How to Estimate Your Cost on Magento eCommerce?

Magento is a popular eCommerce platform that is used to build an online store. It has a variety of tools and features that any eCommerce website owner can hope for. It is applicable for any type and size of online business. 

We all know that running an eCommerce business is not an easy process. Aside from that, it can be costly. That’s why it’s important to know the key factors for a successful eCommerce website. But how much would it cost you to run a Magento website for your business?

This article aims to determine the general breakdown of Magento fees by license, theme, hosting, development, and more.

We’ll assess the major variables that influence the price of Magento so you can plan your technological investment.

Magento Editions and their Costs

Here are the different Magento editions and their price to help you understand which version is right for your eCommerce business.

Open Source

Installing Magento Open Source is free, but you’ll have to pay for hosting and domain name if it’s not included in the package. You can also enhance your site with security features as well as other web development assistance from professional designers or developers who specialize in this area.

By using Magento Open Source, you get to add variants to your products. Your customers can choose their preferred color, size, and more, depending on your options. 

Apart from that, it has mobile-optimized email templates, so you don’t have to worry about how your email will look when customers read them from their mobile phones or computers. It also has mobile-optimized shopping support and check-out, and its themes are designed, so its web interface is responsive to any device 

The average cost you can expect using the Magento Open Source is around $15,000, not just for the hosting and domain but also for any other features you may want to add. For instance, enhancing your security features.  

Magento Commerce

Magento Commerce is more suitable for medium to large-sized organizations due to its more advanced features compared to the Open Source edition. Magento Commerce’s cost usually starts at $22,000, but it may vary depending on your license, hosting designs, and more. 

Magento Commerce is an upgraded version of the Open Source. This means you get the same functionalities available in the Open Source with additional features. 

One of the features of Magento Commerce is customized promotions, where you can create personalized promotions to help boost your conversions.

Another feature is the customer loyalty tools, where you can create exclusive sales events, offer reward points, and more.

Magento Commerce Cloud

The Magento Cloud edition is almost similar to the Magento Commerce version and is suitable for large companies that are managing large quantities of sales. 

One of its difference is that you can store data and information in the Cloud instead of on a hard drive. This can help prevent your data from getting lost or stolen. The average cost for a Magento Commerce Cloud is around $40,000. But again, it will still vary depending on several factors.

Another feature of using Magento Commerce Cloud is its ability to load pages quickly, even on days when you’re experiencing high volumes of traffic. 

Magento Commerce Cloud also updates the infrastructure automatically, so you can be sure you have the latest software enhancements.

You can also monitor your performance in real time and apply actual changes to your site. The changes will be applied right away to make sure you don’t miss any sales.

Here’s a summary of the features included for each Magento Edition

Built-in Features Magento Open Source Magento Commerce Magento Commerce Cloud
Mobile Optimized Shopping ✔️ ✔️ ✔️
Catalog Management ✔️ ✔️ ✔️
Integrated payment, checkout, and shipping ✔️ ✔️ ✔️
Global Selling ✔️ ✔️ ✔️
Instant Purchase ✔️ ✔️ ✔️
Extended Functionality (App Marketplace) ✔️ ✔️ ✔️
WYSIWYG Builder ✔️ ✔️ ✔️
Site Search ✔️ ✔️ ✔️
Reusable Dynamic Blocks ✔️ ✔️
Business Intelligence Dashboards ✔️ ✔️
B2B Functionality ✔️ ✔️
Content Staging and Preview ✔️ ✔️
Advanced Marketing Tools ✔️ ✔️
Visual Merchandising ✔️ ✔️
Customer Loyalty Tools ✔️ ✔️
Live Search ✔️ ✔️
Product Recommendations ✔️ ✔️
Gift Cards ✔️ ✔️
Customer Segmentation ✔️ ✔️
BOPIS (Buy online, Pick-up in Store) ✔️ ✔️
Cloud onboarding support ✔️
Optimized cloud commerce ✔️
Fast page loading with Content Delivery Network (CDN) ✔️
Cloud availability SLA up to 99.99% ✔️
Web application firewall ✔️
Performance monitoring tools ✔️
Enhanced security with Fastly WAF and DDoS services ✔️
Streamlined updates and testing ✔️
PCI compliant ✔️
Customer Success Manager ✔️

If you’re also an Amazon seller and wondering if you can integrate your Magento store to Amazon, that’s actually possible. Doing this will help increase your sale source and your revenue. 

As an Amazon seller, it’s important that you try to find ways how you can maximize your product visibility and sales. I have been selling on Amazon for several years now, and I’ve somehow learned the ins and outs of Amazon selling. 

If you want to learn more about Amazon selling, like tips and tricks or even the common terms such as MKTP, Amazon OTP, or anything about Amazon, I have a website where I share my knowledge and experience on Amazon.

Factors that Affect Magento Site Price

As mentioned earlier, the total cost of a Magento site varies due to some factors. To better understand it, below are some of the things that may affect your Magento site cost.


Since Magento Open Source is free to download, you don’t need to worry about license costs. However, if you’re using Magento Commerce or Magento Commerce Cloud, the cost will depend on your GMV (Gross Merchandise Value) and AOV (Average Order Value). 

