--- title: How Much Does ERP Software Cost? Key Considerations During Software Selection --- # How Much Does ERP Software Cost? Key Considerations During Software Selection Last Reviewed: March 16, 2026 20 min read [2 comments](https://www.selecthub.com/enterprise-resource-planning/erp-cost/?noamp=mobile#comments) [ ![Khaleel Hayes](https://www.selecthub.com/wp-content/uploads/2020/07/Khaleel-96x96.jpg) ](https://www.selecthub.com/author/khaleel-hayes/) [Written by Khaleel Hayes](https://www.selecthub.com/author/khaleel-hayes/) Technical Content Writer [ ![Hunter Lowe](https://www.selecthub.com/wp-content/uploads/2023/11/cropped-Hunter-Headshot-96x96.jpg) ](https://www.selecthub.com/author/hunter-lowe/) [Edited by Hunter Lowe](https://www.selecthub.com/author/hunter-lowe/) Content Editor [ ![Dmytro Umen](https://www.selecthub.com/wp-content/uploads/2024/02/Dmytro-Umen-96x96.jpg) ](https://www.selecthub.com/author/dmytro-umen/) [Contributions by Dmytro Umen](https://www.selecthub.com/author/dmytro-umen/) Expert Contributor Table of Contents Explore the ERP Hub What's your top priority today? * [Learn](#) * [What is ERP?](https://www.selecthub.com/category/enterprise-resource-planning/) * [Benefits of ERP](https://www.selecthub.com/enterprise-resource-planning/why-erp-systems-are-important/) * [SaaS vs. Traditional ERP](https://www.selecthub.com/enterprise-resource-planning/whats-the-difference-between-traditional-and-saas-erp/) * [Hybrid ERP](https://www.selecthub.com/enterprise-resource-planning/adopt-hybrid-erp/) * [ERP vs MRP](https://www.selecthub.com/enterprise-resource-planning/mrp-and-erp-differences-between-systems/) * [ERP vs CRM](https://www.selecthub.com/enterprise-resource-planning/difference-between-erp-and-crm/) * [ERP Features](https://www.selecthub.com/enterprise-resource-planning/erp-capabilities-list/) * [ERP System Examples](https://www.selecthub.com/enterprise-resource-planning/erp-examples-features-platforms/) * [Plan](#) * [ERP Software Selection 101](https://www.selecthub.com/enterprise-resource-planning/erp-selection-criteria-checklist/) * [ERP Justification](https://www.selecthub.com/enterprise-resource-planning/erp-justification/) * [ERP Evaluation](https://www.selecthub.com/enterprise-resource-planning/key-erp-evaluation-and-functionality-criteria/) * [ERP Requirements](https://www.selecthub.com/enterprise-resource-planning/erp-requirements-checklist-cheat-sheet/) * ERP Cost * [How Much Does an ERP Cost?](#How%5FMuch%5FDoes%5Fan%5FERP%5FCost "How Much Does an ERP Cost?") * [Factors That Affect ERP Cost](#Factors%5FThat%5FAffect%5FERP%5FCost "Factors That Affect ERP Cost") * [Number of Users](#Number%5Fof%5FUsers "Number of Users") * [Add-Ons/Customization](#Add-OnsCustomization "Add-Ons/Customization") * [Implementation Strategy](#Implementation%5FStrategy "Implementation Strategy") * [Deployment Method](#Deployment%5FMethod "Deployment Method") * [Training/Customer Support](#TrainingCustomer%5FSupport "Training/Customer Support") * [Maintenance and Upgrades](#Maintenance%5Fand%5FUpgrades "Maintenance and Upgrades") * [Implementation Cost Example](#Implementation%5FCost%5FExample "Implementation Cost Example") * [Sage X3](#Sage%5FX3 "Sage X3") * [Non-Monetary Costs](#Non-Monetary%5FCosts "Non-Monetary Costs") * [Time](#Time "Time") * [Productivity](#Productivity "Productivity") * [Pricing Models](#Pricing%5FModels "Pricing Models") * [Perpetual Licensing](#Perpetual%5FLicensing "Perpetual Licensing") * [Subscription](#Subscription "Subscription") * [Other Pricing Models](#Other%5FPricing%5FModels "Other Pricing Models") * [Pricing for Top ERP Software](#Pricing%5Ffor%5FTop%5FERP%5FSoftware "Pricing for Top ERP Software") * [Oracle JD Edwards](#Oracle%5FJD%5FEdwards "Oracle JD Edwards") * [SAP Business ByDesign](#SAP%5FBusiness%5FByDesign "SAP Business ByDesign") * [Sage X3](#Sage%5FX3-2 "Sage X3") * [SYSPRO](#SYSPRO "SYSPRO") * [SyteLine](#SyteLine "SyteLine") * [Hidden Costs](#Hidden%5FCosts "Hidden Costs") * [Creating Your Budget](#Creating%5FYour%5FBudget "Creating Your Budget") * [Predicting Your ROI](#Predicting%5FYour%5FROI "Predicting Your ROI") * [FAQs](#FAQs "FAQs") * [Next Steps](#Next%5FSteps "Next Steps") * [ERP RFP Guide](https://www.selecthub.com/enterprise-resource-planning/erp-rfp-template-guide/) * [Compare](#) * [Best ERP Software](https://www.selecthub.com/c/erp-software/) * [Best Free ERP](https://www.selecthub.com/enterprise-resource-planning/free-erp-software/) * [Best ERPs for SMBs](https://www.selecthub.com/enterprise-resource-planning/erp-for-smb/) * [Best Open-Source ERPs](https://www.selecthub.com/enterprise-resource-planning/pros-cons-open-source-erp-software/) * [Best Production Planning Software](https://www.selecthub.com/enterprise-resource-planning/features-requirements-production-planning-software/) * [ERP