Microsoft Dynamics 365 Pricing: Understanding Costs and Licensing Model

dynamics 365 pricing

Microsoft Dynamics 365 is a suite of robust business applications that aim to assist companies in improving their operational efficiency, customer engagement, and overall business performance. Whether you’re a small business or a global enterprise, Dynamics 365 (D365) offers a range of solutions to improve various aspects of your operations. Although understanding Microsoft Dynamics 365 pricing and the licensing model might seem complex, this guide is here to simplify it and provide you with the insights necessary to make informed decisions that can positively impact your business. 

What is Microsoft Dynamics 365? 

Before delving into the Dynamics 365 pricing specifics, it’s essential to have a clear understanding of what Dynamics 365 is and what it offers. Microsoft Dynamics 365 is a suite of integrated business applications designed to help organizations manage their finances, operations, customer relationships, and more. This suite includes a variety of applications tailored to different business needs, such as Dynamics 365 Finance and Operations, Dynamics 365 Business Central, and Dynamics 365 Sales. 

Dynamics 365 Finance and Operations Pricing 

Dynamics 365 Finance and Operations is an enterprise resource planning (ERP) solution that focuses on managing financials, supply chain, and manufacturing processes. The pricing structure for Dynamics 365 Finance and Operations can be complex, as it is designed to cater to the diverse needs of businesses of all sizes and industries.  

Licensing Models for Dynamics 365 Finance and Operations 

  • User-Based Licensing: Dynamics 365 Finance and Operations primarily uses a user-based licensing model. This means you pay for licenses based on the number and type of users who will be accessing the system.  
  • Device-Based Licensing: In addition to user-based licensing, there may be device-based licenses available, particularly for scenarios where multiple users share a single device, such as a warehouse or factory floor. 
  • Module Selection: Dynamics 365 Finance and Operations is modular, allowing businesses to select the specific modules they need. Pricing can be based on the number of modules and the extent of functionality required. Common modules include financial management, supply chain management, project management, and more. You pay for the modules you select. 
  • Subscription Level: Dynamics 365 Finance and Operations licenses are typically provided on a subscription basis. You pay a recurring fee for each user or device license, which can be monthly or annually. 
  • Add-Ons and Customizations: Microsoft offers various add-on modules that can extend the functionality of Dynamics 365 Finance and Operations. These modules cover areas like human resources, retail, project management, and more. Each module may have its own licensing requirements and costs. 
  • Cloud vs. On-Premises: Dynamics 365 Finance and Operations is available as a cloud-based solution, or it can be deployed on-premises. The pricing may differ based on the deployment choice. Cloud-based solutions typically have a subscription fee, while on-premises may have an upfront license cost. 
Finance First Dynamics 365 app Subsequent qualifying
Dynamics 365 app 
Finance $180 per user/month $30 per user/month 
Supply Chain First Dynamics 365 app Subsequent qualifying
Dynamics 365 app 
Supply Chain Management $180 per user/month $30 per user/month 
Guides $65 per user/month 
Intelligent Order Management From $300 per 1,000 orders lines/month 

Dynamics 365 Business Central Pricing 

Dynamics 365 Business Central is an all-in-one business management solution designed for small and medium-sized businesses. It offers a wide range of functionalities, including financial management, supply chain, sales, and customer service. The pricing for Dynamics 365 Business Central is relatively straightforward. 

Licensing Models for Dynamics 365 Business Central 

1. Essential: This is the basic licensing option, covering core financial management and business management functionalities. 

2. Premium: In addition to the features covered by the Essential license, the Premium license includes more advanced functionalities, such as service order management and manufacturing. 

The Dynamics 365 Business Central pricing is usually based on a monthly subscription per user. This makes it a cost-effective solution for smaller businesses looking to manage their operations efficiently. 

Small and medium business First Dynamics 365 app Subsequent qualifying
Dynamics 365 app 
Business Central Essentials From $70 per user/month 
Business Central Premium From $100 per user/month 

Microsoft Dynamics 365 Licensing: User Types 

Understanding user types is crucial when considering Dynamics 365 pricing. Microsoft offers various user types, each designed to suit different user roles within your organization. These user types include: 

1. Full Users: Full users have access to the complete set of functionalities within the Dynamics 365 applications, making them the most expensive user type. They can perform a wide range of tasks, from financial management to supply chain operations. 

