Magento Pricing Breakdown: Your Ultimate Guide!

Magento Pricing Breakdown: Your Ultimate Guide!
Note: Magento Enterprise pricing breakdown
Magento Pricing Breakdown: Your Ultimate Guide!

Aditi Tripathi

Content Writer

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Want to know if Magento Enterprise is right for you? Before diving headfirst into Magento Enterprise, take a moment to read up on its pricing, capabilities, and ways to optimise its performance.

Our comprehensive guide will ensure that you make an educated decision, no matter your level of expertise in the business world.

Let’s get started, shall we?

Magento Enterprise Pricing: The Basics

Is Magento Enterprise pricing a one-size-fits-all? To be precise, no.

It varies based on your company’s size, customisation needs, and additional factors like licensing fees, hosting fees, and extensions. Dive in and get clarification on what you can and should expect. 

From cost breakdowns to comparing Magento Enterprise with Magento Community and Magento Commerce Cloud, the idea is to give you a clear picture. 

In short:

  • Edition Comparison: Learn about the three main Magento editions - Open Source, Commerce, and Commerce Cloud - and which one suits your business.
  • Cost Influencers: Understand how functionality, customization, and integrations impact your total development costs.
  • Cost Breakdown: Get a detailed look at expenses, including licensing, hosting, domain, SSL certificates, and more.
    Hosting Optimization: Learn how the right hosting provider can help you manage costs efficiently.

Magento Editions: A Quick Overview

In the market, Magento offers three main editions:

  1.  Magento Open Source: This version is free and open source. The Magento Open-Source edition is apt for small-to-medium scale businesses.
  2.  Magento Enterprise: This is a premium and paid version, armed with extraordinary features and top-notch support. The ideal solution for enterprise-scale businesses.
  3.  Magento Commerce Cloud: All the features of Magento Commerce, plus the benefits of cloud hosting, scalability, and easy management.

What Impacts Magento Development Prices?

Here are the factors that will affect the overall price you pay:

  • Functionality & Customisation: The more custom work and feature sets you need, the more you will pay.
  • Integrations: Adding third-party solutions like shipping providers, product information management, payment gateways, or CRM systems increases expenses.

Magento Development Costs Breakdown

1.  Magento License Costs:

Think of a Magento license or any eCommerce platform license as your digital permission slip. It's crucial because it grants you legal access to use and operate certain software or platforms. Without it, you risk legal issues and may even face fines or penalties.

So, ensuring you have the proper license is essential for staying compliant and protecting your online presence. The pricing for Magento Commerce is based on your annual gross revenue.

Nonetheless, you'll need to cover hosting, domain, security, themes and extensions. But let’s talk about it later!

Now, depending on your company's annual sales volumes, here are the pricing plans you can expect for Magento Open Source, Magento Commerce and Magento Commerce Cloud:

Your Annual Gross RevenueAnnual Magento Enterprise Pricing Est.  Annual Magento Commerce Cloud Pricing Est.
Below $1,000,000$22,000$40,000
$1,000,000 - $5,000,000$32,000$55,000
$5,000,000 - $10,000,000$49,000$80,000
$10,000,000 - $25,000,000$75,000$120,000
Above $25,000,000$125,000$190,000

                                                                                      Table: Magento License Pricing Breakdown        

2. Hosting Expenses:

Think of an effective ecommerce hosting as the backstage crew that makes sure your online store puts on a flawless performance. It's like having a dedicated team handling everything behind the scenes – from providing space for your website to storing data and ensuring it runs smoothly.

So, while you focus on delighting your customers, Magento hosting takes care of all the technical stuff, making sure your store shines bright on the web.

The Magento hosting price ranges between $100 -$6,500 per year. However, opt for Magento Commerce Cloud, hosting is included, so you don’t need to worry about additional hosting expenses.

Here’s how annual hosting expenses look for Magento Open Source and Magento Commerce:

Magento Hosting Costs

3. Domain Name Costs:

Imagine if you didn't have a name - how would people ever recognize you? That's precisely why a domain name is vital for your brand. It's your digital identity, crucial for recognition. So, it must be memorable, unique, and truly reflect your brand.

The cost of a Magento domain name can range from as low as $10 a year to as high as $500 a year, depending on the type of name you go for - Brand New Domain or Expired Domain.

                                                                                                                 Benefits Of:

A Brand-New Domain Name: You'll get a unique domain name and complete control over it. You are also at lower threat of inheriting the vicious backlinks. 
An Expired Domain Name: You can rank in search results faster (compared to a new domain). And your website will also get listed briskly.a 

4. SSL Certificate Costs:

An SSL certificate keeps out unwanted guests and ensures that all conversations between your eCommerce store and its visitors are kept hush-hush!

It's like having a secret code for your data, making sure that only those who should have access can get in.