Alternatives](https://www.selecthub.com/enterprise-resource-planning/erp-alternatives/) * [NetSuite Competitors](https://www.selecthub.com/enterprise-resource-planning/netsuite-competitors-alternatives/) * [SAP vs. Oracle](https://www.selecthub.com/enterprise-resource-planning/oracle-erp-and-sap-erp/) * [Salesforce vs. SAP](https://www.selecthub.com/customer-relationship-management/salesforce-and-sap/) * [Epicor vs SAP vs Infor ERP](https://www.selecthub.com/enterprise-resource-planning/epicor-and-sap-and-infor-erp-comparison/) * [Epicor vs NetSuite](https://www.selecthub.com/enterprise-resource-planning/epicor-and-netsuite/) * [ERP Demo Best Practices](https://www.selecthub.com/enterprise-resource-planning/erp-software-demo-best-practices/) * [Launch](#) * [ERP Implementation](https://www.selecthub.com/enterprise-resource-planning/whats-best-way-implement-erp/) * [ERP Integration](https://www.selecthub.com/enterprise-resource-planning/best-erp-software-integrations/) * [ERP Success Stories](https://www.selecthub.com/enterprise-resource-planning/erp-case-study/) First-time [ERP software](https://www.selecthub.com/c/erp-software/) buyers often share one common question: How much does an ERP cost? The answer depends on several factors, including the number of users, deployment, training, implementation and more. This article covers everything related to ERP expenses, such as implementation fees, pricing models, hidden costs, specific vendor fees and more. Let’s get started! [Compare Top ERP Software Leaders](https://pmo.selecthub.com/top-erp-software-site-vers/) ![ERP Cost Guide]() ## How Much Does an ERP Cost? The first thing you want to know when buying something is the total cost, correct? Determining the cost of an ERP varies according to industries, company sizes, the number of users and more. Dmytro Umen, CEO and co-founder of software development agency [Brights](https://brights.io/), gave us some ballpark estimates of ERP costs for numerous business types. ![Dmytro Umen]() Generally, custom ERP development projects can cost anywhere between $25,000 to $5 million, making it a more expensive option when compared to the average cost of a third-party system for resource planning for small businesses. “From my experience, I’d say that custom development costs for companies with more than 50 employees is $100,000–$200,000 and takes three to four months. For corporations, it takes from eight to 24 months and costs from $500,000 to $1 million. Dmytro Umen CEO and Co-Founder, Brights If you think about it, investing in ERP is like paying for a new car, house or home appliance. Umen described a few influences on ERP pricing. ![Dmytro Umen]() First, customization level. The more tailored the solution, the higher the cost. Then, there’s integration complexity. Integrating with existing systems or third-party services can bump up the price. Also, deployment method matters. On-premise solutions often cost more due to hardware and maintenance needs, unlike cloud deployments. “And finally, the vendor’s expertise and location can influence the cost. Vendors in high-cost areas (U.S., UK, Argentina) typically charge more compared to countries like Ukraine or Poland that also don’t compromise quality. Dmytro Umen CEO and Co-Founder, Brights Mark McShane, managing director of [AED Training](https://www.aedtraining.org.uk/) with experience managing multi-million-pound companies, shared that complexity and capability scopes are significant contributors to high ERP price tags. ![Mark McShane]() \[Complexity and scope of capabilities\] aim to unify an organization’s operations, ranging from supply chain management to human resources, requiring advanced technology and extensive customization. However, by meticulously evaluating their needs, potential buyers can reduce costs. Shunning over-customization in favor of out-of-the-box functionalities that closely match their processes is key. “Additionally, select a vendor boasting a transparent pricing structure. Negotiate terms of support and updates actively. This approach aids in cost management. Mark McShane Managing Director, AED Training Umen suggested opting for cloud systems to diminish ERP costs. ![Dmytro Umen]() To reduce expenses, buyers can opt for cloud-based ERPs, which are generally cheaper than on-premise solutions. Dmytro Umen CEO and Co-Founder, Brights [Compare Top ERP Software Leaders](https://pmo.selecthub.com/top-erp-software-site-vers/) ## Factors That Affect ERP Cost There are several factors to consider before making your ERP selection. The [total cost of ownership (TCO)](https://www.wallstreetmojo.com/total-cost-of-ownership/) for an ERP system can rack up thousands or millions of dollars. This colossal variance