SaaS subscriptions or custom software: which costs less?
Enter your numbers: the calculator compares the cumulative cost of your subscriptions and of custom software over 3 or 5 years, and shows the month custom software pays off.
How to read the result
A SaaS subscription costs almost nothing upfront, then is paid every month and per user: its curve rises steadily, faster with every hire and every price increase. Custom software requires an upfront investment, then a low yearly cost that does not depend on the number of users. The break-even point is the month the two curves cross.
The calculation only counts spending. It does not value time saved on re-typing, owning the code and data, or a tool that fits your processes exactly: arguments to add, or not, depending on your situation. If custom software never pays off over the period, it is often a sign that a well-configured off-the-shelf tool suits you better.
Frequently asked questions
How does the calculator estimate subscription costs?
It multiplies the number of users by the average price of your subscriptions, every month, adding the new users you expect and the yearly price increase. Add up all your tools per user to get a realistic average price.
What amount should I enter for custom software?
For a focused business app, allow $6,800 to $22,400 (€6,000–€20,000)excl. VAT; for an ERP, $16,800 to $56,000 (€15,000–€50,000)excl. VAT. The estimator gives you a range suited to your project in one minute, and the quote becomes fixed after scoping.
What does the yearly cost of custom software include?
Hosting (from a few tens to a few hundred euros a year), maintenance and small improvements. It does not depend on the number of users.
Does the calculation include time saved?
No: it only compares spending. Time saved on re-typing and on tools that do not talk to each other comes on top, in favor of custom software; it is covered in the article on ROI.
Are the amounts excluding tax?
Enter amounts excluding tax on both sides to compare like for like. The result is an estimate, not a quote.