Dynamics 365 Pricing and Licensing Guide [2025]

Choosing the right license for Dynamics 365 has a significant impact on the overall cost of your implementation and ongoing use. The variety of licenses available, each tailored to specific roles and functionalities, means businesses can optimize their spending by aligning user access with their actual needs. Whether it’s selecting between full user licenses, team member access, or additional module licenses, understanding how these options fit into your operational framework ensures that you’re not overpaying for unused features.

In this Dynamics 365 Pricing and Licensing guide, we'll walk you through the available licensing options and current pricing to help you make informed decisions to maximize your Dynamics 365 investment.

Everything You Need to Know About Dynamics 365 Pricing & Licensing

Microsoft Dynamics 365 offers a flexible licensing and pricing model to cater to organizations of all sizes. Licenses can be purchased through Microsoft Volume Licensing or directly through Microsoft's subscription plans.

The main types of licenses include user, device, and tenant licenses, which offer varying levels of access and functionality.

Types of Dynamics 365 Licenses

User Licenses

User licenses are the most common type of license for businesses that need individuals to access Dynamics 365 apps. Here’s how they are structured:

The primary license for a user, which must be the highest-priced application they need. When an organization determines which Base License to assign to a user, it should select the application most relevant to that user's role. For example, if a sales representative primarily utilizes the Sales application, the Base License would be associated with Sales. This approach ensures that the user has complete access to the tools necessary for their specific responsibilities.

If a user requires multiple applications, they can add additional apps at a discounted price, reducing costs while expanding functionality. For instance, if the same sales representative mentioned earlier needs to access the Customer Service app, they could opt for an Attach License for Customer Service, thereby maintaining productivity while managing costs effectively.

Device Licenses

Device licenses are assigned to a shared device instead of an individual user, making it accessible to multiple users. These licenses are ideal for settings such as retail floors, warehouses, or factory floors where multiple employees may utilize the same operational devices, like workstations or tablets.

Tenant Licenses

Tenant licenses allow organization-wide access to specific Dynamics 365 features or add-ons, such as storage or analytics capacity. These licenses aren’t tied to specific users or devices, making them ideal for organization-wide use.

Consider a manufacturing company that utilizes Dynamics 365 for both Financial Management and Supply Chain Management. To support their operations, this company purchases a tenant license not only for these applications but also for additional functionalities such as data storage and analytics capabilities.

By employing a tenant license, every employee with access to the Dynamics 365 applications can leverage the shared analytical tools and increased storage, regardless of individual user licenses.

Dynamics 365 Application Licensing

Different Dynamics 365 apps come with their own licensing models. Here are some popular Dynamics 365 applications and their license options:

Dynamics 365 Sales

Microsoft Dynamics 365 Sales offers flexible licensing options designed to meet the needs of businesses of all sizes. From basic CRM functionalities to advanced AI-driven insights, these licenses ensure that organizations can choose the right tools to enhance their sales processes and optimize performance.

Here’s a breakdown of the key licensing options:

• Price: £49 per user/month
• Target Audience: Small businesses or organizations with basic sales processes.
• Key Features:
  • Core CRM functionalities for managing leads, opportunities, and customer relationships.
  • Basic sales pipeline management, enabling tracking and forecasting of sales activities.
  • Simplified configuration with limited customization options.
  • Integration with other Microsoft products, including Office 365 and Outlook, for basic sales automation.

This license is ideal for organizations seeking to move from manual processes to a streamlined CRM system, providing all the essential tools for managing customer data and sales without the complexity of advanced features.

• Price: £71.60 per user/month
• Target Audience: Mid-sized to large organizations with more complex sales operations.
• Key Features:
  • All features of the Sales Professional license, plus advanced sales management capabilities.
  • Customizable workflows, sales performance tracking, and robust reporting tools.
  • AI-driven predictive insights to help sales teams prioritize leads and close deals faster.
  • Advanced opportunity management and territory management for more comprehensive sales oversight.
  • Deep integration with Power BI for advanced data analytics and real-time reporting.

Sales Enterprise is the go-to choice for businesses that need tailored CRM solutions and want to use predictive analytics and advanced sales tools to optimize their sales processes.

