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Magento Pricing: Cost to Build a Magento Website

Updated Date: September 29, 2023
Written by Hemendra Singh
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Magento stores and websites are counted among the best places to start an online business. While Magento provides a stable eCommerce platform for business owners to sell their products online to a huge audience, the cost of building a Magento website has always been the biggest concern of business persons. We are here to discuss the overall Magento pricing that helps you reach your target audience more effectively and quickly.

Factors influencing the Cost to Build Magento Website

cost to build magento website
While this Magento pricing guide will tell all about the pricing of Magento website development services along with the cost breakdown structure, it is important for you to understand that there is no fixed amount that you can stick to for Magento ecommerce development. There are a range of factors that combinedly determine the cost of website development on Magento. Let’s have a glance over these factors-

  • Customization: Magento allows the website developers to add customized elements and design according to the needs and preferences of the owners. However, it is important to remember that this customization adds dollars to the cost of Magento website development.
  • Features and Functionalities: Moving ahead, the features and functionalities that one wants to leverage in the website also influence Magento pricing. A website carrying the basic functionalities will cost in fraction as compared to a website with highly automated features and functions.
  • Number of Integration: Integrating shipping providers, payment, third-party solutions like PIM, and CRM software also influence the Magento website development cost to a significant extent.

Magento Pricing Breakdown: Magento Website Development Cost

magento website development cost

Cost breakdown  Magento Open Source  Magento Commerce Cloud  Magento Commerce 
Magento License Cost  $40,000- $190,000/ year  $20,000- $120,000/year
Hosting  $100-$500/year  0 $500-$6,000/year 
Domain name $10-$350/ year  $10-$350/ year  $10-$350/ year 
SSL certificate  $50-$300/year  $50-$300/year  $5-$300/year 
Design  $0-$5000+ $0-$5000+ $0-$5000+
Development  $1500-$10,000+ $10,000+ $10,000+
Extensions  $60-$600/ extension $60-$600/ extension $60-$600/ extension
Payment providers  2.9% + $0.30 per transaction 2.9% + $0.30 per transaction 2.9% + $0.30 per transaction
SEO & Digital Promotion  $8000-$50,000/year  $8000-$50,000/year  $8000-$50,000/year 
Total Magento Pricing  $10,000-$60,000+ $55000- $250,000 $40,000- $190,000 
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1. Magento Pricing -License Cost

Magento website or store development comes with three editions which include Magento Open source, Magento Commerce (known as Adobe Commerce), and Magento Commerce Cloud (known as Adobe Commerce Cloud). Here, Magento Open Source is completely free to use and doesn’t require any licensing fee. On the other hand, while other two versions require a yearly license cost. These charges are determined by the annual gross revenue of the business by adhering to Magento Commerce (formerly known as Magento Enterprise) and Magento Commerce Cloud pricing policy.

Annual gross revenue Annual Magento Enterprise Pricing (Magento Commerce Pricing) Annual Magento Commerce Cloud Pricing
Less than $1 Million  $22,000 $40,000
$1 Million- $5 Million  $32,000 $55,000
$5 Million- $10 Million  $49,000 $80,000
$10 Million-$25 Million  $75,000 $120,000
More than $25  $125,000 $190,000

2. Magento Hosting Cost

The Magento hosting price depends largely on the performance and functionality required for the eCommerce business. While the Magento Commerce Cloud version already offers automated and managed hosting in the license, you have to arrange the hosting services for Magento Open Source and Magento Commerce. The reason is that both of these versions require storage in order to efficiently operate.

It generally costs anywhere between $100-$500 for Magento Open Source and $500-6,000 for Magento Commerce on a yearly basis.

3. Cost for Domain Name

While getting a domain name for your eCommerce website, you get two options. Either you can buy a brand new domain name or you can go for an expired domain name that someone is not renewing for themselves. Here, expired domain names cost much more than a brand-new domain name.

  • Cost for a brand new domain name- $10-$20/ year
  • Cost for an expired domain name- $20-$400/ year

4. SSL Certificate

eCommerce websites are meant to bear monetary transactions for trade purposes. So, it becomes important for your website that your target audience rely on and trust your business online platform. For the same, SSL (Secure Sockets Layer) emerges as one of the best solutions that enhances the reliability of a Magento Website and fosters the security of all kinds of information data.

The average cost of opting for an SSL certificate falls anywhere between $50-$300/ year.

5. Magento Web Design Cost

When deciding on Magento web designing, one can either go for a ready-made Magento theme or design a custom theme according to the preference of the website owner. Existing Magento themes pricing falls anywhere between $0-$180.

On the other hand, when a business owner prefers to design a customized theme, first of all, they have to hire a website designer. It generally takes 50-150 hours to complete a custom-made theme. Here, the per-hour cost of hiring a designer from top Magento developer companies falls around $40 which makes the overall cost of website designing anywhere around $5,000.

Moreover, one has to make sure that the custom design they are developing for the website is responsive to all kinds of device users such as smartphones, tablets, laptops, etc.

6. Magento 2 Development Cost

Magneto 2 Development is the phase where the website developer will design and develop the basic pages of the website. Irrespective of the size, industry, and target audience of the business, five pages are crucial for any eCommerce website. The pages are-

  • Homepage
  • Category page
  • Product page
  • Shopping cart page
  • Checkout page

It generally takes around 40 hours for a developer to design and adjunct these main pages by imparting the right banner, color of text, icons, buttons, move blocks, etc. Considering the average hourly rate of $30-$50 for a Magento website developer, the complete development phase costs around $10,000-$20,000.

