IT Support Build vs Buy Calculator
Compare the annual cost of an in-house IT hire against a managed service at your headcount. Shows annual and monthly totals, the difference, and the break-even number of users where the two options tie.
Explain like I'm 5
Hiring one person for IT costs about the same whether 10 people use them or 80. Paying a company to do your IT costs a bit more every time you add a user. So at some point the two costs cross. Put your numbers in and we will show you where.
Verdict
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- In-house annual total–
- In-house monthly equivalent–
- Managed annual total–
- Managed monthly equivalent–
- Annual difference–
- Break-even headcount–
Show workings
Why the two curves look so different
An in-house IT hire is a step-change cost. You pay roughly the same whether 10 people or 80 people sit behind them. A managed service is a per-user cost: every new employee adds another monthly fee to the invoice. On a chart, in-house is a flat line and managed is a sloped line. Where the two lines meet is the headcount at which both options cost the same. Below that point, outsourcing is cheaper on paper. Above it, in-house is. This calculator finds that crossing point.
What the headline number misses
Cost is only one input. One in-house hire has holidays, sick days, training time and a single point of failure. A managed service gives you out-of-hours cover, escalation, and deeper expertise on things your one hire will not have seen before. If you need true 24/7 or multiple specialisms, you are comparing one in-house person against a team, which shifts the economics dramatically. Run the calculator both ways: with one hire and with two, and see which side of break-even you land on.
Related calculators
Sizing the broader tech stack? The Website Performance Budget Calculator and Broadband Bandwidth Calculator handle related capacity questions. For pure financial comparisons, the ROI Calculator and Break-Even Calculator cover the general case.
Common questions
When does in-house IT become cheaper than a managed service?
At a typical £45,000 salary fully loaded at 25%, with basic tooling and training, the fixed annual cost lands around £62,000. Against £75 per user per month, that break-even falls around 68 to 70 users. Below it, managed wins on cost. Above it, in-house does, but the comparison is rarely purely financial.
What does employment loading cover?
Employer's National Insurance, pension contributions, holiday accrual, sick pay, and any benefits. A loading of 20% to 30% on top of gross salary is normal in the UK. Higher if you offer private healthcare, bonuses or share schemes.
Does this compare like for like on coverage?
No. One in-house hire covers working hours only. A managed service usually includes extended or 24/7 cover, vendor relationships, and specialist escalation. If you need that coverage in-house you will need two or three heads, which pushes the break-even sharply upward.
Should I include kit and software?
Include only what exists because of the in-house hire: their laptop, ticketing, RMM, and training certifications. Do not double-count tools the rest of the business needs anyway. Managed pricing usually bundles the provider's tools, so do not add those on the managed side.
What about hybrid models?
A common setup is one in-house technician plus a co-managed contract for out-of-hours and project work. For this, run the calculator twice: once for the in-house hire at a lower managed rate, and once for pure managed. The total is whichever combination fits your operational needs.