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How Much It Cost to Develop a SaaS Application on AWS?


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How Much It Cost to Develop a Saas Application on AWS?

Software as a Service (SaaS) apps are becoming increasingly popular in the digital world we live in today. As a result, many businesses want to leverage the power of cloud computing platforms like Amazon Web Services (AWS) to build and host their applications. However, the cost of developing a SaaS application on AWS can vary widely depending on several factors.

In this blog, we’ll look closely at some of these factors and guide what you can expect regarding costs.

Before we get into the elements that influence the SaaS application development cost on AWS, let’s consider why you should use AWS for your cloud-based SaaS app development.

Why Should You Construct a Cloud-based SaaS Application on AWS?

Building a SaaS solution from the ground up can be costly and complicated. Therefore, basing the development project on an already established cloud provider is beneficial. But why choose AWS when there are so many other options? Let’s look at what made this happen.

The Total Cost of Ownership Calculation

AWS includes a calculator that assists SaaS mobile app development specialists in estimating costs for service configurations based on the AWS services you will want, app usage information, and cost estimates per service and service group.

Proof-of-concept Testing

To save resources, startups must test a proof-of-concept before launching a new or software upgrade. AWS offers various services and features that may be combined to create new solutions and address technological difficulties from the ground up. Furthermore, when you construct a SaaS service on AWS, you receive a variety of designs that may be easily adjusted to fit a project.

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Compliance With Data Protection Regulations

Ensuring compliance can be complex for startup founders, especially regarding data protection across borders. Dealing with worldwide regulations and privacy becomes easier when you use AWS cloud-based SaaS application development because they are built to manage these compliances.

Global Market Penetration

AWS Regions guarantees global cloud computing service coverage. You may quickly execute the application globally without searching for server centres in various geographic areas. When you construct a SaaS service on AWS using this technology, you may place the infrastructure closer to the target audience, minimizing latency and improving app response time.

Now that we’ve examined the advantages of using AWS for SaaS mobile app development let’s move on to the development process, which influences the pricing range. (Read more about Understanding the Budget for Mobile App Development by App Type)

The Development Stage Determines the Cost of Developing a Custom SaaS App on AWS

Knowing the stage-wise efforts is one of the quickest ways to understand the cost of SaaS applications on the AWS cloud. However, before we get into them, we need to know how different development models affect the range.

Cost of Developing a Custom SaaS App on AWS​

Because freelancers tend to work on numerous projects concurrently, partnering with an outsource SaaS app development agency is often the best chance for a cost-effective and quality intact end-to-end development.

With that out, let’s get into the various stages of AWS cloud-based SaaS software development and associated cost estimates.

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The project specifications and needs are established at this stage. Next, you must meet with the team building a SaaS application on AWS to map out the project scope, security protocols, and pricing models.

Typically, the outcome of this step is as follows:
  • Instructions for specific reasons
  • Complete growth and scalability strategy
  • A method for creating an MVP
  • Wireframes

  • This stage can range in price from $100 to $1,000 and can last anywhere from a few days to eight weeks.

    MVP Development

    Before you embark on full-fledged efforts to develop a SaaS service on AWS, you must create an MVP and test the waters with basic capabilities and minimal design systems.

    While not a finished product, MVPs can help you attract the right people’s attention and get your product’s eyes and feedback before putting more effort into it.

    The time and money you can expect to invest in this stage range from one week to four months, and from $5,000 to $100,000, depending on the essential features and technology.

    Here are some characteristics that are crucial to the success of your AWS SaaS application development.

    UX/UI Design

    With comments now in hand following the release of the MVP, it is time to begin work on the user interface and experience design. The goal is to construct your product to satisfy the end user’s expectations precisely and have the features and functionalities they need to manage their processes specified and arranged.

    Typically, building a SaaS application on AWS takes about two months and costs $50,000 to $100,000. (Read more about Android vs iOS: Differences and Comparisons in App UI Design)


    The efforts to construct a SaaS application on AWS can be divided into two categories: SaaS solutions to provide and backend. On the financial front, here’s what it looks like –

    Publication and Maintenance

    To get a cost estimate when developing a SaaS application on AWS, you must account for app publication and maintenance. In addition, every new code version will require a thorough review by developers looking for scalability, integration, performance, and security bottlenecks.

    This continued effort might range from $20 to $200 per hour.

    *Disclaimer* The procedure described here for building a cloud-based SaaS application is to create and integrate the SaaS application with AWS Marketplace. Amazon provides another alternative where you can develop your SaaS app from the ground up on the AWS infrastructure.

    After researching the scratch development process and the cost of SaaS software development, you must decide whether to go this path or collaborate with an AWS professional to create the SaaS solution on the cloud platform. Whatever you choose, the next obvious step is determining how to recoup your investment in SaaS app development services.

    Let us look into that as we wrap up this post.

    On-Demand App Development Company

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    How Can You Recoup the Cost of Developing a Saas Service on AWS?​

    There are numerous ways to recoup the cost of SaaS software development.

    Free Services With Advertisements

    Your app will reach over 1 million active AWS users, who can access it for free in exchange for viewing some in-app adverts.

    Freemium Model

    In this model, you can supply a basic set of features for free and then charge for an improved set of features.


    Customers pay a monthly/annual subscription fee to access your platform in this model.

    One-time Payment

    Here, people can purchase your application for lifetime access.

    With this, we investigated the various components of SaaS application development cost on AWS when building the product from scratch. Regardless of the model you choose, you will require the assistance of a company specializing in AWS-based cloud consulting services to either design the app from scratch or launch it on the AWS platform.

    This is where SDLC can help. As a SaaS application development company, we have assisted many entrepreneurs in creating a SaaS product from scratch and integrating an existing service into their business applications.

    The procedure we use for cloud-based SaaS app development begins with gathering requirements and progresses to developing an architecture that supports scalability and resilience, after which our team takes on the ongoing duty of app maintenance and upkeep. At the heart of this process, we have assisted over 80+ startups and companies in embarking on a successful cloud journey.

    Witness the advantages of SDLC collaboration for yourself. Then, contact our cloud experts right away.


    Developing a SaaS on AWS can be a cost-effective way to build and host your application. Still, the cost will depend on several factors, including application complexity, development team, AWS services, hosting and storage, and ongoing maintenance and support. By carefully considering these factors and working with an experienced development team, you can develop a SaaS application on AWS that meets your needs and budget.


    A SaaS (Software as a Service) application is software hosted on a cloud platform and accessed via the internet by users. SaaS applications are typically subscription-based and offer various services, such as customer relationship management, project management, and file sharing.

    The cost of developing a SaaS application on AWS can vary depending on several factors, such as the complexity of the application, the number of users, and the features and functionalities required. However, a rough estimate for a basic SaaS application on AWS can range from $50,000 to $250,000.

    The main costs involved in developing a SaaS application on AWS include the cost of hiring developers and designers, the cost of hosting on AWS, the cost of database services, and the cost of third-party tools and services.

    Developing a SaaS application on AWS offers several advantages, such as scalability, reliability, and security. AWS also gives developers many tools and services to help them build and launch their apps quickly and easily.

    Some best practices for developing a SaaS application on AWS include designing for scalability, using serverless architecture, implementing proper security measures, optimizing performance, and using AWS services such as Lambda, DynamoDB, and S3.

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