# Internal tool lifecycle cost worksheet

Choose one comparison period and scope. Separate direct spending from internal effort, and state any conversion rate. Use low, expected, and high scenarios with reasons.

**Tool / owner / comparison period:** ____________________

**Prepared by / reviewed by / date:** ____________________

**Internal rate and source, if converting time to money:** ____________________

**Unit of work the tool produces (for example, one report, one onboarding, one reconciled record) and expected volume over the period:** ____________________

## Cost categories

| Cost category | One-time or recurring | Direct cost range | Internal hours range | Assumption / source | Owner |
| --- | --- | --- | --- | --- | --- |
| Requirements and delivery | One-time |  |  |  |  |
| Integration and acceptance | One-time |  |  |  |  |
| Hosting / services / usage-based fees | Recurring |  |  |  |  |
| Licenses and third-party components | Recurring |  |  |  |  |
| Access and support | Recurring |  |  |  |  |
| Security / dependency updates | Recurring |  |  |  |  |
| Monitoring and incident handling | Recurring |  |  |  |  |
| Business and provider changes | Variable |  |  |  |  |
| Handover | Variable |  |  |  |  |
| Retirement / migration, including data export and deletion | Exit |  |  |  |  |

For the chosen period, add one-time delivery, the period's recurring costs, planned change, and applicable exit costs. Count each item once. Multiply hours by the stated rate only when a monetary comparison is needed.

**Total for the period (low / expected / high):** ____________________

**Cost per unit of work at expected volume:** ____________________

**Scenario drivers:** ____________________

## Comparison

| Alternative | Total for the same period | Cost per unit | Capability difference | Exit difference |
| --- | --- | --- | --- | --- |
| Keep the current tool |  |  |  |  |
| Purchased product |  |  |  |  |
| Do nothing / manual |  |  |  |  |

**Benefit or avoided cost claimed, kept separate from the cost figures and stated with its evidence:** ____________________

## Handover check

- [ ] Source, accounts, configuration, and dependencies have appropriate ownership.
- [ ] Another person can operate, diagnose, and recover the tool.
- [ ] Credential locations are documented without exposing secrets.
- [ ] Recurring costs are visible to the owner (invoices, usage dashboards, alerts on unexpected spend).
- [ ] Unused resources and licenses were checked in the period and released.

## Tracking

| Check | Cadence | Last done | Forecast vs actual |
| --- | --- | --- | --- |
| Recurring spend reviewed against forecast |  |  |  |
| Internal hours sampled |  |  |  |
| Volume of work compared with assumption |  |  |  |

## Common failure modes

- Delivery is costed and operation is not.
- Usage-based fees grow with adoption and nobody watches the invoice.
- Internal hours are counted only for the builder.
- The exit cost is discovered when the exit is already necessary.

**Comparison result / unresolved estimate / next review:** ____________________

This worksheet covers cost. It does not decide value or fit; pair it with the build, buy, or combine memo.