Make vs Buy Analysis Calculator

Analyze the financial case for producing a component in-house versus outsourcing. Compares relevant incremental costs and considers opportunity cost, quality, and strategic factors.

Principal ($)
Annual Rate (%)
Years
Compounding / Year
$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.
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How It Works

Analyze the financial case for producing a component in-house versus outsourcing. Compares relevant incremental costs and considers opportunity cost, quality, and strategic factors

Each component has a specific meaning:

  • Opportunity cost — The opportunity cost recorded for the scenario being assessed.
  • Quality — The quality recorded for the scenario being assessed.
  • Strategic factors — The strategic factors recorded for the scenario being assessed.

Note: Interpret the make vs buy result against the thresholds and context described above.

How to Use

Enter the opportunity cost, quality, strategic factors for the scenario you are assessing. Analyze the financial case for producing a component in-house versus outsourcing. Compares relevant incremental costs and considers opportunity cost, quality, and strategic factors. Use the make vs buy result to inform your calculation.

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Frequently Asked Questions