How much does an ERP system cost for a company?

The cost of an ERP is one of the most important factors when choosing an ERP system. The needs of the company will be key to know the price of an ERP system: How much does each user and license cost? What is the price difference between on-premise and cloud ERP systems? In short: How much budget should be dedicated to an ERP system?

How much does an ERP system cost?

The cost of an ERP system will depend on the characteristics of the company. Generally, the investment for the first year in an ERP software with simple processes can go from 12.000€ to 25.000€. A company without too many complex processes will find that the price is reduced. On the other hand, if the processes are complex, the investment cost for the first year will increase. Therefore, companies with moderately complicated processes can expect to face a cost of €25,000 to €50,000. There are other factors that determine the price, such as the number of users or the type of functionalities required.

In 70% of cases, the price of an ERP is between €12,000 and €50,000. However, it can also happen that the price is higher. For example, a multinational company with a large number of processes and functions will need a larger and more expensive ERP. Therefore, the first-year investment in software for a large company can range from €50,000 to more than €200,000. In the ERP Guide you can find a selection of actual quotes for ERP systems for SMEs and large companies, including the Budget Planner.

How are ERP costs distributed?

ERP costs are mainly distributed around three variables: software, hardware and services.

ERP Hardware

Hardware costs will increase depending on the equipment needed for the system to work, such as computers, servers or the infrastructure that needs to be created. Cloud ERP systems require almost no investment in hardware, as the service provider takes care of it directly.

ERP software

The cost of ERP software is the most important, but not necessarily the most expensive. Sometimes, software costs are not entirely clear, as there are a multitude of brands, packages and functionalities that make the final price vary. You can check all the details, from functionality to price, in the ERP Guide.

ERP Services

Among the services that make up the cost of an ERP are implementation, maintenance, consulting and training. The cost of these services will not depend on the ERP chosen, but on the degree of customization of the system to the company that requires it. The more processes and customized functions a company needs, the more services will be necessary for the optimal functioning of the ERP system.

What is included in the cost of an ERP?

The type of system will determine the final price, differentiating between on-premise and cloud systems.


1. Initial installation:
  • The cost of the ERP software.
  • The hardware required for the system (servers, infrastructure).
  • System implementation.
  • Module customization.
  • Project management.
2. Recurring:
  • Licenses.
  • Maintenance, technical service.
3. Occasional:
  • Staff training.
  • Upgrades.
  • External consulting services.
The installation of an on-premise ERP system is usually a bit more expensive compared to a cloud system. The need for hardware, an implementation process and infrastructure setup as well as software costs and customization can easily increase the total price of an ERP system.

In the cloud

1. Initial:
  • Data migration and programming of company processes in the cloud ERP.
2. Recurring:
  • Cost of subscription to the service (usually monthly).
3. Occasional:
  • Staff training.
  • External consulting services.
The main advantage of an ERP system in the cloud is the lower investment cost for its implementation. 
There is no need to purchase hardware, since the ERP system provider will provide it instead. From the cloud it should be noted that the price of maintenance, updates and technical support will be included in the monthly subscription, without any additional cost for the company.

Hidden costs of an ERP

Sometimes, hidden costs of a project can be included that have a direct impact on the expenses not contemplated by the companies. As a result, budget problems are encountered after the acquisition of an ERP system. In the ERP Guide, in addition to information on hidden costs, you will find a comparison of the budgets of different companies with actual calculations.