Cost of a Magento Website: What Your Business Should Expect

Cost of a Magento Website: What Your Business Should Expect
Article by Maria MartinMaria Martin
Last Updated: October 28, 2022

Magento is a flexible, robust, and scalable eCommerce platform that allows you to build anything from small online shops to complex multi-category stores.

Magento has become the most popular choice for online merchants due to its ability to handle high volumes of traffic and transactions while providing flexibility in how you want your site designed.

But before you sign up with Magento, knowing what it'll cost you to run an effective online business is important.

Here's everything you need to know about the cost of a Magento website.

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What Is the Cost of a Magento Website?

When setting up a Magento website, one of the first questions is: How much does Magento cost?

As many elements factor into the cost of an eCommerce site, you'll need to establish a budget and scope of work.

An excellent place to start is your initial investment. Overall, a Magento website can cost between $12,000 and $250,000.

Of course, many factors will affect the Magento website cost, including the following:

  • The number of products and product SKUs in your inventory - The more items you plan to sell, the more development resources you’ll need.
  • The complexity of your website design - Your visual brand and desired user experience will dictate your needs for development and design.
  • The level of marketing support and retention strategies – You’ll need this to grow your traffic and sales. Customer service and marketing tools can add up quickly as you scale your business.
  • The level of technology and infrastructure your business needs to grow - To scale your business, you’ll likely need robust eCommerce hosting, security measures, and more.

Magento License Costs

A Magento license is the price you pay for the right to use the software.

Depending on your level of technology and infrastructure needs, you may need to renew your license after one year.

There are three editions of the Magento platform.

  • Magento Open Source: Free
  • Magento Commerce: $22,000+
  • Magento Commerce Cloud: $40,000+

Your yearly sales will be the basis of your Magento Commerce and Commerce Cloud pricing:

For annual gross revenues less than $1,000,000, the yearly Magento Commerce pricing is $22,000, while the annual Magento Commerce Cloud pricing is $40,000.

For annual gross revenues of more than $1,000,000, refer to the chart below:

Annual gross revenue 

Annual Magento Commerce Pricing 

Annual Magento Commerce Cloud Pricing 










More than $25,000,000 



Magento Hosting Costs

You'll also need to consider hosting costs to get your Magento site up and running.

Hosting provides a place to store your website's content, including imagery and product information. It's the backbone of your digital experience and can be shared or dedicated depending on your business's needs.

While it may sound like an excellent cost-saving solution, shared hosting can hurt your website's performance.

You'll need a higher-quality hosting solution if your website struggles with high traffic, performance issues, and downtime.

A dedicated server, for example, may be necessary for high-traffic websites or those that rely heavily on eCommerce.

You can expect to pay anywhere from $10 to $850+ per month for high-performance hosting.

Here are five Magento hosting providers you can tap to help your business:

  1. Cloudways
  2. SiteGround
  3. Hostinger
  4. A2 Hosting
  5. Nexcess
Get connected with the right Magento agency for your project.

Magento Extension Costs

Next, let's talk about Magento extensions. These third-party services and integrations can be added to your CMS to increase functionality and enhance your brand's digital experience.

For example, you may need to integrate a payment gateway or incorporate customer service software.

Depending on the complexity of your project and the number of extensions you need, expect to pay between $60 and $600.

The more functionality you need and the more complex your brand is, the more extensions you'll likely need to support your eCommerce site.

Keep in mind the more extensions you add to your CMS, the more support and maintenance you'll need to upkeep your website.

Domain Name

The domain name is the website address. Getting this right is important because it's the first thing visitors will see.

Traditionally, domain names have been sold on a first-come, first-served basis. If you have an idea for a domain name that someone else has already purchased, you'll have to find an alternative.

There are plenty of domain name providers out there. Some are more reputable than others, so it's essential to do your research.

Likely, you'll also have to pay extra for hosting. This is the fee that the company hosting your website will charge you every month.

It will depend on your website's bandwidth, but it is usually around $10 - $400 yearly.

SSL Certificate

An SSL Certificate is a standard security measure that protects your website's data. It encrypts sensitive information, like credit card numbers or login passwords.

This prevents cybercriminals from accessing your data. It also lets customers know that the website they're visiting is legit.

