The verdict in three sentences
Over 5 years and 35 users, Odoo Enterprise costs about €101,000 ex VAT all in, against about €81,000 for a custom web application built for €45,000. Custom becomes cheaper from year three, but only if your need is a specific business process rather than a full ERP. If you need standard accounting, inventory, purchasing and CRM, Odoo remains the better choice.
The assumptions
The case: a 60-employee manufacturing SME near Dublin, with 35 people using the tool daily (order desk, planning, shop floor, management). The core need is customer order management and production tracking, with an in-house technical quoting process.
| Assumption | Odoo Enterprise | Custom application |
|---|---|---|
| Licence | €31.10 per user per month (Standard plan, annual billing) | None, code assigned to the SME |
| Users | 35 | Unlimited |
| Setup | 20 integrator days at €800 | Fixed-price project at €45,000 |
| Yearly changes | 5 integrator days a year, upgrades included | Included in maintenance |
| Maintenance | Included in the licence (vendor) | 15% of initial cost per year, €6,750 |
| Hosting | Included (Odoo Online) or Odoo.sh extra | €150 per month |
| Time to go live | 2 to 3 months | 4 to 5 months |
These are 2026 ballpark figures. Odoo partner day rates in Ireland range from €650 to €950 depending on partnership level, and all amounts are before 23% Irish VAT.
Cumulative cost over 5 years
| Year | Odoo Enterprise (cumulative) | Custom (cumulative) | Gap |
|---|---|---|---|
| Year 1 | €33,062 | €46,800 | Odoo cheaper by €13,738 |
| Year 2 | €50,124 | €55,350 | Odoo cheaper by €5,226 |
| Year 3 | €67,186 | €63,900 | Custom cheaper by €3,286 |
| Year 4 | €84,248 | €72,450 | Custom cheaper by €11,798 |
| Year 5 | €101,310 | €81,000 | Custom cheaper by €20,310 |
For Odoo, year 1 adds €16,000 of setup, €13,062 of licences (35 × €31.10 × 12) and €4,000 of changes. For custom, year 1 counts €45,000 of development and €1,800 of hosting, with maintenance starting after a 12-month warranty.
What the table does not show
Cost is only one criterion. Three factors often tip the decision.
| Criterion | Odoo Enterprise | Custom |
|---|---|---|
| Functional coverage | Very broad: accounting, inventory, purchasing, HR, CRM | Limited to the specification |
| Fit for an unusual process | Custom modules at €800/day, reworked at every version | Native, designed around the process |
| Version dependency | One major release a year, custom modules to migrate | You set the update pace |
| Licence increases | Exposed to vendor price rises (+3 to +8% observed in some years) | No licence |
| Reversibility | Data exportable, custom modules hard to port | Source code and database are yours |
| Effect of headcount | +€373 per user per year | Near-zero marginal cost |
The classic trap: choosing Odoo for a very specific process, then stacking 40 days of in-house modules. Each major upgrade then takes 10 to 15 days of migration, and the cost quickly exceeds a dedicated app. Conversely, rebuilding standard accounting or inventory in custom code is almost always a mistake.
A hybrid approach works well for many SMEs: Odoo or an accounting package for the standard parts, a custom app for the core business, connected through APIs.
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Mini case study
Aoife, finance director of a 60-employee manufacturer in Ballymount, must decide before the 2027 budget. The real need is a technical quote configurator and production tracking, with accounting staying in Sage. With Odoo, she would need 20 days of setup plus 25 days of custom modules (€36,000 total), plus €13,062 of licences a year. Over 5 years, the total reaches about €121,000 once custom module migrations are added. The custom app at €45,000, connected to Sage by API, comes to €81,000 over the same period. Aoife picks custom and saves about €40,000, or €8,000 a year.
FAQ
Does free Odoo Community change the maths?
Yes, the licence disappears, removing about €65,000 over 5 years for 35 users. In return you lose some modules (full accounting, Studio) and vendor support, and the integrator bills more days.
What does custom app maintenance really cost?
Plan for 15 to 20% of the initial cost per year, €6,750 to €9,000 for a €45,000 application. That covers bug fixes, security and dependency updates.
Can a custom application qualify for grants?
Some digital projects are supported by Enterprise Ireland or the Local Enterprise Office Grow Digital Voucher, which can cover up to 50% of eligible costs within set caps. Check eligibility before signing the quote.
What if we grow from 35 to 60 users?
With Odoo, licences rise from €13,062 to €22,392 a year. With custom, cost stays almost flat, only hosting may rise by €50 to €100 a month.
How long does a custom application like this take?
Between 4 and 5 months including discovery, with phased releases from month three.
Let's scope your project. Send us your process, user count and existing software, and we will compare Odoo, custom and hybrid honestly with a 5-year cost. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
