That sort of logic doesn't really apply here because:
* RDS costs obviously scale linearly with ongoing time and probably scale linearly with the total amount of data being backed up. So depending on the revenue of the business, these extra costs could easily end up outweighing the (notional) cost of the time saved, which is mostly a one-off expense.
* The cost of a software engineer's time is notional in the context of a one-person business. The author of Tarsnap isn't going to be able to employ fewer than zero additional software engineers to maintain Tarsnap because of the time saved by using RDS.