An SSL certificate is a must if you're running an eCommerce store. It's a legal requirement for collecting information from your customers. Besides, it's a great way to reassure your customers that their data is safe.

Depending on your chosen company, an SSL certificate will cost around $50 - $300 per year.

Magento Web Design

Magento is a powerful eCommerce platform that allows you to build and design the website you want. However, it's best to find a web design company if you don't have in-house design skills.

You can hire web designers remotely, and it can cost $5,000+.

There's no standard website design cost. It's important to understand that your quoted price will depend on several factors. A website design cost includes many different elements, which are not all one-time payments.

Your website design comes with monthly or annual maintenance fees.

SEO & Digital Promotion

SEO is crucial for Magento as an eCommerce platform. Digital promotion includes social media ads and paid advertising on platforms like Google AdWords.

You'll need to factor these ongoing costs for SEO and digital promotion into your Magento website budget.

The cost of Magento SEO and digital promotion varies from business to business. It all depends on how much you spend on each campaign, but preparing between $10,000 and $40,000+ per year is recommended.

Magento 2 Development

Building a Magento eCommerce platform from scratch is a good idea if you want your online store to stand out. However, it's essential to understand that it'll cost you.

It’ll depend on your development team. A Magento 2 development cost can range from $10 per hour to $60,000+ per year.

Freelancers usually charge $10/hour or more, while an agency would cost $25/hour or more. On the other hand, an in-house team can cost $60,000 per year.

The cost of Magento 2 development will depend on several factors. For example, the experience of the team you hire, their location, and the complexity of your project.

What To Look for When Hiring a Magento Development Team

Here are some things to keep in mind when hiring a Magento development team:

  • Experience with Magento - If you want your website to be up and running as quickly as possible, you'll want to find a team with experience building Magento websites. This will likely increase the project's cost, but it's worth it in the long run.
  • Technical ability - If a team has built hundreds of Magento websites, then it's likely they are very good at what they do. You'll want to ensure the team you hire has the technical ability to build the website you're hoping for.
  • Communication - Nobody wants to be left in the dark about the progress on their Magento site, especially if the project length is expected to be lengthy. Look for a team that is easy to communicate with, preferably through project management software.

Cost of a Magento Website: Things To Consider

Magento Offers Great Flexibility But Can Be Costly To Implement.

Magento is a powerful eCommerce platform that offers a lot of flexibility. It also offers many pricing structures, making it difficult to understand how much a Magento project will cost.

The cost of implementing Magento depends on several factors—notably the complexity of your project and how much customization you need.

Luckily, there are ways to improve the ROI of your website even before implementation begins.

When Should You Build a Magento Website?

There are a few different scenarios that could prompt you to choose Magento.

Here are a few common examples:

  • The best time to choose Magento is when creating a new eCommerce site from scratch. This is because you'll have complete control over your design, functionality, and functionality.
  • If you're looking to sell the same products across multiple channels, such as an online store and a brick-and-mortar store, then Magento is an excellent choice. You can quickly build one platform that can be used by both locations, saving you time and money in the long run.
  • If your current eCommerce platform is no longer meeting your needs or isn't scalable enough to accommodate future growth, then switching to Magento is the way to go.

There Are 3 Main Considerations Before Building a Magento Website.

  1. How many products and SKUs do you have? If your inventory is small and straightforward, using another eCommerce platform that uses little or no custom code may be more cost-effective.
  2. On the other hand, if you have thousands of products with multiple variations (size and color), then Magento is likely the right choice for your business.
  3. How many customers do you expect? A small shop selling only a few items might not need much in terms of customer service capabilities. However, if you intend to sell internationally or offer free shipping for all orders over $100, then Magento might be the best option for providing maximum flexibility.

Top Magento Development Agencies

1. Mtoag Technologies

  • Location: 41, Mtoag House, Goverdhan Colony, New Sanganer Road Sodala, Jaipur, 302019, India
  • Average Hourly Rate: $50/hr
  • Expertise: Educational App Development, BigCommerce Website Design, eCommerce Consulting, Enterprise Mobile App Development...

Mtoag Technologies creates and develops technologically sophisticated mobile apps for the web, e-commerce, M-commerce, IoT, wearable, AR/VR, Cloud integration, cross-platform, on-demand, enterprise mobility, etc.