in charge measures how different aspects contribute to a system’s final price. Some typical financial costs to review before deciding include the number of users, add-on features, deployment options and more. ![Factors Affecting ERP Cost]() ### Number of Users You need to estimate the number of users that will initially have access to the program. Many ERP vendors charge per user, meaning the more people use it, the more expensive it gets. You must also account for the cost of adding new users to your system and how that expense could increase as your company grows. You’ll need to check with the vendor you’re interested in to see if they charge per user, especially if you have many employees needing access, as ERP costs can quickly add up. ### Add-Ons/Customization Program add-ons, customizations, or configurations aren’t cheap. You must find a system that meets most or all of your core needs through its out-of-box functionality. Many vendors offer integrations with third-party add-ons or the option to include specific modules for increased functionality in your program. The cost of these additional capabilities differs depending on what you decide to have and which vendor you go with for your base package. ### Implementation Strategy Depending on the technical expertise of your internal employees, you may use a consultant to smooth out your [ERP implementation process](https://www.selecthub.com/enterprise-resource-planning/whats-best-way-implement-erp/). Most vendors offer support that may or may not include installation and employee training. ![Dynamic 365 Business Central Dashboard]() An example of an ERP solution. Some ERP programs list their most experienced consultants to implement the software successfully. Additionally, some vendors offer more consultative assistance, but this costs extra. If you are looking at implementing ERP for the first time, you will likely need more dedicated technical assistance than a company with experience deploying this type of program. Whether vendor-offered help or a consulting service is best for your business is critical in your ERP search. ### Deployment Method The upfront cost of deploying an on-premise ERP solution is more expensive than a cloud-based program. However, the overall cost of these deployment methods evens out when you consider monetary factors such as training, maintenance and customization. Both deployment methods have pros and cons, with upfront payment being one aspect that makes cloud deployment more appealing to some businesses. Suppose you’re more interested in an on-premise solution, though. In that case, you should remember that although upfront costs are higher, companies with cloud ERP software end up paying about an equal amount for their solution in the long run. ### Training/Customer Support Training and customer support are two essential components to consider when estimating the cost of an ERP solution and how well a program will work with your company’s needs. Some vendors offer training options on-site and via online tutorial videos and classes. However, depending on the vendor, this assistance may be included in your overall software price. Additionally, more hands-on training options, such as having a specialist come to your business to help employees learn more about the program, typically cost more than receiving training through virtual self-paced courses. ### Maintenance and Upgrades You need to ensure your program continually updates as you develop your budget and ERP cost estimate. Additionally, the program needs upgrades that vendors may not include in your base software costs. Ask your vendor how often you need updates and if they added them to the base price. [Select the Right Software with the Free Lean Selection Book](https://pmo.selecthub.com/lean-selection-book/) ## Implementation Cost Example Software implementation costs vary. Some vendors charge per hour or deployment options. McShane described how multiple factors can affect the overall cost of ERP implementations. ![Mark McShane]() Complexity of business processes, required degree of customization, data migration efforts and necessity for user training and support. More demanding needs elevate these costs due to increased time and resources needed to configure the system accurately and integrate it seamlessly with existing workflows. Mark McShane Managing Director, AED Training Umen also discussed the impact of indirect costs to watch out for: ![Dmytro Umen]() Data conversion and migration, training costs for staff, ongoing support and maintenance fees after implementation. Additionally, indirect costs like system downtime and productivity loss during the transition can impact the budget. And if you’re using external consultants, their fees might exceed initial