Category: Business CentralRead time: 5 MinsPublished on: 31 Oct 2025

Dynamics 365 Business Central price increase effective November 2025

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1. Microsoft Dynamics 365 Business Central Price Increase: What’s Changing and Why It Matters

Microsoft has announced its first price revision for Dynamics 365 Business Central in more than five years, effective November 1, 2025. This Microsoft Dynamics 365 Business Central price increase 2025 affects both new subscriptions and renewals worldwide.

The change aligns ERP subscription costs with Business Central’s expanded AI-enabled capabilities and cloud storage.

This blog breaks down what has changed, why Microsoft made this update, and what it means for your business.

If your organization is evaluating how this update affects your deployment or licensing strategy, our Business Central Consulting services can help you assess costs, optimize licenses, and ensure seamless ERP alignment.

Key Takeaways:

Microsoft has announced its first Dynamics 365 Business Central price revision in over five years, effective November 1, 2025.

The update raises license costs by about 10–15% —

  • Essentials: $80/user/month (from $70)
  • Premium: $110/user/month (from $100)
  • Device: $45/device/month (from $40)
  • Team Members: unchanged at $8/user/month

Each tier now includes more cloud storage and AI-driven Copilot features, improving automation, reporting, and integration with Microsoft 365. Microsoft says the change aligns Business Central with its broader Dynamics 365 AI strategy and global pricing structure. For CFOs and IT leaders, the key takeaway is to review licenses, update ERP budgets, and leverage new AI capabilities to maximize ROI under the updated plans.

2. Business Central Price Changes by License Tier

Microsoft’s November 2025 Business Central price increase introduces the first global price change since the platform’s launch in 2018. The adjustment affects all major license types, with increases ranging from 10% to 15%. Microsoft confirmed that prices are now aligned across global markets to maintain consistent value across currencies.

This pricing update adjusts costs across all main Business Central license types while adding extra cloud storage and enhanced functionality. Each tier now delivers more built-in value aligned with evolving business needs.

  1. Business Central Essentials Pricing

    The Essentials license now costs $80 per user per month, up from $70. This Microsoft ERP license pricing update represents about a 14% increase. Storage has increased from 2 GB to 3 GB per user.

    Essentials remains the most widely used plan for small and midsized organizations. It covers core ERP features including finance, sales, purchasing, inventory, and project management. For most SMBs, Essentials remains the ideal balance of cost and capability.

    Essentials license - $80 per user per month, up from $70

    Storage has increased from 2 GB to 3 GB per user

    Benefits – AI Integrations, generate product descriptions Data entry automation, get instant insights

  2. Business Central Premium Pricing

    The Premium license increases from $100 to $110 per user per month, roughly a 10% rise. Storage has expanded from 3 GB to 5 GB per user.

    Premium includes everything in Essentials plus advanced modules for manufacturing and service order management. This makes it ideal for companies with production, maintenance, or service operations.

    Premium license increases from $100 to $110 per user per month

    Storage has expanded from 3 GB to 5 GB per user

    Benefits – AI-assisted analytics, real-time financial reporting, and enhanced sustainability tracking

  3. Business Central Device Pricing

    The Device license is now $45 per device per month, up from $40, a 12.5% increase. Storage has also grown from 1 GB to 1.5 GB per device. The added storage helps improve performance and reporting for device-based workflows.

    Device license is now $45 per device per month, up from $40

    Storage has also grown from 1 GB to 1.5 GB per device

    Used in shared-use environments, such as point-of-sale (POS) stations, shop-floor terminals, or warehouse scanners

  4. Business Central Team Members Pricing

    The Team Members license remains unchanged at $8 per user per month. Microsoft did not apply a price increase here, as this plan already serves as a light-use access option.

    Team Members can read data, update existing records, approve workflows, and submit quotes or timesheets. However, they cannot use full application modules or add storage. The stability in pricing ensures affordable access for occasional or supporting users within larger teams.

    Team Members license remains unchanged at $8 per user per month

    Storage has also grown from 1 GB to 1.5 GB per device

    Used to read data, update existing records, approve workflows, and submit quotes or timesheets

Overall, the November 2025 update keeps Business Central’s tiered structure simple. Essentials and Premium for full users, Device for shared environments, and Team Members for light access. This ensures each tier provides measurable value through storage, AI capabilities, and ongoing innovation.

3. Business Central Price Comparison Chart

Microsoft’s November 2025 pricing update does more than raise subscription costs. It introduces a clearer, more scalable value structure. The new model highlights performance, storage, and AI enhancements that align with modern ERP usage patterns.

