# Job Shop ERP Subscription vs Perpetual License Cost Calculator

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

## Short answer

Compare cumulative cost of a per-user subscription against a perpetual license plus maintenance and hosting, and find the break-even year.

## Category

erp-migration

## Industry

Job Shop Machining

## Audience

- Shop owner
- Controller
- ERP selection lead

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Named users

**Key:** users

**Type:** number

**Default:** 15

**Min:** 1

**Step:** 1

**Unit:** users

#### Subscription price

**Key:** sub

**Type:** number

**Default:** 140

**Min:** 0

**Step:** 5

**Unit:** $/user/month

#### Perpetual license price

**Key:** lic

**Type:** number

**Default:** 3500

**Min:** 0

**Step:** 100

**Unit:** $/user

#### Annual maintenance on perpetual

**Key:** maint

**Type:** number

**Default:** 20

**Min:** 0

**Max:** 40

**Step:** 1

**Unit:** % of license

#### Server, backup and IT support for perpetual

**Key:** hosting

**Type:** number

**Default:** 9000

**Min:** 0

**Step:** 500

**Unit:** $/year

#### Implementation and training (either option)

**Key:** impl

**Type:** number

**Default:** 45000

**Min:** 0

**Step:** 1000

**Unit:** $

#### Evaluation period

**Key:** years

**Type:** slider

**Default:** 5

**Min:** 1

**Max:** 10

**Step:** 1

**Unit:** years

**Outputs:**

#### Subscription cost per year

**Key:** sub_annual

**Expr:** users * sub * 12

**Format:** currency

#### Perpetual license upfront

**Key:** upfront

**Expr:** users * lic

**Format:** currency

#### Perpetual running cost per year

**Key:** perp_annual

**Expr:** users * lic * maint / 100 + hosting

**Format:** currency

#### Subscription total over period

**Key:** sub_total

**Expr:** impl + sub_annual * years

**Format:** currency

**Primary:** true

#### Perpetual total over period

**Key:** perp_total

**Expr:** impl + upfront + perp_annual * years

**Format:** currency

**Primary:** true

#### Subscription minus perpetual

**Key:** diff

**Expr:** sub_total - perp_total

**Format:** currency

**Description:** Negative means subscription is cheaper over the period.

#### Break-even year

**Key:** breakeven

**Expr:** if(gt(sub_annual, perp_annual), upfront / (sub_annual - perp_annual), 0)

**Format:** years

**Description:** Zero means perpetual never catches up.

**Chart:**

#### Cumulative cost vs years

**Type:** line

**X:** years

**From:** 1

**To:** 10

**Steps:** 10

**Series:**

- sub_total
- perp_total

**Disclaimer:** Excludes price increases, add-on modules, upgrade projects and the value of staff time. Use vendor quotes for real figures.

## Content

**Intro:** Small shops comparing products such as JobBOSS, E2 Shop System, Global Shop Solutions, ProShop or Fulcrum face the same question: pay monthly or buy once. This calculator shows when each model costs less, using your own quotes.

**Sections:**

#### How to use it

**Body:** Enter the number of named users, the per-user monthly subscription from one vendor and the perpetual license price from another. Add maintenance percentage, the yearly cost of server, backup and IT time for an on-premise system, and implementation. Slide the evaluation period. The chart shows cumulative cost, and the crossover is the break-even year.

#### The method

**Body:** Subscription total = implementation + users x price x 12 x years. Perpetual total = implementation + licenses + (maintenance on licenses + hosting) x years. Break-even is upfront license divided by the yearly gap between subscription and perpetual running cost. It assumes flat prices, so treat it as a guide.

**Bullets:**

- Include the hidden cost of IT labor and backups for on-premise
- Ask vendors for the price-increase cap on subscriptions
- Check whether the perpetual price covers needed modules

#### How to read it

**Body:** Subscription lowers the entry cost and moves upgrades and hosting to the vendor, which matters when the shop has no IT staff. Perpetual can win over seven or ten years if you keep the system that long, but upgrades often cost extra. If the two totals are within about ten percent, decide on fit, support and exit terms rather than price, and score the products with a structured selection scorecard.

**Cta:** If you want a neutral review of quotes and fit for a shop-sized ERP, Netray can help you compare them before you sign.

**Faq:**

#### Is subscription always cheaper at first?

**Answer:** Usually the upfront cash is lower, which is the main attraction. Over a long period the cumulative cost can pass a perpetual license, depending on user count and maintenance fees.

#### Why is implementation the same in both?

**Answer:** It keeps the comparison simple. In practice, on-premise implementations can cost more for server setup; add that difference into hosting or implementation as you see fit.

#### What is a normal maintenance percentage?

**Answer:** Perpetual vendors commonly charge a yearly maintenance fee in the high teens to low twenties as a percent of license. Confirm the exact figure and escalation terms in your quote.

#### Should I count all employees as users?

**Answer:** Count named or concurrent users as the vendor licenses them. Shop floor kiosks and read-only users are often priced differently, so ask which roles need a full seat.

## Search terms

erp subscription vs perpetual license, erp tco calculator small manufacturer, job shop erp cost comparison, cloud vs on premise erp cost, erp break even calculator, jobboss vs fulcrum cost, erp licensing cost per user, erp five year cost

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