Their main goal is to create and build platforms that let companies realize their full potential and boost the success and growth of their businesses. The agency has been active in the IT industry since 2009, and has contributed to the global success of more than 2000 businesses. 

Clients include Jim Carroll, saman shareef, Martin Dale.

2. Impressive Sol

  • Location: The Burns House, Woking, GU21 5LS, United Kingdom
  • Average Hourly Rate: $30
  • Expertise: Cloud Consulting, SEO, Digital Marketing, Graphic Design...

Impressive Sol is a UK-based web design company with plenty of credibility in design and multimedia. The company provides professional services to the client with outstanding results. 

They are specialists in interactive web and app development, Innovative web and App design, graphic design and up-to-date planned online marketing, using up-to-date and advanced tools for web designing and development to make vibrant, creative, flexible, interactive, exclusive, user friendly and aesthetically rich page layout and designs to give the best results to our clients.

Clients include Law Offices of Kerri Cohen, Bay Cleaning, Elite Cars Guildford and Surrey Airport Cars.

3. AddBloom

  • Location: Dbayeh | Marina Street | Seascape Building, Dbayeh, 00000, Lebanon
  • Average Hourly Rate: $60
  • Expertise: Integrated Marketing, Social Media Marketing, eCommerce Development, Legal Digital Marketing...

AddBloom is a solution-driven social and digital media agency. With over 11 years of experience, they service businesses in the US, Europe and MENA across different industry verticals.

They are a team of 40 professionals in the following departments:

  • Web and software development
  • UX/UI
  • Digital Strategic Consulting
  • Branding
  • Creative Design
  • Content Creation
  • Community Management
  • Digital Media Management
  • Performance Marketing

Clients include Garnier, L'Oreal Paris, BMW, MINI...

4. Brand You Development & Coaching Limited

  • Location: Brand You Development & Coaching LTD Suite 67, No. 20 Harcourt street, Dublin, D02 H364, Ireland
  • Average Hourly Rate: $200
  • Expertise: Branding, Financial Services Digital Marketing, Logo Design, Advertising...

Brand You Creative recognizes the importance of branding and marketing from concept to the final product. The agency is a market leader when it comes to branding and marketing. They help clients in developing company concept with the expertise of their professional team of designers.

Brand You Creative is a company that has developed and grown over time. It also began scripting and producing videos for the web embracing new technology in order to maximise the exposure of new businesses. Through this innovation, Brand You has established itself as one of Irelands leading digital agencies of today.

Clients include FML, Doyle Concrete, Balance Expo...

5. Webzin Infotech Pvt Ltd

  • Location: N1-14, N1, Block N1, IRC Village, Nayapalli, Bhubaneswar, 751015, India
  • Average Hourly Rate: $15
  • Expertise: eCommerce Development, Web Design, Mobile App Development, Digital Marketing...

A web design company on a mission of helping you create the optimum website which will offer your rival and competition websites the competition they need. They provide customized web development solutions to address your area of requirement.

Their team of specialists ensures that the web development tasks are completed in a reasonably short time, with full attention to detail. They are well-qualified in their respective specialties and have rich experience in programming/web application development and website designing.

Clients include Lloyd Security, The Bioflame, BizzyWeb, Advanded Urocare...

6. Inreact

  • Location: 2525 Ponce de Leon Blvd, #300, Coral Gables, Florida 3313, United States
  • Average Hourly Rate: $125
  • Expertise: Web Design, Website Development, SEO, Graphic Design...

Inreact are a full-service web design, applications, and online marketing company in Coral Gables, Florida. They have over 15 years of experience creating websites, branding collateral and online marketing campaigns for all industries including the University of Miami, Miami-Dade County Parks & Recreation, WDNA Radio, Deering Estate, and many other notable organizations.

Clients include Red Wine Catering, Lansight Technology, UZCA...

7. Ace Infoway

  • Location: 21900 Burbank Blvd., 3rd Floor, Woodland Hills, Los Angeles, California 91367, United States
  • Average Hourly Rate: $23
  • Expertise: eCommerce Development, Mobile App Development, Software Development...

