SaaS Development

How much does it cost to launch a new project?

A transparent breakdown of software development costs and what factors influence the price of launching your SaaS or web application.

Joe Peel

Joe Peel

8 min read
How much does it cost to launch a new project?

The honest answer about software costs

How much does it cost to launch a new software product? The price does vary, but I'll give you a good ballpark of what it's going to be. But let me preface it with something I talk about quite a lot in my LinkedIn posts and other articles.

When building a new product, we need to build an MVP - check out this article to find out more. Basically, an MVP stands for Minimum Viable Product, and it's pretty much a version one, lean version of your product that doesn't have all the bells and whistles, but it's something that people can pay for, use, and get value from.

We typically want to get this out in the world within 8-12 weeks, start gathering user feedback, start getting some money through the door, and then use that feedback and money to develop the product further. That's the best way to build and launch, in my opinion.

So how much does an MVP cost?

The question becomes: how much does it cost to launch an MVP? My prices start from £10,000 plus VAT and go to the high end of about £30,000 plus VAT. If it's massively more than that, I'd be really pushing for us to take the scope down a level to make a smaller first product.

Typically, there's not much we can do for less than £10,000. Although I'm willing to try, it's just not enough budget. There's a lot of base architecture, time, and effort that goes into launching any product, big or small. So that would be the minimum - somewhere in that range for your initial outlay.

The ongoing hosting and infrastructure costs

Then you need to pay for hosting, servers, backups, storage, deployment, software, email sending, and other similar services. It's quite a long list - I'll be helping you set this up - but that's going to be about £50-£75 per month.

These aren't optional costs. Every software product needs:

  • Hosting: Server space to run your application
  • Database storage: Secure storage for your user data
  • Backups: Regular backups to protect against data loss
  • SSL certificates: Security certificates for encrypted connections
  • Email services: For sending notifications and system emails
  • Monitoring: Tools to track performance and uptime

The support and maintenance reality

Like with any software project, big or small, you need someone to support it. Software is never "one and done." Even if you're not actively developing new features, software needs updating. Browsers can change, packages can change, security requirements can change. You want to tweak things as you go along. You need someone on hand - it doesn't have to be me, but my support starts from £225 per month.

This support includes:

  • Security updates and patches
  • Bug fixes and minor improvements
  • Performance monitoring and optimisation
  • Technical support when issues arise
  • Regular backups and maintenance

The total monthly running costs

All in all, you're looking at a minimum of £300 per month to keep the thing running and supported. That covers both the hosting infrastructure and the ongoing maintenance your software will need.

Ongoing development and feature additions

Now, that's all the initial and ongoing costs. It's likely that you'd want to develop the product further as you get feedback from users and licence fees coming in. We can do this in a couple of different ways.

Option 1: One-off features We can agree on a price for individual features and treat each as a mini-project. This works well when you have specific, well-defined additions you want to make.

Option 2: Development retainers I offer retainers which include ongoing development. This is great when you've got a big list of stuff you want to add to the system and you just want to keep churning through work each month. The retainer is a really easy way to keep me on board, adding value to your project consistently.

My pricing positioning

I am more expensive than going offshore or to a budget freelancer. I will be cheaper than working with a larger agency. I utilise a network of senior engineers on a freelance basis, combined with my own engineering and hands-on software development.

I do not work with junior members of staff or offshore any parts of the project. I'm not trying to oversell myself, but that is my business model and pricing approach.

Why this pricing model works

This transparent pricing structure means:

  • No budget surprises: You know exactly what you're paying upfront
  • Quality assurance: Senior developers only, no junior mistakes to fix later
  • Ongoing support: Your product doesn't get abandoned after launch
  • Scalable growth: Clear path to add features as your business grows

Real-world cost breakdown example

Let's look at a typical project timeline and costs:

Initial development: £15,000 + VAT for an 8-week MVP Monthly running costs: £300/month (hosting + support) Year one additional costs: £3,600 Total first-year investment: £18,600 + VAT

Compare this to the alternative:

  • Offshore team: £8,000 initial + £2,000 fixing issues + £5,000 rebuild = £15,000+
  • Large agency: £40,000+ with longer timelines and less direct access

The value of keeping projects focused

One way to control costs is to be ruthless about scope. Every additional feature increases both development time and ongoing complexity. By starting with a focused MVP, you:

  • Launch faster and cheaper
  • Validate your concept with real users
  • Generate revenue to fund further development
  • Avoid building features nobody wants

When to invest in software development

Software development is an investment in your business growth. The key question isn't "How much does it cost?" but "What will it enable?"

A £15,000 investment that helps you:

  • Automate manual processes
  • Reach new customers
  • Improve customer experience
  • Generate recurring revenue

...often pays for itself within months.

Getting a realistic quote

If you've got an idea in mind for a project and want to get a realistic sense of what it would cost, book a call with me for a chat. We can discuss your specific requirements, explore different approaches, and I can give you a clear breakdown of costs.

No sales pressure - just an honest conversation about what it would take to bring your idea to life and what kind of investment you're looking at.

Want a realistic cost breakdown?

Let's chat about your project and I'll give you honest numbers with no sales pressure.

Get realistic pricing

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Joe Peel

About Joe Peel

Laravel developer and SaaS specialist helping businesses build scalable web applications. With years of experience in full-stack development, I focus on creating robust, maintainable solutions that drive business growth.

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