Magento Website Cost: How Much Do You Actually Pay?

If you plan to open an eCommerce store choosing a suitable eCommerce platform might be a tough challenge.
This article will uncover the details of the Magento website cost for you to have a better financial preparation.

Chris / / last updated on

This is a guest post from my friends at Magestore. Thank you very much for contributing!

If you plan to open an eCommerce store as an online business or expand your retail business besides your physical store, choosing a suitable eCommerce platform might be a tough challenge. Magento climbs to the top recommendations for retailers to set up and manage one or many online stores.
This article will uncover the details of the Magento website cost for you to have a better overview and financial preparation to develop your eCommerce website.

Why Should You Choose a Magento Website?

According to the Store Lead Report, there are nearly 150,000 active Magento stores in the fourth quarter of 2023. Moreover, Magento accounts for 0,7% of websites on the Internet and approximately 12% of the market share in the eCommerce industry, along with giants such as Shopify, Woocommerce, and BigCommerce. Although Magento has not reached dominant market shares, it is still among the top choices for retailers. Explore the Magento website’s advantages below to see why you should consider a Magento website! Magento Stores per Quarter

Active Magento-based stores by quarters (Source: Store Leads)

  • Easy customization: You can create a website that is close to your imagination thanks to Magento’s flexible custom features of modifications.
  • Responsive mobile: Magento supports the display of mobile devices, which contributes the most to website traffic as people tend to use their phones for online shopping.
  • Seamless multi-platform integration: The Magento website enables you to integrate any third-party add-ons and modules to your website, such as Google Analytics, eBay, Paypal, and MailChimp, for better management and operation.
  • SEO optimization: Understanding the importance of SEO in an eCommerce store’s success, Magento offers many SEO-friendly features and extensions, such as search-friendly URLs, sitemaps, and layered navigations.
  • Optimal website speed: A fast loading speed is one of the key elements to building customer experience and satisfaction. Hence, Magento puts emphasis on providing the optimal website speed in its programming. Besides, Magento develops the PWA storefront (Progressive Web Application) for a seamless shopping experience with swift loading speed.
  • Flexible choices of hosting services: Building a Magento website does not require you to choose specific hosting providers. In other words, you can freely use any hosting services that suit your goals and budgets.

Components of Magento Site Costs

The cost of your Magento site varies based on:

  • Desired features: An eCommerce website needs to have standard features of user-friendly menus for easy navigation,responsive designs across devices, shopping cart, payment processing, etc. Besides, you can require more specific functions on your Magento site to make your brand stand out.
  • Customizability and integrability: The integration of various management systems and flexible customization enables your Magento website to fast-paced market changes, which supports your business scalability. Yet, the more you want, the higher the cost you have to pay.
  • Budget: Everybody wants to have a perfect website with smooth and secure operation, yet it costs a great deal of money. In such a way, you need to carefully consider how much you are able and willing to pay for a Magento website. Thus, you can easily make suitable decisions on expense allocation to build a website that meets your requirements without going over your budget.

How Much Does a Magento 2 Website Cost?

The costs that we mention in this section are related to the phases of setup, operation, and maintenance. Initial costs are what you need to pay to set up a Magento website, while ongoing costs are the necessary expenses to keep your website running in a secure way. We also discuss the hidden costs that you usually dismiss throughout the process. As a result, you can have more foundation to plan budgets for your eCommerce store based on the Magento platform.

Initial Costs (One-Time Expenses)

Magento License

You need a Magento license to set up a website. Magento has three versions, including Magento Open Source, Adobe Commerce, and Adobe Commerce Cloud, with different pricing plans that can easily meet your goals and budgets.

  • Magento Open Source is a free and open-source license so that you can download, install, and customize Magento without any cost. It is suitable for those who want to give it a try or have a tight budget. Yet, you won’t get any official support from Magento when using this license.
  • Adobe Commerce and Adobe Commerce Cloud are paid versions and more optimal for larger enterprises as they offer a wider range of features and functionality, along with 24/7 support from the Magento team. Adobe Commerce is now integrated into the Adobe Experience Cloud, a bundled solution for personalized digital experiences. These plans can cost you from $22,000 to $190,000 a year, depending on your yearly revenue.
Annual gross revenue Annual Magento Commerce Pricing Annual Magento Commerce Cloud Pricing
Less than $1M$22,000$40,000
$1M - $5M$32,000$55,000
$5M . $10M$49,000$80,000
$10M - $25M$75,000$120,000
More than $25M$125,000$190,000
Magento licenses’ pricing plans - Source: Magestore

Magento 2 Development

Magento website development cost depends on how complex your expected website is. The average rate can range around $2,000 if you want a simple website and over $10,000 if you want to add advanced features and functions. A developer might need a minimum of 40 hours to modify the main pages, like the homepage, product page, shopping cart page, and checkout page, even when you choose a free pre-made theme. Hence, the estimated manpower can reach $2,000 at the standard hourly rate of $50.

