If you’re planning your first ERP investment, the question always comes up: “How much should we actually spend?”
For most businesses, ERP software is one of the biggest technology investments they’ll ever make. It touches every department, changes processes, and can be the difference between scaling efficiently and hitting operational roadblocks. That makes migration to an ERP platform a big, fairly stressful series of choices.
When it comes to budgeting, ERP pricing can feel like a black box. Vendors are often frustratingly vague, and quotes can range anywhere from a few thousand to hundreds of thousands of dollars per year. So how do you know what’s fair?
At Stellar One, we’ve been offering transparent, understandable pricing from day one and helping business owners and CFOs understand common marketplace pricing along the way.
After reading through this article and its industry benchmarks, real-world ROI examples, and insights from Stellar One’s ERP experts, you’ll understand ERP platform pricing well enough to make informed budgeting decisions for your own system.
How Much Do Businesses Typically Spend on ERP Platforms?
Most companies should expect to invest one to three percent of their annual revenue in ERP during the first year.
- Smaller companies: Typically one to two percent of revenue
- Larger or more complex organizations: Closer to two to three percent
That ERP System price range includes everything, from software and implementation to support and maintenance.
For example, a company with $10 million in annual revenue might reasonably spend $100,000 to $300,000 in the first year of ERP adoption.
Breaking Down ERP System Costs
While every platform is different, most ERP costs fall into four categories:
- Software and licensing: Your base subscription or user fees, often billed monthly or annually.
- Implementation and setup: The cost to configure, migrate data, train users, and go live.
- Customizations: Modules and functionalities built for your specific business and no one else’s.
- Integrations: Optional add-ons for connecting systems like Shopify, HubSpot, or EDI.
- Support and maintenance: Ongoing costs for updates, troubleshooting, and user assistance.
Traditional ERP partners often frontload costs with large implementation fees. That approach can overwhelm smaller organizations and substantially delay return on investment (ROI).
The Shift Toward Predictable, Subscription-Based Pricing
In today’s SaaS-driven ERP landscape, many companies are moving away from heavy upfront investments toward subscription-based pricing models.
As Derek Hile, ERP expert at Stellar One, puts it:
“We’ve seen companies pay massive upfront fees, only to face a surprise in year two when licensing or service costs spike. A predictable, monthly model lets businesses see ROI faster and eliminates that uncertainty.”
The truth is that ERP platform pricing models differ, and predictability often matters more than price tags.
ERP Platform Costs vs. Revenue Growth
ERP spending is an investment in efficiency and scalability. Carl Lewis, Member Success Director at Stellar One, shared the story of a member who began with a $1,200/month ERP system subscription and later expanded to nearly $2,900/month after adding EDI and manufacturing functionality.
That increase was pure growth rather than cost creep. Their ERP system helped them start selling to big-box retailers and scale production.
“Continued investment in ERP should coincide with increased ROI,” Lewis explained. “If your system is helping you grow into new markets or automate more processes, the cost is working for you.”
In other words: ERP spending should grow with your success, not outpace it.
The Hidden Cost of ERP System Customization
One of the most common ways ERP budgets spiral out of control is through customization.
Just about every business believes they’re unique, but the truth is that most core processes are the same from business to business.
That’s why out-of-the-box functionality is so valuable. Most modern ERP platforms, including Acumatica, include configurable modules and native integrations that eliminate the need for custom code.
The difference between predictable versus custom ERP platforms can determine whether they deliver adequate returns or become a financial burden.
ERP Platform Budgeting for the Long Term
When you’re budgeting for ERP software, it’s smart to think beyond go-live. Consider these key principles:
- Plan for growth: As your business expands, your ERP system should scale with you.
- Prioritize standard configurations: You can cover 80 percent or more of your needs with out-of-the-box features, so save add-on capabilities for when they’ll deliver measurable ROI.
- Beware of “cost creep”: If your quote is heavy on implementation fees or unclear on support costs, consider it a red flag.
- Look for transparency: Predictable, contract-defined pricing builds trust and eliminates budgeting surprises.
While you're outlining these plans and priorities, you should also keep an eye out for warning signs that you're overspending on your ERP system.
Common Red Flags of Overspending on Your ERP Platform
If you’re evaluating ERP proposals, remember the warning signs that your costs could spiral:
- Your implementation quote exceeds your first year of software fees.
- You’re being billed separately for “support” or “success” fees.
- Your partner can’t provide an implementation timeline shorter than six months.
- Customizations are quoted before scoping is complete.
- The provider offers heavy discounts for signing immediately.
In contrast, transparent pricing builds confidence. People don’t like haggling, and for good reason. They just want the real price up front, and offering it is how trust is built — and how ERP projects stay on budget.
How to Evaluate ERP Software Costs in Context
Instead of focusing only on sticker price, ask:
- What percentage of my revenue am I comfortable investing in efficiency and scalability?
- Will this investment reduce manual work, errors, or delays?
- Does the software publisher’s pricing model align with my growth goals and cash flow?
Your answers to each of these questions will help guide your decision-making so that you can choose an ERP solution that meets your needs now and as you scale.
What’s the “Right” ERP Budget?
ERP budgets that align with one to three percent of annual revenue are reasonable for most growing businesses, but the structure of your costs matters more than the total.
You’re not just buying software when you invest in an ERP platform. You’re buying clarity, scalability, and peace of mind. Hidden fees and unpredictable pricing erode trust and stall ROI, which means this choice is a big one.
Before you select a platform, take time to understand how each specific software publisher and ERP partner structures pricing. If you want predictable costs and faster ROI, explore models that prioritize transparency and partnership. Check out our article on the top cloud ERP systems in 2025 for a better idea of your options.
At Stellar One, we believe ERP platforms should empower growth rather than creating financial uncertainty. Our experts help businesses plan ERP budgets they can trust without surprises. Use our pricing calculator below to build your subscription plan and see exactly what you can expect to pay with Acumatica from Stellar One.
