Build vs. Buy Calculator
Calculate how much it costs to build an internal tool versus buying a tool.
Your calculation result will show up here.
Cost to build
Annual maintenance
Saved annually
Years to profit
How does the build-versus-buy comparison work?
Compare an estimated one-time development cost and annual maintenance cost with the annual price of buying a tool.
How to use this tool
Build cost = employees × weeks to build × annual salary ÷ 52.18. Maintenance cost = monthly maintenance person-days × annual salary ÷ 52.18 ÷ 5 × 12. Payback = build cost ÷ (annual buying cost − annual maintenance). Enter maintenance as total person-days across the team.
Example
Buying for $24,000 a year versus a $30,000 build with $6,000 yearly maintenance saves $18,000 per year after launch. Simple payback is about 1.7 years.
Understanding your result
The recommendation uses a three-year payback cutoff. A longer positive payback can still be worthwhile; it is not “never.” When maintenance equals or exceeds buying cost there is no positive payback. The estimate excludes hosting, benefits, delivery risk, migration, and the value of time to market.
Related tools: Payback Period Calculator · Meeting Cost Calculator.
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