ERP Software Development Cost In 2025 Cost Guide

The bigger your business gets, the harder it becomes to manage it. With technological transformations happening currently, the help of the right technology, like Custom ERP Software can help you in solving business management problems.

ERP Software helps centralize business operations, boost productivity, and give you data-backed control over your business.So, are you curious about how much it will cost to build an ERP system that’s tailored to your business needs in 2025?

If you’re worried about overspending or investing in the wrong features and want to know the ERP Software Development cost in 2025 for supporting your business with a perfect ERP solution. This guide will walk you through the real costs of ERP software development in 2025.

This 2025 ERP cost guide covers the top factors influencing ERP software development costs: features, users, customizations, platforms, and developer expertise. Learn about ERP pricing by business size, hidden costs, TCO, and cloud vs. on-premise vs. hybrid models. Discover why Gtech is your trusted partner for custom ERP development.

This guide makes sure that every penny you invest in ERP Software Development is worth its expenditure. So, whether you are upgrading your existing Legacy ERP systems or building ERP software from scratch, this ERP Software development cost guide will help you envision your ERP vision as a scalable and cost-efficient reality. 

According to Statista reports, the ERP software market is expected to grow at a CAGR of 3.97% between 2025 and 2029; by 2029, it will probably reach US$65.29 billion.

This shows how many businesses are interested in investing in custom ERP software development for managing their business operations, enhancing work efficiency and providing data-backed insights for informed decision-making.

Thus, an ERP system with a single intuitive dashboard that’s accessible from anywhere is not just a requirement but a necessity for every business. But before knowing how much ERP software cost, you must first learn about the factors that affect ERP Software development cost.

Top 6 Factors That Affect ERP Software Development Cost

It is crucial to know, what factors affect the total cost of an ERP system for understanding how much an enterprise resource planning (ERP) system will cost.

Whether you want custom manufacturing ERP software that helps you with production management or custom ERP software that fits your business needs, the cost depends on multiple factors.

Factors affecting ERP software development cost may include the size of the business, the complexity of ERP Software features, and the goals of developing the ERP software.

The other factors include things like required integrated ERP modules, number of software users, ERP customizations, and other integrations.

Some extended factors include ERP implementation costs, ERP Software maintenance costs, training costs, and even the location of ERP developers.

Custom ERP Development Pricing Factors You Should Consider when Determining the ERP Software Development Cost Estimate.

1. Number Of ERP Features & Users

The first factor that affects the ERP Software development cost is how many features you want to add to your ERP system. Some significant features focus on standout features, which can increase the cost of ERP software. While the other features may include common databases, data analysis, automation, interaction, and more.

The other features include UI/UX, software functionality, data management, bugs and error handling, scalability, performance optimization, integration of real-time data analytics etc.

Too many unnecessary features may affect the ERP Software Development cost of your project. Hence, it is crucial to select only those features that you think are most important and essential to invest in while going for an ERP solution.

Thus, right estimation will save you from any unnecessary costs and improve the ROI of your system. Similarly, the number of ERP users in your organization will also determine the cost of developing an ERP system, as per your requirements.

2. ERP Customizations And Addons Cost

To make your ERP system comprehensive for all the departments and employees, the software will require a lot of customizations and integration. Thus, custom ERP development pricing also depends on several third-party add-ons like social media logins or enterprise IM tools.

Requiring additional capabilities may include specific modules such as supply chain management or vendor management for increased functionality in your system. Such ERP customizations and add-on features can increase the ERP Software Development cost .

3. ERP Implementation And Maintenance Service Cost

Implementing an ERP system requires some changes in the hardware, software, and operating systems. Thus, ERP Implementation may require a professional to install and configure and simplify the process; this too may be added to the total cost of developing ERP software.

Sometimes ERP consultation services can also add extra service costs. On the other hand, unless and until you are investing in a cloud-based ERP solution, your on-premise system will require frequent and timely maintenance to keep it running smoothly at all times.

ERP maintenance costs may cost you around 15–20% of the initial purchase/implementation price for a bug-free experience.

4. Upgrades, Training And TCO

Businesses need to timely upgrade their ERP as per changing requirements; this also involves your system being upgraded to a newer version. Your staff too needs to know how to use, operate, and work with the system.

This process involves training tutorials and process documentation and future support. Such long-lasting support can increase the overall service cost.

The total cost of ownership (TCO) includes hidden costs in ERP development like customer training costs, software purchase costs, and costs associated with future expansion.

5. ERP Development Stages And Developer Experience

ERP development involves various stages that also affect the associated cost.

