Build-versus-buy discounted comparison calculator

Calculate discounted total build cost and discounted total buy cost with your own figures.

Your numbers

Use the units shown. Results update as you change valid inputs.

Choose the currency for these amounts. Changing it keeps your numbers and does not convert exchange rates.

Use discounted total build cost and discounted total buy cost to compare changes to your inputs. The method and limits below explain the scope.

Examples

Examples

Try the starting example

Build upfront cost ($)
500
Buy upfront cost ($)
0
Build costs in periods 1,2,… ($)
100,100,100,100,100
Buy costs in periods 1,2,… ($)
200,200,200,200,200
Discount rate per supplied period (%)
10
Discounted total build cost ($)
$879.08
Discounted total buy cost ($)
$758.16
Build minus buy discounted cost ($)
$120.92
First period where cumulative discounted build cost ≤ buy
None in horizon

Try another scenario

Build upfront cost ($)
300
Buy upfront cost ($)
0
Build costs in periods 1,2,… ($)
100,100,100,100,100
Buy costs in periods 1,2,… ($)
200,200,200,200,200
Discount rate per supplied period (%)
0
Discounted total build cost ($)
$800.00
Discounted total buy cost ($)
$1,000.00
Build minus buy discounted cost ($)
-$200.00
First period where cumulative discounted build cost ≤ buy
3
Calculation method

Calculation method

Discounted total build cost ($)

Build upfront + sum(build period cost/(1+rate)^period).

Discounted total buy cost ($)

Buy upfront + sum(buy period cost/(1+rate)^period).

Build minus buy discounted cost ($)

Build NPV cost−buy NPV cost.

First period where cumulative discounted build cost ≤ buy

Check the upfront comparison at period 0, then cumulative discounted costs after each supplied period; report None in horizon if no crossing occurs.

Symbols and units
a
Build upfront cost ($)
b
Buy upfront cost ($)
c
Build costs in periods 1,2,… ($)
d
Buy costs in periods 1,2,… ($)
e
Discount rate per supplied period (%)

Use the units shown. A list keeps the order in which you enter its values. The symbol ^ means “raised to the power of”.

Calculation steps and notation

sum(list) adds all entries in the list.

Assumptions & limits

Assumptions & limits

  • Compares supplied costs in one currency and equal periods. Include migration costs or credits in their appropriate period inputs; negative period values represent entered credits. No tax, financing, changing usage or live vendor prices are inferred.
Are these inputs private?

These calculations run in your browser. A shared link contains the values you choose to share. Only questions submitted to the separate AI finder are sent to OpenAI.

Further reading

OpenStax: arithmetic and geometry ↗

Background reading; this does not imply endorsement or independent review of SumFizz.

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