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The real cost of software over 3 years

Subscriptions are billed every month and grow with your headcount. A custom tool is paid for once, then costs what it takes to run. The calculation below compares the two cumulative totals.

Result

Number of usersSubscriptions the tool would replaceAverage monthly cost per user and per subscription (€)

Horizon

Cumulative cost

Year 1Year 2Year 3

SubscriptionsCustom, running costs included

The two curves cross in month 22

Subscriptions, cumulative

€99,500 excl. VAT

Custom, cumulative

€65,500 excl. VAT

Gap in favour of custom

€34,000 excl. VAT

Indicative estimate, ahead of any quote: precise costing happens during a diagnostic.

Assumptions, editable

Building the custom tool (€)Annual running cost, as a share of the build (%)Annual subscription price increase (%)

Next step

These numbers give you a sense of scale. Costing happens during a diagnostic, Express or strategic depending on your size.

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The real cost of software over 3 years

Cumulative cost

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