A paper receipt curling as its edge burns with a teal flame
Costs · 1 min read

The real cost of a SaaS seat

A $40 seat is never $40. Add the seats you forgot, the tier you were pushed into and the tools that glue it together.

MOMaya Okafor · September 26, 2026

Every tool you rent is priced per person. That feels fair until you hire.

The sticker price

Forty dollars a seat, twenty-five people. That's $12,000 a year, and it's the number on the pricing page.

The tier creep

The feature you actually need is on the next plan up. So is single sign-on. The seat price quietly becomes sixty-five.

The glue

Three rented tools don't talk to each other, so you rent a fourth to connect them. Someone still maintains the spreadsheet that holds it all together.

The exit cost

Eventually you'll leave. The migration is a project with its own budget, and the export never has everything.

A $40 seat is never $40.

Add it up

For an illustrative 25-person team, sticker price, tier creep and glue reach about $31,000 a year by year three. That's an illustration, not a quote. Your numbers will differ, and they're worth writing down.

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MO
Maya OkaforContent lead

Maya runs content at Loanburn and keeps the numbers honest.