# Job Shop ERP Implementation Cost Calculator

> Source: https://netray.co/tools/job-shop-erp-implementation-cost-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Estimate the first year and multi-year cost of a job shop ERP: licenses, implementation hours, data migration, training, hardware and annual support. Includes a chart of cost against user count.

## Category

erp-migration

## Industry

Job Shop Machining

## Audience

- Shop owner
- General manager
- Controller

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Named users

**Key:** users

**Type:** slider

**Default:** 12

**Min:** 1

**Max:** 60

**Step:** 1

**Unit:** users

**Help:** People who need a login, including floor terminals if licensed per user.

#### Software cost per user per month

**Key:** license_user

**Type:** number

**Default:** 120

**Min:** 0

**Step:** 5

**Unit:** per user

**Help:** Use the quoted subscription or the amortized license price.

#### Implementation and configuration hours

**Key:** impl_hours

**Type:** number

**Default:** 120

**Min:** 0

**Step:** 10

**Unit:** hours

#### Data migration hours (vendor)

**Key:** migr_hours

**Type:** number

**Default:** 40

**Min:** 0

**Step:** 5

**Unit:** hours

#### Training hours (vendor)

**Key:** train_hours

**Type:** number

**Default:** 32

**Min:** 0

**Step:** 4

**Unit:** hours

#### Vendor services rate

**Key:** svc_rate

**Type:** number

**Default:** 165

**Min:** 0

**Step:** 5

**Unit:** per hour

#### Internal staff hours on the project

**Key:** internal_hours

**Type:** number

**Default:** 400

**Min:** 0

**Step:** 20

**Unit:** hours

**Help:** Time your own people spend, often the largest hidden cost.

#### Internal loaded hourly cost

**Key:** internal_rate

**Type:** number

**Default:** 45

**Min:** 0

**Step:** 5

**Unit:** per hour

#### Hardware and terminals

**Key:** hardware

**Type:** number

**Default:** 6000

**Min:** 0

**Step:** 500

**Unit:** one time

#### Evaluation period

**Key:** years

**Type:** select

**Default:** 5

**Options:**

##### 3 years

**Value:** 3

##### 5 years

**Value:** 5

##### 7 years

**Value:** 7

**Outputs:**

#### Annual software cost

**Key:** annual_license

**Expr:** users * license_user * 12

**Format:** currency

**Description:** Subscription or support and maintenance per year.

#### Vendor services (one time)

**Key:** vendor_services

**Expr:** (impl_hours + migr_hours + train_hours) * svc_rate

**Format:** currency

**Description:** Implementation, migration and training from the vendor or a partner.

#### Internal project labor

**Key:** internal_cost

**Expr:** internal_hours * internal_rate

**Format:** currency

**Description:** Loaded cost of your staff time.

#### Total one-time cost

**Key:** one_time

**Expr:** vendor_services + internal_cost + hardware

**Format:** currency

#### First year cash cost

**Key:** year_one

**Expr:** one_time + annual_license

**Format:** currency

**Primary:** true

#### Total cost of ownership over the period

**Key:** tco

**Expr:** one_time + annual_license * years

**Format:** currency

**Primary:** true

#### Average cost per user per year

**Key:** per_user_year

**Expr:** tco / years / max(users, 1)

**Format:** currency

**Chart:**

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

**Type:** line

**X:** users

**From:** 2

**To:** 60

**Steps:** 30

**Series:**

- tco

**Disclaimer:** Planning estimate only. Real quotes vary by vendor, modules, hosting, and contract terms. Get written quotes and include hidden items such as integrations, custom forms, extra modules and annual price increases.

## Content

**Intro:** The software line on a quote is rarely the real cost of a job shop ERP. This calculator adds licenses, vendor services, data migration, training, hardware and your own staff time, then shows first-year cost and total cost of ownership.

**Sections:**

#### How to use the calculator

**Body:** Start with the number of users and the per user monthly price from a real quote. Add the vendor's hours for implementation, data migration and training and their services rate. Then add your own project hours at a loaded internal rate, plus hardware such as floor terminals and tablets. Pick the evaluation period and read the first year cash cost and the multi-year total. Move the sliders to see how a different user count or services estimate changes the answer, and watch the chart for the effect of headcount.

#### The formula

**Body:** Annual software equals users times monthly price times twelve. Vendor services equal implementation plus migration plus training hours times the services rate. Internal cost equals your hours times your loaded rate. One-time cost is vendor services plus internal cost plus hardware. First year cost adds one year of software. Total cost of ownership adds software for every year in the evaluation period. It excludes taxes, financing, price escalators and integrations unless you fold them into the inputs.

#### Reading the result

**Body:** Compare vendors on total cost of ownership, not on license price. A cheaper subscription with heavy services can cost more than a pricier package that is faster to implement. Look at the cost per user per year to compare against the value of the time saved in quoting, scheduling and paperwork. Internal labor is often the largest surprise, because the people who know the parts and customers are also the people running the shop.

**Bullets:**

- Ask for a fixed price or capped hours on migration
- Include annual increases in subscription quotes
- Budget for extra training after go live
- Count floor terminals and tablets as hardware

#### Common mistakes

**Body:** Shops forget internal time, underbudget data cleanup, skip hardware and training, and ignore the cost of integrations with accounting, EDI or CAD. Another miss is not budgeting for the first months of lower productivity during stabilization.

**Cta:** If you want help pressure-testing a vendor quote or scoping data work, we can walk through it. Many shops complete the project with the vendor alone, which is a fine choice.

**Faq:**

#### How much does a job shop ERP implementation cost?

**Answer:** It varies widely by size, modules and vendor. Small shops often spend from low five figures to six figures in the first year including software, services and training. Use the calculator with your own quote to get a realistic number.

#### Is subscription cheaper than perpetual licensing?

**Answer:** Not always. Subscriptions spread cost and include hosting or updates, while perpetual licensing has a high upfront price plus annual support. Compare total cost over five years with the same scope and look at what each includes.

#### Why include internal staff time?

**Answer:** Because it is real cost and real opportunity cost. Your estimator, supervisor and controller will spend many hours on data, testing and training. Leaving it out understates the project and leads to under-resourcing.

#### What is not included in the estimate?

**Answer:** Taxes, financing, annual price increases, third-party integrations, custom report development, additional modules and the productivity dip around go live. Add them in the inputs or as a contingency, commonly ten to twenty percent.

## Search terms

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