3D Printer – Buy vs Outsource CalculatorAbsence Percentage CalculatorAccumulated Depreciation CalculatorAdditional Funds Needed CalculatorAttrition Rate CalculatorAverage Collection Period CalculatorBounce Rate CalculatorBradford Factor CalculatorBreak-even CalculatorBuild vs. Buy CalculatorBurndown Chart CalculatorBusiness Budget CalculatorBusiness Loan CalculatorChurn Rate CalculatorContribution Margin CalculatorCost of Doing Business CalculatorCPC and CPM CalculatorCPM CalculatorCTR CalculatorCustomer Acquisition Cost Calculator – CAC CalculatorCustomer Retention Rate CalculatorEVM CalculatorEffective Corporate Tax Rate CalculatorEMV Calculator – Expected Monetary ValueExit Rate CalculatorFIFO Calculator for InventoryFTE CalculatorGMROI CalculatorGoogle AdSense CalculatorGRP CalculatorHHI Calculator (Herfindahl-Hirschman Index Calculator)High-Low Method CalculatorLabor Cost CalculatorLemonade Stand CalculatorLiquid Net Worth CalculatorMan-Hours CalculatorDays Off CalculatorOnline Marketing Conversion CalculatorParking Ratio CalculatorPayback Period CalculatorPre-Money and Post-Money Valuation CalculatorPVGO CalculatorPrice Per Unit CalculatorProfitability Index CalculatorRevenue Per Employee CalculatorROAS CalculatorSaaS Lifetime Value CalculatorSaaS Metrics CalculatorSales Commission CalculatorSell-Through Rate CalculatorSmoker’s CTC Calculator – Cost to CompanySoftware Contract Value CalculatorTenure CalculatorTurnover Rate CalculatorWebsite Ad Revenue CalculatorYouTube Money Calculator

deciding whether to build or buy a software tool is a crucial decision for many businesses. Here’s a summary of the provided information and some additional insights:

Factors to Consider:

  1. Costs when Buying:
    • Monthly or annual fees for SaaS model.
    • External service is generally the only cost.
  2. Costs when Building:
    • One-time cost to build (N * T * CE).
    • N: Number of developers.
    • T: Time to build.
    • CE: Cost per employee (calculated as SE * (1 + OV)).
    • Maintenance costs (D * CE * 12 / 5).
    • D: Days per month for maintenance.
  3. Decision Making:
    • Building is an investment, with a large upfront cost.
    • Maintenance costs for internally built software.
    • Break-even point: When total costs of building and maintaining are lower than the total costs of a license.
    • Break-even calculated as break even = cost to build / (license fee - maintenance cost).
    • If break-even is under three years, building is likely a good investment.
  4. Long-Term Perspective:
    • Building makes sense if you plan to use the software for an extended period.
    • Break-even signifies the point where building becomes more cost-effective.
  5. Risk and Future Considerations:
    • Consider the risk of switching products or no longer needing the software.
    • The later the break-even, the higher the risk of switching.


  1. Use Calculators:
    • Utilize the provided calculators for build vs. buy decisions, SaaS metrics, and lifetime value.
  2. Thorough Analysis:
    • Conduct a comprehensive analysis of your specific needs, budget, and long-term goals.
  3. Consider Alternatives:
    • Explore alternative solutions and their total costs.
  4. Future-Proofing:
    • Consider the scalability and adaptability of the chosen solution.
  5. Consultation:
    • Seek input from key stakeholders and consider consulting with experts if needed.

In summary, the decision to build or buy depends on various factors, including costs, long-term plans, and the specific needs of your business. Thorough analysis and consideration of both short-term and long-term implications are crucial for making an informed decision.