Maxi Calculator

Build vs. Buy Calculator

Compare costs and make informed decisions about building or buying solutions

Build vs. Buy Calculator
Compare the costs of building versus buying a solution

Build Costs

Enter the total cost to develop the solution

Enter the time needed to develop the solution

Enter monthly cost for maintenance and updates

Enter monthly cost for internal staff support

Buy Costs

Enter the initial cost to purchase the solution

Enter monthly licensing or subscription costs

Enter costs for customizing the purchased solution

Time Period

Choose the time unit for analysis period

Enter the period for cost comparison

Table of Contents
What is Build vs. Buy Analysis?

Build vs. Buy analysis is a strategic decision-making process that helps organizations evaluate whether to develop a solution internally or purchase it from external vendors. This calculator helps you:

  • Compare total costs of both options
  • Analyze monthly and long-term expenses
  • Break down cost components
  • Receive data-driven recommendations

The analysis is crucial for:

  • Software development decisions
  • Technology procurement
  • Resource allocation
  • Strategic planning
How to Use the Calculator
  1. Enter Build Costs:
    • Development costs and timeline
    • Maintenance expenses
    • Internal staffing costs
    • Ongoing support requirements
  2. Input Buy Costs:
    • Purchase or licensing fees
    • Customization expenses
    • Integration costs
    • Subscription fees
  3. Specify Time Period:
    • Choose analysis timeframe
    • Select time unit (months/years)
    • Consider long-term implications
  4. Review Results:
    • Compare total costs
    • Analyze monthly expenses
    • Check cost breakdowns
    • Consider recommendations
Key Decision Factors

Build Considerations

  • Development expertise
  • Resource availability
  • Timeline flexibility
  • Customization needs
  • Intellectual property
  • Long-term control

Buy Considerations

  • Vendor reliability
  • Solution maturity
  • Implementation speed
  • Support availability
  • Integration capabilities
  • Upgrade path

Cost Factors

  • Initial investment
  • Ongoing expenses
  • Hidden costs
  • Scalability costs
  • Training expenses
  • Maintenance fees

Strategic Factors

  • Core competencies
  • Market advantage
  • Time to market
  • Risk management
  • Future flexibility
  • Competitive edge
Additional Considerations

Non-Financial Factors

Consider these aspects beyond costs:

  • Strategic alignment
  • Technical capabilities
  • Market positioning
  • Competitive advantage

Risk Assessment

Evaluate potential risks:

  • Development challenges
  • Vendor stability
  • Technology changes
  • Resource availability

Long-term Impact

Assess future implications:

  • Scalability needs
  • Maintenance requirements
  • Technology evolution
  • Business growth
Frequently Asked Questions

How accurate are the cost estimates?

The accuracy depends on the quality of input data. Include all known costs and make reasonable estimates for uncertainties. Regular updates to estimates improve accuracy over time.

Should I always choose the cheaper option?

Not necessarily. Consider non-financial factors like strategic value, control needs, and long-term flexibility. The cheapest option might not always align with your organization's goals and requirements.

How often should I update the analysis?

Review and update the analysis annually or when significant changes occur in costs, technology, or business requirements. Regular reviews help maintain accurate decision-making data.