• Price: £101.80 per user/month
• Target Audience: Large enterprises or data-driven organizations that rely heavily on advanced analytics for sales strategy.
• Key Features:
  • Combines all the capabilities of the Sales Enterprise license with advanced AI features provided by the Sales Insights add-on.
  • AI-powered tools for opportunity scoring, relationship health tracking, and lead prioritization.
  • Automated sales workflows and enhanced customer relationship management through AI-driven insights.
  • Full integration with Dynamics 365’s broader ecosystem for a seamless sales process from lead generation to deal closure.

The Sales Premium license is best for enterprises that prioritize data analytics and want to take advantage of AI to improve sales performance and decision-making.

• Price: £6 per user/month
• Target Audience: Employees needing limited access to the system, such as support staff or entry-level sales roles.
• Key Features:
  • Basic access to view sales data, manage contacts, and interact with limited CRM functionalities.
  • Suitable for team members who don’t need full CRM access but require visibility into key customer data.

This license is an affordable option for staff who need to interact with the system occasionally but don’t require advanced features.

For organizations using the Sales Enterprise or Sales Premium licenses, Microsoft offers the Sales Insights add-on, which provides:

• AI-driven predictive scoring for leads and opportunities.
• Relationship management tools to help sales professionals build stronger customer connections.
• Analytics that track customer interactions and offer actionable insights for more personalized engagement.

This add-on is perfect for businesses that rely heavily on data-driven sales strategies and need deeper insights into their sales pipeline.

Dynamics 365 Marketing

Dynamics 365 Marketing is a powerful tool that helps organizations manage campaigns, nurture leads, and engage customers across multiple channels. As of October 2024, the base price for a Dynamics 365 Marketing license starts at $1,500 USD per tenant per month. This pricing is designed to support marketing teams of all sizes by offering comprehensive capabilities, including customer journey orchestration, event management, and advanced analytics.

• Marketing License:

  This full-featured license is priced at $1,500 USD per month per tenant and includes features such as multichannel campaigns, customer journey orchestration, segmentation, and email marketing. The license is ideal for marketing teams that need a robust solution for managing their end-to-end marketing operations.

• Additional Marketing Applications:

  Organizations requiring more advanced features or capacity can purchase add-ons. For example, if you surpass the base limit of 10,000 contacts, you can add more at an incremental cost. The pricing for additional contacts starts at $250 USD for 5,000 contacts.

• Attach License:

  For businesses already using other Dynamics 365 modules, an attach license is available at a reduced rate of $750 USD per tenant per month. This option is particularly useful for companies already leveraging modules like Sales or Customer Service and looking to enhance their marketing capabilities without purchasing a full marketing license.

• Team Member License:

  At just $8 USD per user per month, the Team Member license provides basic access to the marketing module. It’s ideal for users who only need to view analytics, reports, or collaborate with marketing teams, but don't require full access to campaign creation and management functionalities.

• Power BI Integration Add-On:

  Marketing teams looking to leverage deeper insights and visual reporting can opt for Power BI integration, allowing them to visualize campaign performance, customer behavior, and ROI. While Power BI licenses are separate from Marketing, this integration is highly recommended for data-driven organizations.

• Multichannel Campaigns:

  This license enables businesses to create customer journeys across multiple channels, such as email, SMS, and social media, providing a holistic customer engagement experience.

• AI-Powered Recommendations:

  Leverage AI-driven insights to refine marketing strategies, improving lead generation and customer retention by analyzing behavioral patterns and engagement levels.

• Customizable Dashboards:

  Users can create and customize their own dashboards to track important metrics such as email click-through rates, customer interactions, and conversion rates, giving marketers a detailed view of their efforts.

• Advanced Event Management:

  Dynamics 365 Marketing allows organizations to plan, promote, and host events, both in-person and virtually, with built-in tools for registration, scheduling, and attendee engagement.

Dynamics 365 Customer Service

Microsoft Dynamics 365 Customer Service offers a variety of licensing options tailored to fit different organizational needs, ensuring that businesses can choose the functionality that aligns with their customer service processes. Understanding the distinctions between the available licenses is crucial for optimizing investments in this software, allowing organizations to leverage the full potential of Dynamics 365 without overpaying.

