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:
| Tool | Per User/Mo | 20 Users/Mo | Annual |
|---|---|---|---|
| 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.