A worked example: eight seats today, twelve next year
A CRM at $35 per seat per month for eight users costs $3,360 a year. Add $600 of setup and year one is $3,960. With twelve users from the start of year two, the subscription becomes $5,040 a year at the same rate, so the two-year total is $9,000 before taxes and extras.
| Input | Value |
|---|---|
| Base fee and add-ons | 0 |
| Seats | 8 |
| Price per seat per month | 35 |
| Implementation | 600 |
| Annual billing discount | 0% |
| Seat growth | 50% |
| Horizon | 2 years |
What belongs in a SaaS total cost estimate
A quote usually shows the seat price and the billing term. The total cost of owning the software over two or three years includes several lines that a quote leaves out or spreads across other documents:
| Cost line | Where to find it | Example from CRM pricing |
|---|---|---|
| Seat licences | Price page or quote | Pipedrive Growth: $39 per seat per month billed annually |
| Required onboarding | Order form or price catalog | HubSpot Sales Hub Professional: $1,500 one-time |
| Add-ons | Add-on price list | Pipedrive LeadBooster on Lite and Growth |
| Usage or credits | Billing documentation | HubSpot credits beyond the monthly allowance: $0.010 each |
| Seat growth | Your hiring plan | Four sellers today, six next year |
| Implementation time | Internal estimate | Admin hours to rebuild pipelines and automations |
| Renewal changes | Contract terms | Introductory discounts that end at renewal |
Enter the lines you can price in the calculator above, and note the rest beside your estimate. For CRM specifically, the pricing guides list each vendor's required fees and add-ons, and the SaaS contract checklist covers the renewal and exit terms that change the long-term number.
What the model assumes
- All amounts are in US dollars and exclude taxes, financing and usage charges you do not enter.
- Base fees and add-ons stay constant unless you change them.
- Seat growth applies at the start of each year after year one; projected seats are rounded up.
- The annual-billing discount applies to recurring software cost only, not to implementation.
- Implementation is counted once, in year one. Internal staff time and exit costs need separate estimates.
Next steps
Get real per-seat prices for HubSpot, Pipedrive, Zoho CRM and Freshsales from the CRM pricing calculator, then check renewal terms, price caps and exit rights with the SaaS contract checklist.
Frequently asked questions
What is SaaS total cost of ownership?
The full cost of a subscription over its life: seat licences, base platform fees, add-ons and usage charges, one-time implementation or onboarding, and growth in seats. Internal staff time and migration effort also belong in the decision, even if you estimate them separately.
Is annual billing always cheaper?
Per month, usually yes; CRM vendors such as Pipedrive advertise annual savings of up to 42%. But you pay for a year of every seat up front, so annual billing costs more if you are likely to reduce seats or switch tools within the year.
How should I model seat growth?
Use the growth you have actually planned, such as approved hires, rather than a hopeful percentage. The calculator applies growth at the start of each year after year one and rounds seats up.
Are my inputs stored?
No. The calculator runs in your browser and nothing you enter is sent to ViralBid or saved.