# Small Manufacturer ERP Cost Calculator

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

## Short answer

Total cost of ownership calculator for cloud MRP and ERP projects in small plants, covering subscription, users, one-time services and hidden internal time.

## Category

erp-migration

## Industry

Small Manufacturing

## Audience

- Founder
- Controller
- Operations manager

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Named users

**Key:** users

**Type:** number

**Default:** 8

**Min:** 1

**Step:** 1

**Unit:** users

#### Price per user per month

**Key:** price_user

**Type:** number

**Default:** 60

**Min:** 0

**Step:** 5

**Unit:** $/user/mo

#### Base platform fee per month

**Key:** base_fee

**Type:** number

**Default:** 200

**Min:** 0

**Step:** 25

**Unit:** $/mo

**Help:** Include plan or tier fee and any add-on modules.

#### Integrations and connectors per month

**Key:** integration

**Type:** number

**Default:** 50

**Min:** 0

**Step:** 10

**Unit:** $/mo

#### Implementation and configuration

**Key:** implementation

**Type:** number

**Default:** 8000

**Min:** 0

**Step:** 500

**Unit:** $

#### Data migration and cleanup

**Key:** migration

**Type:** number

**Default:** 3000

**Min:** 0

**Step:** 500

**Unit:** $

#### Training and documentation

**Key:** training

**Type:** number

**Default:** 2000

**Min:** 0

**Step:** 250

**Unit:** $

#### Internal staff hours on project

**Key:** internal_hours

**Type:** number

**Default:** 250

**Min:** 0

**Step:** 10

**Unit:** hours

#### Loaded cost per internal hour

**Key:** internal_rate

**Type:** number

**Default:** 40

**Min:** 0

**Step:** 5

**Unit:** $/hour

#### Evaluation horizon

**Key:** years

**Type:** slider

**Default:** 3

**Min:** 1

**Max:** 7

**Step:** 1

**Unit:** years

**Outputs:**

#### Recurring cost per month

**Key:** monthly

**Expr:** base_fee + users * price_user + integration

**Format:** currency

#### External one-time cost

**Key:** one_time

**Expr:** implementation + migration + training

**Format:** currency

#### Internal time cost

**Key:** internal

**Expr:** internal_hours * internal_rate

**Format:** currency

#### Total cost over horizon

**Key:** tco

**Expr:** monthly * 12 * years + one_time + internal

**Format:** currency

**Primary:** true

**Description:** Subscriptions, services and internal time.

#### Average cost per year

**Key:** per_year

**Expr:** tco / years

**Format:** currency

**Primary:** true

#### Cost per user per month

**Key:** per_user

**Expr:** tco / (years * 12 * users)

**Format:** currency

**Chart:**

#### Total cost vs number of users

**Type:** line

**X:** users

**From:** 1

**To:** 30

**Steps:** 15

**Series:**

- tco

**Disclaimer:** Planning estimate only. Vendor pricing tiers, user definitions and minimums vary, so replace the defaults with actual quotes.

## Content

**Intro:** The sticker price of a cloud MRP is rarely the cost of owning it. Setup, data cleanup, training and the time your own people spend often exceed a year of subscription. This calculator puts all of it on one page so you can compare options on equal terms.

**Sections:**

#### How to use the calculator

**Body:** Enter the quoted subscription structure first: a base fee, a price per user and any monthly integration charges. Then enter the one-time work: implementation, data migration and training, whether you pay a partner or not. Add internal hours at a loaded hourly cost, since your planner and engineer are not free during the project. Set the horizon to the period you are comparing, typically three to five years. The chart shows how total cost scales with user count.

**Bullets:**

- Run it once per vendor quote with identical horizon.
- Include read-only and shop floor users if they need licences.
- Add a contingency of 10 to 20 percent for scope you cannot see yet.

#### The formula

**Body:** Total cost equals monthly recurring cost times twelve times the horizon in years, plus one-time external cost, plus internal time cost. Monthly recurring cost is the base fee plus users times price per user plus integrations. Dividing by years gives an annual figure for budgeting, and dividing by users and months gives a unit cost that is useful when comparing tools priced in different ways, for example flat tier versus per user.

#### Worked example

**Body:** Eight users at 60 per month, a 200 base fee and 50 for integrations give 730 per month, or 8,760 per year. Add 13,000 of external one-time services and 10,000 of internal time (250 hours at 40). Over three years the total is about 49,300, or roughly 16,400 per year and 57 per user per month. Doubling the user count to sixteen adds about 17,300 per year in subscription alone, which the chart makes visible.

#### What the numbers leave out

**Body:** This is a cost view, not a benefit view. It does not include price rises, extra modules, hardware such as scanners and label printers, customisation, or the cost of a parallel run. Equally it ignores savings from fewer stockouts, faster quoting and less rework. Treat the output as the denominator for a business case and estimate benefits conservatively with your own data.

**Bullets:**

- Ask vendors about annual price increases and user minimums.
- Check data export rights in case you switch later.
- Include barcode hardware and label printing if you plan to scan.

**Cta:** If you would like a second opinion on a quote or a migration estimate, Netray can review the scope and the hidden costs.

**Faq:**

#### How much does ERP cost for a small manufacturer?

**Answer:** It varies widely with users, modules and services. Simple cloud MRPs can start at a few hundred dollars per month, while fuller ERPs with partner implementations run into tens of thousands in the first year. Use real quotes and this calculator to compare fairly.

#### Should I count internal staff time?

**Answer:** Yes. Planners, engineers and buyers spend many hours on data cleanup, testing and training. If you leave it out, a cheaper tool with heavier setup looks better than it is. Use a loaded hourly rate that includes benefits and overhead.

#### How long should the evaluation horizon be?

**Answer:** Three to five years is typical. Shorter horizons overweight setup cost, longer ones overweight subscription growth. Whatever you choose, use the same horizon for every option you compare.

#### Is open source cheaper?

**Answer:** Licence fees may be lower or zero, but hosting, implementation, customisation and support still cost money. Enter those as base fee, implementation and integrations to compare open-source options on the same basis.

## Search terms

small manufacturer erp cost, erp total cost of ownership calculator, mrp software pricing small business, cloud erp cost per user, erp implementation cost small business, erp budget template manufacturing, mrp roi calculator, how much does erp cost small manufacturer

---
Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json