Build vs. Buy Calculator
Compare total cost of building in-house vs buying a vendor solution. TCO, break-even, and optional cumulative cost chart.
Use the Build vs. Buy Calculator
Enter build costs (one-time and ongoing) and buy costs (subscription, setup). Set the time horizon and see which option is cheaper.
Build (in-house)
Buy (vendor)
Comparison
Results
Buy is cheaper over 3 years.
Build TCO: $140,000. Buy TCO: $118,490.
Build total cost
$140,000
Buy total cost
$118,490
Build avg/month
$3,889
Buy avg/month
$3,291
Break-even (month)
1
What this comparison means
Build vs buy compares total cost of ownership over a chosen horizon. It helps you decide whether to invest in building a solution in-house or to subscribe to a vendor, based on your own numbers.
How to interpret your result
Use the winner and break-even month together. If break-even is far out or never reached, buying may be safer. If you pass break-even quickly, building can be the lower-cost option over time.
FAQs
When does build make sense?▾
Build often wins when you have in-house capacity, need heavy customisation, or expect to use the solution for many years so the one-time cost is spread out.
When does buy make sense?▾
Buy often wins when you need to move fast, lack dev capacity, or the vendor’s product is a close fit. Subscription and setup costs can be lower than building and maintaining.
What counts as build cost?▾
Include one-time dev cost, ongoing maintenance and hosting, and (if you want) an allowance for opportunity cost or implementation time.
How do I handle vendor price increases?▾
Use the annual price increase % to model escalation. That can tip the balance toward build over long horizons.
What is break-even here?▾
The month where cumulative build cost catches up to cumulative buy cost. Before that, buy is cheaper; after, build is cheaper (if both continue as assumed).
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