Microsoft Dynamics 365 Business Central Licensing Costs to Increase in October 2025: What You Need to Know


Microsoft Dynamics 365 | Simplify your IT footprint and make decisions faster.
- May 21, 2025
Introduction: What’s Changing and Why It Matters
Microsoft has officially announced a price increase for Dynamics 365 Business Central licenses, effective October 1, 2025. As a Business Central Partner and trusted ERP Implementation Partner, Volt Technologies is here to break down exactly what this means for your business. Whether you’re already using Dynamics 365 Business Central or considering a future implementation, these updates impact your budget, planning, and long-term digital transformation strategy.
The new pricing affects both Business Central Essentials and Premium licenses. Microsoft has not adjusted Business Central license pricing since its cloud release in 2018. With increased functionality, improved interoperability with Microsoft 365, Power Platform, and Copilot AI tools, the pricing structure is being aligned to reflect the value the platform now offers.
Overview of the Business Central Licensing Price Increases
Microsoft is increasing the prices for Dynamics 365 Business Central as follows:
License Type | Current Price (USD) | New Price (USD) | Increase |
Essentials License | $70/user/month | $85/user/month | +$15 |
Premium License | $100/user/month | $120/user/month | +$20 |
Team Member License | $8/user/month | Unchanged | $0 |
These price adjustments reflect Microsoft’s continued investments in product innovation, security, automation, and AI-driven capabilities embedded in the Business Central platform.
Why Is Microsoft Increasing Business Central Pricing?
Microsoft attributes the changes to several key factors:
- Expanded Core Capabilities
Since launching Business Central SaaS in 2018, Microsoft has significantly expanded the product’s out-of-the-box capabilities. These include enhancements in warehouse management, financials, project management, service, manufacturing, and integrations with Microsoft 365 and Copilot.
- AI Integration & Microsoft Copilot
Business Central now offers built-in AI tools with Microsoft Copilot. From forecasting cash flow to assisting with sales quote generation, these enhancements represent major value drivers that didn’t exist in 2018.
- Unified Microsoft Ecosystem Integration
The ERP now integrates more tightly with the broader Microsoft ecosystem, including Azure, Power Platform (Power BI, Power Apps, Power Automate), and Office 365, delivering a more connected and efficient operational experience.
- Inflation & Competitive Positioning
Like most technology providers, Microsoft is adjusting pricing in line with inflation and positioning Business Central competitively relative to other mid-market ERP vendors.
Key Takeaways for Existing Business Central Users
If you are already using Business Central, here’s what you need to know:
- Price Lock Until October 1, 2025: Existing customers are protected until the new pricing goes into effect.
- No Immediate Action Required: You don’t need to make changes to your current plan, but reviewing your license mix is recommended (The Volt Team is happy to advise here).
- Annual Subscription Renewals: If your subscription renews before October 1, 2025, you can lock in current pricing for another 12-month term.
- Review and Optimize User Types: Consider whether all users need Premium licenses or if Essentials/Team Member licenses meet their needs.
To ensure you’re getting the most out of your Microsoft investment, consider consulting with a trusted Microsoft Partner like Volt Technologies. Our team can help you evaluate and optimize your current and future Business Central licensing strategy.
What This Means for New Business Central Customers
If you’re planning a Business Central implementation in 2025 or beyond:
- Budget Accordingly: All new licenses purchased on or after October 1, 2025, will reflect the updated pricing.
- Accelerate Your Project Timeline: You may want to begin your ERP Implementation Strategy before the pricing changes take effect.
- Evaluate ROI: With added capabilities and integrations, the value of Business Central may outweigh the modest cost increase.
Total Cost of Ownership (TCO) Considerations
When evaluating ERP licensing cost, it’s essential to look beyond the monthly per-user fee. Your total cost of ownership (TCO) should include:
- Licensing Costs (Essentials, Premium, Team Member)
- Implementation Costs (Discovery, Configuration, Customizations)
- Support & Maintenance
- Training & Change Management Strategy
- System Integrations & Add-ons (ISVs)
Volt Technologies provides full-service Tech Advisory and Small Business IT Advisory to help clients understand and optimize the true cost and return of their ERP investment.
Business Central vs. Other ERP Licensing Costs
Compared to other leading ERP systems (like NetSuite, SAP Business One, and Acumatica), Business Central remains one of the most affordable and scalable Microsoft ERP platforms for small businesses.
ERP Solution | Monthly License Cost | Cloud-Native | AI Capabilities | Microsoft Integration |
Business Central | $85–$120 | Yes | Yes (Copilot) | Seamless |
NetSuite | $99–$999+ | Yes | Limited | No |
SAP Business One | $100–$185+ | Partial | Limited | No |
Acumatica | Tiered | Yes | Moderate | No |
Sage Intacct | $120-$150+ | Yes | Limited | No |
Business Central’s value proposition only strengthens when considering platform compatibility, licensing flexibility, and long-term scalability.
Strategic Actions for Business Leaders
To navigate the licensing cost change proactively, business leaders should:
- Schedule a Licensing Audit: Evaluate your current user roles and optimize license types.
- Engage Your ERP Implementation Partner: Work with your Microsoft Partner (like Volt Technologies) to identify licensing opportunities or needed adjustments.
- Plan Your ERP Roadmap: Align digital transformation goals with updated pricing models.
- Secure Renewal Windows: If possible, renew or sign long-term licensing agreements before October 1, 2025.
- Budget for Change: Adjust budgets for 2025–2026 to accommodate increased ERP licensing cost.
Why Volt Technologies?
As a leading Microsoft Solutions Partner and trusted Business Central Partner, Volt Technologies brings proven expertise across every critical phase of the ERP lifecycle. Our team specializes in ERP implementation strategy, change management, and digital transformation — all tailored specifically for small to mid-sized businesses. We also provide strategic technology advisory services, helping organizations modernize their IT ecosystems with smart, scalable solutions. From initial planning through optimization and ongoing support, Volt Technologies ensures that your Dynamics 365 Business Central environment delivers measurable value. We’re committed to helping you make informed, confident decisions throughout your ERP journey — driving clarity, control, and long-term success.
Final Thoughts: Opportunity in the Change
While a licensing cost increase may seem like a challenge, it’s also a catalyst for reassessing and realigning your IT strategy. With more features, better automation, AI capabilities, and deeper integrations, the return on investment (ROI) from Business Central has never been stronger.
If you’re unsure how this change affects your business, Volt Technologies is here to guide you.
Let’s talk.
Contact Volt Technologies today for a Business Central Licensing Assessment or to start planning your ERP implementation before October 1, 2025.
Read More: Dynamics 365 Business Central Licensing Guide 2025