Top free ERP and open source systems (plus hidden costs)

Using a free ERP system can be a great starting point for small businesses looking for their first system.

A free ERP system is exactly that - free. These systems are typically open-source or offer a free pricing tier, allowing businesses to use the software either at full capacity (often for a 7, 14, or 30-day period) or with limited features.

What is free ERP software?

Free ERP software usually falls under two models: open-source or software with a free user tier. The software begins at no cost - there are no installation or license fees to consider when implementing a free ERP system - the outlay of "cost" is your time and resources spent installing the system and migrating your data.

What is the best free ERP for a small business?

A free ERP is often a good initial step for startups or small businesses. A free system will provide some of the functionality of a full ERP, often with the option to pay for additional features.

The best one will depend on many factors, including cost and how quickly your business will grow. If your small business is expected to grow quickly, a free ERP system may not have the functionality to fully support you.

You may be better off paying for a system that can scale quickly, or identifying a solution that can scale without a costly data migration two years down the road. 

Why do some vendors offer a free ERP?

As with all software industries, some developers see the potential for faster, more flexible technological development by offering their software as open-source; many developers can pitch in and make large improvements, advancing the software and making it more comprehensive.

Vendors that offer a free tier of their software typically want your business to grow with their product, and as your needs grow, you will upgrade to their paid offerings. Free ERP systems may have limits on user numbers, transaction volume, or features.

As a company grows and sees the value of ERP, you will likely want to expand your features and functionality to fully support all your business functions. This may mean buying extra modules, such as adding an ERP finance module.

What is the best free ERP?

We researched and compared several open-source or free-to-download ERP systems. Consequently, we identified some of the best free ERP systems on the market, including:

• ERPNext
• Dolibarr ERP
• Odoo ERP
• iDempiere
• Scipio ERP
• Onfinity ERP (formerly VIENNA Advantage)
• MixERP

We'll discuss these below in more detail.

'Free' isn't always free

From both research and educational perspectives, free ERP systems can be a great way to learn about the operating vagaries of complex software systems, particularly given today’s access to cloud-based platforms.

In this environment, sophisticated systems can be turned upside down, tinkered with, or blown up entirely, with little negative impact beyond the risk of wasting installation time on systems that may offer neither complete documentation nor direct support.

Free ERP allows businesses the opportunity to 'test drive' the impact of an ERP, so to speak. ERP research detailed that the leading reason for implementing ERP is to increase efficiency. Businesses can accurately assess whether their system will help them meet business goals. However, in the commercial world, time is money and any ERP technology based on a free pricing model tends to offer a framework for processes at best, or a time-engulfing black hole at its worst.

Use this ERP pricing guide to understand ERP pricing models and compare real ERP costs

Beyond these caveats, free ERP software systems rarely come without a financial cost, since these platforms require the same implementation, configuration, and maintenance expenses as any other paid version.

That said, there are some particularly good products in the free ERP market. Let’s check out our original top free ERP systems.

1. Free ERP: ERPNext

At the lowest tier, ERPNext represented one of the more innovative shops among the cluster of best open-source ERP solutions. The original user interface was particularly simple, and many of the system’s processes appeared straightforward. At the time, the platform was ‘free’ for those who wanted to self-host the platform. The original research suggested that the only downside was that scalability needs were limited at the ‘free’ level. Nevertheless, for small enterprises, the platform performed effectively.

The company continues to grow and now maintains over 10,000 enterprises across the world in various stages of self-development. A major update now provides unlimited users in its free tier, making it one of the few ERPs offering such scalability at no cost. However, hosting services, if required, come at a cost. ERPNext remains well-suited for businesses needing advanced features in finance, inventory, and project management, with a growing user community contributing to its development.

2. Free ERP: Dolibarr ERP

Dolibarr ERP represents the next step in open-source development. The application appears easy to master and includes everything an ERP needs, including accounting, CRM, HR, and inventory modules.

3. Free ERP: Odoo Online

Odoo Online has continued to grow, with over 10,000 apps now available to enhance its functionality. The free tier allows for up to 50 cloud users, which is sufficient for many small businesses. Odoo’s wide array of modules and ease of use continue to make it a popular choice, though businesses that outgrow the free tier will need to upgrade to paid plans​

4. Free ERP: iDempiere

At the high end of the free ERP tier, iDempiere offered a particularly dense code base, effective user interfaces, and comprehensive reporting.

Although the system was open-source, to leverage the technology most effectively, the user was encouraged to have a well-informed IT team available to handle any implementation and configuration processes, backed by a cadre of third-party ERP consultants. 

