# ERP 5-Year Total Cost of Ownership Calculator for European Manufacturers

> Source: https://netray.co/tools/eu-mid-market-erp-5-year-tco-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Compare a mid-market ERP quote on a like-for-like five-year basis: subscription with annual uplift, implementation services, infrastructure and internal project staff.

## Category

erp-migration

## Region

Europe

## Audience

- CFO
- CIO
- ERP project manager

## Tool

**Kind:** calculator

**Currency:** EUR 

**Inputs:**

#### Named users

**Key:** users

**Type:** number

**Default:** 80

**Min:** 1

**Step:** 5

**Unit:** users

**Help:** Users who need a paid ERP licence, not every employee.

#### Subscription per user per month

**Key:** sub_per_user

**Type:** number

**Default:** 120

**Min:** 0

**Step:** 5

**Unit:** EUR

**Help:** Blended price across full and limited users from the quote.

#### Annual price uplift

**Key:** uplift

**Type:** number

**Default:** 4

**Min:** 0

**Max:** 15

**Step:** 0.5

**Unit:** %

**Help:** Contractual index or typical vendor increase applied each year.

#### Implementation services (fixed and T&M)

**Key:** impl

**Type:** number

**Default:** 320000

**Min:** 0

**Step:** 10000

**Unit:** EUR

**Help:** Partner fees for configuration, migration, integration and training.

#### Implementation duration

**Key:** impl_months

**Type:** number

**Default:** 10

**Min:** 1

**Max:** 36

**Step:** 1

**Unit:** months

#### Internal project FTE

**Key:** fte

**Type:** number

**Default:** 2.5

**Min:** 0

**Step:** 0.5

**Unit:** FTE

**Help:** Key users, IT and finance staff released for the project.

#### Loaded cost per FTE per year

**Key:** fte_cost

**Type:** number

**Default:** 85000

**Min:** 0

**Step:** 1000

**Unit:** EUR

#### Infrastructure and integrations per year

**Key:** infra

**Type:** number

**Default:** 14000

**Min:** 0

**Step:** 1000

**Unit:** EUR

**Help:** Cloud tenants, test systems, middleware, backup, interfaces.

#### Evaluation horizon

**Key:** years

**Type:** slider

**Default:** 5

**Min:** 3

**Max:** 10

**Step:** 1

**Unit:** years

**Outputs:**

#### Uplift as fraction

**Key:** r

**Expr:** uplift / 100

**Format:** decimal

#### Uplift series factor

**Key:** geo

**Expr:** if(eq(r,0), years, (pow(1 + r, years) - 1) / r)

**Format:** decimal

**Description:** Sum of (1+r)^k for k from 0 to years-1.

#### Subscription over horizon

**Key:** sub_total

**Expr:** users * sub_per_user * 12 * geo

**Format:** currency

#### Infrastructure over horizon

**Key:** infra_total

**Expr:** infra * years

**Format:** currency

#### Internal project staff cost

**Key:** internal

**Expr:** fte * fte_cost * impl_months / 12

**Format:** currency

#### Total cost of ownership

**Key:** tco

**Expr:** impl + sub_total + infra_total + internal

**Format:** currency

**Primary:** true

#### Cost per user per year

**Key:** per_user_year

**Expr:** tco / users / years

**Format:** currency

**Primary:** true

**Description:** Use this to compare vendors of different size and pricing model.

#### Share that is recurring

**Key:** run_share

**Expr:** (sub_total + infra_total) / tco * 100

**Format:** percent

**Chart:**

#### Total cost of ownership vs number of users

**Type:** line

**X:** users

**From:** 10

**To:** 300

**Steps:** 30

**Series:**

- tco

**Disclaimer:** Planning estimate. Excludes data archiving, audit fees, customer-specific add-on licences and benefits. Replace every input with figures from your signed or proposed contract.

## Content

**Intro:** Mid-market ERP quotes from vendors such as abas, proALPHA, IFS, Exact, Priority or Visma rarely look alike: one is a large implementation with modest subscription, another is a cheap subscription with heavy services. This calculator puts them on one five-year basis so finance can compare them.

**Sections:**

#### How to use the calculator

**Body:** Enter the blended per-user subscription from the quote, the services estimate and your own internal staffing. Set the horizon to match the contract term or depreciation view your CFO prefers. The tool compounds the annual uplift correctly, so a contract with a 6 percent index looks different from a flat price. Run it once per vendor, export each result to Excel and place the figures side by side.

**Bullets:**

- Use the blended price across full and limited users
- Include test and sandbox tenants in infrastructure
- Count internal staff at loaded cost, not salary
- Keep the same horizon for every vendor

#### The formula

**Body:** Subscription over the horizon is users times monthly price times 12 times the geometric series factor ((1+r)^n - 1) / r, where r is the annual uplift. Add implementation services, infrastructure per year times years, and internal staff cost equal to FTE times loaded cost times the project duration in years. TCO divided by users and years gives a per-user-year figure that is useful for benchmarking across vendors and user counts.

#### Reading the result

**Body:** If recurring cost is more than 70 percent of TCO, the decision is driven by subscription terms and uplift clauses, so negotiate those. If services dominate, scrutinise scope, fit-gap results and the number of customisations. Use the chart to see how the price scales if headcount in the ERP grows. Compare outputs with the fit-gap worksheet before trusting a low quote that leaves requirements uncovered.

#### Common mistakes

**Body:** The most common error is comparing year-one subscription only. Others are forgetting data migration effort, omitting internal backfill costs, treating contingency as free and ignoring price uplift after the initial term. Also check whether the quote counts read-only or shop floor users, because those are often priced differently in DACH mid-market products.

**Cta:** If you want TCO inputs pulled from your current ERP usage data rather than estimated, Netray can build a read-only extract of user activity and transaction volumes.

**Faq:**

#### Does it cover on-premise perpetual licences?

**Answer:** Yes, approximately. Enter the annual maintenance as a monthly per-user equivalent and put the one-time licence fee into the implementation field. The uplift handles maintenance index clauses.

#### What horizon should I use?

**Answer:** Five years is common for ERP business cases because it spans implementation and a stable run period. Use the contract term if the vendor ties you in for longer, and test seven years for core systems.

#### Should internal staff be included?

**Answer:** Yes. Key users and IT staff released from daily work are a real cost, and backfill or overtime often appears in other budgets. Excluding them makes the cheapest quote look better than it is.

#### Is VAT included?

**Answer:** No. Enter net figures. Most EU manufacturers recover input VAT, so net cost is the right basis for comparison.

## Search terms

erp total cost of ownership calculator, erp tco calculator, erp cost comparison, erp subscription cost calculator, mid market erp cost europe, erp 5 year cost, abas proalpha ifs cost comparison, erp business case template

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