code ownership and zero incremental cost per new hire. Her real break-even: 38 users.

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FAQ

At how many users does custom pay off?

The crossover typically lands between 25 and 40 active users in 2026, depending on your current per-seat price (EUR 50 to 200). Above 40, custom almost always wins over 4-5 years.

How long to deliver a custom vertical SaaS?

Budget 5 to 9 months from scoping to MVP production, depending on business complexity and module count. A first usable release often ships in 3 to 4 months.

What maintenance budget after launch?

Maintenance of EUR 800 to 2,000/month covers fixes, security updates and small evolutions, i.e. 10 to 18% of build cost per year. Never cut this line.

What if my needs change in 2 years?

That is precisely the custom advantage: you evolve YOUR product without waiting for a vendor roadmap. Plan 20 to 30% of initial cost per year for major evolutions.

Can we start small and grow?

Yes: an MVP at EUR 45,000 - 70,000 validates usage on a narrow scope, then modules are added in budgeted batches. It is the best way to control risk.

Let's scope your project. Send us your target user count, current SaaS and its per-seat cost: we will price the build-vs-buy tipping point and the MVP scope. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.

Tags:#vertical SaaS#build vs buy#London#SaaS subscription#TCO#break-even#maintenance#custom software
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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.