estimates, especially for prolonged projects. Dmytro Umen CEO and Co-Founder, Brights An ongoing myth states that the more money you invest, the more successful your ERP implementation will be. However, McShane debunks this misconception. ![Mark McShane]() Success frequently hinges upon clear, strategic planning, efficient project management and solid user adoption — a well-articulated vision of the ERP system’s role in achieving business objectives combined with diligent execution and sustained support — is paramount for triumphal outcomes regardless of financial expenditures. Mark McShane Managing Director, AED Training We have a realistic example of how vendors leverage implementation charges. ### [Sage X3](https://www.selecthub.com/p/erp-software/sage-business-cloud-x3/) Sage X3 says their on-premise and cloud costs exceed the overall subscription cost. The license fee is roughly $2,600 per user. Sage’s tCognition hybrid deployment model of onshore project managers governs offshore development teams. The prices are as follows: | Type | Cost | Duration | | ---------- | -------------- | ----------------------- | | Onshore | $200-$225/hour | Approximately 400 hours | | Offshore | $50–$100/hour | Approximately 600 hours | | tCognition | $125/hour | Approximately 500 hours | [Compare Top ERP Software Leaders](https://pmo.selecthub.com/top-erp-software-site-vers/) ## Non-Monetary Costs The financial cost of ERP is likely what made you click on this article. However, significant non-monetary costs are associated with an implementation that you must consider as you prepare to select a program and undergo deployment. Here are some other “costs” you’ll need to factor in as you install an ERP system. ![Non-Financial ERP Costs]() ### Time NetSuite says ERP implementations take about six to 12 months. It may be more or less, depending on the type of software, deployment options, data migration and training. SMBs use, on average, seven internal resources, and enterprises use about 24 when deploying ERP. Therefore, you need to account for lost employee time and consider how you will make up any slack during this period. For example, will different employees step up to the role of those committed to the project during this time? Will you hire contractors? These are essential factors to consider when conceptualizing your ERP implementation. ### Productivity With a group of your IT staff devoted to ERP implementation, productivity will likely decrease in the interim. This lapse in productivity is temporary and should increase once you successfully deploy the ERP solution. You should expect projects to take longer and delayed answers to queries if you don’t have a backup plan for your staff members devoted to the ERP deployment. Additionally, as you train users after deployment, productivity decreases due to courses, training and getting used to the system’s intricacies. ## Pricing Models Vendors typically use two main pricing strategies when developing the cost of an ERP system. ![ERP Pricing Models]() McShane described that the optimal pricing model relies on an organization’s needs. ![Mark McShane]() Perpetual licensing may serve organizations wanting a single investment and possessing in-house system support. Conversely, businesses seeking minimal initial expenses, scalability and external IT management might find subscription models more appropriate. Mark McShane Managing Director, AED Training Umen described the pros and cons of both subscription and perpetual licensing. ![Dmytro Umen]() Subscription models are often more flexible and scalable, making them suitable for businesses that anticipate growth or changes. However, for organizations with a stable, long-term plan, perpetual licensing can be more cost-effective in the long run. Dmytro Umen CEO and Co-Founder, Brights Let’s look at these different pricing methods and examine some of the intricacies of each. ### Perpetual Licensing [Perpetual licensing](https://www.cisco.com/c/en/us/buy/enterprise-agreement/resources/perpetual-licensing-vs-subscription-licensing.html#~definitions) is closely associated with on-premise deployment. This model allows users to pay a one-time upfront fee for access. This plan varies according to customizations and users. This model often doesn’t include recurring payments for support, maintenance or upgrades. #### Pros * Costs less over time. * Doesn’t rely on cloud providers. * The software keeps working if you forget to renew your contract. #### Cons * Requires many updates to maintain security and operation. * Higher costs. * Lacks mobility options. ### Subscription A subscription-based pricing method gives customers access to the program monthly, yearly or multi-yearly. Subscription pricing is most applicable to companies that go for a vendor that