Calculating the True Cost ofMicrosoft Dynamics 365 vs Custom.
Microsoft Dynamics 365 costs $65–$210/user/month. For 75 users, that is $58.5K–$189K/year. Calculate the custom ERP alternative.
Why Companies Outgrow Microsoft Dynamics 365
Module-based pricing creates cost confusion, each app is a separate license
Power Platform (Power Apps, Power BI) has separate per-user licensing
Customization requires expensive Dynamics consultants ($175–$300/hr)
Migration from on-prem Dynamics to cloud adds significant project cost
Feature Matrix: Custom vs Microsoft Dynamics 365
| Capability | Custom Architecture | Microsoft Dynamics 365 |
|---|---|---|
| Licensing | Unified platform, zero per-seat fees | $65–$210/user/month per module |
| Microsoft Integration | Custom Microsoft Graph API integration | Native Teams, Outlook, Excel integration |
| Reporting | Custom dashboards included in build | Power BI (separate per-user license) |
| Customization | Standard TypeScript stack, large talent pool | Requires specialized D365 developers |
| Multi-Module | Unified system covering all your workflows | Sales + Finance + Supply Chain available |
Frequently Asked Questions
How much does Dynamics 365 cost per year?
Dynamics 365 costs vary by module: Sales Professional ($65/user/month), Finance ($180/user/month), Supply Chain ($180/user/month). For 75 users using Sales + Finance, costs range from $58,500 to $189,000/year before Power Platform licensing, consulting, and customization.
Can custom software replace Dynamics 365?
For mid-market companies, yes. A custom ERP/CRM from Slickrock.dev costs $35,000 to build with $2,500/year maintenance. Over 5 years: $128,000 vs. $292,500–$945,000 Dynamics 365. Custom is especially compelling when you need workflows from multiple D365 modules.
Why is Dynamics 365 pricing so confusing?
Microsoft licenses each Dynamics 365 module separately (Sales, Finance, HR, Supply Chain, etc.) with different per-user prices. Adding Power Apps, Power BI, and Power Automate requires additional licenses. This module-based model makes true TCO calculations difficult, a common tactic to obscure high aggregate costs.
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