# Build vs buy calculator: SaaS subscription vs custom software over 3–5 years

> Build vs buy comes down to total cost of ownership over the system’s life. Buying SaaS has a low start-up cost but per-user fees that grow with your team and with annual price rises. Building has a higher upfront cost plus yearly maintenance and hosting, but costs barely change as users grow. The break-even year is when cumulative SaaS fees overtake the custom build’s total cost.

- Interactive version: https://infikeytechnologies.com/tools/build-vs-buy-software-calculator
- Type: free instant calculator
- Category: SaaS
- Last reviewed: 2026-10-05
- Publisher: Infikey Technologies (https://infikeytechnologies.com)

## Example result (default inputs)

| Input | Value |
| --- | --- |
| Currency | USD ($) |
| Users today | 50 |
| User growth per year | 20% |
| SaaS price per user per month | 45 |
| SaaS price increase per year | 7% |
| SaaS add-ons & integrations per month | 300 |
| SaaS one-off setup & migration | 8,000 |
| Custom build cost (from your quote) | 90,000 |
| Custom maintenance per year | 20 % of build |
| Custom hosting per month | 400 |
| Years to compare | 5 |

**Cheaper over 5 years: Build — saves $58,725.** Over 5 years, buying SaaS costs about $262,725 and building custom software about $204,000. Building breaks even in year 4.

Building breaks even in year 4. Worth it if you need the system for longer than that and value control over features and data.

| Metric | Value |
| --- | --- |
| Total cost to buy (SaaS) | $262,725 |
| Total cost to build (custom) | $204,000 |
| Break-even year | Year 4 |
| Users in final year | 104 |
| Cost per user per month — buy / build | $56.99 / $44.25 |

### Total cost over 5 years

| Item | Value | Detail |
| --- | --- | --- |
| Buy (SaaS subscription) | $262,725 |  |
| Build (custom software) (selected) | $204,000 |  |

**Cumulative cost by year**

| Year | Users | Buy | Build |
| --- | --- | --- | --- |
| Year 1 | 50 | $38,600 | $112,800 |
| Year 2 | 60 | $76,868 | $135,600 |
| Year 3 | 72 | $124,982 | $158,400 |
| Year 4 | 86 | $185,737 | $181,200 |
| Year 5 | 104 | $262,725 | $204,000 |

- Cost is only part of the decision: also weigh time to launch, fit with your process, data ownership, vendor lock-in and who will run the system.

Open this result on the website: https://infikeytechnologies.com/tools/build-vs-buy-software-calculator?currency=USD&users=50&user_growth=20&seat_price=45&price_increase=7&saas_extras=300&saas_setup=8000&build_cost=90000&maintenance=20&hosting=400&years=5

## Use from a link or API

Add these query parameters to https://infikeytechnologies.com/tools/build-vs-buy-software-calculator (pre-filled page), https://infikeytechnologies.com/tools/build-vs-buy-software-calculator.md (this plain-text page) or https://infikeytechnologies.com/api/tools/build-vs-buy-software-calculator (JSON).

| Parameter | Meaning | Accepted values |
| --- | --- | --- |
| `currency` | Currency | one of USD, INR, AED, GBP, EUR |
| `users` | Users today | number from 1 to 1000000, default 50 |
| `user_growth` | User growth per year | number from -50 to 300 (%), default 20 |
| `seat_price` | SaaS price per user per month | number from 0 to 100000 (in the chosen currency), default 45 |
| `price_increase` | SaaS price increase per year | number from 0 to 100 (%), default 7 |
| `saas_extras` | SaaS add-ons & integrations per month | number from 0 to 10000000 (in the chosen currency), default 300 |
| `saas_setup` | SaaS one-off setup & migration | number from 0 to 100000000 (in the chosen currency), default 8000 |
| `build_cost` | Custom build cost (from your quote) | number from 0 to 1000000000 (in the chosen currency), default 90000 |
| `maintenance` | Custom maintenance per year | number from 0 to 100 (% of build), default 20 |
| `hosting` | Custom hosting per month | number from 0 to 10000000 (in the chosen currency), default 400 |
| `years` | Years to compare | number from 1 to 10, default 5 |