offers cloud deployment. Most subscriptions come with stipulations, such as a minimum duration contract and various pricing tiers depending on your company’s chosen functionality. #### Pros * Less expensive. * More mobility and real-time access on any device. * Your vendor keeps the system updated and performs maintenance. #### Cons * Can cost more over time. * You rely on cloud vendors more. * Need constant internet access, or the software won’t operate fully. ### Other Pricing Models McShane discussed alternative pricing options, such as consumption- and value-based. ![Mark McShane]() Beyond traditional pricing models, buyers might explore a consumption-based approach, paying only for utilized resources, or adopt a value-based model that links the ERP’s cost to its delivered outcomes or benefits. Such strategies ensure costs directly correspond with usage or received advantages, potentially yielding a more defensible ROI. Mark McShane Managing Director, AED Training Umen stated that usage-based and tiered pricing models can provide flexibility to companies with varying needs. [Compare Top ERP Software Leaders](https://pmo.selecthub.com/top-erp-software-site-vers/) ## Pricing for Top ERP Software This ERP application offers on-premise and cloud deployments with a licensing cost of $15,000 to $400,000\. You can allot 15 to 1,000 users. You must have a minimum one-year commitment, and you can access custom quotes and free trials. ### [Oracle JD Edwards](https://www.selecthub.com/p/erp-software/jde-enterpriseone/) This ERP application offers on-premise and cloud deployments with a licensing cost ranging from $15,000 to $400,000\. You can allot 15 to 1,000 users. It’s required to have a minimum one-year commitment, and you can access custom quotes and free trials. ### [SAP Business ByDesign](https://www.selecthub.com/p/erp-software/sap-business-bydesign/) SAP Business ByDesign offers cloud deployment and runs on a subscription-license-based pricing model. For self-service users, the standard price is $11/user/month. The SCM pricing model is $24/user/month. Project management offers $24/user/month. SAP offers CRM sales team users $89/user/month with a minimum of 10 users. Enterprise users require a 10-user minimum. Standard is $149/user/month. SCM users are $199/user/month. ### Sage X3 This ERP platform offers license-based and subscription-based pricing models. The minimum commitment is one year. Custom quotes are available, but Sage does not offer free trials. Licensing starts at around $2,600 per user. For 10 users, a perpetual license is $45,000 per year, and subscription pricing is approximately $26,640 per year. Sage ERP X3 Version Seven has a cloud and SaaS model perpetual license of $2,600 per user. The user range is typically 20 to 1,000 or more. ### [SYSPRO](https://www.selecthub.com/p/erp-software/syspro/) SYSPRO requires a one-year minimum commitment and offers subscription-based pricing models. Custom quotes and free trials are not available. It also offers on-premise, cloud and mobile deployment. On-premise deployment types range from $25,000 to $500,000\. Pricing varies depending on the number of users: | **One User** | $12,100 | | -------------- | ------- | | **Five Users** | $14,400 | | **10 Users** | $16,800 | | **25 Users** | $25,000 | | **100 Users** | $29,600 | ### [SyteLine](https://www.selecthub.com/p/erp-software/syteline/) Lastly, SyteLine offers on-premise and cloud-based deployment options. It provides license and subscription-based pricing models. You need a one-year commitment for purchase. Custom quotes are available, but free trials are not. On-premise costs start at $42,000 for 10 years. You also have to pay for annual maintenance and support agreements. [Compare ERP Pricing & Costs with our Pricing Guide](https://pmo.selecthub.com/erp-price-report-site-vers/) ## Hidden Costs Similar to a car or an appliance, ERP costs also have hidden or additional fees to consider, from maintenance and customization to training and security. Umen listed some surprise fees and said having a contingency fund is a smart choice. ![Dmytro Umen]() You’ve got to watch out for hidden costs like system downtime, which can disrupt business during the setup, and post-implementation adjustments and future improvements to address changes in business, security issues \[and\] performance, which are often needed, but not initially budgeted for. It’s wise to have a contingency fund, usually around 10%-20% of the project cost, to keep things on track financially. Dmytro Umen CEO and Co-Founder, Brights McShane conversed on asking vendors for quotes to understand unexpected fees better. ![Mark McShane]() To evade or prepare for these costs, \[buyers\] should pursue comprehensive quotes that cover such expenditures. Moreover, selecting