How Much Does a Magento 2 Website Cost: Editions, Services, & Additional Expenses

What is the most crucial part of starting a new eCommerce business?

Growing your business online requires finding reliable partners, setting up an effective marketing strategy, deciding on product assortment, or establishing a delivery service.

But the development of an eCommerce website is even more crucial. The way your website is built, the unique look and feel, custom functionality based on the best UX/UI approaches combined with the ease of purchasing process will determine the success of your future online store. That is why web development cost estimation is the primary concern among business owners.

Knowing the correct Magento 2 website development price will help you set the right budget, which will include most of the possible expenses. It is not easy to calculate website costs as many factors influence it. Throughout the article will be uncovered the following aspects of the Magento website development price estimation:

  • Magento 2 pricing for different editions
  • factors that form the Magento 2 website development price
  • Magento 2 developer hourly rates
  • benefits of hiring a web development company vs. a freelancer

How to Calculate Website Development Cost: Influential Factors

Magento 2 Development Cost Estimation

Magento website development is a complex process that comprises different steps and requires the use of various technologies and solutions. To better understand the overall flow of Magento 2 price calculation, it is crucial to consider all the factors that have the power to influence the final price, including the cost for Magento Editions to other expenses for development, hosting, website domain.

Let’s review each of the determinants in more detail.

Magento Pricing: Calculating Magento Editions Prices

Even though Magento is widely known for being an open-source platform, it also has other platform versions. In overall, there are three available versions of the Magento 2 eCommerce platform and the one you will choose dramatically influences the overall Magento 2 development cost:

  • Magento 2 Open Source
  • Magento 2 Commerce
  • Magento 2 Commerce Cloud

Let’s investigate each option separately.

  • Magento 2 Open Source

Is it possible to use Magento and pay nothing?

If that is the question you are most interested in, it might be a good idea to consider using this Magento 2 Edition. It is distributed as open-source software, which means that you can use it free-of-charge. It is aimed at small businesses and comes packed with limited options as compared to the other two editions.

Note that even though this version of Magento is distributed as open-source software, website development will not be for granted, unless you have coding experience. Otherwise, you will need to hire a specialist, pay for the website development services and be ready for additional associated costs.

  • Magento Enterprise and Magento Enterprise Cloud

Unlike the previous one, these two versions of the Magento platform are paid. While they require businesses to pay for the use, Magento Commerce and Magento Commerce Cloud allow enjoying wider functionality.

Magento Commerce vs Magento Open Source

The difference between the two versions is significant. They differ in hosting options. When you choose the first option, you also have to choose the right hosting and select the servers to run the Magento platform on them. By default, Magento uses AWS servers to host all sites built under the Magento Commerce Cloud license.

How much does it cost to use the Magento platform?

There’s no sole answer as the Magento Commerce or Magento Cloud license price depends on the gross sales revenue your company generates.

Generated revenue
(in millions)
Magento Commerce Magento Commerce Cloud
$0-$1 $22,000 $40,000
$1-$5 $32,000 $55,000
$5-$10 $49,000 $80,000
$10-$25 $75,000 $120,000
$25-$50 $125,000 $190,000

You should also remember that the above Magento pricing is not final as Magento reserves the right to change it on an individual basis. So, Magento 2 cost can be the same as in the table below, lower, or higher.

Calculate Website Cost: Additional Expenses

Magento 2 Price Calculation with Additional Expenses

Web development cost estimation should be approached from different angles as the final price have many determinants like hosting, design, the need for customization, themes, and even the expertise and experience of developers that will work on the project.

Apart from this, you want to ensure an extra budget is allocated for updating the Magento platform version, as every new version introduces important security and performance upgrades, essential for your online website.

The Magento website development price can be calculated as follows:

  • Domain

A domain name is one of the ways you can establish your brand identity. That is why the choice of the right domain is vital in the Magento website development process. The domain name itself should be both easy-to-remember and descriptive so that users would instantly recognize your store.

Depending on the budget and business needs, you can either buy a new domain name or an aged one (the domain that was already indexed by the search engines). While the first will cost you ~$10-15 per year, the latter can cost hundreds or thousands of dollars. When you purchase an aged domain, you get Domain and Page Authority along with it. At the same time, only a professional development agency can help you choose the right aged domain that will contribute to the fast growth of your store and not vice versa.

  • Hosting

If you decide to choose Magento Commerce Cloud, Magento will take on the task for you. In other cases, it is up to you to choose the right hosting providers. Depending on the size of your store and traffic it will generate, you have three options that differ in price. In the table below, you can see the head-to-head comparison of Magento hosting options with the approximate hosting service cost provided.

Features Security Price
Shared Server A single server hosts a few sites.
The activity of other sites impacts other websites.
Low security $4+ per month
Virtual Private Server A single server hosts a few sites and distributed resources between them Moderate security $30.00+ per month
Dedicated Server Dedicated server for each website with full control of a server. High security $100.00+ per month


  • Design

Magento website design cost also influences the overall Magento website development price. In a bigger perspective, the design directly impacts the conversion rate. Just remember that you have about 50 milliseconds to make a first impression on visitors. Design can make them leave immediately or continue to explore your store.

