Compare total cost of ownership: licence costs and customising against custom development and maintenance – with break-even.
In brief
The comparison frame in the TCO calculator is EUR 3,878 – 2,743,440 excl. VAT. The licence path and custom software are set against each other inside that one range.
The upfront cost can be spread over 72 months. Terms are on the software financing page.
The calculation follows six visible stages. All figures remain planning values until scope and assumptions have been reviewed.
1. Capture inputs
The calculator records the visible project, volume, complexity and operating parameters selected on this page.
2. Add fixed components
One-off investment and recurring operating components are added separately.
3. Apply multipliers
Volumes, time values and rates are multiplied where the model converts effort or incidents into monetary effects.
4. Create the range
The calculator applies its documented lower and upper uncertainty factors to the base result; ROI views keep investment and savings visible separately.
5. Round and calibrate
Monetary result fields are rounded to the nearest whole euro. Public project-cost components are calibrated with the centrally maintained display factor.
6. Classify the result
The result is shown as non-binding guidance. A binding quote requires scope, data, integrations, risks and acceptance criteria to be reviewed.
Efficiency or discount factor: A central display factor of 0.7 is applied to public project-cost components to keep all calculators aligned with the currently reviewed pricing basis. It is not a customer-specific discount; customer-entered wages, revenues and existing operating costs are not reduced.
Why this is not a binding quote: The calculator cannot verify complete requirements, third-party dependencies, data quality, legal constraints or acceptance criteria.
Concrete project profiles with assumptions and indicative budgets—useful for internal alignment alongside the calculator.
FAQ
For standard software: licences per user, customisation, integration, training and yearly price increases.
For custom software: development, hosting and 15–20% maintenance per year. Only the multi-year view over 3–5 years makes the options comparable.
The break-even usually arrives with high user counts and high customisation needs.
200 users at EUR 40 per month cost EUR 96,000 per year in licences alone – over five years that funds a substantial custom build without per-user fees.
Price increases at contract renewal, paid add-on modules, integration middleware, and the workarounds your team builds around missing features.
Those hidden items regularly add 20–40% to the naive licence sum.
Validate your software decision
We calculate the realistic TCO of both paths for your scenario – free initial consultation.
Process fit, vendor lock-in, data ownership, roadmap control and exit costs.
Cheap licences with poor process fit generate ongoing friction costs that never show up in the licence invoice.
Frequently the best answer: standard software for commodity processes (accounting, email), custom development for the processes that differentiate your business.
Integration layers keep both worlds in sync.
| Model | When it fits | Budget & flexibility | Typical risks |
|---|---|---|---|
| Fixed price (fixed scope) | Clearly defined scope, stable requirements, repeatable delivery. | Predictable total cost; little room for change without a change order. | Scope creep leads to change orders or quality trade-offs. |
| Time & Material | Discovery, legacy, evolving requirements, or close collaboration. | Maximum flexibility; budget transparent via hourly or daily rates. | Without prioritisation, effort can grow—backlog and reviews matter. |
| Retainer / maintenance package | Ongoing operations, updates, small features, and support. | Agreed capacity per month; predictable follow-on cost. | Large changes may still need a separate estimate. |
| Hybrid (milestone + T&M) | MVP or phased releases with clear go-lives, then iterate. | Core delivery fixed price; extensions on a time-and-materials basis. | Define contractually what is in scope vs. extra work. |
Calculators on this page provide indicative ranges; we choose the right model with you based on risk, scope, and planning horizon.
The ranges shown are indicative. For a binding quote we discuss scope, priorities and funding options in a free intro call. Many digitalization projects qualify for grants – try our funding calculator.
Browse all cost calculators, explore services and typical solutions. Questions about TCO comparison? Contact us.
After using the TCO comparison calculator, validate assumptions in a short intro call.
Browse all cost calculators in the costs overview.
Licences vs. custom build over 3–5 years
Interactive estimate based on your inputs.
Non-binding project range from the software cost calculator: EUR 10,332 – 372,623 excl. VAT.
Methodology: The estimates are based on historical project data, complexity drivers and standard implementation assumptions. Results are a non-binding indication only; effort and price must be calculated individually.
If you are still deciding
If you are ready to implement
Calculator overall range
EUR 2,800–70,000 excl. VAT, depending on preparation depth
The overall range is derived from the valid parameters of the relevant cost calculator.
Typical duration
2–12 weeks
Main risk drivers
Non-binding indication
This result is only a non-binding indication based on typical assumptions. Effort and price must be calculated individually for your project.
A transparent four-step process for validating the TCO Comparison indication with concrete requirements.
1. Confirm scope and target outcome
We clarify the business outcome, user groups, and boundaries relevant to TCO Comparison.
2. Review data, interfaces, and risks
We validate integrations, data quality, security, compliance, and operational dependencies.
3. Check the calculator assumptions
We compare the selected parameters with the real system landscape and document deviations.
4. Prepare the precise quote
You receive a scoped proposal with milestones, exclusions, price model, and next decision point.
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