TCO calculator: standard vs. custom software over 5 years
Compare total cost of ownership: licence costs and customising against custom development and maintenance – with break-even.
TCO comparison
Costs for TCO Comparison depend on scope, risk, and quality expectations. The calculator provides an initial range.
Sizing costs for TCO Comparison
- Binding quotes follow a short scope alignment
- Include operations, maintenance, and potential grants
- Many mid-market digitalization projects may qualify for funding
Transparent quoting
- Milestones and documented assumptions
- Clear exclusions in the quote
- Consulting and development delivered from Germany
We quote transparently with dedicated contacts from East Frisia.
Sample calculations & scenarios
Concrete project profiles with assumptions and indicative budgets—useful for internal alignment before the calculator.
Use the calculator right below for an instant first estimate – no sign-up and no fixed-price commitment. We align scope, risks, and assumptions in a conversation before a binding quote.
Cost calculator
FAQ
TCO: standard vs. custom software
TCO comparison
What belongs in a software TCO calculation?
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.
When does custom software beat licensed software on cost?
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.
What is often forgotten in licence-based TCO?
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.
Decision factors beyond cost
Which non-cost factors matter in build vs. buy?
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.
Can I combine standard and custom software?
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.
Typical pricing models (overview)
| 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.
Costs & next steps
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.
What we align in the call
- Scope, risks, and funding options
- Milestones and documented exclusions
- Transparent quote without hidden line items
Costs for Tco Comparison in context
- Scope, risk, and quality expectations drive the range
- Include operations, maintenance, and grants
- Dedicated contacts and short paths from East Frisia
Browse all cost calculators in the costs overview.