2. Team Members: Team members licenses are more cost-effective and are designed for users who require limited functionality within Dynamics 365. Team Members can perform certain tasks, such as time entry and viewing reports, but they can’t perform advanced functions. 

3. External Users: External users are individuals who require occasional access to your Dynamics 365 applications, such as customers or partners. Microsoft offers a cost-effective licensing model for external users, allowing you to expand your reach without incurring substantial expenses. 

Dynamics 365 Pricing Guide 

To help you better understand the Dynamics 365 pricing structure, here’s a simplified pricing guide: 

Dynamics 365 Finance and Operations Pricing: 

   – Licensing Models: User-Based Licensing, Subscription Levels, Module-Based Licensing, Add-Ons, Cloud vs. On-Premises Licensing 

   – Pricing Basis: Typically per user per month 

   – Factors Affecting Price: Number of users, chosen functionalities, customizations 

Dynamics 365 Business Central Pricing: 

   – Licensing Models: Essential, Premium 

   – Pricing Basis: Monthly subscription per user 

   – Factors Affecting Price: Number of users, chosen license type 

Get the full Dynamics 365 pricing guide 

Factors Affecting Dynamics 365 Pricing 

Several factors can influence the D365 pricing for your organization. It’s essential to consider these factors when making a decision: 

1. Number of Users: The more users you have, the higher the total cost will be. However, some licensing models offer volume discounts, so the cost per user decreases as the number of users increases. 

2. Chosen Functionalities: The specific features and modules you require will impact your pricing. Be sure to select the functionalities that align with your business needs. 

3. Customizations: If your organization requires custom solutions or extensive modifications, you may incur additional costs for development and implementation. 

4. User Types: Choosing the appropriate user types for your team can significantly affect costs. Assigning the right user type to each team member ensures you’re not paying for unnecessary functionality. 

5. External Users: If you need to provide access to customers or partners, the pricing for external user licenses is a cost-efficient way to expand your reach without overspending. 

6. Support and Maintenance: Consider ongoing support and maintenance costs when budgeting for Dynamics 365. These costs can include updates, technical support, and training. 

7. Implementation Costs: Be sure to factor in the expenses linked to Microsoft Dynamics 365 implementation cost within your organization, which includes expenditures like data migration, training, and customization. 

Read more: How Much Does An ERP System Cost? 

Dynamics 365: An Investment in Efficiency 

While the initial cost of implementing Dynamics 365 may seem significant, it’s crucial to view it as an investment in the long-term efficiency and growth of your business. Dynamics 365 is designed to streamline your operations, improve collaboration, and provide valuable insights through its analytics and reporting capabilities. 

Read more: The hidden costs of NOT implementing ERP: Why you can’t afford to wait to implement ERP 

By choosing the right licensing model and user types, you can optimize your Dynamics 365 pricing to fit your organization’s specific needs and budget. As Microsoft continues to enhance and expand its Dynamics 365 suite, you can be confident that your investment will remain relevant and adaptable to future business requirements. 

It’s essential to work with a certified Dynamics 365 partner to get a customized quote for your specific business needs. They can assess your requirements and help you choose the right licensing model, modules, and subscription level to determine the most accurate pricing for your organization. Keep in mind that Dynamics 365 Finance and Operations pricing is subject to change, and it’s important to stay up-to-date with the latest pricing information from Microsoft. 


Understanding Dynamics 365 pricing is essential for making informed decisions about your business applications. Whether you’re considering Dynamics 365 Finance and Operations, Dynamics 365 Business Central, or any other Dynamics 365 application, carefully assess your organization’s needs, budget, and growth plans. By doing so, you can leverage the power of Dynamics 365 to drive efficiency and success in your business, making it a valuable and worthwhile investment. 

Remember that Dynamics 365 is not just an expense but a strategic tool that can help your organization thrive in today’s competitive market. So, take the time to explore the various licensing options, choose the right functionalities, and plan your budget wisely. Microsoft Dynamics 365 is more than software; it’s a partner in your journey to success. 

More to Read: 

How Much Does An ERP System Cost? 

How To Find Qualified Microsoft Dynamics Partners 

The hidden costs of NOT implementing ERP: Why you can’t afford to wait to implement ERP