This open-source offer is not for the faint of heart, so if you think it will suit your enterprise needs, be ready to bring your ‘A Game’ along with a solid cadre of techs to manage the platform.

5. Free ERP: Scipio ERP

Scipio ERP is an open-source solution with free entry-level software for small businesses specializing in eCommerce offerings. Their free version offers their templating toolkit and full support from the Scipio ERP community. They do offer support, extra themes, and components in their paid-for option, which starts at $5,000 annually. 

6. Free ERP: Onfinity ERP (fka VIENNA Advantage)

Onfinity offers a community edition of their software; they list a basic set of features designed for small businesses and developers looking to deploy a few ERP features to their organization. There aren't any support levels with their free offering.

7. Free ERP: MixERP

MixERP is an open-source ERP available on GitHub for developers. MixERP is built for small businesses and includes a large help document to assist users with its functions, including adding users, transaction reporting, and human resources features.

Why businesses may opt for a free ERP

Now, while the previous discussion largely addressed negative elements associated with open-source ERP systems, in concert with the three previous closing assertions, there are other clearly positive aspects as well. First, there’s the matter of reduced up-front costs.

To be frank, any enterprise that doesn’t fret over money is likely to fail sooner rather than later. Consequently, given the enormous direct and indirect costs related to operating an ERP platform over time, any enterprise would be insane to try to avoid typical costs relating to a platform’s initial purchase price.

Check out our guide to open-source ERP for a comprehensive walkthrough of what you can expect from a free ERP

For example, in order to license from 2 to 50 ERP seats in the cloud, the average price range is between $5k to 90$k; while at the same time, the same number of seats is purchased on a premise-ownership basis, that cost goes up by several magnitudes to range from $20k to $200k. So, regardless of how you’re going to house the ERP variant, these numbers are nothing to sneeze at.

Next up, there’s the matter of customization. In this case, and assuming that an enterprise is particularly tech-adept, open-source systems are perfect platforms for those who want resources and processes done on a proprietary basis. For example, consolidated sales reporting is a highly subjective art.

Some firms may want reports that display every sales revenue element rolled up on a ‘projected’ monthly total. However, other companies only consider ‘booked sales’ as valuable reporting metrics. Consequently, depending on a branded system's level of sophistication, how these reporting requirements differ could become a problem over time.

However, with open-source processes, users can easily alter how a system responds, and for the most clever enterprises, this characteristic can save thousands of dollars year-over-year.   

Probable costs relating to free ERP

In my 2017 analysis, we discussed ‘probable costs’ related to open-source, and to be blunt, not much has changed from then to now. However, at least one core evolution has altered the ERP open-source landscape over the past decade: the gradual acceptance of cloud use.

Gartner data from around that time indicated that branded cloud-based ERP adoption was at 81% across enterprises, with open-source adoption roughly at a similar rate.

However, by 2019, branded ERP systems continued to grow significantly, driven by their ease of cloud integration, scalability, and robust support systems. In contrast, open-source ERP solutions have stagnated or declined in enterprise adoption, particularly due to challenges in cloud transition and resource limitations for large-scale implementations.

Fast forward to 2026, where vendors like SAP and Oracle continue to dominate, while open-source alternatives show slower growth. These open-source platforms remain popular with SMEs but struggle to capture significant market share among larger enterprises due to fragmented support ecosystems and slower cloud adoption.

Disadvantages of free ERP

While enterprise-scale ERP platforms are designed to boost your bottom line, free, open-source versions come with significant risks. Here’s what you need to know:

1. High risk of error: Resource-based platforms change not only your operating processes but also how your team works. A simple task like creating an invoice becomes more complex when integrated into an ERP. If data gets corrupted or the system glitches, calculating a sales total can become a major problem. With paid systems, you can call tech support for help. With open-source software, you're on your own.

2. Lack of support and documentation: Open-source ERPs are often built by programmers for programmers, not for the end-user. This means they tend to grow organically without a clear plan. As a result, documentation is often poor, and direct developer support is usually weak or nonexistent.

3. Poor user experience (UX): In the open-source world, developers prioritize function over form. This can lead to clunky, unintuitive user interfaces that are difficult to navigate. The focus is on what’s "under the hood" rather than on creating a user-friendly experience.

While these issues are real, they can be managed if your company has a strong internal tech team and the financial resources to fix problems at a premium cost.  

Previously free ERP: xTuple ERP

xTuple, which previously offered free ERP software, now costs $175 a month. However, they do offer both self-guided and customized demos, allowing you to explore the features most relevant to your business at your own pace.

So there you go. If you think that your enterprise has the moxie to handle a self-developed ERP platform, feel free; nevertheless, always mind the minefields before you step off.