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2026-03-28·Cost Breakdown·5 min read

The True Cost of SaaS for a 20-Person Company

What does a 20-person company actually pay for software?

Most small businesses don't realize how much they spend on SaaS until someone adds it all up. So we did.

Here's a realistic monthly breakdown for a 20-person company using popular tools:

ToolPer User/Mo20 Users/MoAnnual
CRM (Salesforce Essentials)$25$500$6,000
ERP (NetSuite)$99$1,980$23,760
Project Management (Monday.com)$12$240$2,880
Communication (Slack Pro)$8.75$175$2,100
Email (Google Workspace)$14$280$3,360
Accounting (Xero)Flat$78$936
Total$3,253/mo$39,036/yr

That's nearly $40,000 per year. And it goes up every time you hire someone.

The hidden costs nobody talks about

The monthly fee is just the start. Factor in:

  • Integration costs because getting these tools to talk to each other isn't free
  • Training, since every new tool has a learning curve
  • Data migration when switching tools means moving data (and hoping nothing breaks)
  • Customization limits where you're stuck working within someone else's constraints
  • Price increases, with SaaS vendors raising prices 5-10% annually

What's the alternative?

A custom-built system covering CRM + basic ERP + project tracking typically costs $15,000–$40,000 one-time. After that, your ongoing costs are just hosting ($50–200/month) and occasional updates.

Year 1: Custom build might cost the same as SaaS. Year 2: You're already saving $30,000+. Year 3+: Pure savings.

And you own the code. No per-seat fees. No vendor lock-in. No surprise price hikes.

Is custom right for every business?

No. If you're a 3-person startup that might pivot next month, stick with SaaS. But if you:

  • Have 10+ employees and stable processes
  • Are paying $2,000+/month across tools
  • Need features your current SaaS doesn't offer
  • Are tired of paying per seat

Then it's worth doing the math.

Want us to do the math for you?

We offer a free SaaS audit. Send us your current tool stack and we'll show you what a custom alternative would cost. Actual numbers, not vague estimates.