What is the true cost of running a Magento website?


How much a Magento website costs is a common question when preparing to launch your e-commerce store. As you budget your technology investment, you want to make the most of what Magento can offer your online business.  

A Magento website provides a customizable, flexible pricing structure to fit the needs of your business. However, many businesses fail to take into account the true cost of running a Magento website, which can be much higher than they initially expect. All because choosing between the cost of editions, features, and pricing models can be confusing.

This article will examine the Magento website development cost and how to use the pricing structure to benefit your business. We've put together the key Magento developer cost figures for licenses, themes, hosting, extensions, maintenance, custom development, and more, so you can decide which is best for your e-commerce store.

Get your new Magento store ready to generate revenue in a most timely and cost-effective manner.

Elements that Influence Magento’s Pricing

Magento is a flexible e-commerce platform that offers a variety of pricing options to suit the needs of businesses of all sizes.

The following elements can affect Magento's pricing:

1. The license type

2. The business size

3. The number of products

4. The number of users

5. The level of support

Considering all these factors, your business can make informed decisions about which versions, plans, and features to purchase.

Magento website development cost

License versions

Magento helps e-commerce businesses of all sizes sell online. The cost of a Magento license can vary depending on the edition and features you need for your business.

Magento offers three versions, Magento Open Source, Magento Commerce, and Magento Commerce Cloud, which has been renamed to Adobe Commerce and Adobe Commerce Cloud.

  • Magento Open Source, the free community edition, has no license cost.
  • Magento Commerce, the most comprehensive edition, starts at $22,000 annually.
  • Magento Commerce Cloud is the most expensive, starting at an annual cost of $40,000. This version offers highly optimized codes, exclusive features, and an automated and managed to host.

Although Magento Open Source has no upfront license cost, plan your budget to include future expenses associated with building your e-commerce store and making it live. These costs include purchasing a domain, buying a hosting plan, and the design and developing your website. Estimate more than $15,000 total for these additional costs.

Hosting plans

Magento hosting providers offer a variety of hosting plans optimized for Magento performance. The resulting cost will depend on your website's specific needs and choice of hosting plan. You will need to have purchased a domain name before selecting a hosting plan.

While Magento hosting plans start at around $10 per month, a more comprehensive Magento hosting solution costs approximately $50 per month.

However, if you have a large Magento website or are expecting a lot of traffic, you may need to select a more expensive hosting plan that offers more resources. You’ll pay about $300 per month for the most popular plan and over $850 per month for the most expensive plan.

One exception to hosting costs relates to the Magento Commerce Cloud. This version includes an automated and managed to host in the license and does not require a monthly subscription.

Managed Magento hosting plans offer a variety of features that can help you run your online store more efficiently. Here are some features you can expect from a managed Magento hosting plan.

1. Scalability: Managed Magento hosting plans have a scalable design, so you can easily add more resources as your business grows.

2. Security: With managed Magento hosting, you can rest assured that your store is secure from hackers and other online threats.

3. Backup and recovery: If something goes wrong with your store, managed Magento hosting plans include backup and recovery services to help you get back up and running quickly.

4. 24/7 support: Managed Magento hosting plans come with 24/7 support from experienced professionals.

5. Money-back guarantee: Most managed Magento hosting providers offer a money-back guarantee, allowing you to try it risk-free.

Additional features include Elasticsearch for M2.4+, unlimited email, and free SSL.

Themes pricing

The cost of a Magento theme can vary depending on the specific design and features you need. While Magento offers free themes, you can expect to spend around $200 on a quality Magento theme.

If you're looking for a more custom or unique design, you may need to spend closer to $500 or even $1,000. But remember, a quality Magento theme is an investment that will pay off in the long run by helping you drive more traffic and sales to your online store.

Many online e-commerce owners choose to start with a simple, base Magento theme and later hire a professional developer for customization.

Custom development

Magento web design costs can range depending on the size and complexity of your project. A simple Magento website can cost around $2,500 to design and develop, while a more complex website can cost upwards of $10,000.

If you want a Magento website to be designed and developed, it's important to work with a reputable agency with experience in designing and developing Magento websites. This will ensure that your website is built to your specific requirements and that it functions properly.

When considering the cost of a Magento web design project, be sure to factor in the ongoing costs of hosting and maintaining your website. Magento websites require regular updates and security patches, so it's important to budget for these costs when deciding to build a Magento website.