Below is a Dynamics 365 subscription pricing table, comparing previous pricing versus the new pricing, effective November 1, 2025:

License Type Previous Price (USD) New Price (USD) Storage Included (Old → New)
Essentials $70/user/month $80/user/month 2 GB → 3 GB
Premium $100/user/month $110/user/month 3 GB → 5 GB
Device $40/device/month $45/device/month 1 GB → 1.5 GB
Team Members $8/user/month $8/user/month Shared capacity

This table summarizes the Dynamics 365 Business Central price comparison (old vs new) to help CFOs and IT decision makers budget effectively

Key Observations

  • Consistent Value Increase

    While prices have risen moderately, every paid license tier except Team Members now includes more storage and enhanced AI-driven functionality.

  • Simplified Upgrade Path

    Microsoft has kept the structure consistent, meaning existing customers can move between Essentials, Premium, and Device licenses without changing their environment setup or integrations.

  • Performance and ROI Improvements

    Many businesses will notice improved reporting speeds, better Power BI connectivity, and new Copilot features that reduce manual work. This helps offset the higher subscription cost through productivity gains.

This pricing evolution reflects Microsoft’s broader strategy to link pricing to delivered capability, not just inflation. Businesses now pay slightly more but receive a platform that performs faster, integrates deeper with Microsoft 365, and provides measurable efficiency gains.

4. Why Microsoft Increased Business Central Licensing Cost?

Microsoft’s November 2025 pricing revision for Dynamics 365 Business Central is not a random adjustment. It’s a strategic response to product growth, evolving business demands, and market alignment.

After more than five years without a price change, Microsoft stated that the new pricing reflects the expanded capabilities, infrastructure, and innovation now built into Business Central.

Here are the main factors driving the update:

Infographic showing five reasons for Microsoft updating Business Central pricing: Product Expansion, Increased Costs, Global Alignment, Innovation, and Long-Term Value. Each reason is represented by an icon and brief description.

  1. Continuous Product Expansion

    Since 2018, Business Central has evolved from a lightweight ERP for SMBs into a comprehensive business management platform.

    Microsoft has added hundreds of new features, including:

    • AI-driven forecasting and insights with Microsoft Copilot.
    • Deep integration with Microsoft 365, Microsoft Power platform, and Azure AI.
    • Enhanced financial, inventory, and reporting capabilities.

    The price increase reflects the platform’s growing feature set and its move toward a unified intelligent ERP ecosystem. The update also reflects Microsoft Copilot pricing impact, as AI capabilities drive new automation and forecasting features.

  2. Increased Infrastructure and Cloud Costs

    AI and cloud infrastructure costs, particularly storage, compute power, and global data centre operations have risen significantly since 2018. Microsoft’s inclusion of more storage per user helps offset those costs for customers. This ensures businesses continue to benefit from scalable and secure infrastructure without immediate add-on fees.

  3. Alignment with Global Dynamics 365 Pricing

    The adjustment also aligns Business Central with global pricing levels across other Dynamics 365 products, such as Finance, Sales, and Customer Service. This unified structure creates pricing transparency and consistency across Microsoft’s ERP and CRM ecosystem.

  4. Sustaining Product Innovation

    Microsoft continues to invest heavily in AI, analytics, and automation across the Dynamics platform. The pricing update supports ongoing research, feature expansion, and global compliance improvements.

  5. Encouraging Long-Term Value

    Rather than offering discounts or one-time incentives, Microsoft has opted a value-based pricing model for Business Central by focusing on continuous value delivery. Each pricing tier now offers measurable improvements in productivity, data capacity, and operational insight.

In short, Microsoft’s November 2025 update is not just a price hike, it’s a value realignment. Users are paying slightly more, but they’re receiving a faster, smarter, and more integrated ERP system designed to power modern, AI-enabled business operations.

5. Impact on Existing Users and New Users

Business Central renewal pricing 2025 – Key scenarios

The Business Central price change impact varies for existing cloud users, on-premises customers, and new adopters. CFOs and IT leaders should understand how renewal pricing for Business Central affects budget cycles.

For many businesses, understanding the pricing adjustments and its implications is key for budget and licensing strategy.

  1. Impact on Existing Users

    Existing subscribers will maintain current pricing until their first renewal after November 1, 2025. New subscriptions purchased after November 1, 2025, will immediately reflect the new pricing. On-premises customers considering cloud migration should factor these new rates into their long-term planning.

    Customer Scenario Financial Impact Recommended Action
    Existing cloud customer with October renewal No immediate impact Plan for price increase at next renewal after November 1st 2025
    Existing cloud customer with December renewal 10-15% increase at renewal Budget for increased costs and optimize license allocation
    On-premises customer considering migration Higher cloud migration costs Leverage Bridge to Cloud promotions to offset increase
    New implementation planning Higher starting costs Budget for increased costs

  2. Impact on New Customers

    For new Business Central adopters, the November 2025 pricing reflects the true modern ERP experience. More automation, improved analytics, and a faster cloud environment from day one.

    This transparency simplifies purchase decisions, as businesses can clearly compare Essentials, Premium, and Device options based on usage needs and scalability.

