How much does ERP cost? (2021 edition)

Megan Meade

How much does ERP cost?

One of the most asked questions about ERP is: how much does ERP cost?

It’s difficult to find accurate pricing data for ERP systems which makes it harder to accurately calculate a budget for your ERP project.

What makes this even more challenging is that an ERP will touch many areas of your business. It’s increasingly important to ensure that the system includes everything that you need, and is futureproof to support your business as it grows.

Using budget data from real ERP projects, we’re going to take you through how much ERP costs. We’ll look at the cost per user and break this down into yearly cost and monthly cost, as well as look into a total system cost for all users in the business.

There are many benefits to implementing an ERP, companies will have main objectives and goals as a result of using the new software. It’s important to factor these future goals into your ERP budget and expected return on investment. We’re using an example company to show you how their budget for ERP is calculated.

Company X has 500 employees, it’s a decent-sized business, therefore we expect 8.99% of employees to use the system. In smaller businesses, we’ve found there is a higher percentage of employees who will need to use the system typically as there is a higher degree of interdepartmental overlap here.

For company X, we’re expecting to pay for 45 user seats in our ERP system.