How To Estimate SaaS MVP Development Cost?

The ability to bring your idea into realization with an increase in revenue is the top goal of every business owner. It’s a common belief that creating a SaaS MVP Development Cost requires months of work, enormous efforts, massive investments, and lengthy hours.

A lot of startups fail when it comes to MVP development. According to the study, 42% of the apps fail due to the fact that the app was not sought-after in the marketplace.

The Lean method that was developed by Eric Ries will help you determine the answer to the question: why do people need your product? MVP will help you comprehend this in the best way to understand.

The multimillion-dollar businesses are growing in recognition and have millions of active users growing every day, which that is leading to the creation of startups that are launching a revolutionary SaaS products.

SaaS MVP products test the effectiveness of their idea and aid enterprises in developing an innovative and robust products.

The SaaS market is predicted to grow to $623 billion in 2025 with an annual growth rate of 18%.

What Is SaaS MVP Development?

SaaS MVP is a working prototype that contains all of the features that will be part of an eventual product. Simply put it’s a concept of a cloud-based service that demonstrates all of the key elements that will form the basis of your final solution. The MVP lets to gather information from users about their experience with the application. MVP allows you to evaluate your concept within a set time frame and ensures that it gets better each time it adjusts based in response to feedback from users.

MVP method is extremely useful for companies with only a modest budget to have their ideas tested in the marketplace instead of having to spend the entire money on fully-fledged products.

Here’s the team of experts needed to develop SaaS MVP projects are:

  • Manager/analyst
  • Front-end developer
  • Backend developer
  • UI / UX designer
  • DevOps
  • The QA (frontend and backend)

Factors That Influence SaaS MVP Development Cost

There are a variety of factors when it comes to SaaS MVP Development. The additional costs associated with MVP development are generally like the development of products. There are additional expenses required to transform the MVP creation into a fully-fledged product.

Let’s look at it.

Size Of The Development Team

How many people did you need to form your MVP group of developers? It is essential to have the most experienced and knowledgeable pool of professionals. But, the more skilled experts you employ the more it will cost to create a SaaS MVP.

Additionally, outsourcing comes with an additional cost when compared to in-house staff. With the number of developers, designers, testers, and designers on the team and the costs for MVP can be quite high.

Technology Stack

It is recommended to utilize strong as well as scalable and well-known techniques to build a SaaS MVP product. Selecting the best set of stacks for technology incurs significant costs when planning the development of an MVP. In order to turn your idea into reality, you need the most up-to-date technology expert. You need to take into account everything you can to evaluate the technology stack, beginning with the front-end language, programming language as well as back-end, frameworks.

Feature Complexity

It is essential to think about the number of features needed for the development of SaaS MVP. When MVP SaaS’s features and functions are complicated, there’d have a lesser or even no chance of a smooth and speedy MVP development.

Be sure to focus on the essential functionality and incorporate features that are essential to a SaaS MVP can’t handle. Additionally, there is no need to incorporate additional functionality in the initial development phase.

Development Approach

One of the main elements that determine MVP costs is the companies’ strategies for developing a SaaS MVP product. Certain businesses have their MVP developed by internal teams. MVP development with in-house involves setting up teams for development, establishing tech infrastructure, and other expenses.

On the contrary, some choose to have the process outsourced to other firms. outsourcing software development is the process of delegating your entire development process to an outside team. You can save operational expenses and time.

Designing Costs

Each product’s design must be stylish and elegant to draw customers. To achieve this, businesses need to recruit a skilled and experienced design team who can design every page of the application. The design team can assist you to navigate the app with ease as well as right button placement and other elements required to provide an effortless user experience.

MVP Development Stages And SaaS MVP Development Cost Involved


As we mentioned above, we’ve reviewed the most important factors that determine the price of creating an MVP. In order to make it easy and easy to determine the cost for each stage of development of the MVP.

Step 1. Conduct an In-Depth Research

Conduct thorough research on your product concept, and study your audience’s needs as well as your business needs, competitors, and the budget for development. Each of these activities comes with an expense. You can perform all of these operations on your own or if you prefer employ an outsourcing firm or a group of professionals. The cost per hour of developers ranges from $20 to $40, depending on their knowledge, experience, and the project’s level of complexity.

Step 2. Perform Feasibility Analysis

In this phase, you will decide whether you should employ a team of developers and/or an outsourcing company. They assist you in choosing the platform for your product or application to develop as well as features and functionalities as well as the tech stack and the most suitable cloud. Some firms charge hourly fees for consultations ranging between $20 and $100. dependent on the area of the consultation.

