Own vs rent software calculator
Add the tools you rent, then compare renting them for years with building something you own: the running totals, the break-even month and the difference.
The answer
Illustrative exampleOwning breaks even in month 38
- Renting, 5 years
- $42,304
- Owning, 5 years
- $30,000
- Difference
- $12,304 in favor of owning
Renting these tools costs $638 a month today. With prices rising 5% a year, that adds up to about $42,300 over 5 years. Owning costs $18,000 up front plus $2,400 a year to run, about $30,000 in total. Owning pays for itself in month 38 (year 4) and comes out about $12,300 ahead by the end of year 5.
See the numbers year by year
| End of year | Renting, cumulative | Owning, cumulative |
|---|---|---|
| Year 1 | $7,656 | $20,400 |
| Year 2 | $15,695 | $22,800 |
| Year 3 | $24,136 | $25,200 |
| Year 4 | $32,998 | $27,600 |
| Year 5 | $42,304 | $30,000 |
Figures are your inputs. This is an estimate, not a quote. “Get a real quote” opens a free call with these numbers attached.
How the math works
- Renting
- Each tool’s price per seat times its seats gives a monthly total. That total rises by your annual increase at the start of each new year, and the months are added up.
- Owning
- The build estimate is paid once, at the start. Your yearly maintenance is spread evenly across the months that follow.
- Break-even
- The first month in which the running cost of renting reaches the running cost of owning. If that never happens within your horizon, renting is the cheaper choice for that period.
- What it leaves out
- Your team’s time, switching and training costs, taxes, discounts, and the value of features you would gain or lose. Add one-off switching costs to the build estimate if you want them counted.
Figures are your inputs; this is an estimate, not a quote. The example figures are illustrative and do not describe any real business or vendor price.
Questions, answered
How the calculator works, and what it leaves out.
How is the break-even month calculated?
It is the first month in which the running total for renting reaches the running total for owning. Renting adds your monthly tool costs, rising once a year by the increase you set. Owning starts at the build cost and adds a twelfth of the yearly maintenance each month.
What should I enter as the build estimate?
A written quote if you have one. If not, use a careful guess and book a free call: we will give you an honest ballpark and a fixed price before any work starts. OWNIT website packages start at $1,800 and are listed on our pricing page; CRMs, booking systems and automation are priced on scope.
Why include maintenance for software we own?
Owned software still needs hosting, security updates, backups and the occasional change. Leaving that out would flatter owning. Use a care plan quote, or your hosting costs plus some developer time.
Does it count our team’s time or switching costs?
No. It compares cash costs only. If moving data, training people or running two systems side by side will cost money, add it to the build estimate.
Is renting ever the better choice?
Yes. With few seats, inexpensive tools or a short horizon, renting often stays cheaper, and the calculator says so. Renting also makes sense while you are still working out what you need.
Do you store what I type?
No. The math runs in your browser and nothing is saved or sent. If you choose Get a real quote, your numbers are added to the booking form so you can send them with your call request.