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2026-05-08

SaaS vs Custom Software: The Real Cost Comparison

Comparing the total cost of ownership between SaaS subscriptions and custom-built software.

SaaS means paying a monthly fee to use someone else’s software. Custom software means paying once to build your own. Over time, the cost difference is dramatic.

SaaS Costs (3-Year View)

  • £50/month = £1,800 over 3 years
  • £100/month = £3,600 over 3 years
  • £200/month = £7,200 over 3 years

And prices increase. And you add per-user fees.

Custom Software Costs (3-Year View)

  • £500 build + £10/month hosting = £860 over 3 years
  • £1,000 build + £15/month hosting = £1,540 over 3 years

Hidden SaaS Costs

  • Vendor lock-in: Your data is in their format, on their platform.
  • Feature changes: They can remove features or increase prices anytime.
  • Limitations: You work around the software instead of the software working around you.

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