vendors with inclusive pricing is advisable. Mark McShane Managing Director, AED Training Here’s a breakdown of some hidden fees: * **Maintenance and Support:** Your software may encounter errors or need upgrades. Some vendors offer customer support packages (e.g., bronze, silver, gold) with 24-hour phone support, interactive portals, webinars and more. * **Security:** Cyberattacks are common. Suitable security measures, such as data encryption, multi-factor authentication, user permissions and more, safeguard your information from hackers. Although cybersecurity can be expensive, it should be a high priority. * **Training:** Whether you’re training your IT staff or employees to use your new ERP, suitable training materials are ideal. Accessing ebooks, seminars, guides, certification classes and more materials helps you and your team better understand how to navigate and utilize the system. Most vendors offer these and other resources. * **Additional Hardware or Software:** Additional hardware or software can help you maximize your solution. For example, if you purchase a [point of sale (POS) solution](https://www.selecthub.com/resources/pos-system/), you’ll likely need accessories like tablets, receipt printers, cash drawers and credit card readers to maintain purchases, tips or employee management. * **Add-On Modules:** You may need add-on modules for your prospective system. For example, your program may offer accounting, CRM and manufacturing, but you may need [inventory management tools](https://www.selecthub.com/c/inventory-management-software/). Your current system lacks inventory management, so you need add-on modules that merge with the new application. Think of this cost as buying different-colored controllers for your new game console because you’re not happy with the one that came with it. ## Creating Your Budget How much should your company spend on an ERP system? It’s necessary to know the answer before choosing a vendor. You’ll want to account for the different costs associated with an ERP system when estimating how much you will spend. ![ERP Budget Considerations]() However, determining how much your company can spend while being clear might be the most critical aspect of ERP software selection. ERP software can be a significant expense. You will need access to your company’s operating financial data and [budgeting](https://www.experian.com/blogs/ask-experian/how-to-make-a-budget/) information when developing your ERP budget. After all, you don’t want to lose your financial footing while implementing your solution. You must account for recurring fees associated with ERP and ensure your company’s finances can support these ongoing costs. You wouldn’t want to invest much money into a program only for it to become obsolete or difficult to operate in a handful of years. To begin creating a software deployment budget, you’ll want to take note of the ERP costs listed above. If you don’t feel like scrolling or can’t remember them off the top of your head, these factors are: * Training * Maintenance * Support * Deployment Method * Customizations/Add-Ons * Upgrades * Number of Users Based on your company’s needs and the quoted prices from relevant vendors, you’ll want to develop an estimate of what the entirety of an ERP program would entail. You’ll want to ask yourself: “Can my company support this financially?” and “Will the [ROI](https://www.investopedia.com/terms/r/returnoninvestment.asp) of an ERP solution be worth the initial cost?” When creating your budget, secure more funds than you’re estimated to need for your ERP project. Why? ERP implementations frequently exceed expectations. The last thing you want to do is have the finish line in sight but be unable to reach it because you don’t have enough capital left to complete the project. [Compare Top ERP Software Leaders](https://pmo.selecthub.com/top-erp-software-site-vers/) ## Predicting Your ROI When you purchase a new ERP solution, you garner a huge ROI across different business sectors and metrics, from increased productivity to lowered costs and more. McShane advised that establishing measurable metrics is vital to gauging ROI. ![Mark McShane]() Buyers seeking to quantify their ROI from a new ERP system implementation must define explicit metrics, such as enhanced operational efficiency, cost reduction and revenue expansion that capture the system’s influence. Possible indicators include diminished downtime, minimized inventory expenses, fortified cash flow or amplified sales through superior customer relationship management. Mark McShane Managing Director, AED Training Umen gave an example of how a company could measure sale conversions during post-implementation. ![Dmytro Umen]() Let’s take a practical example. Say, after implementing