How Much Does an ERP System Cost? 2022 Pricing Guide (2024)

Download This Pricing Guide As a PDF

For any business investing in an enterprise resource planning (ERP) system, pricing is an important factor.

ERP software isn’t cheap, and prices vary depending on the type of deployment, number of users and level of customizations.

Some vendors publicly display pricing on their website, especially for cloud ERP solutions, while others only provide a quote after finding out a company’s business requirements.

We’ve put together this detailed guide on the various ERP pricing models, implementation costs and examples of popular ERP vendor pricing.

How Much Does an ERP System Cost? 2022 Pricing Guide (1)

What Is an ERP?

An ERP software (short for Enterprise Resource Planning)helps organizations manage business functions and streamline operations with a centralized database and a user-friendly interface. Companies use ERP software to standardize business processes, collect operational data, improve supply-chain efficiency, promote data-driven strategies and increase collaboration between departments.

ERP systems are comprehensive solutions that typically include the following modules:

Accounting andFinance–The accounting and financemodule tracks the company’s finances, includingbudget and expense planning, core accounting, revenue management and tax management.

CustomerRelationshipManagement (CRM) – With the CRM module, businesses can manage their client-facing operations, such as sales, marketing and customer service. Employees can track sales prospects and customer pipelines. Users can also manage marketing tasks, including advertising and lead generation campaigns.

SupplyChain–The supply chain module tracks productsfrom manufacturing to warehouse todistributorsto customers.Features include supplier scheduling, purchasing, inventory, claim processing, shipping, tracking and product returns.

InventoryManagement–Using the inventory management module, businessescanmonitormaterials and suppliesthroughinventory control, purchase orders, automatic ordering and inventory scanning.

Manufacturing–Manufacturersand other production-oriented facilitiescanuse the manufacturing module tomanage theirshop floors,looking at elements such aswork orders, bill of materials, quality control, engineering, manufacturing process and planning, and product lifecycle management.

HumanResources–The human resources modulehelpsorganizations manage their hiring cycles from recruitment to succession.Companies can take advantage of the following features:applicant tracking, payroll, time and attendance, performance management and learning management.

BusinessIntelligence–A business intelligence module collectsand analyzesdata from multiple sourcesandhelps users make better business decisions. Some features include customizabledashboards andvisualization tools, ad-hoc and scheduled reporting, andreal-time data access.

ERP System Pricing Models

Depending on the type of deployment, ERP vendors use two pricing models: perpetual licensing and subscription plans. Here’s how they work:

Perpetual licensing – Companies that choose to host ERP software using their own servers (on-premise deployment) generally pay a perpetual licensing fee. This one-time cost is paid up-front and is based on the number of users and level of customization.

Perpetual licences usually don’t include recurring costs like maintenance, support and upgrades.

Subscription plans – Companies can also pay subscription fee to access cloud ERP software, which the vendor maintains and hosts on a third-party data server. The software-as-a-service (SaaS) pricing model means fees are paid per user monthly or annually.

Subscription plans often require companies to have a minimum contract length and come in various tiers with increasing functionality and modules.

Implementation Costs

ERP implementation is famous for being a long and expensive process. Costs include:

Modules or features not included in base price – Some solutions may charge additional fees for individual modules or advanced features, including payroll, manufacturing and e-commerce. There are also industry-specific solutions that offer features for a particular market.

Customization – Many companies require customization for their specific business processes, and costs can add up quickly. Businesses should make sure they focus on adding only the features they need.

Consultants – Many vendors, especially larger ones like Oracle, SAP and Microsoft, use third-party consultants for implementation. Costs can vary significantly for services like change management and data migration.

Hardware – Companies that want an on-premise deployment will need to purchase data servers and hardware infrastructure to host their ERP system.

Training – Some vendors may include basic training services for free during implementation, but others may offer them at an additional cost, especially if the training is done at the client’s site.

Small to medium-sized businesses can expect to pay between $75,000 and $750,000 for implementation. Costs for large businessesrange from $1 million to $10 million.

Companies that can’t afford large up-front implementation costs should choose a cloud deployment, which doesn’t require hardware installation and may not offer customization.

