How the calculation works
The calculator builds two running totals, month by month, for 36 months: what you pay if you stay, and what you pay if you switch. The break-even month is the first month in which the switching total is no higher than the staying total. If that never happens within 36 months, the result says so.
- Staying costs the current per-seat price × seats, every month.
- Switching starts with a one-time cost in month zero: the implementation or onboarding fee, plus internal migration hours × your hourly labour cost. After that it costs the new per-seat price × seats, every month.
- Contract overlap. For each month still left on your current contract, the old tool's monthly bill is added to the switching total as well, because you are paying both vendors.
- Price rises apply once a year, compounding, to both tools. A 5% rise costs more in dollars on the more expensive tool, which is why it slowly widens the gap in favour of the cheaper one.
- Seat growth also applies once a year, compounding, to both tools.
Year totals in the results table are the sum of the twelve monthly amounts in that year; the three-year row is the running total at month 36.
Worked example: the same switch with different contract terms
Take a 20-person team paying $25 per seat per month, moving to a tool at $18. Onboarding is $500, the migration takes 20 internal hours at $40 an hour, and both vendors raise prices 5% a year. The one-time cost is $1,300 ($500 + 20 × $40). The only thing that changes below is how many months are left on the current contract.
| Months left on current contract | Paid to both vendors | Break-even | 3-year difference |
|---|---|---|---|
| 0 | $0 | Month 10 | +$3,996 |
| 3 | $1,500 | Month 20 | +$2,496 |
| 6 | $3,000 | Month 30 | +$996 |
| 9 | $4,500 | Not within 36 months | −$504 |
Each extra three months of contract adds $1,500 of double payment and pushes break-even back by ten months. At nine months, a switch that saves 28% on the subscription loses money over three years. Often the cheapest decision is not whether to switch but when: waiting until the contract ends can be worth more than the price difference itself.
When a cheaper tool still doesn't pay back
A 10-person team paying $30 per seat considers a $27 tool. The saving is $30 a month. If onboarding costs $2,000 and the migration takes 60 hours at $50 an hour, the one-time cost is $5,000. Even with no contract overlap, three years of savings (about $1,135 once price rises are included) never cover it; the switch ends three years $3,865 behind. A small per-seat saving on a small team needs a very cheap migration to be worth it.
What the calculator leaves out
- Productivity dip. Teams often work more slowly for a while after a switch. If you want to include it, add the lost hours to the migration hours.
- Data export and egress fees. Moving large amounts of data can carry its own charges; see what data egress fees cost when you leave a vendor. Add them to the onboarding fee.
- Discounts and negotiated renewals. Enter the prices you would actually pay, not list prices. Your current vendor may offer a better renewal once you mention leaving; see how to negotiate a SaaS renewal.
- Taxes, currency and the time value of money. Amounts are not discounted, which is a reasonable simplification over three years for most subscription decisions.
- Non-cost reasons. Security, features, vendor stability and team preference can justify a switch that costs more, or rule out one that costs less. For stability, see how to judge whether a SaaS vendor will still be around.
Common questions
Why 36 months?
Most switches with a real up-front cost look worse in year one than they are. Three years is long enough to show whether the monthly saving pays that cost back, and short enough that the price and seat assumptions stay believable.
What should I count as migration hours?
Everyone's time spent on the move: exporting and cleaning data, rebuilding integrations and automations, testing, and training. For typical ranges by team size, see how long a SaaS migration actually takes.
What if my contract has an early-termination fee instead?
Compare two runs: one with the remaining months entered as overlap, and one with zero months and the termination fee added to the onboarding fee. Use whichever is lower.
Is anything I enter sent anywhere?
No. The calculation runs in your browser, and the tool names and prices you type are never sent to us or stored. Our analytics record only that the calculator was used, with coarse ranges such as team-size band. See our privacy policy.