For example, when you're shopping online and you see that little padlock icon next to the website address, that's the SSL certificate at work, keeping your credit card info safe from prying eyes.

The cost can vary widely, from $8 to $1000 annually, based on the provider and the security features included in the SSL certificate.

5. E-store Design Costs:

Just like you'd want a tidy, inviting storefront in the physical world, you need an attractive, user-friendly website in the digital realm. It's not just about looking pretty though; a well-designed website enhances user experience, builds trust, and can even boost sales.

If it's clunky, outdated, or confusing, potential customers will bounce right off, straight into the arms of your competitors. With the Magento store design extension, you can expect to spend anywhere from $0 to $5000+, depending on the theme you choose and the expectations you have from your ecommerce store. 

Magento estore design costs

6. Magento Development Cost:

If coding isn't your jam, you'll want to bring in someone for Magento custom development. From installation to design and configuration, it all falls under development.

You've got choices: hiring a Magento development agency, a freelance whiz, or assembling an in-house development team. Each has its perks and quirks. Now, let's talk cash.

The cost for Magento development can swing from $15 to $75 an hour, depending on where, how, and who's doing the work.
If you're eyeing an in-house squad, plan on investing anywhere from $60,000 to $120,000 per year.

Your options include hiring a Magento development agency, a freelance developer, or an in-house development team. Each has its pros and cons, but the cost for Magento development varies based on hourly rates, ranging from $15 to $75, depending on the developer's experience, skills, and location. An in-house team typically requires a yearly investment ranging from $60,000 to $120,000.

7. Extension Costs:

Extensions are the secret sauce for your eCommerce store, providing it with superpowers and extra functionalities beyond the basics. They can enhance customer support, beautify product listings, and so much more, making your online shop truly spectacular!

Here is the price breakdown of the extension cost if you go for a Magento extension:

Magento Extension Costs

8. Payment Providers Fees:

Let's talk payments! Ever heard of the power trio: Stripe,, and PayPal? They're like the Avengers of eCommerce, handling a whopping 75.6% of global transactions. Surprisingly, they don't charge upfront setup fees.

But, there's a catch - each transaction comes with a processing fee, usually starting at 2.9% + $0.30. While these guys are the big shots, it's always wise to explore other options and find the best fit for your biz.

Magento Payment Providers Costs

9. SEO & Digital Promotion Costs:

Expect to invest $10,000 to $40,000 annually to stay competitive.

Alright, let's break it down.

The online world is like a jungle, and your business is fighting tooth and nail to stand out among the vines.

But, if you're dealing with super niche products or services, you might catch a break from the SEO and promo frenzy.

However, for most of us eCommerce folks, it's a battlefield out there, and investing in SEO and promotion is like arming up for the fight. On average, you're looking at dropping anywhere between $10,000 to $40,000 a year on these services. Why the range? Well, it all boils down to how diverse your industry is, who you're targeting, and the strategies you're using. 

Downsides You Must Know Before Opting for Magento!

Yes, Magento does have its downsides. 

To make an informed decision, it's crucial to understand both the pros and cons. Use the table below to get a clear picture:

  • Magento's suite is challenging to configure due to its lack of API/frontend separation and a complex, multi-layered software stack that complicates customization. 
  • Magento's onboarding is costly and complex, necessitating Adobe-certified developers familiar with its multifaceted nature. Dependency on PHP and MySQL/MariaDB restricts flexibility in tech stack choices.
  • Launching a Magento project often faces delays due to extensive time required for catalogue setup, server configuration, data imports, and theme development.
  • Ongoing maintenance, licensing fees, and extensive customization needs contribute to an increased Total Cost of Ownership (TCO) in Magento.
  • Unpredictable expenses arise from frequent upgrades, alongside variable costs for third-party plugins, with integrations like SAP costing up to $15,000.


In the vast landscape of eCommerce solutions, understanding the nuances of pricing is paramount for any business looking to establish or expand its online presence.

For those considering Magento Enterprise, the investment can range from $43,000 to $189,000 or more. Meanwhile, Magento Open Source offers a more accessible entry point, with costs ranging from $12,000 to $57,000. On the other hand, Magento Commerce Cloud, with its added benefits of cloud hosting and scalability, demands an investment of $60,000 to $247,000 or beyond. But don't overlook the challenges despite the features.

While Magento is undoubtedly a powerful platform with a plethora of features, it's essential to consider alternatives like BetterCommerce. BetterCommerce offers a comprehensive eCommerce solution with a comparatively lower total cost of ownership. By opting for BetterCommerce, businesses can enjoy robust features, scalability, and dedicated support while maintaining a more manageable financial investment.

Ultimately, weighing the pros and cons of different platforms is crucial in making an informed decision that aligns with your business goals and budgetary considerations.

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