Along with Magento’s many features and flexibility to businesses comes the responsibility of maintaining the site and keeping it running smoothly.

Magento can be expensive to maintain. Depending on your Magento site's size and complexity, the maintenance cost can range from a few hundred to a thousand dollars per month.

Here are some tips on how to keep your Magento maintenance cost down and ensure your site runs smoothly.

1. Keep your site updated. Magento releases new versions with security updates and bug fixes regularly. Keeping your site up-to-date will help keep your maintenance costs down, as you won’t need to pay for fixes for old versions.

2. Use a reliable hosting provider. A good hosting provider will save you time and money in the long run. It keeps your site running smoothly and helps you with any technical issues.  

3. Use caching and compression. Caching can help improve your site’s performance, and compression can reduce the size of your pages, both of which will help reduce your maintenance costs.

4. Optimize your images. Large images can slow down your site and increase your bandwidth usage.

5. Use a content delivery network (CDN). A CDN can help deliver your content faster and reduce bandwidth usage and maintenance costs.


You'll need to install a plugin or an extension if you want to add extra functionality to your Magento store. Magento extensions are add-ons that can give your store new features or improve existing ones.

There are two types of Magento extensions.

  1. Official Magento Extensions: Magento team or verified Magento partners offer extensions that vary in price from the Magento Marketplace.
  2. Community-Created Magento Extensions: Independent developers create these extensions, which are available for free or for purchase from third-party websites.

Magento offers a few free extensions. The majority of the high-quality and advanced extensions require a one-time fee. While the cost can start at $50, most come with a hefty price tag of up to $500.

For example, the popular Magento extension, MageWorx Multi Fees, costs $129 for the basic version. The premium version, which includes all the features, costs $229.

Another popular Magento extension, Amasty Special Promotions Pro, costs $149 for a single site license. If you want to use the extension on multiple sites, you’ll have to pay $349.

While big businesses may easily afford to pay $129 or $149 for an extension, small businesses, startups, and entrepreneurs may need help to stretch their budgets. Some cheaper Magento extensions are available, but they’re usually not as good as the expensive ones.

So, if you’re looking for a high-quality Magento extension, be prepared to pay a premium price.

Default Payment Processor

One way to reduce costs is to choose a payment provider that doesn't charge fees.

Magento’s default payment processor is an excellent option if you're just starting with the platform. It's easy to use and already set up for you. Plus, it's free to use.

The most popular e-commerce payment solutions are Stripe, Authorize.net, and PayPal. While these payment service providers require no setup cost, the transaction fee is about 3%.

SEO & Marketing

Magento also offers a number of marketing and SEO (Search Engine Optimization) tools to help businesses promote and optimize their online store.

The cost of Magento SEO and marketing can vary depending on the size and scope of the project. For small businesses, the cost can be as low as a few hundred dollars per month. For larger businesses, the cost can be several thousand dollars per month.

Summing up

If you are looking for a reliable, flexible e-commerce platform that won’t break the bank, Magento could be the answer. With its user-friendly interface and range of features, Magento is an excellent choice for businesses of all sizes.

The cost of running a Magento website can vary significantly depending on the size and complexity of the website. A small business with a limited product range may be able to get by with a simple Magento installation especially if they are using Magento Commerce and skipping Magento Open Source with the free license, because the start-up costs of hosting, development and customization will even out the difference. A larger business with a wider range of products may require extensive customization and development work, so they should plan it in advance and opt in for a robust licensing to avoid additional hosting and service fees. 

It's also important to consider the ongoing costs of running a Magento website. While the initial setup expenditures can be significant, the ongoing fees and indirect costs can be the true devil in disguise. The time and resources required to manage and maintain the website can be significant, so maintenance and support expenses can quickly add up over time. 

Therefore, careful planning and consideration of all components we've discussed above can be your starting point. While the initial set-up cost of a Magento website can be higher than other platforms, its scalability means it will be a wise investment in the long run. Learn more about establishing a Magento website for your e-commerce business.

Investing more resources into a robust system from the start means you're getting a well-designed and well-maintained website. When you don't need to tweak every small thing and continue pouring out money to put out fires, you can concentrate on the business itself, marketing, sales, customer engagement, and enhanced brand awareness.

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