What Is the Price of ERP?

How Much Does an ERP System Cost?

The price of an ERP system typically ranges from £15,000 for small cloud deployments to over £1 million for large enterprise implementations, with average ERP costs landing around £7,000–£9,000 per user when software, implementation and ongoing support are included. If your an SME in the UK, you can expect the price of ERP to sit between £15,000 and £100,000+, for costs covering consulting, implementation, add-ons and ongoing support. 

ERP pricing varies widely based on:

• Number of users

• Deployment model (cloud vs on-premise)

• Level of customisation

• Modules required

• Implementation and support needs

Because of this, there is no single “ERP price”, only a range based on business size and complexity.

How Much Does an ERP System Cost?

When businesses ask “How much does an ERP system cost?”, they are usually asking about total cost of ownership, not just software licenses.

An ERP system cost is made up of four main components:

1. Software licensing or subscriptions

2. Implementation and setup

3. Ongoing support and maintenance

4. Internal time and change management

For most organisations, implementation and services cost as much as (or more than) the software itself, which is why ERP costing must be looked at holistically.

ERP Costs by Business Size (with ERP Price Examples)

Small Business ERP Costs

Small businesses typically choose cloud ERP systems with limited modules and minimal customisation to keep ERP costs manageable.

Mid-Sized Business ERP Costs

Mid-market ERP systems costs usually include:

• Multiple departments (finance, operations, sales, supply chain)

• Advanced reporting and automation

• Integrations with CRM, WMS, payroll, or eCommerce

• Role-based security and approvals

At this stage, ERP cost is driven as much by process complexity as by user count.

Enterprise Business ERP Costs

Enterprise ERP systems are more expensive because they often require:

• Heavy customisation and bespoke workflows

• Multi-entity and multi-currency support

• Complex data migration from legacy systems

• Phased or global rollouts

• Dedicated support, SLAs, and governance

At enterprise level, ERP cost is primarily driven by risk, scale, and long-term operational impact, not just software pricing.

ERP Pricing Models Explained

Cloud (SaaS) ERP Pricing

• £30 – £500+ per user per month

• Subscription-based pricing

• Lower upfront ERP cost

• Faster deployment

• Ongoing operating expense (OPEX)

Best for: growing businesses that want predictable ERP costs and scalability.

On-Premise ERP Pricing

• £1,250 – £3,000+ per user 

• Additional costs for servers, IT staff, and upgrades

• Higher upfront ERP price

• More control and customisation

Best for: organisations with strict data, compliance or infrastructure requirements.

Over a 5+ year period, total ERP costs for on-premise systems often approach or exceed cloud ERP costs, especially once support, upgrades, and internal IT overhead are included.

What Drives ERP Costs Up (or Down)?

ERP pricing is not driven by a single factor. In practice, ERP costs increase when system complexity increases, not simply when headcount grows. Below are the core drivers that most directly affect the cost of an ERP system and how they interact.

Key Factors That Influence ERP Pricing

1. Number of Users (But Not All Users Cost the Same)

ERP pricing is often presented as “per user,” but user type matters as much as user count.

• Read-only or light users are usually cheaper

• Power users (finance, planning, operations) are more expensive

• External users (suppliers, partners, portals) may be licensed differently

For example, adding 20 warehouse users may increase ERP cost far less than adding 5 senior finance users who require advanced reporting, approvals and audit trails.

Why this affects ERP cost:
More users increase licence or subscription fees and drive higher training, support and change-management costs.

2. Modules and Functional Scope (Breadth Drives Cost Faster Than Size)

ERP systems are modular by design. The number of business functions included often has a bigger impact on ERP cost than the number of users.

Common costs include:

• Manufacturing (MRP, production planning, BOMs) setup

• Advanced inventory and supply chain

• Multi-entity finance and consolidation

• HR, payroll and workforce management that may reuqire integration

Each additional module introduces:

• More configuration

• More data migration

• More testing

• More cross-functional dependencies

Why this affects ERP pricing:
ERP systems become a lot more complex as you connect finance, operations, sales and supply chain into a single data model.

3. Customisation vs Configuration 

One of the biggest ERP cost drivers is how closely the system must match existing processes.

• Configuration (using standard tools) keeps ERP costs controlled

• Customisation (bespoke logic, code or extensions) increases cost rapidly

Customisation doesn’t just increase implementation cost, it also:

• Raises upgrade costs

• Increases long-term support effort

• Adds vendor or partner dependency

Why this affects ERP costing:
Every custom element must be built, tested, documented, supported and maintained over the life of the ERP system.

4. Data Migration Complexity (Often Underestimated)

Data migration can be one of the most unpredictable cost areas.