- Growing team CRM: https://infikeytechnologies.com/tools/build-vs-buy-software-calculator?currency=USD&users=60&user_growth=30&seat_price=90&price_increase=7&saas_extras=500&saas_setup=10000&build_cost=120000&maintenance=20&hosting=400&years=5
- Small, stable team: https://infikeytechnologies.com/tools/build-vs-buy-software-calculator?currency=USD&users=10&user_growth=5&seat_price=30&price_increase=5&saas_extras=50&saas_setup=1000&build_cost=50000&maintenance=20&hosting=150&years=5
- Customer-facing portal, many users: https://infikeytechnologies.com/tools/build-vs-buy-software-calculator?currency=USD&users=2000&user_growth=25&seat_price=6&price_increase=5&saas_extras=1000&saas_setup=20000&build_cost=180000&maintenance=18&hosting=1200&years=5

## How it is calculated

- **Buy, per year**: users × (1 + growth)^(year−1) × seat price × (1 + increase)^(year−1) × 12 + add-ons × 12
- **Build, per year**: build cost × maintenance % + hosting × 12
- **Break-even year**: first year where cumulative buy cost ≥ cumulative build cost

## When to buy and when to build

| Buy SaaS when… | Build custom when… |
| --- | --- |
| The process is standard (email, accounting, HR basics) | The process is how you compete |
| You need it running next week | You can invest a few months for a better fit |
| User numbers are small and stable | Per-user fees grow quickly with your team or customers |
| You have no one to own the software | You can own it, in-house or with a partner |
| Several SaaS tools already do the job well together | You are paying for several tools and gluing them together |

## Costs that are easy to miss

- SaaS: price rises at renewal, premium tiers for features you need, integration tools and consultants.
- SaaS: staff time working around features that do not fit.
- Custom: maintenance, security updates and hosting every year.
- Custom: product ownership — someone has to decide what to build next.

## The hybrid option

Many businesses buy SaaS for standard functions and build a thin custom layer — a portal, workflow or integration — that connects them and handles what makes the business different. This often gives the best of both.

## FAQ

### Is it cheaper to build or buy software?

Buying is usually cheaper at first. Building often becomes cheaper over several years when per-user SaaS fees are high, users grow quickly, or you pay for several tools to do one job.

### How do you calculate total cost of ownership for software?

Add the one-off costs (setup, migration or build) to every recurring cost over the period: subscriptions, add-ons, maintenance, hosting and support.

### What is the break-even point for custom software?

The year when cumulative SaaS costs exceed the custom build plus its running costs. The calculator shows it for your numbers.

### What are the risks of building custom software?

Upfront cost, time to launch and the need to maintain it. Choose a partner who documents the code and gives you full ownership.

## Get expert help

Send these results to an Infikey Technologies specialist from the form on https://infikeytechnologies.com/tools/build-vs-buy-software-calculator#estimate or via https://infikeytechnologies.com/contact.

More free calculators: https://infikeytechnologies.com/tools.md

## Disclaimer

This calculator is provided free for general information and planning only. Results are estimates based on the inputs you enter and the assumptions described on this page, reference data such as published prices may change, and actual costs and outcomes will differ. Nothing on this page is financial, legal, tax, investment or other professional advice. Infikey Technologies Private Limited, Infikey Technologies LLC and their directors, employees and affiliates make no warranty, express or implied, about the accuracy, completeness or suitability of this tool or its results, and accept no liability for any loss or damage, direct or indirect, arising from its use or from reliance on its results. Verify all figures independently and seek professional advice before making any decision. Use of this tool is at your own risk.