ERP Migration & SelectionFree calculatorPDF, Excel, Word exportJob Shop Machining

Job Shop ERP Subscription vs Perpetual License Cost Calculator

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.

Your numbers

users
$/user/month
$/user
% of license
$/year
$
5 years

Your results

Subscription total over period
$171,000
Perpetual total over period
$195,000
Subscription cost per year
$25,200
Perpetual license upfront
$52,500
Perpetual running cost per year
$19,500
Subscription minus perpetual
-$24,000
Negative means subscription is cheaper over the period.
Break-even year
9.2 years
Zero means perpetual never catches up.

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

Save results:

Cumulative cost vs years

Sweeps Evaluation period from 1 to 10, holding your other inputs fixed.

Get a neutral review of your ERP quotes

Optional: a short second opinion on pricing and fit for small shops.

Optional. The tool and every export work without this. No spam.

How to use it

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

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.

  • 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

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.

Frequently Asked Questions

Is subscription always cheaper at first?

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?

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?

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?

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.

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