Costs increase when:

• Historical data must be cleaned or transformed

• Multiple legacy systems are involved

• Data quality is poor or inconsistent

• Regulatory or audit requirements demand long history retention

Migrating 2–3 years of clean financial data is very different from migrating 10+ years of operational, inventory and transactional data.

Why this affects ERP cost:
Data migration is labour-intensive, business-critical and often repeated multiple times before go-live.

5. Integrations and Ecosystem (...ERP Rarely Lives Alone)

A lot of ERP systems sit at the centre of a wider technology stack.

Common integrations include:

• CRM systems

• Payroll and HR platforms

• eCommerce platforms

• Warehouse management systems (if it's not already included)

• BI and reporting tools

Each integration adds:

• Design and mapping effort

• Ongoing monitoring

• Failure points and support overhead

Why this affects ERP pricing:
Integrated ERP systems deliver more value but every connection increases implementation and long-term support costs.

6. Deployment Model and Architecture Choices

ERP deployment decisions have long-term cost implications:

• Cloud ERP spreads costs over time

• On-premise ERP concentrates costs upfront but still incurs annual fees and support costs

• Hybrid models add flexibility but increase architectural complexity

Infrastructure, security, disaster recovery and compliance requirements can all materially affect ERP cost, especially in regulated industries.

Why this affects ERP system cost:
Architecture decisions determine not just year-one cost, but 5–10 year total cost of ownership.

7. Support, Maintenance and Vendors

ERP costs do not typically stop at go-live.

Ongoing ERP costs typically include:

• Annual maintenance or subscription fees

• Support contracts or SLAs

• Minor enhancements and reporting changes

• Periodic upgrades or reconfigurations

For on-premise ERP, annual maintenance is often 15–25% of licence value. For cloud ERP, support is usually bundled in the total but can still rise with usage and scope.

Hidden ERP Costs to Plan For (Often Missed)

When estimating the cost of an ERP system, most organisations focus on software pricing and implementation fees. However, there are additional cost areas that sit outside the initial vendor quote and are worth planning for as part of a realistic total cost of ownership.

When anticipated early, these costs are usually manageable and often contribute directly to a more successful ERP outcome.

1. Internal Project Team Time

ERP implementations benefit from input across the business, particularly from teams that understand existing processes and data.

This involvement typically includes:

• Finance, operations, and supply chain stakeholders

• IT and data owners

• Subject matter experts validating workflows and reports

• Executive sponsors providing direction and decisions

While this time investment doesn’t appear as a line item, it supports better system design and faster decision-making.

Why this matters for ERP costing:
Internal time is a valuable resource and is worth recognising as part of the overall ERP investment.

2. Change Management and Training

ERP systems introduce new ways of working and structured training helps teams adopt the system more quickly and confidently.

This may include:

• Role-based training sessions

• Super-user enablement

• Process documentation and guides

• Post–go-live support and optimisation

Strong training typically leads to higher user confidence and more consistent system usage.

Why this influences ERP cost:
Training is an investment that often reduces support needs and improves long-term value from the ERP system.

3. Process Alignment and Refinement

ERP projects often provide an opportunity to review and standardise business processes.

This can involve:

• Aligning workflows across teams or locations

• Clarifying approvals and controls

• Simplifying legacy practices

• Improving data consistency

Process alignment work is usually incremental and collaborative, rather than disruptive.

Why this affects ERP costing:
Time spent refining processes early often reduces rework later and supports smoother system operation.

4. Short-Term Adjustment During Go-Live

When a new ERP system goes live, teams typically go through a short adjustment period as they become familiar with new screens, workflows, and reports.

This phase may include:

• Slightly slower transaction processing

• Additional checks or parallel processes

• Increased support queries during early use

In most cases, productivity stabilises quickly as users gain confidence.

Why this is relevant to ERP cost planning:
Allowing for a brief adjustment period helps set realistic expectations and reduces pressure on teams.

5. Additional Enhancements Over Time

After go-live, many organisations choose to enhance their ERP system as needs evolve.

Common examples include:

• Additional reports or dashboards

• New system integrations

• Workflow automation

• Feature extensions requested by users

These enhancements are often value-driven and phased in over time.

Why this matters for ERP cost:
ERP systems are designed to grow with the business, and incremental investment often supports continuous improvement.

ERP Costs vs Value: Why Price Alone Is Misleading

When comparing ERP systems, it’s natural to focus on headline price - licence fees, subscription costs or initial implementation spend. However, ERP systems are long-term operational platforms, and their value is realised over years, not months.

As a result, the lowest ERP price does not always correlate with the lowest overall cost or the best outcome.

What Can Happen When ERP Decisions Are Based Primarily on Price

Choosing an ERP system mainly because it appears cheaper upfront can sometimes lead to trade-offs that only become visible later.

Common outcomes include:

• Under-scoped systems
  Lower-cost ERP solutions may exclude key functionality, requiring workarounds, manual processes, or additional tools outside the ERP.