Ongoing Costs to Consider

ERP systems often require additional resources that aren’t generally included in the base price, such as:

IT staff – ERP systems can be complex to manage. Companies that choose an on-premise deployment will need internal IT staff to handle any technical difficulties that arise.

Customer support – Basic support (e.g., knowledge base, email support) is typically included in the price of an ERP solution. However, vendors may offer plans that include advanced support, such as priority support or access to a dedicated customer service manager.

Maintenance and upgrading – Most on-premise ERP deployments charge an additional fee for annual maintenance and software upgrades. However, maintenance and upgrades are typically included with subscription pricing for cloud deployments.

Open-Source ERP Software

Most ERP solutions are proprietary or closed source, and customers can’t access the source code.

On the other hand, an open-source ERP system has publicly available source code. Companies can access the open-source code for free and customize the software themselves, rather than relying on the vendor.

Consequently, open-source ERP software can be less costly than proprietary ERP solutions, as companies don’t have to pay a licensing fee to access the source code. The drawback, however, is that companies need to have knowledgeable IT staff to implement and maintain the software, especially because there’s often a lack of support and documentation.

ERP System Vendor Pricing

We’ve researched pricing for several popular ERP systems. Note that many vendors in the market don’t offer pricing details publicly, so you’ll need to contact them directly for a quote.

Aquilon Software offers both on-premise and cloud-based licensing options, and all licensing is quoted by the number of users. The on-premise license is typically from $1,500 per user to $3,000 per user, depending on the modules selected. The cloud licensing option is typically from $75 per user, per month to $150 per user, per month, depending on the modules selected.

BizAutomation Cloud ERP costs $79.95 per user, per month and requires five users minimum. The subscription price includes all ERP modules, except for e-commerce, which costs an additional $149.95 per month. Note that companies with users that don’t require full access can pay $24.95 per partial user, per month.

is an open source software that helps organizations manage their business functions, so developers can simply download the source code for free. However, some of the modules and plugins that are available in the DoliStore marketplace may require a nominal fee.

Dolibarr also offers cloud-based deployment in two subscription tiers: Basic and Premium. Please note that Dollibar’s pricing is typically presented in euros. The Basic package starts at €12 per user, per month ($12.06 per user, per month) and has 4 GB of storage and the basic features of Dolibarr ERP & CRM. The Premium package costs €30 per month plus €15 per user, per month ($32.46 per month plus $15.07 per user, per month) and has all of the features of the Basic package, plus 20 GB of storage, 5,000 API calls per month and priority email support.

ECOUNT ERP’s pricing is straightforward: $55 per month or $600 per year. This subscription includes all functions, unlimited user IDs and groupware access for 10 users. The solution also includes iOS and Android apps, a barcode app, multilingual support and an e-commerce module.

ERPNext is an open-source ERP solution that’s free for on-premise and self-hosted deployments, up to five users. Its Enterprise cloud deployment plans start at $50 per user, per month and includes all modules, plus other features (e.g., security updates, server monitoring, professional support).

LillyWorks offers a monthly subscription that starts at $100 per user, per month and scales up from that point. The manufacturing-focused ERP solution offers advanced functionality for shop-floor planning and execution, material planning, inventory management, and bill of materials and routing definition.

Microsoft Dynamics 365 allows companies to purchase individual modules based on their specific business area. For example, the Sales Professional module costs $65 per user, per month, while the Sales Enterprise module costs $95 per user, per month.

MRPeasy has four subscription plans. Note that the pricing for each plan covers only up to 10 users. If a client wants to add more than 10 users to any of the plans, there’s an extra $79 per month for every 10 additional users.

The Starter plan costs $49 per user, per month and includes many of MRPeasy’s core features. The Professional plan costs $69 per user, per month and includes all of the features of the Starter plan, plus additional ones like special sequence of production operations, expiry date management and subcontracted operations.

The Enterprise plan costs $99 per user, per month and includes all of the features of the Professional plan, plus the ability to manage multiple production sites, workstation maintenance management, work order approval, revision/version control, backward production planning and Return Merchandise Authorization (RMA).