7. Extensions Cost

You can develop a basic eCommerce store or website on Magento for your customers. However, in order to impart the additional functionalities to your website, you will have to use the additional extensions. These extensions enhance the user experience by fostering competencies like customer support features, advanced search, improved layer navigation, and much more. These extensions can easily be found in the Magento marketplace of the store.

Depending on the quality and functionality of the extension, you have to pay a one-time fee for the extension integration. These extensions generally cost anywhere between $60-$600.

8. Payment Provider Fee

There are multiple payment service providers that one can integrate into the Magento website. These payment providers help the customers to make safe payments. Some of the most used and trusted payment solutions are Stripe, PayPal, and Authorize.net which rules 75.6% share of the total global payment transactions.

While the owner doesn’t have to pay any setup cost for these payment providers, a fee for every successful transaction has to be paid. This fee starts from 2.9% plus $0.30. You can choose the right payment service provider for your Magento website by doing in-depth research.

9. SEO & Digital Promotions

The online businesses require online marketing. It is important to inform your target audience about your online business. SEO and digital marketing play a significant role in highlighting your brand on different online platforms. Be it a search engine, social media, or paid marketing, SEO practices help a lot to attract customers.

Hiring SEO experts and marketers will cost you anywhere between $1,000-$10,000, depending on your requirements for the digital marketing campaign.

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How Much Does it Cost to Maintain a Magento eCommerce Store?

Magento eCommerce Store cost
Developing the Magento website or Magento store is one thing but keeping it running smoothly is another important task. For the same, adding new features, fixing bugs, performing periodical testing, and providing the necessary updates timely to the users are crucial to retaining existing customers.

Magento Open Source, being a free edition, doesn’t come with any support services and thus one has to arrange an outsourcing team of Magento developers that can provide the maintenance support. On the other hand, with Magento Commerce and Magento Commerce Cloud editions, one can submit a ticket for technical issues that provide them remote support. However, the response time and scope in this edition is very limited which ultimately requires you to rely on an external Magento Development team. If not that, you will still require the external Magento support resources to handle other issues related to integrations, third-party extensions, instant support, and custom logic.

There are basically three reasons why a business owner needs Magento maintenance and support team-

  • Provide Trouble-free Business Operations- A Magento can face downtime, unpredictable errors, and hacker attacks at any given time. Unavailability of maintenance and support at the very instant time can cause a lot of loss to businesses as well as ruin the user experience. So, in order to renew domain domains, certificates, and licenses, protect the website from potential threats, and meet the necessary daily and routine backups, it is important to ensure Magento website maintenance and support.
  • Sync Steps With the Latest Technology– it is also important that your Magento website is equipped with new-age technological trends like AR/VR, AI, and machine learning. So, a Magento maintenance and support service ensures that your business is delivering the benefits of industry 4.0 technologies to the end users.
  • Maintain High-security Standards– as interpreted earlier, ensuring a high level of security in the Magento website is important to earn the trust of users. For the same, Magento releases the regular version that carries all the updated system requirements and enhanced functionalities. To implement these versions, a website owner needs a maintenance and support team.
Magento Open Source  Magento Commerce and Magento Commerce Cloud 
Website monitoring and auditing  $4500/year  $5,500/year
Extensions update $500+/year $500+/year
Magento update and security patch installation $1,000+/year $1,000+/year
Migration and re-platforming $8,000+ $15,000+
New features development $4,000+/year $6,500+/year
Magento performance optimization $1,500+/year $1,500+/year
Bug fixing $1,000+/year $1,000+/year
Urgent support for Magento $1,750+/year $1,750+/year
Total Magento pricing for support and maintenance services $22,250+/year $32,750+/year

Wrapping Up: Cost to Build Magento eCommerce Website

A Magento store can take a business to greater heights by presenting it the exposure to online market. While a business owner can multiply its number of customers with an online store, the Magento pricing of building their online store always concerns them the most. So, we have provided a detailed guide about the cost of Magento website development along with the complete cost breakdown structure. At the same time, we have also included the maintenance and support costs for the Magento website.

FAQs: Magento Development Cost

1. How Much Does Magento Cost Per Month?

The starting cost of running a Magento website starts from $5000 which can go any further according to the particular preferences and requirements. While the Magento Open Source version is free of cost, Magneto Commerce and Magento Commerce Cloud are paid versions.

2. Is Magento Free or Paid to Develop Websites?

Magento comes with both options. It has three versions which are defined as Magento Open Source, Magento Commerce, and Magento Commerce Cloud. Magento Open Source is free to use but comes with limited functionalities. On the other hand, the rest of the two versions are paid where you leverage better benefits.

3. Is Magento Beginner-friendly?

Magento doesn’t require any extensive or in-depth coding language. However, having familiarity with common languages and commands is favorable while working with Magento.

4. How Much Does it Cost to Run a Magento Store?

The general Magento cost of running a store with complete maintenance and support options starts from $30,000 and increases according to the requirements.

Hemendra Singh

My name is Hemendra Singh. I am a Director and Co-founder of The NineHertz, IT Consulting Company. I am having a keen interest in the latest trends and technologies that are emerging in different domains. Being an entrepreneur in the field of the IT sector, it becomes my responsibility to aid my audience with the knowledge of the latest trends in the market.