The most time and cost-efficient way to create a design of a Magento website is the use of Magento themes. When looking for a way to design your website in record time, this option might be the best choice.

Another solution is to hire a designer who will create a customized website design that will stand out among competitors. The main task of such a design is to give a unique touch to a storefront and build a website that will help convert visitors into customers.

  • Extensions

When out-of-the-box features do not meet all the requirements of an eCom business, extensions come in handy. Regardless of the Magento Edition, you decide to use, the choice of features is not limited to default ones. If an online store requires some specific functionality, like one-page checkout or advanced navigation, it can be easily added with the help of extensions.

Extensions are a valuable resource for businesses. They allow tailoring a storefront to the needs of a business. The number of available extensions is growing. Right now, there are thousands of them available that can be bought or used for free.

  • Freelancer vs. Magento development company

Magento website development is the most time and money-consuming part of creating an online store. The task of finding the right vendor should be approached with scrupulosity and understanding of what you want to get from developers, as they directly influence whether the final result will be up to your expectations or not.

Both freelancers and Magento development companies offer services to develop a store. However, the main difference lies in the results they can deliver. While you can hire a freelancer for as little as $10-20 per hour, nothing guarantees the quality of the services they provide. What is more, you cannot be sure that the developer will develop the website you want and will not disappear in the middle of the development process as it will leave you with a not-ready website. And it is easier to find a developer who will do everything from the ground and up than the one who will want to finish the work which has been started by a freelancer.

The services of a Magento development company usually cost more. When you hire a vendor, you are guaranteed to get the website you want to work with. Development agencies have in-house Magento certified professionals who know the best practices of developing an online store with the platform. You can expect high-quality solutions, the best stack of technology, and timely delivery of the website.

Basing your final decision only on the final cost of development services might not be the best idea. It is better to look for an advantageous ratio in regard to the cost and quality.

How Much Does a Magento Site Cost?

So, how much does Magento website development cost?

Now that you already know about the main influential factors, it is time to how much a Magento website will cost you. The table below provides the overall overview of the possible expenses in regards to the needed design, features, hosting, etc.

Services Basic Magento Website Medium Magento Website Advanced Magento Website
Design The use of a template with minor changes Custom design based on a template Custom design
Number of Pages 1-10 10-20 20+
Number of third-party extensions* 1-10 10-20 20+
Mobile optimization Responsive design Responsive design Unique design for mobile devices
Hosting Services Installation of Magento on a server Installation of Magento on a server Server optimization for the best performance
Timeline (in hours) 150-230 300-700 500-2000
Total Cost €800.00+ €4.100+ €10.300+

Please note that the above Magento web development cost estimation is an approximation. The final Magento website development price depends on different aspects, like the features you want to implement, the Magento Edition you choose, the level of design customization, and the expertise of the Magento development company you hire.
*Note: Only installation and basic configuration of third party extensions are included.

If you want to get a more precise estimation of the budget that is needed to develop a Magento website for eCommerce business, check out our web development calculator.

After you have successfully launched a website, the work is not finished. It is time to take care of further maintenance and support. These services include installation of the latest Magento security patches, server optimization, features and design updates, and other tasks. It is essential to add these costs to the overall price of Magento development.

GoMage Magento PWA Theme

Magento Website Development Price: Concluding Thoughts

The price of Magento development consists of different factors that may influence the final cost. To calculate the budget needed to bring your online store to life, you need to decide on the following matters:

  • choose a Magento Edition that will measure up to your business needs
  • buy a domain name that will become a part of your brand image
  • decide on the hosting provider (unless you decide on the hosted version)
  • think what design you want your store to have
  • identify all specific features a website must have
  • decide on the Magento development agency

*All prices mentioned in the article may vary based on the overall project complexity. Prices showcased here are provided for reference only.

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Frequently Asked Questions

Is Magento free or paid?

➡️ It depends. The Magento Open Source version is completely free to use for anyone who has a strong technical background. Meaning, if you know how to code PHP based applications, you can take advantage of the open source version. However, the Magento Commerce version, now renamed to Adobe Commerce, does come with a price tag.

How much does Magento 2 cost?

➡️ The average cost for Magento 2 development doesn’t go below $22k. However, the number can fluctuate, depending on your business needs.

Why is Magento so expensive?

➡️ The Magento platform can sustain large eCommerce stores with thousands of items in its catalog. It’s a complex solution for medium and large-sized businesses that takes much development and expertise. You would need a highly-skilled Magento software developer(s) to build your site, which may be rather expensive.

Is Magento good for small business?

➡️ The Magento Open Source version is available to anyone and completely free to use. That’s why it’s a good fit for small businesses that have an in-house developer who has had experience with PHP-based web applications.

How is web development cost calculated?

➡️ The first step to calculate the Magento development cost is to define your business objectives. After you list all features that your website needs, the web development agency will provide a quote, specifying the number of hours needed to implement everything you mentioned. The number of hours required for development will define the total cost of the project.

How much does Magento cost per month?

➡️ While the Magento Open Source is free, the Magento Commerce (or Adobe Commerce) will amount to $1,988 per month.

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