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Open-Source ERP ERP Software

Open-source ERP software is freely available under open-source licences (GPL, LGPL). The licence cost is zero, but you pay for implementation, hosting, customisation, training, and optional support contracts. Community editions are fully free; enterprise editions may include paid support.

2 ERP vendors use open-source erp.

Open-Source ERP Advantages

  • +Zero software licence cost
  • +Full access to source code for customisation
  • +Community-driven development and support
  • +No vendor lock-in — switch providers or self-host

Open-Source ERP Considerations

  • -Implementation and customisation still cost money
  • -Self-hosting requires DevOps expertise
  • -Smaller partner ecosystem than commercial ERPs
  • -Enterprise features may require paid editions or add-ons
ODO

Odoo

Odoo SA

Budget

Open-source, modular ERP for SMBs on a budget

CRMInventory ManagementEcommerceFinance & Accounting
From $24.90/user/mo·cloud, on-premise
ERPn

ERPNext

Frappe Technologies

Budget

Free, open-source ERP covering all core business functions

HR & PayrollInventory ManagementFinance & AccountingManufacturing
From $0 (self-hosted)·cloud, on-premise

Open-Source ERP Vendor Pricing Comparison

VendorBest ForStarting PriceTCOCompany SizeImplementationDeploymentModulesTop Pro
OdooSmall businesses and startups wanting affordable, modular ERP$24.90/user/mo$10K–$80K1–50 employees, 51–250 employees1–4 monthsCloud, On-Premise14Community edition is free — lowest barrier to entry
ERPNextSmall businesses and startups wanting free, self-hosted ERP$0 (self-hosted)$0–$30K1–50 employees, 51–250 employees1–3 monthsCloud, On-Premise14Completely free and open source (GPLv3)

ERP Cost Estimator

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5 – 5,000 active ERP users

What Companies Are Saying

12 million+ users worldwide — fastest-growing open-source ERP

ODO
Odoo

$24.90/user/mo · budget

Used by 15,000+ companies in 150 countries — 100% free and open-source

ERPn
ERPNext

$0 (self-hosted) · budget

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FAQ

Is open-source ERP really free?

The software licence is free. Total cost includes implementation ($10K–$100K), hosting ($50–$500/mo), customisation, and optional support. ERPNext is fully free (GPLv3). Odoo has a free Community Edition and a paid Enterprise Edition.

What is the best open-source ERP?

Odoo and ERPNext are the leading open-source ERPs. Odoo has 50+ modules and a larger ecosystem. ERPNext is fully free with strong HR, manufacturing, and education modules.

What is the total cost of ownership for open-source ERP?

While licence costs are zero, the 5-year TCO for open-source ERP typically ranges from $25K–$250K depending on scale. Major cost components include: implementation/configuration ($10K–$100K), hosting infrastructure ($3K–$30K/year), ongoing customisation and maintenance ($5K–$50K/year), and training ($2K–$15K). For small businesses, self-hosted ERPNext can achieve a 5-year TCO under $30K.

Can open-source ERP handle enterprise requirements?

Odoo Enterprise Edition and ERPNext both support multi-company, multi-currency, advanced manufacturing, and regulatory compliance. However, they may lack the depth of specialised modules found in SAP or Oracle for complex industries like pharmaceuticals or aerospace. For mid-market companies with standard processes, open-source ERPs are increasingly competitive with commercial alternatives.

How do I choose between Odoo and ERPNext?

Choose Odoo if you need a large app ecosystem (50+ modules), have budget for the Enterprise Edition, or need ecommerce and marketing automation built-in. Choose ERPNext if you want a fully free solution (GPLv3), prioritise manufacturing/HR/education modules, or prefer a Python/JavaScript tech stack. Both offer cloud-hosted and self-hosted options.

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