Business
Make in-house or outsource Calculator
Find the cost crossover between internal production and a supplier quote. This free make in-house or outsource calculator shows the calculation and its assumptions so you can compare your own figures.
Your results
Find the cost crossover between internal production and a supplier quote.
Calculated outcomes
- In House Saving
- €7,000.00
- Lower Cost Option
- In-house
Assumptions and estimates
- Use avoidable costs for this decision, not sunk costs. Crossover quantity is shown only when a non-negative intersection exists; quality, capacity and delivery risk need separate assessment.
- Method: In-house cost = fixed cost + units × internal unit cost. Outsourced cost = setup cost + units × supplier price.
- Only avoidable decision costs belong here. Consider capacity, quality, confidentiality and delivery risks alongside the calculated cost.
Useful next steps
- Use Compare options to test an alternative side by side.
- Copy, print or download a record of this calculation when you need one.
Reports open your email app addressed to s@s1.ie with the public page address only. Your inputs are never added.
How the make in-house or outsource calculation works
In-house cost = fixed cost + units × internal unit cost. Outsourced cost = setup cost + units × supplier price.
Only avoidable decision costs belong here. Consider capacity, quality, confidentiality and delivery risks alongside the calculated cost.
Using this calculator
- Enter your own figures in the labelled inputs. Keep the currencies, units and time periods consistent.
- Choose any applicable rate profile, pattern or assumption shown for this tool. Open additional inputs when relevant.
- Review in house cost and outsourced cost and crossover units, then read the stated assumptions and eligibility conditions before using the result.
Worked example
This is a static example using illustrative inputs, not facts about you or today’s date. The displayed eligibility selections and assumptions apply only to this example.
See example inputs
- Required units
- 5000
- Avoidable internal fixed cost (€)
- 30000
- Internal variable cost per unit (€)
- 8
- Supplier price per unit (€)
- 15
- Outsourcing setup cost (€)
- 2000
- In House Cost
- €70,000.00
- Outsourced Cost
- €77,000.00
- Crossover Units
- 4,000