For many organizations, understanding the pricing adjustments and their implications is key for budget and Microsoft licensing strategy. Working with a certified Business Central Partner can simplify this process. They help from forecasting renewals to navigating Microsoft promotions and optimizing your ERP investment.

6. What to do after Business Central Price Increase?

Infographic listing seven recommended actions after the Business Central Pricing Update: Review Licenses, Recalculate Budgets, Explore Partner Offers, Leverage AI Tools, Upgrade Path, Engage Partner Early, and Communicate Changes.

Microsoft’s November 2025 Business Central price increase gives organizations a good reason to reassess their ERP plans and budgets. While the increase is moderate, proactive planning will help businesses stay compliant, cost-efficient, and value focused.

Here’s what every organization should consider doing next:

  1. Review Your Business Central Licenses (2025 Update)

    Start by reviewing your current user licenses. Identify how each role uses the system and whether you can optimize licenses. Many organizations find that a role-based license audit helps reduce costs by eliminating unused or underutilized seats.

  2. Recalculate ERP Budgets with New Business Central Prices

    Include the new pricing in your financial planning and forecasts. CFOs should model the annualized impact of the 10–15% increase to avoid budget surprises during renewal.

    If you work with a Microsoft partner, request an updated quote reflecting the post-November 2025 rates.

  3. Explore Microsoft Partner Offers for Business Central Renewals

    Microsoft partners often provide volume discounts or multi-year commitment options including Bridge to Cloud Promotion 3 that soften the immediate impact of the new rates.

    Ask your partner whether switching to an annual commitment or bundling other Microsoft services (like Power BI or Copilot add-ons) can yield savings.

  4. Leverage AI and Copilot Tools for ROI

    Take advantage of the improvements that come with the new pricing. especially the extra storage and AI-based Copilot features. Encourage users to adopt automation and data insights tools to extract measurable ROI from these enhancements.

  5. Business Central Upgrade Path Essentials vs Premium

    The revised pricing aligns Business Central with Microsoft’s broader cloud ERP strategy.

    Now is a good time to evaluate whether your organization needs to:

    • Add more modules, like Manufacturing or Service Management.
    • Integrate Power Platform automation.
    • Upgrade from Essentials to Premium for advanced functionality.

  6. Engage with Your Microsoft Partner Early

    Microsoft certified partners can provide a personalized Business Central pricing analysis and recommend optimization steps. Early discussions ensure smooth renewals, license right-sizing, and data migration planning where needed.

  7. Communicate Changes Internally

    Make sure finance, IT, and operations teams understand the pricing update and its benefits. Transparent communication helps teams align on budgets, expectations, and adoption goals for FY 2026.

7. Turning Business Central Price Increase into a Strategic Advantage

Microsoft’s Business Central pricing update 2025 is more than a cost adjustment, it’s part of a broader Dynamics 365 ERP modernization strategy. Businesses investing now will benefit from AI-driven ERP efficiency and long-term value.

This update reflects the growing importance of AI automation, cloud scalability, and integrated ERP intelligence within Business Central. For CFOs and IT leaders, the change is an opportunity to reassess licensing models, optimize user roles, and leverage the full range of tools available under the updated plans. For small and midsized businesses, this update ensures it continues to evolve with the pace of modern business.

Navigating Microsoft Dynamics 365 Business Central price increase requires more than awareness as it calls for informed planning. Partnering with Congruent Software, a certified Business Central Partner, ensures your organization evaluates the impact accurately, optimizes license allocation, and maximizes the new AI-driven capabilities for measurable ROI.

8. FAQ

  1. What is the new Microsoft Dynamics 365 Business Central pricing for 2025?

    As of November 1, 2025, Microsoft increased Business Central pricing to $80/month for Essentials, $110/month for Premium, and $45/month for Device licenses. Team Members remain at $8/month.

  2. Why did Microsoft increase Business Central prices in 2025?

    Microsoft revised prices to reflect enhanced AI capabilities, expanded functionality, and additional cloud storage added over the past five years. It aligns Business Central with other Dynamics 365 products.

  3. When does the new Business Central pricing take effect globally?

    The new pricing became effective November 1, 2025, for new subscriptions. Existing customers will see the change at their next renewal date.

  4. How does Copilot affect Business Central pricing?

    Each plan includes more storage and improved AI features powered by Microsoft Copilot. Users also benefit from faster performance, better reporting, and tighter Microsoft 365 integration.

  5. How can CFOs prepare for the 2025 Business Central price changes?

    Businesses should review current licenses, budget for the increase, and consult their Microsoft partner for renewal planning or optimization opportunities to reduce costs.

  6. Is the Business Central price increase part of Microsoft’s Dynamics 365 AI strategy?

    Yes. The 2025 pricing reflects Microsoft’s investment in AI-driven ERP features, including Copilot, predictive analytics, and enhanced data intelligence.