• Customer Service Professional:

  At £41.10 per user/month, this entry-level license offers core customer service functionalities such as case management, knowledge management, and integration with Microsoft 365. This is ideal for smaller organizations with simpler service needs, transitioning from manual customer service processes to a more structured, automated system.

• Customer Service Enterprise:

  Priced at £78.10 per user/month, the Enterprise license expands on the features of the Professional version, offering advanced capabilities such as multi-session support, unified routing, and embedded intelligence for more complex customer service operations. This license is better suited for organizations that need to customize and scale their customer service processes, delivering a higher level of service management.

• Team Member License:

  Costing £6.60 per user/month, the Team Member license is designed for users requiring minimal access. It provides basic functionality such as viewing customer records, adding notes, and managing contacts. This license is ideal for employees who don’t need the full spectrum of customer service tools but still require access to essential data.

While both Professional and Enterprise licenses offer essential customer service features like case and knowledge management, Enterprise includes advanced features not available in Professional, such as:

• Unlimited custom tables and business process flows
• Unified service desk and embedded intelligence
• Customer service insights and KPI reporting
• Multi-session support and enhanced customization for workflows and business processes

• Chat Add-In: £49.30 per user/month – Enables live chat for real-time customer support.
• Voice Channel Add-In: £61.60 per user/month – Adds phone call functionality, including real-time transcription and AI-powered suggestions.
• Digital Messaging Add-In: £61.60 per user/month – Allows customer service through SMS, social media, and other messaging channels.
• Digital Messaging & Voice Add-In: £74 per user/month – Combines voice and digital messaging for a more comprehensive service approach.

Organizations starting with the Professional license can upgrade to Enterprise as their customer service requirements grow. However, it’s important to note that within the same environment, all users must have the same license type—mixing Professional and Enterprise licenses in the same environment is not allowed.

Dynamics 365 Field Service

Dynamics 365 Field Service licenses are designed to empower organizations by optimizing on-location services through a structured pricing model and varied functionalities. Selecting the right license type is crucial to ensuring operational efficiency while managing costs effectively.

• Field Service License:

  This standard license, priced at $105/user/month USD, equips field service workers and schedulers with all the core features they need for daily operations. This includes workflow automation, scheduling, and mobile access to customer data, enabling seamless on-location service management.

• Field Service Contractor License:

  At $50/user/month USD, this tailored license is designed specifically for external contractors. It offers essential functionalities needed for contractors to perform their tasks without the additional complexities of the standard license. This is a cost-effective option for businesses working with external teams.

• Field Service Resource Scheduling Optimization Add-in:

  Priced at $30/user/month USD, this optional add-in uses AI and machine learning to further enhance scheduling capabilities. It optimizes resource allocation and appointment scheduling, making it an excellent tool for businesses looking to improve dispatch efficiency.

• Attach License:

  Available for $20/user/month USD, this add-on allows organizations that already have a qualifying Dynamics 365 base license to extend their Field Service capabilities at a reduced cost. It's an economical option for businesses already leveraging Microsoft's ecosystem.

Key Features of Field Service Licenses:

• Workflow Automation: Reduces manual processes and increases accuracy by automating routine tasks.
• Scheduling and Dispatching: Uses advanced algorithms to ensure the right technicians are dispatched to the right locations at the right time.
• Mobile Capabilities: Field workers can access important customer data and job details on the go, enabling seamless service delivery.
• Scheduling Optimization: Available with the Resource Scheduling Optimization add-in, this feature uses AI to streamline technician scheduling by factoring in skillsets, locations, and priority jobs.

Dynamics 365 Finance & SCM

Microsoft offers various pricing options for Dynamics 365 Finance. As of October 2024, the base price for a full Finance license starts at $210 USD/user/month. For users needing access to both Finance and Supply Chain Management, the combined license costs $240 USD/user/month.