The Unlimited plan costs $149 per user, per month and adds on integration via API.

NetSuite’s pricing is tailored to each customer, predicated on a set of givens, including ERP configuration, required add-on modules, total user count and contract length. Its base license costs $999 per month with access costs of $99 per user, per month. Please contact the vendor directly for a custom quote.

Odoo is an open-source ERP solution with two pricing options.

Odoo Community is free to implement and maintain on-premise. It includes basic modules for accounting, project management, customer relationship management (CRM), human resources, inventory, manufacturing, e-commerce and marketing.

Odoo Enterprise costs $28 per user, per month and includes advanced functionality and mobile device access. Additional apps can cost anywhere from $12 to $96 per month.

SAP Business One ERP doesn’t disclose pricing on its website. However, third-party implementation consultants say perpetual licenses cost $3,213 for professional users and $1,666 for limited users. Bug fixes, upgrades and patch releases are covered through a separate annual maintenance fee.

Subscription licenses cost $94 per professional user, per month or $54 per limited user, per month. The subscription price includes annual maintenance and requires a one-year commitment.

A Starter Package designed for start-ups and small businesses costs $39 per user, per month with a one-time fee of $1,357. It includes accounting, sales orders, item management and purchasing, but not service or manufacturing.

Striven has three user-based monthly Standard subscription plans: $20 per user, per month, plus $99 monthly hosting for up to 20 users, $15 per user, per month, plus $299 monthly hosting for up to 50 users and $10 per user, per month, plus $499 monthly hosting for unlimited users. Clients can purchase an Enterprise plan if they require increased usage limits (e.g., unlimited charts of accounts, unlimited inventory locations). The Enterprise plans start at $40 per user, per month, plus $199 monthly hosting for up to 20 users.

Synergy Resources Visual ERP invoices clients on a case-by-case basis, so exact prices are unavailable. However, companies that want to have up to five users can expect to pay between $10,000 and $15,000.

Bottom Line

Many of the vendors listed here follow the per user, per month pricing model with tiers that provide additional features. Some also offer perpetual licenses for a one-time fee.

Be sure to consider what modules or features are required, as well as future scaling and business needs. You’ll also want to research implementation costs and how long the process will take.

If you’d like more information on ERP software or want to compare different solutions, we’ve reviewed over 45 ERP system vendors.

Download This Pricing Guide As a PDF

How Much Does an ERP System Cost? 2022 Pricing Guide (2024)

FAQs

How much does ERP system cost? ›

The ERP software price ranges between 60,000 and 20 lakhs, depending on features, number of users, functions, and other factors.

How much does ERP cost per year? ›

It can include—but is not limited to—company size, project scope, licensing model, and complexity. In fact, BrainSell sees ERP implementations range anywhere between $2,000 and $70,000, on average. The ERP software itself can cost between $1,500 and $3,000 per year depending on the product and your specific needs.

How would you estimate the cost of an ERP project? ›

The 4 costs involved in ERP software projects.
...
Part 3: “How Do I Determine a Ballpark ERP Project Budget?”
  1. How many users will you have?
  2. How much time can your staff dedicate to the implementation?
  3. How much customization or reconfiguration of the software will you need?
  4. Are you implementing core financial software only?
Jul 19, 2022

Are ERP systems expensive? ›

The cost also depends on what type of ERP system is being implemented (e.g., cloud-based versus on-premise) and whether any additional features are required for the specific business needs. Small businesses should expect to pay anywhere from $5000 to $100,000 for an ERP system, with the average cost around $30,000.

Why ERP is expensive? ›

Larger companies will pay more for an ERP since they'll require more features and functions. Plus, the scale of their implementation will be larger, and therefore, will need more manpower. The industry your business is in will also affect the cost of an ERP.

What makes ERP costly? ›

ERP costs can include hardware, network, and labor costs from IT and other departments to ensure the system can run properly. Maintenance costs for an ERP system typically run between 15–20% of the initial purchase price.

How do ERP vendors charge for each module? ›

On-premises ERP vendors typically charge an upfront per-user license, while software-as-a-service (SaaS) vendors charge on a per-user, per-month or year basis. In some cases, there are transaction-based charges.

