ERP Total Cost of Ownership Calculator

5-Year Cost Comparison

What is included in this estimate

• Cloud ERP: Per-user subscription fees (compounding with annual price increases and user growth), implementation, and annual integration/customization costs.
• On-Premise ERP: One-time software license, implementation, server hardware (with a mid-cycle replacement in year 4), annual maintenance/support, and annual IT/hosting costs.

What is NOT included

The following costs apply to both cloud and on-premise deployments and are intentionally excluded so you can compare the platform-specific costs apples to apples:

• Training: Staff training costs vary by team size, complexity, and vendor. Budget for this separately.
• Data migration: Moving data from your current system involves cleanup, mapping, and testing. The cost depends on the volume and condition of your data.
• Lost productivity during transition: Every ERP change involves a learning curve. Factor in reduced throughput for 1-3 months after go-live.
• Internal labor: Time your own staff spend on the project (evaluating vendors, testing, managing rollout) is a real cost not captured here.

Caveat: These are estimates based on the inputs you provide. Actual costs depend on the specific vendor, contract terms, scope of customization, and your operational complexity. Use this calculator as a planning tool, not a quote.

For a detailed breakdown of every cost category, read the full article: ERP Total Cost of Ownership for Distributors.