Free tool · 5-year TCO

Build vs Buy calculator

Should you build custom software or buy off-the-shelf SaaS? Sticker price lies, the honest answer is total cost of ownership over several years. Set your seats, per-seat price, fit and maintenance to see which wins, and by how much.

How the build-vs-buy math works

Every honest build-vs-buy decision comes down to total cost of ownership (TCO) over a realistic horizon, not the price on the pricing page. This tool models both paths:

Buy = seats × price × months + setup + cost-of-gaps
Build = build cost + (build cost × upkeep % × years)

Two forces decide it. First, seats: SaaS bills per user, so its cost climbs with headcount, while a custom build is a fixed cost that gets cheaper per user as you grow. Second, fit: when an off-the-shelf tool only covers part of your workflow, the gap doesn't disappear, it becomes manual workarounds, spreadsheets, and lost hours that compound every year. We price that gap in so the comparison is fair.

When buying usually wins

  • A standard tool genuinely fits how you work (strong fit).
  • Your team is small and seat counts are stable.
  • You need it live next week, not next quarter.

When building usually wins

  • Off-the-shelf fit is poor and you're stitching tools together.
  • Headcount is growing and per-seat pricing is climbing against you.
  • The software is a competitive edge you want to own outright.

For real numbers on the build side, run your scope through the software development cost calculator, read the full build vs buy guide, or see all free tools.

Build vs buy, FAQs

How do you decide whether to build or buy software?
Compare total cost of ownership, not sticker price. Buying is usually cheaper and faster when an off-the-shelf tool fits most of your workflow and your team is small. Building wins when the tool is a poor fit, per-seat costs climb with headcount, or the software is a competitive advantage you need to own.
What is total cost of ownership for software?
For SaaS, it's the subscription (seats × price × months) plus onboarding and the cost of working around gaps in fit. For a custom build it's the one-time build cost plus ongoing maintenance, typically 15-20% of the build cost per year.
When does building custom software pay off?
Custom tends to pay off as seat counts grow, SaaS per-seat pricing scales with headcount while a custom build is a fixed cost. It also pays off when off-the-shelf fit is poor, since manual workarounds and lost productivity compound every year.
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