For instance, if your company’s average gross sales revenue is less than $1M, your subscription cost will start at $20,000 per year.

SSL Certificate

SSL stands for Secure Sockets Layer. It’s a security protocol, and it creates an encrypted link between a web browser and a web server. To enhance your Magento website’s reliability, you need to purchase an SSL certificate.

It will help protect your online store by encrypting sensitive data that are passed between your customer and your checkout system. 

An SSL certificate authenticates your website’s identity and allows an encrypted connection. Companies use this on their websites to ensure online transactions are secured. It also keeps its customers’ information secure and private.

The price of an SSL certificate varies. It can range from $5 to $1,000 per year. But on average, expect to spend around $60 per year. Of course, the price will depend on your website’s security needs.

Website Development

When developing a Magento website, you can always use your in-house development team if you have one. But if none, you can either hire a freelancer or a web development agency. Your decision may be greatly affected by how much your budget is.

Between hiring a freelancer and a web development agency, expect to spend more money on the latter. The cost of hiring a Magento web development agency can range from $25 to $250/hr or more, depending on your project size.

While they may seem more expensive, the cost will usually be worth it. Most of these companies are professional and have experienced and competent Magento developers. 

Another advantage of hiring a web development agency is you can seek further consultation once the project has been completed. Doing this can help add value to your eCommerce business by adding new features or updates. 

For freelancers, the average rate ranges from $10 to $200/hr. Similar to web development agencies, the rate will depend on their skill set. Another factor to consider is their location. Most of the time, Magento web developers from South-East Asia are the cheapest, while those from Western Europe, the UK, and the US are more expensive. 

When hiring a freelancer, make sure to do a background check and ask for legit references, to avoid getting scammed. 

Web Designs and Themes

Of course, you’ll also need to develop web designs and themes to make your Magento site more attractive and responsive when used on devices such as desktops, mobile phones, and tablets to give your customers a better experience.

A ready-made Magento theme may cost between $0 to $400, but the average cost is usually around $100. You can always start with the simple or pre-built theme and then customize it later on. 

If you hire a web designer, you can expect to spend around $600 to $25,000, although the average cost would be around $5,000, depending on your requirements.


Magento Open Source and Magento Commerce versions will need storage to work efficiently. Users of the two versions can opt to use dedicated, shared, or cloud storage. The hosting price will be based on the functionality and performance needed for your eCommerce site. 

Typically, it may cost around $10 to $50 per month. For those using the Magento Commerce Cloud version, there’s no need to worry about the hosting cost since it’s already included in the license.

Site Domain

On average, a domain name can cost between $10 to $20 per year. But it can vary depending on its TLD (Top-Level Domain). For instance, a less popular TLD may only cost $2 to $3 per year, but more popular domains such as .com or .net may cost $10 to $15 per year.

But the price would depend on different factors such as name length, domain name availability, type of domain, and more.

How to Find the Right Magento Development Agency

Now that you’re aware of the factors that may affect the cost of your Magento site, it’s important to find the right Magento Development Agency should you decide to hire one. 

  1. Figure out Your Business Needs and Requirements

Not all businesses are the same, and before searching for the right Magento Development agency, you need to find out what your business needs and requirements are. 

This may include the number of your products, competitors, customer needs, and more. Knowing your requirements gives you a better picture of the kind of eCommerce store you need.

Knowing this will help you find the right development agency for your business. Doing this will also help you manage your budget and prevent getting the wrong edition for your business. 

  1. Consider the Size and Reputation of the Company

It’s also important to do some research and see if the company has a good reputation. The size also matters and the number of companies they are working with. If they are too small and are handling several clients, they might not have enough manpower or resources to focus on your projects and achieve your goals.

On the other hand, if they’re too big, they might be a bit costly. However, they may have more than enough resources to help you with your eCommerce store.

  1. Check their Years of Experience

It’s also important to know how long they have been in the industry. For example, ask how many years they have been developing and maintaining a Magento eCommerce store.

You can also ask how many projects they have completed and if their people have the right skills. Finally, if possible and available, you can check their website and see who their team members are. This will give you an idea that the Magento developers they have are competent and experienced.

  1. Technology They Use

Of course, the technology they use should always be up to date to support the latest trends and innovations to develop a Magento eCommerce site. 

They should be knowledgeable about the latest tools and technologies on Magento, so in case you need to upgrade or update your infrastructure, they’ll be able to do it smoothly. It will help if you check how and where they get the information about the latest web development technologies. 

Ask if they constantly attend training, conferences, or events that will help their Magento developers stay up to date with the technology.


If you’re considering setting up a Magento eCommerce website, you must be aware of how much it would cost your business. This will help you understand if it’s within your budget or which areas you’d want to save money. 

For instance, should you opt for a cheaper web design or theme and allocate most of your budget to web development? It’s all up to you since you know what your business needs better than anyone else. 

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Adam Roger

CEO and Founder of Magetop. A friend, a husband and a dad of two children. Adam loves to travel to experience new cultures and discover what is happening with ecommerce all around the world.

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