ERP Implementation Budget: What It Really Costs
Complete cost breakdown so you can budget accurately and avoid surprises.
Key Takeaways
- •Software licensing is typically 25-40% of total first-year cost
- •Budget $75K-$300K+ total for first year depending on system and complexity
- •Hidden costs like internal time and post-go-live support often catch companies off guard
- •Ongoing annual costs run 30-50% of first-year investment
ERP vendors will quote you software costs. What they won't tell you is that software is only part of the investment. Implementation services, data migration, training, and your team's time add up quickly.
This guide breaks down the complete cost picture so you can budget realistically. A fractional CFO can help you evaluate the ROI and plan your implementation budget.
Total Cost Overview
| Company Size/Complexity | Year 1 Total | Ongoing Annual |
|---|---|---|
| Simple ($5M-$15M, single entity) | $75,000 - $150,000 | $30,000 - $60,000 |
| Moderate ($15M-$35M, some complexity) | $150,000 - $250,000 | $50,000 - $100,000 |
| Complex ($35M+, multi-entity/international) | $250,000 - $400,000+ | $80,000 - $150,000+ |
Cost Category Breakdown
1. Software Licensing
| System | Annual Range | Key Variables |
|---|---|---|
| NetSuite | $30,000 - $150,000+ | Users, modules, edition (SuiteSuccess tier) |
| Sage Intacct | $20,000 - $80,000+ | Users, modules, entities |
| Microsoft Dynamics 365 | $25,000 - $100,000+ | Users, apps, configuration |
2. Implementation Services
| Service | Cost Range | Description |
|---|---|---|
| Basic implementation | $25,000 - $50,000 | Standard configuration, minimal customization |
| Standard implementation | $50,000 - $100,000 | Moderate customization, integrations, reporting |
| Complex implementation | $100,000 - $200,000+ | Heavy customization, multiple integrations, multi-entity |
3. Data Migration
Often underestimated. Budget $10,000-$50,000 depending on:
- Data volume and complexity
- Cleanliness of source data (dirty data costs more)
- Years of historical data to migrate
- Number of source systems
4. Training
Budget $5,000-$20,000 for:
- End-user training sessions
- Administrator training
- Documentation and job aids
- Refresher training after go-live
5. Internal Time (Often Ignored)
Your team will spend significant time on the project. At a $100/hour fully-loaded cost, this adds up:
| Role | Hours | Value |
|---|---|---|
| Project lead (CFO/Controller) | 100-200 hours | $10,000-$20,000 |
| Finance team | 200-400 hours total | $15,000-$30,000 |
| IT support | 50-100 hours | $5,000-$10,000 |
Budget Planning Tips
ROI Perspective
While $100K-$300K sounds expensive, consider the cost of NOT upgrading: continued manual work, inability to scale, audit readiness issues, and poor decision-making from inadequate reporting. Most companies see positive ROI within 18-24 months.
Related Resources
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