---
title: "How Much Does Custom ERP Cost in India? (2026 Pricing Guide)"
description: "A transparent, India-specific breakdown of what a custom ERP actually costs in 2026 — by scope, team, and deployment model — with real rupee ranges, a cost calculator framework, and hidden costs to budget for."
seoTitle: "Custom ERP Cost in India (2026 Guide)"
seoDescription: "What does a custom ERP cost in India in 2026? Real rupee ranges by scope and team, a cost-driver breakdown, build-vs-buy maths, and hidden costs to plan for."
pubDate: 2026-06-19
heroImage: "/images/blog/erp-systems.jpg"
category: "Web Development"
tags: ["ERP", "Custom Software", "Pricing", "India", "Enterprise", "Cost Estimation"]
author:
  name: "Ajay"
  avatar: "/images/team/ajay.jpg"
draft: false
---

"How much will it cost?" is the first question every buyer asks about custom ERP — and the honest answer is "it depends." But "it depends" is not a number you can put in a budget. So in this guide we turn the question into something usable: what a custom ERP actually costs in India in 2026, what drives those numbers up or down, and how to estimate your own project before you talk to a single vendor.

The short version: a focused single-department custom ERP in India typically lands between **₹6,00,000 and ₹18,00,000**, a multi-module mid-market system between **₹18,00,000 and ₹60,00,000**, and a large multi-tenant or government-grade platform between **₹60,00,000 and ₹2,50,00,000+**. The rest of this article explains how to find *your* number inside those ranges.

## What "Custom ERP" Actually Means for Pricing

Before any number makes sense, you have to define scope. "ERP" is an umbrella — your price depends entirely on which modules you actually build. A finance-and-inventory system for a trading firm is a completely different project from a 14-module university ERP with admissions, examinations, hostel, and payroll.

Custom ERP cost in India is driven by five things, in roughly this order of impact:

1. **Number and complexity of modules** — each module is a mini-application with its own data model, screens, and rules.
2. **Number of distinct user roles and permission rules** — RBAC complexity scales non-linearly.
3. **Integrations** — payment gateways, GST/e-invoicing, SMS/WhatsApp, biometric, Tally, government APIs.
4. **Deployment model** — single-tenant vs multi-tenant, cloud vs on-premise, offline resilience.
5. **Non-functional requirements** — audit logging, data residency, uptime SLA, concurrent-user load.

## 2026 Cost Ranges by Project Tier

These are realistic, all-in development ranges for an India-based engagement (Indian team rates, INR), covering design, development, testing, and first deployment. They exclude ongoing maintenance, which we cover separately below.

| Tier | Typical Use Case | Modules | Timeline | Cost Range (INR) |
|------|------------------|---------|----------|------------------|
| **Starter** | Single-department tool (inventory, billing, or HR) | 1–2 | 6–10 weeks | ₹6L – ₹18L |
| **Growth** | Mid-market multi-department ERP | 4–7 | 4–7 months | ₹18L – ₹60L |
| **Enterprise** | Multi-entity / multi-location ERP, complex RBAC | 8–14 | 8–14 months | ₹60L – ₹1.5Cr |
| **Government / Platform** | Multi-tenant, offline-resilient, audit-heavy | 10+ | 12–24 months | ₹1.5Cr – ₹2.5Cr+ |

A useful rule of thumb in 2026: a well-defined, production-grade ERP module costs roughly **₹4,00,000 to ₹9,00,000** to build, depending on how many screens, workflows, and integrations it carries.

## The Biggest Cost Driver: The Team

Custom software is labour. The single largest line item in any ERP quote is engineering time, so blended day-rates dominate the total. Here is what Indian ERP development talent typically costs in 2026.

| Role | Junior (₹/month) | Mid (₹/month) | Senior (₹/month) |
|------|------------------|---------------|------------------|
| Backend Engineer | ₹45,000 – ₹70,000 | ₹80,000 – ₹1,40,000 | ₹1,60,000 – ₹2,80,000 |
| Frontend Engineer | ₹40,000 – ₹65,000 | ₹75,000 – ₹1,30,000 | ₹1,50,000 – ₹2,50,000 |
| QA / Test Engineer | ₹35,000 – ₹55,000 | ₹60,000 – ₹1,00,000 | ₹1,10,000 – ₹1,80,000 |
| Project Manager | — | ₹90,000 – ₹1,50,000 | ₹1,60,000 – ₹3,00,000 |
| UI/UX Designer | ₹40,000 – ₹60,000 | ₹70,000 – ₹1,20,000 | ₹1,30,000 – ₹2,20,000 |

A typical Growth-tier project runs a squad of 4–6 people for 5 months. At blended mid-level rates, that alone accounts for ₹25L–₹40L of the budget — which is why the Growth range sits where it does.

