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FINANCIAL SIMULATOR

Build vs. Buy 3-Year TCO Calculator

Engineering estimates consistently understate downstream maintenance costs. Model initial engineering salaries, 3-year maintenance burdens (typically 20%/year), and vendor licensing fees to discover your true economic breakeven.

1. In-House Engineering Assumptions (Build)

Loaded salary for dedicated team
Industry standard: 15% - 25% of upfront build cost per year

2. Commercial Vendor Assumptions (Buy)

TCO OUTPUT • 36 MONTHS
RECOMMENDATION: BUY
Total 3-Year Build Cost: $224,000
• Upfront Build: $140,000
• 3-Year Maintenance: $84,000
Total 3-Year Buy Cost: $156,000
Net Financial Advantage: $68,000
Breakeven Horizon:
Vendor costs remain persistently lower
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