When should you replace SaaS with software you own?
When the contracts you can end will pay back the build, and the workflow matters enough to control. Test that case here without counting savings you cannot defend.
Does owning the software pay?
A subscription has a clear annual price. Owned software costs more up front, then returns value as the old contracts end. Start with the hard savings and keep every other estimate clearly labeled.
Start with hard savings
Add the annual license fees that will disappear, then subtract hosting, maintenance, and support for what you own.
Count the transition
Include the build, data migration, and the months when both bills overlap. Contract renewal dates determine when savings begin.
Keep upside separate
Faster work and better data may add value. Count those gains only when you can defend them, and keep sale value outside the core case.
Optional: Include strategic value
Turn this on only when you can defend an annual estimate for:
- Faster work because the data is in one place.
- Quicker changes to screens and workflows.
- A shorter path to useful AI tools and agents.
Optional: Include enterprise value upside
A buyer may apply an earnings multiple to recurring savings.
- Uses the net annual savings above.
- Applies the earnings multiple you choose.
- Stays separate from the project's cash return.
Pays back in 10 months.
| Scenario | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Hard savings only | $155,208 | $1,080,208 | $2,005,208 |
| Including strategic value | $0 | $0 | $0 |
Cumulative cost
Modeled return
The calculator is illustrative. It assumes savings rise evenly until the final subscription ends. A real model should use each contract's renewal date and the expected cutover date for the system replacing it.
Need the real inputs?
SaaSassin helps you list each subscription, its annual cost, and its renewal date. You leave with the numbers this model needs.
Play SaaSassinGet the core case right. Handle these separately.
Financing can change when the company pays. A tax credit may change the final cost. Neither belongs inside the basic answer about whether ownership pays.
The project works, but it missed this year's budget.
Most clients pay cash because it costs less. Financing is useful when waiting would trigger another year of software contracts. The flexibility typically adds roughly 15 to 30 percent to the cost.
See the financing optionSome experimental work may qualify.
The credit applies to specific technical work, not the whole project. Treat it as possible cost relief after the ownership case works on its own, and have a qualified tax adviser review it.
See what may qualify