• Finance License: The base license at $210 USD/user/month gives full access to financial management functionalities, including real-time financial reporting, compliance management, and core budgeting features.
• Supply Chain Management License: This license, priced similarly at $210 USD/user/month, focuses on procurement, production, inventory, and logistics operations.
• Attach License: For users requiring both Finance and Supply Chain Management apps, an attach license is available for $30 USD/user/month. This attach model allows organizations to save on costs while providing access to multiple apps.

• Team Member License: Priced at $8 USD/user/month, this provides basic access, including viewing reports, performing limited functions such as time entry, and basic read-only access across modules.
• Activity License: Designed for users involved in day-to-day transactional tasks, this license is priced at $50 USD/user/month and offers greater functionality than the Team Member license but less than the full Finance license.
• Device License: For environments like warehouses where multiple users share devices, the Device license is priced at $85 USD/user/month. This license provides access through a shared device and is ideal for retail or field operations.

• Full Access Users: These licenses allow users to access all aspects of financial management, including comprehensive budgeting, ledger management, compliance tracking, and reporting.
• Attach Licenses: Attach licenses are an economical way to expand access to other Dynamics 365 modules, such as Sales, Customer Service, or Supply Chain Management, without purchasing separate full licenses for each app.
• Team Member Licenses: These licenses are ideal for employees with limited access needs, ensuring that even basic users can access essential views and operations at a reduced cost.

Dynamics 365 Commerce

Microsoft Dynamics 365 Commerce offers a comprehensive solution that unifies various retail operations, such as e-commerce, in-store, call center, and back-office functionalities. To support diverse business needs, the pricing model is based on transaction volume and organizational scale. The eCommerce Tiers and Commerce Scale Units are key to determining the right license for your needs.

• Commerce License: This core license enables organizations to manage day-to-day retail operations at their headquarters. The pricing covers the full suite of tools for personalized customer engagement, store operations, and employee productivity.
• Operations – Device License: Priced per device, this license allows multiple users to share a device for tasks like point-of-sale, warehouse management, or shop floor operations. This is an efficient solution for environments with shared resources like retail stores or warehouses.
• Operations – Activity License: Tailored for users in roles like call center staff, this license includes functionalities related to warehousing, receiving, shipping, and vendor management. It supports transaction-based tasks essential for operations, without requiring full device access.

• eCommerce Tiers: eCommerce transactions are licensed based on projected annual transactions. Businesses select an eCommerce Tier based on their expected monthly average order value (AOV) and transaction volume. For example, if a business anticipates 6,000 monthly transactions, they would license Tier 1 and add overage SKUs for any excess transactions.
• Calculating AOV (Average Order Value): AOV is calculated by dividing total annual eCommerce revenue by the total number of transactions. This helps businesses determine the appropriate eCommerce tier to license based on their transaction volume.

• Default Commerce Scale Units: When purchasing either Operations – Device Licenses or eCommerce Tiers, a Default Commerce Scale Unit is automatically provisioned. This provides the necessary infrastructure for running eCommerce and in-store operations in the cloud.
• Additional Commerce Scale Units: Organizations can acquire additional Commerce Scale Units to support multiple regions, add redundancy, or enhance performance. This can be especially useful for businesses with a global presence or those needing localized solutions for different regions.

• Recommendations and Ratings Add-On: Priced per tenant, this add-on allows businesses to surface product recommendations and display customer ratings and reviews across their eCommerce platform, driving engagement and sales.

Dynamics 365 Human Resources

Microsoft offers a flexible subscription model for Dynamics 365 Human Resources, ensuring organizations can choose a pricing plan that fits their operational needs. With a minimum requirement of five full-user licenses, the application is tailored for HR teams looking to leverage digital tools to manage core HR functionalities, such as compensation, performance feedback, and employee leave management.

• Full User License: Priced at approximately $120 per user/month, this license provides full access to all HR functionalities, including compensation management, leave administration, and performance tracking. This license is ideal for HR professionals who need complete control over HR processes.
• Attach License: For organizations already using other Dynamics 365 apps, the Human Resources app can be added at a reduced cost by leveraging attach licenses, which allows users to access multiple modules at a discounted price.