## Build vs Buy: When Custom Actually Pays Off

Custom is not always the right call. Off-the-shelf and SaaS ERPs (Zoho, TallyPrime, SAP Business One, Odoo) have real advantages for standard workflows. Here is the honest comparison for an Indian mid-market buyer.

| Factor | Custom ERP | SaaS / Off-the-Shelf |
|--------|-----------|----------------------|
| Upfront cost | ₹18L – ₹60L+ | ₹0 – ₹5L setup |
| Recurring cost | ~15–20% of build/year (AMC) | ₹500 – ₹3,000 per user / month |
| Fit to your process | Exact | Adapt your process to the tool |
| Time to first value | 3–7 months | Days to weeks |
| Data ownership | Full | Vendor-hosted |
| Scaling cost | Predictable (you own it) | Grows with every seat |

The crossover maths matters. A 100-user SaaS ERP at ₹1,500/user/month costs **₹18,00,000 per year** — recurring, forever. A custom build at ₹40,00,000 with ₹7,00,000/year AMC breaks even against that SaaS bill in roughly **2.5 years**, and is cheaper every year after. Custom wins when your headcount is large, your processes are genuinely non-standard, or data sovereignty is non-negotiable (common in government and BFSI).

## Hidden Costs Buyers Forget to Budget

The build quote is not the total cost of ownership. Plan for these:

- **Annual Maintenance Contract (AMC):** budget **15–20% of build cost per year** for bug fixes, security patches, and minor enhancements.
- **Cloud hosting:** a mid-size ERP on AWS/Azure in the Mumbai region typically costs **₹15,000 – ₹60,000/month** depending on load and redundancy.
- **Third-party APIs:** SMS (₹0.12–₹0.25/message), WhatsApp Business, payment gateway (~2% per transaction), GST e-invoicing add-ons.
- **Data migration:** cleaning and importing legacy data is often underestimated — budget **₹1,50,000 – ₹6,00,000**.
- **Training and change management:** for 50+ users, this is a real line item, not an afterthought.
- **Post-launch enhancements:** the first three months after go-live always surface new requirements.

## A Simple Way to Estimate Your Own Cost

You can get within ±25% of a real quote with this back-of-envelope method:

1. **List your modules.** Count them honestly.
2. **Multiply by ₹4L–₹9L per module** depending on complexity (simple CRUD = lower; workflow + integrations = higher).
3. **Add 20% for integrations** if you need GST, payments, or government APIs.
4. **Add 15% for multi-tenant or offline-resilient** architecture.
5. **Add the first year of AMC** (15–20%) for a true year-one budget.

Example: a 6-module mid-market ERP with payment + GST integration → (6 × ₹6L) = ₹36L, +20% integrations = ₹43.2L, +18% AMC = roughly **₹51L for year one**. That lands squarely in the Growth tier, which is the reality check you want before any vendor conversation.

## Frequently Asked Questions

**What is the minimum realistic budget for a custom ERP in India in 2026?**
For a genuinely custom, production-grade single-department system, expect a floor of around **₹6,00,000**. Below that you are buying a configured off-the-shelf tool or a prototype, not a custom ERP.

**How long does a custom ERP take to build?**
A Starter system ships in 6–10 weeks. A Growth-tier multi-module ERP takes 4–7 months. Enterprise and government platforms run 8–24 months. Timeline scales with module count and integration depth, not just budget.

**Is custom ERP cheaper than SaaS over time?**
Often, yes — above roughly 75–100 users or 2.5 years of use. A custom build has a high upfront cost but a flat recurring cost (AMC), while SaaS charges per seat forever. The more you grow, the better custom looks.

**Why do ERP quotes vary so much between vendors?**
Because "ERP" is undefined until you fix scope. A ₹15L and a ₹60L quote are usually answering two different questions about modules, roles, and integrations. Always compare on a fixed, written scope — never on the headline number alone.

**What ongoing costs should I plan for after launch?**
Budget 15–20% of build cost per year for AMC, plus cloud hosting (₹15K–₹60K/month for mid-size systems), third-party API usage, and periodic enhancements. Total cost of ownership over five years is typically 1.7–2x the initial build.

**Should I pay fixed-price or time-and-materials?**
Fixed-price works when scope is locked and well-documented. Time-and-materials fits evolving requirements and longer builds. For most mid-market ERPs, a hybrid — fixed-price per milestone with a change-request process — gives the best balance of predictability and flexibility.

## Getting an Accurate Number for Your Project

The ranges above will get your budget into the right order of magnitude, but every project has specifics — a single complex integration or a strict uptime SLA can move the number significantly. At WorkRoot we have delivered ERP and management systems across Indian government and enterprise clients, and we are happy to turn your requirements into a fixed, written estimate. [Tell us about your project](/contact) and we will give you a real number, not a vague "it depends."
