ERP Total Cost of Ownership (TCO) Calculator

How to use it

Enter the number of named users, then either a one-off licence per user with a maintenance percentage, or a subscription per user per year, or both if the vendor splits them. Add the implementation estimate from the vendor and partner, annual hosting cost and the internal staff you will need to administer the system. Move the evaluation slider to see how the picture changes between three, five and ten years.

• Count named users, not concurrent users, unless the vendor sells concurrent
• Use the quote for implementation, then add a contingency
• Include internal staff time, which is often missing from vendor numbers
• Compare vendors over the same period

Reading the result

Perpetual licences look cheaper in year one and subscriptions look cheaper if the implementation is lean. The crossover usually sits between years four and seven, depending on maintenance rate. Look at the chart: a steep slope means recurring cost dominates, which suggests negotiating the annual fees, not the licence discount.