• Compensation and Benefits Management: Full user licenses grant access to comprehensive tools for managing employee compensation, benefits packages, and salary structure adjustments.
• Leave and Absence Tracking: The platform includes robust leave tracking capabilities, allowing HR teams to monitor employee absences and ensure compliance with internal policies.
• Performance Management: With built-in performance review tools, this module enables HR teams to track employee performance, provide feedback, and set performance goals.

• Custom Roles and Permissions: Organizations can customize access to the HR platform by defining user roles based on their specific needs. This allows for better security and control over sensitive HR data, ensuring that users only access the information relevant to their roles.

• Seamless Integration: Dynamics 365 Human Resources leverages the Common Data Service (CDS) and integrates with other Microsoft tools, like Power Platform, for an efficient and connected HR experience.
• No Specific Add-ons: While there are no direct add-ons for Human Resources, companies can enhance functionality by integrating other Dynamics 365 applications, such as Finance or Sales, to create a unified operational ecosystem.

Dynamics 365 Project Operations

Dynamics 365 Project Operations is designed for organizations that need advanced project management and accounting capabilities. The base license for Project Operations is priced at $120 per user/month. This pricing model allows organizations to leverage comprehensive tools for end-to-end project management, including planning, resourcing, tracking, and financials.

• Project Operations Full User License: Priced at $120 per user/month, this license offers full access to all project management functionalities, including project planning, resource management, time and expense tracking, and project financials.
• Attach License: For customers using other Dynamics 365 apps, such as Finance or Customer Service, an attach license for Project Operations can be added at a reduced cost. This license allows users to access project functionalities alongside other Dynamics 365 apps without the need for a full license for each module.

• Project Service Automation (PSA) Transition: Customers using Project Service Automation (PSA) licenses will be transitioned to Project Operations as of April 1, 2021. Existing PSA functionality will remain available, but customers must transition to Project Operations upon license renewal. Customers who don't meet the minimum 20-seat requirement can take advantage of a Qualified Offer SKU for continued access.
• Finance and Operations Activity License Transition: The Project Management Accounting (PMA) functionality remains for current Finance and Operations Activity users, but these customers will not automatically receive Project Operations. Upon renewal, they must switch to Project Operations licensing if they wish to access advanced project functionalities.

• End-to-End Project Management: The full user license gives organizations access to a complete suite of project management tools, from planning and resource allocation to time tracking, expense management, and project financial reporting.
• Unified Operations: Project Operations combines project management and financials into a single platform, ensuring seamless integration with other Dynamics 365 modules, such as Supply Chain Management and Finance, to create a unified operational ecosystem.
• Attach Licenses for Cross-Module Users: Users who need access to multiple Dynamics 365 apps can take advantage of attach licenses, which allow them to use both Project Operations and other Dynamics 365 functionalities like Sales or Customer Service at a reduced cost.

Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central is a cloud-based ERP solution designed for small and medium-sized businesses, offering a robust suite of tools across finance, sales, operations, and customer service. With a subscription-based pricing model, businesses can choose the license that best suits their operational needs, allowing for flexibility and scalability as their operations grow.

• Essentials License: The Essentials license costs $70 per user/month and is perfect for businesses that require a core set of ERP functionalities. It includes comprehensive features designed to manage financials, inventory, sales, and operations, making it ideal for businesses looking for a streamlined solution to manage everyday tasks.

• Financial management
• Sales and purchase order management
• Inventory management
• Project accounting
• Basic human resources management

• Premium License: The Premium license is priced at $100 per user/month and extends beyond the Essentials package to include additional features for managing complex business processes like manufacturing and service order management. It’s suited for companies requiring more advanced functionality, particularly those in manufacturing or field service.

• Manufacturing capabilities
• Service management
• Advanced project management
• Full inventory and warehouse management

• Team Members License: At $8 per user/month, the Team Members license is a cost-effective solution for users who only need basic access to the system. This license is designed for users who only need read-only access or limited interaction, such as running reports or submitting time entries.

• Read and approve access
• Run all reports
• Time and expense tracking
• Employee self-service access

In addition to the core Business Central licenses, users can enhance their capabilities by integrating other Dynamics 365 apps, such as Marketing, Sales, and Human Resources. These add-ons allow businesses to extend the platform’s functionality, making it a complete business management solution.

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