What is the ERP total cost of ownership? ›

ERP TCO Calculator: total cost of ownership ERP

The ERP TCO is calculated by always using the purchase price and implementation costs of the ERP system, but must also include the operating costs for the 5 to 10 years the system will be in production.

How long does it take to implement a new ERP system? ›

Generally, implementing an ERP project takes anywhere from 6 months to 2 years. It can vary widely, however, depending on the following factors: Size of the company. Complexity of the system being installed, including ISV add-ons and required customizations.

How much should I spend on ERP? ›

A 2022 ERP report showed that the average budget per user for an ERP project is $9,000. When you factor in how many users your system may have (especially for larger businesses), and added costs, you'll find an ERP implementation can cost anything between $150,000 and $750,000 for a mid-sized business.

What is the cost to implement SAP? ›

Sap business one software plans & pricing
StarterEnterprise
Platform Roadmap InfluenceCommunity VotingRoadmap Acceleration
Monthly Software Subscription$199/user 0$199/user 79
One-time Implementation Fixed-Price$40,000$3,000/user
Go-Live Guarantee90 Days180 Days
11 more rows

How much does it cost to implement software? ›

Depending on the project requirements, features, the location of the software development company, and other aspects, software development costs for a small app are from $30,000 to $45,000, for a medium-sized project from $70,000 to $100,000, and for a large-scale complex application, $100,000 and more.

How much does NetSuite cost per month? ›

Based on our research, Oracle NetSuite pricing includes a $999 monthly licensing fee, plus a per-user fee that starts at $99 a month. While this base price can be used as an estimate, your costs may vary significantly depending on your specific business needs.

What is ERP for small business? ›

An ERP software solution is a suite of modules that all operate in one database that serves as a master source of enterprise information. ERP is accounting and operations oriented, with modules such as inventory management, project management, human resources, supply chain management and more.

Why is SAP implementation expensive? ›

SAP implementation is very complicated

The first and foremost reason why the price of an SAP program is very expensive is because of its very complicated implementation.

Is ERP good for small business? ›

Small businesses that implement ERP software are able to reduce operating costs by up to 20%. Other cost saving areas include admin costs and inventory costs. Cloud ERP lowers upfront cost (compared to traditional on-premise ERP) – as subscriptions are paid monthly.

How much does it cost to implement SAP? ›

Sap business one software plans & pricing
StarterEnterprise
Platform Roadmap InfluenceCommunity VotingRoadmap Acceleration
Monthly Software Subscription$199/user 0$199/user 79
One-time Implementation Fixed-Price$40,000$3,000/user
Go-Live Guarantee90 Days180 Days
11 more rows

How much does SAP software cost? ›

SAP Business One Approx Cost Per Month –
Business Category1 User Cost/Month in Rs3 User Cost/Month in Rs
Manufacturing23,500+4200 = 27,700/-23,500+12,600 =36,100/-
Dairy24,100+4200 =28,300/-24,100+12'600 =36,700
Retail19,800+4200 =24,00019,800+12,600 = 32,400/-
Trading22,300 +4200 = 26,50022,300+12,600 =34,900
1 more row
Sep 26, 2019

How long does it take to implement an ERP system? ›

Generally, implementing an ERP project takes anywhere from 6 months to 2 years. It can vary widely, however, depending on the following factors: Size of the company. Complexity of the system being installed, including ISV add-ons and required customizations.

Top Articles
Latest Posts
Article information

Author: Fr. Dewey Fisher

Last Updated:

Views: 5877

Rating: 4.1 / 5 (62 voted)

Reviews: 85% of readers found this page helpful

Author information

Name: Fr. Dewey Fisher

Birthday: 1993-03-26

Address: 917 Hyun Views, Rogahnmouth, KY 91013-8827

Phone: +5938540192553

Job: Administration Developer

Hobby: Embroidery, Horseback riding, Juggling, Urban exploration, Skiing, Cycling, Handball

Introduction: My name is Fr. Dewey Fisher, I am a powerful, open, faithful, combative, spotless, faithful, fair person who loves writing and wants to share my knowledge and understanding with you.