the ERP, your sales conversion increased by 10%. If you were averaging 100 contracts per month and each contract has a lifetime value of $10,000, the calculation of your ROI would look something like this: 100 contracts multiplied by $10,000 multiplied by the 10% increase. That gives you an additional $100,000. “So, in essence, the ROI from an ERP implementation is all about linking the system’s impact to specific business outcomes, and then quantifying these improvements in a way that makes sense for your business’s bottom line. Dmytro Umen CEO and Co-Founder, Brights Here’s a breakdown of where you should expect significant ROI. * **Boosted Productivity:** When you automate routine tasks (i.e., allocating invoices, monitoring orders, paying employees), you save time and pinpoint your focus on more high-priority duties. Your newfound focus increases your productivity numbers. * **Increased Supply Chain Visibility:** You can supervise your supply chain with real-time updates for on-time deliveries, bottlenecks, vendor reliability and more. * **Enhanced Customer Satisfaction Rates:** Automating tasks and boosting productivity increase your on-time delivery and satisfaction rates. The right [CRM tools](https://www.selecthub.com/c/crm-software/) help you maintain leads and [client satisfaction](https://www.zendesk.com/blog/3-steps-achieving-customer-satisfaction-loyalty/) to maintain new and regular customers seamlessly. ## FAQs [What are ERP costs?](#group%5F750) From our SME insights, ERP costs can range from $25,000 to $5 million or more, depending on customization, deployment, hidden fees, the number of users, training, implementation and more. [Why does ERP cost so much?](#group%5F521) Customizations, complexity and scope of features, deployment, and more can affect an ERP’s price tag. [Is ERP cost-effective?](#group%5F427) ERP systems can be cost-effective if you choose the ideal pricing model that suits your company’s worth and size. You can try perpetual, subscription, usage-based, tiered or other pricing models. ERP systems can also garner ROI with increased productivity, supply chain visibility and customer satisfaction rates. You can establish other metrics to ensure you’re getting the right bang for your buck. [How do you calculate ERP cost?](#group%5F743) You have to consider the number of users, deployment, the number of customizations you add, implementation and more. As our SMEs mentioned, asking vendors for inclusive quotes and considering a 10 to 20% contingency fund for regular and extra expenses is essential. [Compare ERP Pricing & Costs with our Pricing Guide](https://pmo.selecthub.com/erp-price-report-site-vers/) ## Next Steps An ERP’s cost doesn’t solely depend on licensing, deployment and users. You have to account for implementation and hidden fees. Buying an ERP is like purchasing a car. You want something practical without spending an arm and leg. Formulating an adequate budget while allotting additional fees diminishes surprises and keeps you from exceeding your expected price. Check out our free [pricing guide](https://pmo.selecthub.com/erp-price-report-site-vers/) for an in-depth analysis of what leading ERP systems cost. Which ERP costs did you run across in your buying journey? Let us know in the comments! 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Each slice represents one set… ](https://www.selecthub.com/enterprise-resource-planning/how-do-erp-systems-work/) [ ![Khaleel Hayes](https://www.selecthub.com/wp-content/uploads/2020/07/Khaleel-96x96.jpg) Khaleel Hayes ](https://www.selecthub.com/author/khaleel-hayes/) Mar 16, 2026 #### [ERP](https://www.selecthub.com/category/enterprise-resource-planning/) [Why ERP is Important for SMBs: A Practical Guide to Benefits and Trade-Offs](https://www.selecthub.com/enterprise-resource-planning/why-erp-systems-are-important/) [Customers are complaining about late orders. You haven’t sent out last week’s invoices yet. 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Contributions from Khaleel Hayes, Hunter Lowe, Dmytro Umen, and Mark McShane. ## About the Contributors The following SelectHub team members and subject matter experts helped research, create, and review this content. [ ](https://www.selecthub.com/author/khaleel-hayes/) Written by [Khaleel Hayes](https://www.selecthub.com/author/khaleel-hayes/) Technical Content Writer Khaleel Hayes is a Technical Content Writer for SelectHub, with over 4 years of experience crafting content for manufacturing, PLM, ERP and technology selection audiences. He's also a freelance writer in his spare time. His body of work includes poetry, short plays, feature articles and film reviews either self-published or in Denver publications. He graduated with a B.A. in Journalism and an English