Step 3. Prototyping

It is the very first model of the MVP product. It’s a simple model that represents what you want to create as your SaaS MVP product, which has only a few features that serve as the basis of your MVP. It is then possible to test the prototype by using a few features with your early users.

Step 4. Design

In this phase, UX/UI designers can help you delight your early customers from the initial product into an exciting, creative, and fully-fledged item. They provide your product with an exquisite design, effortless navigation, and an appealing appearance that will entice your prospective clients.

The design process involves designing and creating the mockup of your MVP. It could cost you $500-$1,000 to wireframe and around $500-$1,000 for the design. The more complex your MVP is more complex, the more interaction will be required to be designed, roughly and the cost would increase in line. It is possible to add an additional screen to the MVP product if you need to. Additionally, you will pay more for each additional screen.

Step 5. Development Phase

At this stage of development frontend, developers convert the design into code. Likewise, backend developers design the hardware. Finally, Quality Analyst professionals test the final product.

SaaS MVP Development Cost Based On Hiring Resources/Company

SaaS MVP development requires a skilled pool of professionals to create a high-quality product. The MVP development team comprises testers, designers, developers as well as QA, and others. If hiring an in-house development team fails to fulfill your project’s requirements or isn’t enough to build an electronic product, you could select the other option, i.e., outsourcing MVP development.

Let’s look at the materials you’ll need to construct SaaS MVP Development Cost:



1. Hiring In-house Team

When you create MVP internally, the price includes the compensation paid for the development team, infrastructure set-up and hardware and software expenses as well as training specialists, and other operational expenses.

It’s estimated to cost $178,770 to hire an internal development team.

2. Outsourcing MVP Development

Another option for building SaaS MVP can be to employ experts through outsourcing MVP development. The outsourcing company assists with the implementation of certain business processes or assumes full responsibility for all aspects of MVP development.

MVP outsourcing can help companies introduce their MVP product more quickly. This is because outsourcing MVP development includes the hourly rate of team members/developers as well as their costs for hiring as well as other costs.

The cost of outsourcing is approximately $38,100 for the same amount of developers as well as the number of hours they work.

3. Hiring Freelancers

If you aren’t able to afford the funds required to hire a whole outsourcing company There’s another way to create the MVP product: you can hire freelancers.

You can engage freelancers through well-known platforms such as Freelancer, Remote, Upwork, and more. You will get the expert experience and expertise of years of freelancers who are working on a specific project.

SaaS MVP Development Cost Involved In Building An App Like Twitter And Instagram

Are you wondering how much is involved in creating an app similar to Twitter as well as Instagram? 

Let’s look into the cost.


The present-day ” Twitter” was once known as “Twttr” and started its operation as a free substitute for SMS services. The company, at its inception, was the first to develop hashtags, along with 140-symbol messages.

Twitter focuses on a particular customer base to determine the validity of business theories. They focused on the most important features first. The current features don’t contain the initial version of the application.

If you’re looking to create an app that is like the most popular and popular app, such as Twitter the cost would be about $50 000.

However, if you’re looking for an exact replica of Twitter at a cost of $250,000. The development process takes anywhere from 3 to six months. Today, Twitter has around 300 million active users.


The most famous and well-used application Instagram was once known under the title “Bourbon”. It’s the same app as Facebook which lets you post photos, check-in from anywhere, and share stories, among other things.

Instagram was built in only two months. It was purchased for $1 billion by Facebook in the year 2012.

At present, the Instagram increase rate is higher than a million people each month, and more than 600 million people are active. The number of users keeps growing with each passing day.

Therefore, if you’d like to create an app similar to Instagram the cost would be approximately $100 000.

The exact design of Instagram can cost up to $300 000. The time required to develop an application is between 3 and six months.

Concluding Thoughts

It doesn’t matter if you are an entrepreneur, or a product business whether it’s a product company, startup, or SaaS Enterprise, MVP development helps you develop your concept to its best. It can help you create an outstanding product or application without spending any additional money and time.

The more complicated your features are or the deeper you dive into your development, the greater the cost of investment.

Therefore it is obvious that therefore, the SaaS MVP development costs will be based on your product’s plan, use cases, the method of development, product strategy, and so on. If you require any help contact Brisk Logic


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