Custom Software vs. Commercial SaaS: A 3-Year Total Cost of Ownership Analysis
Per-seat subscription software starts cheap but turns into a compounding operational tax as headcounts grow. Here is a transparent 3-year TCO financial comparison.
The TCO Comparison Model
| User Count | Commercial SaaS (3-Year Cumulative) | Custom Software (Build + Hosting) | Breakeven Horizon |
|---|---|---|---|
| 25 Users | $45,000 – $90,000 ($100/mo/user) | $50,000 + $150/mo hosting | ~24 Months |
| 50 Users | $90,000 – $180,000 | $75,000 + $250/mo hosting | ~14 Months |
| 100 Users | $180,000 – $360,000+ | $95,000 + $400/mo hosting | ~9 Months |
Evaluating Custom Software vs. SaaS for Your Business?
We calculate accurate ROI models during initial discovery to ensure bespoke software is a profitable capital investment for your organization.