minor from Metropolitan State University of Denver in May 2018\. When not writing, he enjoys classic movies and music, tasty burgers, tasteful bookstores, and breathtaking art and photography. [See Full Bio](https://www.selecthub.com/author/khaleel-hayes/) [ ](https://www.selecthub.com/author/hunter-lowe/) Edited by [Hunter Lowe](https://www.selecthub.com/author/hunter-lowe/) Content Editor Hunter Lowe is a Content Editor, Writer and Market Analyst at SelectHub. His team covers categories that range from ERP and business intelligence to transportation and supply chain management. Hunter is an avid reader and Dungeons and Dragons addict who studied English and Creative Writing through college. In his free time, you'll likely find him devising new dungeons for his players to explore, checking out the latest video games, writing his next horror story or running around with his daughter. [See Full Bio](https://www.selecthub.com/author/hunter-lowe/) [ ](https://www.selecthub.com/author/dmytro-umen/) Contributions by [Dmytro Umen](https://www.selecthub.com/author/dmytro-umen/) Expert Contributor Dmytro Umen, the CEO and co-founder of Brights, is a seasoned technopreneur with over a decade of experience in software development and tech leadership. Dmytro provides expert consulting across diverse industries, including fintech, retail, edtech, healthcare, logistics, and manufacturing. [See Full Bio](https://www.selecthub.com/author/dmytro-umen/) [ ](https://www.selecthub.com/author/mark-mcshane/) Contributions by [Mark McShane](https://www.selecthub.com/author/mark-mcshane/) Expert User Mark McShane, managing director of AED Training, owns multiple businesses and multi-million-pound operations across heating, training, first aid, solar and digital PR niches. McShane was featured in PHAM News, Electrical Times, Heating & Ventilating Review and other publications. He also earned the Gold Feefo Customer Service Award in 2021 and 2020. [See Full Bio](https://www.selecthub.com/author/mark-mcshane/) Khaleel HayesSAP vs. Oracle: Which ERP Software is the Winner in 2026? * ‹ * › ### Conversation (2) ![Avatar](https://secure.gravatar.com/avatar/281d3616cf761f3582c0d76c23517846?s=32&d=mm&r=g) Write a response [Cancel reply](https://www.selecthub.com/enterprise-resource-planning/erp-cost/?category%5Fslug=products&product%5Fslug=erp-cost#respond) Your message Your name \* Your email \* Website Save my name, email, and website in this browser for the next time I comment. Δ * ![Avatar photo](https://secure.gravatar.com/avatar/6e3285455a00c4bfcde988f381e44a1b2037c749f62cb8a573a84e9fd8afb13b?s=96&d=mm&r=g) #### **Vijay Venkatesh** \- April 18, 2021 Excellent Article. How many SMBs can afford the cost of $75,000 to $10 million? How many SMBs can wait for 14.1 months to 24 months to for implementation? Does the SMBs really calculate ROI in ERP? And at the above budget do they really get ROI? **[Reply](#comment-69139)** [![Avatar photo](https://www.selecthub.com/wp-content/uploads/2020/07/Khaleel-48x48.jpg)](https://www.selecthub.com/author/khaleel-hayes/) #### **Khaleel Hayes** \- April 19, 2021 Thank you for reading, Vijay. Why not give us a call at 877.692.2896 and one of our team members can give you in-depth answers to your questions. **[Reply](#comment-69185)** [ Go to mobile version ](https://www.selecthub.com/enterprise-resource-planning/erp-cost/?category%5Fslug=products&product%5Fslug=erp-cost&=1) **Tier 1:** Fully/moderately supported out-of-the-box allowing for quick and easy deployment. Fully or moderately supported out-of-the-box with industry-leading capabilities and is immediately available after installation without needing any add-ons, integrations, or custom development. **Tier 2:** Supported with workarounds or add-ons that may require additional costs. Not directly available in the software, but can be accomplished using other built-in features, workarounds, or add-ons/products from the vendor with or without any additional cost. **Tier 3:** Requires partner integrations or custom development that is often at an additional cost. Requires additional integrations, plugins, marketplace applications from a third-party vendor, or custom development using the APIs, libraries, extensions, and development framework supported by the software, with or without any additional cost. [Close](#) ```json {"@context":"https://schema.org","@graph":[{"@type":"Article","@id":"https://www.selecthub.com/enterprise-resource-planning/erp-cost/#article","isPartOf":{"@id":"https://www.selecthub.com/enterprise-resource-planning/erp-cost/"},"author":{"name":"Khaleel Hayes","@id":"https://www.selecthub.com/#/schema/person/d0658a3aeb6c704627fe8cb6b62a7361"},"headline":"How Much Does ERP Software Cost? 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