• Unplanned follow-on projects
  Gaps discovered post-go-live can lead to additional configuration, integrations, or even partial re-implementations to meet business needs.

• Lower user adoption
  Systems that don’t align well with day-to-day workflows may be used inconsistently, reducing the benefits the ERP was meant to deliver.

These outcomes are not inevitable, but they are more likely when ERP selection prioritises price over fit.

How Well-Implemented ERP Systems Create Long-Term Value

When an ERP system is well-matched to the organisation and properly implemented, value typically comes from operational improvements rather than cost savings alone.

Common value areas include:

• Reduced manual work
  Automation replaces spreadsheets, duplicate data entry, and manual reconciliations, freeing teams to focus on higher-value tasks.

• Improved financial visibility
  Real-time reporting and a single source of truth support better forecasting, tighter controls, and faster month-end close.

• Faster, more confident decision-making
  Access to consistent, up-to-date data enables managers to respond more quickly to changes in demand, costs, or supply.

• Scalable operations
  ERP systems are designed to support growth, whether that means more users, higher transaction volumes, new locations or additional business lines.

These benefits compound over time, often outweighing differences in initial ERP pricing.

Total Cost of Ownership vs ERP Price

A more useful way to compare ERP systems is to consider total cost of ownership (TCO), which includes:

• Software or subscription costs

• Implementation and setup

• Ongoing support and maintenance

• Internal effort and adoption

• Future enhancements and scalability

An ERP system with a higher upfront price may deliver a lower total cost over 5–10 years if it:

• Requires fewer workarounds

• Scales without major redesign

• Is widely adopted by users

• Reduces reliance on external tools or manual processes

The Key Insight for ERP Buyers

ERP value is created through fit, adoption and longevity - not just price.

Two ERP systems with similar pricing can deliver very different outcomes depending on how well they support the organisation’s processes, data, and growth plans.

This is why, in practice, the cheapest ERP system can become the most expensive over time, while a well-chosen ERP investment often delivers ongoing returns well beyond its initial cost.

ERP Pricing FAQs

How much does an ERP system cost?

An ERP system typically costs between £15,000 and £100,000+, depending on business size, number of users, deployment model and implementation complexity. Small businesses often spend £15,000–£50,000, mid-sized organisations £50,000–£250,000 and large enterprises significantly more.

What is the average price of ERP per user?

ERP pricing per user usually ranges from £30 to £150 per user per month for small businesses, £75 to £300 for mid-sized organisations and £150 to £500+ for enterprise ERP systems, depending on features and user type.

Why are ERP prices so different between vendors?

ERP prices vary because systems differ in:

• Functional depth and industry focus

• Level of configuration or customisation

• Deployment model (cloud, on-premise, hybrid)

• Included support, updates, and infrastructure

Two ERP systems with similar pricing may deliver very different capabilities and long-term value.

Is ERP software a one-time cost?

No. ERP systems involve ongoing costs. Cloud ERP uses monthly or annual subscriptions, while on-premise ERP typically includes annual server maintenance, as well as infrastructure and upgrade costs. Plus, there are support and training costs to consider too. 

What is included in ERP implementation costs?

ERP implementation costs usually include:

• System configuration

• Data migration

• Integrations

• Testing

• Training and go-live support

Implementation often represents a significant portion of total ERP cost, especially for mid-sized and enterprise projects.

How can businesses estimate ERP costs accurately?

The most reliable way to estimate ERP costs is to consider:

• Number and type of users

• Required modules and integrations

• Process complexity

• Expected growth over 3–5 years

A total cost of ownership (TCO) approach is more accurate than comparing ERP prices alone.

Is cloud ERP cheaper than on-premise ERP?

Cloud ERP usually has more predictable ongoing pricing, as software, infrastructure updates and basic support are included in a subscription. On-premise ERP typically involves higher initial licence and infrastructure costs, followed by annual maintenance, support and upgrade expenses.

Over a 5–10 year period, total ERP costs can be similar between cloud and on-premise systems. The main difference is how those costs are structured: cloud ERP spreads costs over time, while on-premise ERP concentrates more spend upfront but still incurs ongoing annual fees. The most cost-effective option depends on system usage, complexity  and long-term operational requirements rather than deployment model alone.

Choosing the Right ERP Starts With the Right Guidance - How We Can Help

With over 35 years’ experience and partnerships with four market-leading ERP platforms, we help organisations make ERP decisions with confidence — not guesswork.

Whether you already have a shortlist or are still defining your requirements, we’ll help you clarify your options, understand the true costs, and select ERP software that fits your business today and continues to support you as it grows.

If you want a clear, practical view of ERP pricing and suitability, grounded in real-world experience, we’re here to guide you through the decision.

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