Custom development, on-prem solution or SaaS? With our TCO calculator, you can ideally compare providers, offers and options and keep an eye on all potential costs.
When does your software project actually pay off? In order to be able to carry out a thorough ROI calculation, you first need a full overview of the costs — a total cost analysis is worth gold here.
Looking at the long term in particular helps you to identify cost drivers at an early stage and take measures to minimize them. With our TCO calculator, you can set up a 5-year plan.
Holistic view on all relevant cost factors — direct, indirect, short-term and long-term costs
Better comparability Existing offers and options for implementing your software project
Early Identifying potential for cost optimization For the long term
Minimize risks by identifying potential risks at an early stage
Ideal conditions for a professional controlling even before the start of the project
Project initialization costs include expenses incurred during the planning and implementation phase of a software project. This includes, for example, costs for requirements analysis, the evaluation of solutions, the selection of a provider, contract negotiations, and the implementation and integration of the software into the existing infrastructure. These costs are one-time, but they form the basis for the entire project.
Implementation costs are a key aspect of any software project and can vary significantly depending on the solution chosen. Here are possible costs for three options SaaS, on-premises solution and individual development.
SaaS (Software as a Service): Implementation costs are usually focused on adapting the software to the company's specific requirements. This can include configuring settings, user access, and integrations with other systems. The costs usually include licensing fees, subscriptions, and possibly consulting services for customization.
On-premises solution: With on-premises software, the application is hosted locally on the company's own servers. This requires significant investments in hardware, infrastructure, network technology, and security measures. Implementation costs include the purchase of servers, storage, network components and, if applicable, special software licenses. There are also personnel costs for the installation, configuration, maintenance and security of the systems on site.
Individual development: The implementation costs for individual developments cover the entire development period, from requirements analysis to design and programming to quality assurance and commissioning. This requires a team of developers, designers, and testers who can be hired either internally or externally. In addition to personnel costs, there may also be resources for technical infrastructure and possibly technology partners.
Software costs include the price of licensing or purchasing the software. This could be either a one-time payment or a recurring subscription price. It is important to consider both acquisition costs and ongoing license fees to get a realistic picture of the total costs.
Personnel costs include expenses for employees who are directly involved in the software project. This includes the salary of developers, project managers, testers, and other team members. In addition, the costs of training and onboarding new employees should also be considered.
Training costs arise when employees need to be trained to use the new software effectively. This may include internal training, external training, or hiring training providers. Investing in training is crucial to utilize the full power of the software and minimize potential productivity losses.
Upgrade costs arise when new versions or updates of the software must be purchased. Software solutions are constantly evolving to meet changing requirements and to close security gaps. These costs should be planned regularly to avoid outdated software.
Security costs relate to maintaining the security of the software and associated data. This includes protection against cyber attacks, implementation of security measures, use of anti-virus software, firewalls, and regular review of security standards. Investing in security is essential to prevent potential damage and data loss.
Depreciation is the cost that occurs when the value of the software decreases over time. The depreciation can be spread over the useful life of the software and enables a realistic presentation of costs over time.
Legacy system shutdown costs: When introducing a new software solution, the existing old system must be switched off or migrated. This includes costs for data migration, employee training on the new system and, if necessary, processing contracts with the old provider. These costs should not be overlooked as they represent an important part of the total costs.
Current costs of the legacy system: During the transition to new software, ongoing costs for the legacy system may still need to be considered. These include, for example, maintenance contracts, support costs or license fees for using the old system during the transition phase.
Simply fill out the following form and get free access to our TCO calculator.
Calculating the total cost of ownership helps to realistically estimate the financial impact of a software project over its entire life cycle, including hidden software costs.
The TCO calculator is just a tool. The accuracy depends on the data you enter. The more precise the information on the various cost components is, the more accurate the estimate will be.
The following data is required for well-founded results:
By default, realistic values are already entered in the calculator for an initial feeling. However, every software project is different and requires individual values. If you are planning an individual development, we can of course help you determine the software costs.
Our TCO calculator is an Excel file with linked sheets. This offers you a wide range of benefits:
Yes, the TCO calculator allows you to set up a five-year plan. For this purpose, development and/or implementation costs are added to running costs. The so-called growth rate (CAGR) is important for running costs, as it reflects the change in costs incurred over time.
The TCO calculator enables companies to make well-founded decisions by making the long-term financial impact of software projects, including all software costs, comparable.
Yes, the TCO calculator is suitable for projects of all sizes, as it helps to get a realistic idea of the financial impact, regardless of the size of the project.