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⚖️ Build vs Buy Calculator

Compare the total cost of building software or a solution in-house against buying an off-the-shelf product over time.

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Build vs Buy

This calculator compares the total cost of building a solution in-house versus buying an existing product or service, over a chosen time horizon such as 3 years.

The Formula

Total Build Cost = Upfront Development Cost + (Monthly Maintenance Cost × Months). Total Buy Cost = Upfront/Setup Cost + (Monthly Subscription Cost × Months). The option with the lower total cost over the horizon is flagged as cheaper.

Note: This model considers direct costs only; factors like control, customization, speed to market, and vendor risk should also weigh into a real build-vs-buy decision. For general planning purposes only.

Last reviewed August 2026