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Should I make this in-house or buy it?

Enter your numbers below. Get the answer first, then Koala's next move.

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Result detail level
Numbers to enter
Compare the same quantity under both options. Koala uses only the fixed and per-unit costs you enter; no sample volume or cost assumptions are prefilled.

Costs that rise with each unit you make.

Setup, tooling or other fixed cost that applies to the quantity being compared.

Use the same planning period as the fixed cost above.

Koala's Calculated Result
Total cost for the same quantity under each option.

Enter the numbers you know

The detailed explanation will appear here once the calculator has a result.

Add the quantity plus the in-house and external cost structures.

Koala's Professional Opinion

Give Koala your numbers first

The decision and next steps will appear here.

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Definition and method

What this calculator answers

Annual cost comparison and break-even units between in-house production and buying — at unit volume and fixed overhead.

Make annual cost

Make annual = units/yr × variable cost + fixed overhead. The break-even-COGS read for any # of units in production — the per-unit contribution in the same column as fixed overhead.

Worked example: your figures

The interactive result above is the worked example. Change any input and the same deterministic engine recomputes the answer; this page does not insert a generic example business or silently treat example values as a benchmark.

  • No market benchmark or outcome is silently inserted by this page.

What should I check next?

Frequently asked questions

When is in-house production better than buying?

Use the calculator result for the inputs entered and keep any market-response or operating recommendation separate from the deterministic calculation. Support that additional assumption with the business’s own evidence or an explicitly labelled scenario.

Make vs Buy

What's "fixed overhead to make"?

Per-year or per-period overhead that exists the moment you start producing in-house — supervisor, equipment depreciation, training, capacity purchase. Set as the line that exists even if you produce 0 units.

Make vs Buy

How does expected annual volume shift the answer?

A higher expected unit volume lowers per-unit fixed-cost share. Above the break-even unit count, make is preferable; below it, buy is preferred — even before price differences.

Make vs Buy

What's the right residual work to consider?

Use the calculator result for the inputs entered and keep any market-response or operating recommendation separate from the deterministic calculation. Support that additional assumption with the business’s own evidence or an explicitly labelled scenario.

Make vs Buy

Educational use, not financial advice. Numbers are estimates for planning; consult a qualified professional before acting on them.