Back to calculator Use calculator
Procurement & VendorsGenerated accuracy model review: 2026-05-06
Build vs Buy Calculator accuracy and testing
This page documents how Calwarden builds trust for this calculator: source notes, regression-style default tests, limitations, assumptions, unit handling, rounding, and visible change history.
Formula source
- Build total cost = build upfront cost + (internal annual labor cost + build annual maintenance cost) * years. Buy total cost = vendor upfront cost + implementation cost + annual subscription cost * years. Build savings vs buy = buy total cost - build total cost.
Test cases
Default input regression check
Generated from the checked-in default inputs and calculate function.
Inputs
- Build Upfront Cost: $180,000
- Internal Annual Labor Cost: 70,000 $/year
- Build Annual Maintenance Cost: 25,000 $/year
- Vendor Upfront Cost: $15,000
- Implementation Cost: $45,000
- Annual Subscription Cost: 140,000 $/year
- Analysis Period: 4 years
Expected outputs
- Build Savings vs Buy: $60,000.00
- Build Total Cost: $560,000.00
- Buy Total Cost: $620,000.00
- Lower-Cost Option: Build
Known limitations
- This page documents the checked-in calculator logic and does not certify results for every real-world edge case.
- Use the result as a planning estimate unless the calculator page states a stricter purpose.
Assumptions
- All prices, discounts, costs, volumes, terms, and rates are user-entered assumptions.
- Calculations are deterministic and run locally in the browser without uploading procurement data.
- Results are planning estimates and do not replace legal, accounting, tax, security, operational, or procurement review.
Unit handling
- Build Upfront Cost accepts values in $.
- Internal Annual Labor Cost accepts values in $/year.
- Build Annual Maintenance Cost accepts values in $/year.
- Vendor Upfront Cost accepts values in $.
- Implementation Cost accepts values in $.
- Annual Subscription Cost accepts values in $/year.
- Analysis Period accepts values in years.
- Build Savings vs Buy is displayed as currency.
- Build Total Cost is displayed as currency.
- Buy Total Cost is displayed as currency.
Rounding rules
- Number displays use up to 2 decimal places in the calculator UI.
- Currency outputs are displayed with standard US dollar formatting.
- Input precision follows configured step values where provided.
Version history
1.0.0 - 2026-05-06
Generated accuracy and testing page from the current build-vs-buy-calculator calculator definition.
Change log
2026-05-06
Published default regression test documentation and metadata fallbacks for Build vs Buy Calculator.
Calculator transparency
Accuracy pages are generated from checked-in calculator definitions and can be upgraded with curated review metadata over time.