These developmental stages involve ERP Software Development life cycle, such as business requirements and planning, Software design, the development stage, software testing, and deployment.

Every stage involves associated charges that are impacted by time. On the other side, the experience of an ERP Developer and location impacts costs.

6. Type Of ERP Platform, Technology Stack, Integration

Each ERP platform offers different levels of controls, scalability, and flexibility depending upon your business size and needs. You can choose from three platforms: on-premise, cloud-based, and hybrid systems.

Also, depending on the types of ERP technology you choose to include such as modular systems, AI-powered analytics, mobile ERP, and IoT-enabled solutions add to the costs.

These technologies enhance data accuracy and support real-time decision-making across departments to keep your business running smoothly.

Furthermore, the system will also require certain ERP integrations that connect ERP systems to your business software like CRM, HR, and e-commerce for unified process management and enable easy data flow and improved workflow efficiency.

How Much Does ERP Software Cost in 2025?

The average ERP software development cost ranges anywhere from $30,000 to $350,000, with total costs varying based on company size, region, and deployment model. This estimation is taken into consideration based on the following components.

ERP Software Development Cost Components

Here’s a quick ERP system development cost breakdown that determines the average cost to develop ERP software. Hence, if you are thinking about ERP development budget planning, you must first know about the factors influencing ERP software pricing.

ERP TCO (Total Cost of Ownership)

• Includes staff training, 
• Software Development
• Feature Expansion, and 
• ERP software maintenance costs.

ERP System Pricing For Enterprises: Size

• Large Size Business ERP Cost: $500,000–$2M
• Medium Size Business ERP Cost: $50,000–$500,000
• Small Size Business ERP Cost: $5,000–$50,000

ERP Features You Might Need To Include

• Inventory management
• Financial tracking
• HR modules
• Customer relationship management (CRM)
• Analytics and reporting tools
• Customization Features

Timeline And Cost To Build ERP System

These are the stages that affect the ERP implementation costs.

• Analysis and Planning Stage: 1–2 weeks
• Designing Stage: 1–2 weeks
• Software Development Stage: 3–12 weeks
• Testing Stage: 2 weeks–3 months
• ERP Deployment Stage: 3 weeks
• Initial Vs Ongoing ERP Costs
• Support And Maintenance Stage: Ongoing Support Service

Customization & Team

• Customizing ERP software timeline, team size, and team location affects the overall ERP Software Development cost .
• Outsourcing ERP developers can save money.
• Average Cost Per User: Approximately Around $9,000

Examples of ERP Costs Based On Business Size

• Small to Mid-Sized Businesses: $10,000 to $150,000 for a basic implementation. 
• Large Size Businesses: Over $1,000,000, it depends upon the scope and complexity of the project.
• Mid-Sized Companies (Full-Scale Custom Solution): $1 million or more.

Other Hidden Costs In ERP Development

• Initial development
• Training and onboarding
• Licensing fees
• Maintenance and upgrades
• Contingency for surprises (around 10-15%)

Cloud Vs. On-premise Vs Hybrid

Cloud ERP is cost-effective not only for small businesses but also for mid-sized businesses. While the on-premise ERP suits the needs of large enterprises. Hybrid ERP is a suitable option for a budget-friendly, higher-reach option. The cost depends on the type of ERP you choose.

In this way, all the above-given factors influence ERP Software Development Cost Estimate, which is usually starting from $10,000 to reaching a maximum of $1 million or more, while average ERP Development can be a minimum of $10,000 or less depending on your ERP requirements.

Why Choose Gtech As Your Custom ERP Development Service Partner?

If you are in need of a feature-rich ERP system that’s scalable and secure and perfectly fits your business, Gtech’s Custom ERP Software Development Services is one of the best ERP software development service in India.

Our well-budgeted modern ERP systems are developed to give you a competitive edge and support your business with higher operational intelligence, allowing you to be more agile and deliver qualitative experiences.

Therefore, if you are planning to invest in Gtech’s ERP systems, our team of ERP experts can guide you through the entire ERP development process and explain how you can integrate and centralise the departments to increase your operational efficiency.

You can also consult us on getting a strategic solution on how to reduce ERP development costs; along with that, you can explore our other ERP services.

Nandan Goda

My name is Nandan, the Owner at Gtech Web Infotech Pvt. Ltd.. I’m also a designer and developer. I’ve been working in the web development field for last 12+ years. Developing and implementing small to large-scale projects and everything in between. Currently working on a lot of CMS, dev-tooling projects. Furthermore focusing on combining Artificial Intelligence and Machine Learning with emerging technologies.