ROI Calculator – Custom Software vs. Standard Software
When does your own solution pay off? Compare ongoing license costs with one-time development costs and find your break-even point.
Ongoing license costs add up – especially with a growing user count and annual price increases. Our ROI calculator shows at what point a custom software solution becomes more cost-effective than standard software with a licensing model. Adjust the values to your situation and get an initial assessment.
Particularly critical: License costs often grow exponentially with user count. Every new employee increases the monthly bill – and annual price adjustments of 5–15% come on top. At the same time, standard software ties you to the roadmap and pricing policy of a single vendor. Custom software eliminates this vendor lock-in and gives you full control over feature scope, data sovereignty, and long-term cost development.
ROI calculator
Custom software vs. off-the-shelf software
When does custom development pay off compared to ongoing license costs? Adjust the values to your situation.
25
5500
80 €
10 €500 €
5 %
0 %20 %
80,000 €
20,000 €500,000 €
800 €
0 €5,000 €
Spread initial costs over 6 years (72 months) instead of paying upfront.
Cost comparison over 5 years
Break-even
58 months
Difference after 1 year
-65,600 €
Difference after 3 years
-33,140 €
Difference after 5 years
+4,615 €
Off-the-shelf software (licenses)
132,615 €
Total costs over 5 years
Custom software
128,000 €
Total costs over 5 years
Important note
This calculator provides a simplified estimate. Actual costs depend on many factors (team size, technology, integrations, compliance, etc.). In a free initial consultation we create an individual analysis for your company. All prices plus VAT.
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Ihre ROI calculator custom software-Ergebnisse
Number of users25
License cost/user/month80 €
Annual price increase5 %
Development cost80,000 €
Monthly maintenance800 €
LeasingNo
Break-even58 months
5-year difference4,615 €
Why the TCO Comparison Is Crucial
Many companies only look at the initial costs. However, the Total Cost of Ownership (TCO) over 3-5 years determines which solution is actually more economical.
License Costs Rise
SaaS licenses typically increase by 5-15% per year. With 50 users, that quickly adds up to five-figure additional costs.
Vendor Lock-In Is Costly
Dependence on one vendor means: accept rising prices or migrate at high cost. Custom software gives you control.
Flexibility Pays Off
Custom software adapts to your processes – not the other way around. That saves workarounds, training, and frustration.
Typical Break-Even Periods
12–24 months
Large Teams (50+ users)
High license costs per user
Significant price increases
Specific requirements
24–36 months
Medium Teams (20-50 users)
Moderate license costs
Growing user count
Process optimization
36+ months
Small Teams (< 20 users)
Low license costs
Stable user count
Strategic reasons
Finance Your Investment: Leasing & Grants
With development costs of €50,000–200,000, software leasing offers an attractive alternative to upfront payment. The monthly rate typically ranges between €700 and €3,000 – often less than the ongoing license costs they replace.
Custom software development is eligible for 30–50% funding through programs like "go-digital", "Digital Jetzt", and various state programs. Our grant calculator shows your options.
Frequently Asked Questions: Custom Software vs. Standard Software
When does custom software pay off compared to standard software?
As a rule of thumb: With more than 15-20 users and monthly license costs exceeding €50 per user, you often reach the break-even within 18-36 months. The more users and the higher the license costs, the faster the custom solution pays off. Additionally, dependencies on the vendor are eliminated.
What hidden costs come with standard software?
Beyond pure license costs, there are often costs for: customization and configuration (consulting), training after updates, data migration when switching vendors, workarounds for missing features, premium support packages, and compliance certificates. These costs are often underestimated when making licensing decisions.
What does custom software maintenance cost?
Typically 10-20% of the initial development costs per year. This includes security updates, bug fixes, monitoring, and minor adjustments. Unlike standard software, you control the budget and priorities yourself.
How accurate is the ROI calculator?
The calculator provides an initial estimate based on typical industry benchmarks. Actual costs depend on factors such as team size, technology stack, integration depth, and compliance requirements. For a reliable calculation, we recommend a free initial consultation.
Which factors have the biggest impact on break-even?
The three biggest influencing factors: (1) Number of users – the more, the faster the break-even, (2) Monthly license costs per user, (3) Annual price increase of the standard solution. Use the sliders in the calculator to test the sensitivity.
Does the calculator account for vendor lock-in?
The calculator focuses on direct costs. Non-monetary benefits such as vendor independence (no vendor lock-in), higher data security, better scalability, and tailored processes are additional arguments for custom software that often further improve the actual ROI.
What happens when my requirements change?
With standard software, you depend on the vendor's roadmap. With custom software, you adapt features exactly to your needs – without waiting for the next release or booking expensive consulting packages.
What happens after the break-even?
After that, you save real money every month. While standard software license costs continue to rise, your maintenance costs for the custom solution remain stable. The difference grows every year – with 50 users and €80 license costs per user, that quickly adds up to €30,000–50,000 in savings per year after the break-even.
Can I split the development into phases?
Yes, we recommend an MVP approach (Minimum Viable Product). Start with the core features that deliver the most value and expand step by step. This spreads the investment across multiple budget periods, reduces risk, and lets you measure the ROI already after the first phase.
How does software leasing affect the break-even?
Leasing eliminates the high upfront investment and spreads costs into predictable monthly payments. This shifts the accounting break-even slightly backward, but cash flow is positive from month one – especially when the leasing rate is lower than the saved license costs.
Next Step
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