Software licensing
cost calculator

Building a license server takes more than the first round of development. Compare that work, hosting and maintenance with the cost of integrating a hosted licensing service.

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Calculator

Enter your costs

The numbers below are examples. Replace them with your own costs, then calculate the result.

Choose the currency for your costs. This does not convert the amounts.

Planning assumptions
months
GBP
Build an in-house licensing server
hours
hours
GBP
Use a hosted licensing service
hours
GBP
hours

Include ongoing SDK, validation and billing integration work.

Calculations run in your browser. The calculator does not send the values you enter to a server.

How it works

How we compare build vs buy

  1. In-house initial cost = development hours × engineering hourly rate.
  2. In-house monthly cost = maintenance hours × engineering rate + hosting and other monthly costs.
  3. Hosted initial cost = integration hours × engineering hourly rate.
  4. Hosted monthly cost = service fee + maintenance hours × engineering rate.
  5. Total cost = initial cost + monthly cost × comparison months. Cost difference = in-house total − hosted total.

Worked example

At £50 an hour over 24 months, the example in-house server costs £9,400. The hosted option costs £2,472, including integration and maintenance time. The difference is £6,928. Change the hours and fees to suit your project.

What to include in your costs

This covers development, integration, hosting and maintenance. Both options still need license checks in your application. Compare their features as well as the cost. The estimate leaves out tax, financing and unexpected work, and assumes monthly costs stay the same.

FAQ

Frequently asked questions

What does it cost to build a license server?

Count the initial development hours, hosting bills and ongoing maintenance. Include testing, security updates and changes to your application. The calculator uses your hourly rate and estimates to put a total on that work.

Does a hosted licensing service remove all the development work?

You still need to integrate license checks into your application and decide what happens when a check fails. Include that work, testing and future updates in the hosted option.

What should I compare besides cost?

Check activation limits, reissues, revocation, offline behaviour and how licenses connect to billing. Try the validation API in your application before choosing a service.

Is this for buying software licenses for my team?

This tool is for developers licensing their own software. It compares a license server you build with a hosted licensing service. It does not calculate per-seat prices for other software.

Next step

See how hosted licensing works

Read how activation and validation work, then compare the service with the checks your application needs. Use the current pricing page when entering the monthly fee.