Ace Infoway has been helping small and medium enterprises, agencies, and startups since 1999. Over the years, they’ve emerged as a preferred “GO-TO” technology partner for their customers in their digital transformation journey.

The agency provides web and mobile app development services to business enterprises with the right tactical approach to reach their target audience. They help businesses solve their unique challenges and stay ahead of the competition by providing inventive technology solutions.

Clients include OSHO, Thompson, CBIS...

8. Codendesigner

  • Location: 245 Goran Dhaka, Dhaka, 1219, Bangladesh
  • Average Hourly Rate: $25
  • Expertise: Magento Development, WooCommerce Development, Shopify, Website Development...

Codendesigner is a premium design agency that focuses on quality, innovation, & speed. They utilize technology to bring results to grow their clients' businesses.

They pride themselves in great work ethic, integrity, and end results. Throughout the years Codendesigner has been able to create stunning, award-winning designs in multiple verticals while allowing our clients to obtain an overall better web presence.

Clients include forminsoles, ADZ Impact, Bugleforklift...

9. Media Lounge

  • Location: Second Floor 8-10 Christchurch Road, Bournemouth, BH1 3NA, United Kingdom
  • Average Hourly Rate: $150
  • Expertise: Magento Development, eCommerce Development...

Media Lounge is a full service eCommerce agency whose team of over 35 eCommerce professionals work with retailers to architect and develop eCommerce projects using the latest cutting edge platforms (BigCommerce, Magento, Adobe Commerce and commercetools), chosen to compliment and future-proof B2C and B2B online retailers.

Their experience of working with over 400 eCommerce retailers allows them to build and maintain successful stores that convert through complex omnichannel experiences and provide the infrastructure and support so online retailers can focus on taking their business to the next level.

Clients include The Game Collection, CDKeys, Mr Lee's Noodles...

10. Gtechwebindia

  • Location: 612 Vishal Tower District Centre Janak Puri, New Delhi, 110058, India
  • Average Hourly Rate: $5
  • Expertise: Magento Development, Shopify, eCommerce Development, Website Development...

Gtechwebindia has a growing global presence with over 1000 clients from 30 countries and over a thousand full-time employees based in the Indian capital of New Delhi, delivering a comprehensive range of IT / BPO services that save our clients both time and money.

Continually refining and perfecting their procedures allows them to provide their customers with a distinct competitive advantage while also ensuring that their service offerings meet or surpass clients' expectations.

Clients include CREW CLOTHING COMPANY, Home and Living, Garden Shed...


  • Location: 10500 Little Patuxent PKWY, Columbia, Maryland 21044, United States
  • Average Hourly Rate: Inquire.
  • Expertise: Branding, Food and Beverage Branding, Industrial Design, Digital Design, Creative, Web Design, Responsive Website Design, SEO, Local SEO.

UPCREATIVES is a digital marketing, branding and design agency based out of Columbia, Maryland and has been operating since 2004. This agency provides creative and strategic services that encompass custom responsive web experiences that not only fare well across all platforms and devices but also ensure that your digital footprint will attract eyeballs.

Housing a team of experienced individuals of creative technology, strategists, marketers and designers, UPCREATIVES offers a full range of services to help you grow your business and reach new customers. Their specialties include brand identity, brand strategy and digital solutions, graphics, visual identity and visual design, print and marketing.

The UPCREATIVES team will work with you to create a custom strategy to help you achieve your goals. To get a better idea of UPCREATIVE’S work, check out some of their clients: Lois M, iXM Digital, Willie Wingz and RunwayStyle.

Cost of a Magento Website: Is It Worth the Investment?

Magento is a popular eCommerce platform with thousands of merchants using it to power their online stores. Determining the cost of a Magento website involves various factors, and consulting an enterprise application development company can provide insights into budgeting and customization options.

It offers many benefits to these businesses but also comes with a higher price tag than an alternative like WordPress.

To fully understand how much a Magento website will cost, you must first understand what is included in the build.

It is also best to consider the best time to build your new Magento site and what to look for when hiring a development team.

Magento supports a wide range of payment and logistics integrations. With a flexible pricing structure, it's easy to find an option that fits your budget and business needs.

Whether you're just starting or you've been in business for years, Magento has the features you need to build a successful eCommerce website.

We’ll find qualified Magento agencies for your project, for free.
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