The Math Can Work for Simpler Tools But Rarely for Core Systems Like Payroll or Customer Records

RBC Capital Markets has launched an interactive calculator to help companies decide whether to build or buy business software, and its conclusion is sobering: building is usually more expensive. The tool lets users input a software subscription cost and compare it with the full expense of an in-house alternative, including maintenance, security risks, repairs, and the cost of employees using a less reliable tool. The math can work for simpler tools but rarely for core systems like payroll or customer records.

The biggest hidden cost may be talent—companies must ask whether their best AI workers should rebuild existing software or create something new. The tool follows a shift where AI coding tools made it easier for firms to build custom internal apps instead of paying outside providers. RBC's analysts built the tool for companies and investors to test that idea.

The analysis was reported by Business Insider's Alistair Barr, who previously covered how AI coding tools were enabling this trend. For most firms, buying remains the cheaper option despite the appeal of vibe coding custom versions.