After more than five years without a change, Microsoft is announcing a Dynamics 365 Business Central (BC) price increase effective October 1, 2025. This will be the first adjustment in Business Central pricing since the product’s early days, reflecting value and new features Microsoft has added to the platform over time. In this blog, we’ll break down what’s changing, key enhancements delivered in Business Central since the last price increase over five years ago (like AI-powered Copilot and advanced analytics) and explain how you can lock in pricing before the increase takes effect.

What’s Changing on October 1, 2025?

Starting October 1, 2025, Dynamics 365 Business Central (D365 BC) subscription prices will rise for both new and renewing users. Renewals on or after this date will be at the new rates. This price update includes increased storage capacity per user license to handle growing data needs. Below is a comparison of the current vs. new pricing and storage allocations for Business Central licenses:

Key points: The Team Members (read-only/light use license) is not listed here, as its pricing remains unchanged in this update. These new prices will apply to new subscriptions starting on or after Oct 1st, and to subscription renewals that occur on or after Oct 1st, 2025. If your Business Central renewal comes due after that date, budget for the new rates.

Important: License costs listed are for annual contracts, paid annual. Annual contracts, paid monthly and monthly, paid monthly agreements will also increase at 5% and 20%, respectively, with the new rates.

Importantly, this Business Central price increase is an isolated change for 2025 – other Dynamics 365 products saw price adjustments in 2024, while Business Central was left unchanged at that time. Now, with Business Central’s first increase in years, Microsoft is aligning its cost with the many improvements delivered to the product. Let’s look at some of those enhancements that have greatly expanded Business Central’s capabilities (and value) since the last pricing revision.

Why the Price Increase? Five Years of Innovation

Microsoft has invested in making Dynamics 365 Business Central a more powerful and intelligent ERP solution. The price update reflects the value added to Business Central through continuous innovation over the past several years. Here are some of the major product enhancements since the last price change, which help explain why now is the right time for Microsoft to adjust pricing:

• AI and Microsoft Copilot Integration: One of the biggest updates to Business Central is Microsoft Copilot. It’s like having an AI assistant that helps you get things done faster. It can suggest next steps, handle repetitive tasks, and even save you from digging through long reports. For example, the new Sales Order Copilot watches for customer emails, then automatically drafts replies, creates quotes, or builds sales orders—no manual entry needed. You can also ask it to sum up complex financial data or generate product descriptions. It’s smart, simple, and saves serious time.
• Enhanced Analytics and Manufacturing Insights: Business Central’s reporting got a big upgrade. Now you’ve got built-in Power BI dashboards, plug-and-play reports, and tight Excel integration so you can dig into your numbers without needing extra tools. For manufacturers, new analytics now include non-inventory costs, plus new Power BI visuals help you keep tabs on production and inventory levels. Whether you’re forecasting demand or checking performance, it’s all easier—and more useful—than ever.
• Improved Interoperability with Power Platform and Microsoft 365: Business Central now plays way nicer with other Microsoft tools. You can see Power BI charts right inside your ERP, kick off automated workflows with Power Automate, and export data to Excel without jumping through hoops. There’s even a new feature where an incoming email can trigger Copilot to process a sales order. And if you use Teams? You can pull in Business Central data and chat about it with your coworkers in real time. It’s all designed to keep your tools talking to each other and make your day-to-day smoother.
• New Sustainability Management Modules: Tools that help you track your environmental impact. Sustainability Management module (rolling out in 2024–2025 releases) lets you measure things like carbon emissions, energy use, and waste—and tie that info into your financials. It also helps with new reporting rules like EU CSRD by creating standard reports and showing you ways to reduce your footprint. If being environmentally responsible matters to your business, this is a powerful, built-in way to do it.

These are just a few highlights. There have also been improvements in areas like user experience (a more modern interface and better performance), financial management (features for subscription billing, revenue recognition, and global regulatory compliance), and continuous enhancements in project/service management and supply chain functionality. You can review the detailed release notes on Microsoft’s site for more specifics on recent and upcoming features. Microsoft publishes semi-annual release plans for Dynamics 365 and the Power Platform, which outline all the new capabilities in each wave – a great resource to see the breadth of investment going into Business Central.

(For a comprehensive list of the latest updates, check out Microsoft’s official Dynamics 365 and Power Platform release planner site, which provides release details for Business Central and other apps.)

Using Dynamics GP? Now’s the Time to Plan Your Move

If you’re currently using Microsoft Dynamics GP and have been considering a move to Dynamics 365 Business Central, now is the time to take action. With prices set to increase on October 1, 2025, planning your migration before the deadline can help you lock in pre-increase rates—saving you money over the life of your contract.

Velosio’s ClearPath Consultation is designed to help GP users explore their path forward. Whether you’re ready to migrate now or just starting to evaluate your options, our specialists will guide you through what a transition to Business Central would look like—timing, costs, functionality, and more.

Schedule your ClearPath Consultation to discover your options and secure BC pricing before the deadline hits.

Locking in Your Current Pricing: Act Before Sept 30th, 2025

While the upcoming price increase relates heavily to the added value in Business Central, we understand that any cost change is a consideration for current or prospective users of the product. The good news is you can still lock in the current pricing for up to the next 3 years by taking action before the increase takes effect. Microsoft offers licensing agreements that allow you to fix your subscription price for 1-year, 2-year, or 3-year terms. If you renew or extend your Business Central subscription before September 30, 2025, and commit to a 12-, 24-, or 36-month term, you can retain the existing lower prices for the duration of that term, even after Oct 1 when prices officially go up. This means savings and predictability for your ERP yearly budget.

For example, an organization that signs a 3-year agreement for Business Central Essentials before the deadline would continue to pay $70/user/month for those three years, instead of $80 – a 14% savings per user until the agreement ends. Many of our clients choose to take this opportunity to avoid the price hike by securing their renewals in advance. We encourage all Business Central users to review their license renewal dates and consider early renewal or extended contracts if it makes sense for your business.

A strategic licensing review can also identify if you’re under- or over-licensed based on your actual usage, and whether new product capabilities (like those mentioned above) open up opportunities to eliminate licenses not needed. In some cases, customers find that new features (for example, improvements in Business Central might eliminate the need for certain third-party tools) can offset the cost increase or even reduce other expenses.

Maximizing Value from Business Central

Even with a slightly higher price, Microsoft Dynamics 365 Business Central remains one of the most cost-effective, comprehensive cloud ERPs for small and midsized businesses. AI assistance, enhanced analytics, and sustainability tracking, and much more over five years of releases, means you’re getting more capabilities for your subscription dollar. Microsoft’s cloud roadmap shows a strong commitment to Business Central’s future – from deeper AI integration to expanded global availability – ensuring that your investment in BC will continue to pay off as your total cost of ownership is reduced over the years.

Next Steps: Schedule Your License Review

Starting early with a little preparation now can go a long way toward minimizing impact on your organization. We are recommending you reach out for a personalized license review with our team. Velosio’s experts can help you map out a plan to secure current pricing, take advantage of any available discounts, and ensure you’re using all the new Business Central features that make the higher price point worthwhile. We can also discuss what the best contract length for your company would be.