Magento Website Design

You can use a free Magento theme as an economical option, yet it might not work if you would love to have a website with an outstanding look. Paid Magento themes might reach up to $180 with various features and are open for customization. Website design costs do not stop there, as you need to have a designer craft display layouts across different devices, images, and colors in advance for the stage of web development. The design itself can cost you around $3,000.

Domain Name

There are two available domain registrar options, including expired domain names and brand-new ones. The cost range is $20–400 per year and $10–20 per year, respectively. Expired domain names indicate the already-established websites using those names but not maintained. If the expired ones are doing great in terms of reputation, sales, and marketing, buying an expired domain name can be advantageous for your business. Yet, if you want to create something for your own, you can come up with a brand new domain name and build it from scratch.

SSL Certificate

Secure Sockets Layer or SSL certificate is essential for your Magento website’s security and reliability. With an average cost of $50–300 per year, you can rest assured with a reliable website in terms of protected information and database from hacks or leaks.

Ongoing Costs (Recurring Expenses)


Magento hosting plans are what you need to pay per month to maintain your website’s ongoing operation. An average hosting expense is between $10–50 per month for a basic option. Meanwhile, a strong hosting plan can help your website run smoothly even when it deals with tons of traffic simultaneously. The most popular offer is $300 per month, while the most expensive plan can climb up to over $850 per month. However, you do not have to worry about this type of cost as it is already in the license’s pricing if you opt for Adobe Commerce Cloud. It is only applicable to those who choose Magento Open Source as the license.

Maintenance & Security

These costs refer to regular backups and updates to secure your online Magento website and its database from potential attacks. You might need to buy specialized extensions such as Magento 2 Security and pay for the expertise required for such highly skilled tasks. The cost of hiring an agency or a freelancer to handle your website maintenance and security averages between $20 and 125 per hour.

Extensions & Management Software

Basic features of a Magento eCommerce platform might help you set up a website, yet it might not be enough to run an optimal online store. That’s why you might need to install additional extensions and management software to manage both online and offline stores effectively. Thanks to Magento’s open API, you can integrate your Magento website with many helpful extensions and software and manage all operations with POS for ERP (Enterprise Resource Planning), POS accounting systems for synced sales databases across systems for real-time management. Some extensions and software are free for standard support, so if you require quality and advanced features, you should consider paid options. The average price range of a paid Magento extension is from $60 to $600, while the expenses of eCommerce management software can reach thousands of dollars if your scale is big and the required features are complex. Magento POS pricing varies on features and customizations.

Marketing & SEO

Marketing and SEO optimization are two crucial parts to kick off, gain, and maintain the reputation of a Magento website to benefit your business. Therefore, you should also focus on building an in-house or freelance team specialized in these two areas. It can cost you around $49,000 per year, including the services of website audit, keyword research, competitor analysis, content creation, digital ads, analytics reading, and reporting.

Payment Processing

Payment processing refers to handling online transactions within your Magento store. It is like a secure bridge connecting your customers' wallets to your bank account. Key payment service providers for your Magento website can be Stripe, Authorize.net, and PayPal as payment gateways and First Data, Global Payments, and Worldpay as payment processors. If you operate both brick-and-mortar shops while having an online Magento-based store, Magento POS will be a great help in processing payments from both online and offline sources. Merchants can utilize Magento POS for Stripe to add Stripe as a payment method for both online and in-store transactions. Although you do not have to pay for these providers’ setup costs, it will cost you a fee from 2.9% to 3.5% of the transaction value per successful one.

Hidden Costs

Performance Optimization

You should always optimize SEO to increase search engine ranks and improve website loading speed for a better customer experience. This can cost you around $50 - $150 per month for a specialist, not to mention the recurring cost of assisting extensions and tools that can range from $20 to more than $100 per month each.

Custom Development & Integrations

When your business grows, your product category and business sales might expand. It calls for updates or adjustments of more complex navigation on your website. Moreover, you might need to develop a unique function on your website that is not ready in the pre-made theme. It now comes back to the stage of website development and design, you might need to find a freelancer or an agency based on the scope of the project, its complexity, and your budget. As mentioned earlier, the average hourly rate for a freelance developer is around $50, yet it might rise up to $200 if you need an expert to handle the project. Besides, the range price of a development agency is between $5,000 and $10,000 for moderate projects. Your Magento eCommerce pricing can scale upwards if your requirements involve complicated integrations.


The thorough walkthrough of the Magento price above, hopefully, gives you deep cuts into what you need to pay to build and operate a website. However, giving the exact number of your Magento website cost is impossible as it relates to various factors. You can contact me to have a tailored consultancy through our 1-on-1 discussions on relevant aspects of your requirements for your requirements, budgets, desired custom functions, features, and integrations.

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