Microsoft Dynamics 365 Business Central Price Increase: What Users & Partners Should Know

Just announced on May 6th, 2025 - Microsoft Dynamics 365 Business Central price increase is happening October 1st, 2025. This is the first price increase in over five years. In that time, Business Central has grown with many new features and improvements that add significant value to your investment. In this post, we’ll break down what’s changing on October 1, 2025, why it’s happening, and how you can plan ahead.

What are the Dynamics 365 Business Central price increases on October 1, 2025?

Microsoft has announced a price and storage capacity update for Business Central effective October 1, 2025. Below is a comparison of the current pricing versus the new pricing (along with the included storage per license):

Importantly, the price for Team Member licenses remains unchanged. This means the light-use “Team Member” users will continue at the same rate (with no reduction in their access or capabilities).

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.

For the main Essentials, Premium, and Device licenses, the increase equates to roughly a 10-15% uplift. Microsoft is also boosting the included storage for each license tier (for example, Essentials users get 3 GB of included data storage instead of 2 GB). This extra storage will help accommodate the larger databases and files that come with Business Central’s expanded functionality.

Why the Price Increase? (Five Years of Improvements)

You might wonder why prices are going up after so long. The short answer is that Business Central today is a far more powerful, feature-rich solution than it was five years ago. Microsoft has continually invested in updates, integrations, and tools that enhance the product’s value. The October 2025 adjustment helps ensure ongoing research & development while still keeping Business Central competitively priced. Here are some of the major enhancements added in the last five years:

• AI-Powered Copilot – Dynamics 365 Business Central now includes Microsoft Copilot (an AI-driven assistant) at no extra cost. Copilot can auto-generate product descriptions, suggest sales order line items, and answer questions using natural language. For example, using key item attributes (like color or material), Copilot can create compelling product descriptions in seconds, and even help you draft emails or find information without manual searches. This saves time and boosts productivity by handling tedious tasks with intelligent automation (Learn more about Copilot in Business Central here.)

• Rich Power BI Reporting Dashboards – Microsoft has rolled out Power BI integration and dozens of out-of-the-box dashboards and reports for Business Central. Users can easily visualize financial metrics, sales performance, inventory levels, and more with interactive Power BI dashboards embedded in Business Central. These reports (over 70 and counting) cover key business areas and allow you to dive into data or even build custom charts. This means better insights and decision-making at your fingertips, without needing separate BI tools.

• Improved Microsoft 365 and Teams Integration – Working with Microsoft 365 and Microsoft Teams alongside Business Central is smoother than ever. You can collaborate in Teams by sharing Business Central records (like a customer or order) directly into a Teams chat or channel, enabling everyone to view and discuss live data. Tight Outlook and Excel integrations let you edit data in Excel and publish back to Business Central, or draft invoices and emails with Business Central data from within Outlook. These enhancements make Business Central feel like a natural part of your daily Microsoft 365 workflow, reducing friction and boosting teamwork.

• Sustainability Tracking Tools – New modules for sustainability management have been introduced, allowing you to track and report on your organization’s environmental impact. Business Central now lets you record carbon emissions, energy usage, and other sustainability metrics in a dedicated ledger, similar to financial data. You can set up sustainability scorecards and run reports on greenhouse gas emissions and sustainability KPIs to help meet ESG goals. These tools make it easier to incorporate sustainability tracking into your operations and reporting processes, using the familiar Business Central interface.

These are just a few highlights. In addition, there have been countless other improvements in areas like manufacturing, warehouse management, user interface enhancements, better security, and performance upgrades. (For a detailed list of recent and upcoming features, check out the Microsoft Business Central release notes and the interactive Microsoft Release Planner for Dynamics 365.)

How to Plan Ahead and Maximize Value

With the upcoming Dynamics 365 Business Central price increase, now is a great time to plan ahead so there are no surprises. Here are a few steps to consider:

• Budget for the New Rates: Review your licenses (Essentials, Premium, Device, Team Members) and calculate the impact of the new pricing on your monthly/annual budget starting October. In many cases, the difference is relatively small per user, but it’s good practice to forecast this in your financial plans.

• Lock in Current Pricing (Before Sept 30, 2025): You have an opportunity to lock in the existing lower price before the increase takes effect. If you renew or extend your Business Central subscription for a 1-year, 2-year, or 3-year term before September 30, 2025, you can maintain the current pricing for the duration of that term. In other words, by committing to a term agreement now, you’ll delay the impact of the price change and continue paying the old rate during your term. Many organizations are taking this window to extend their contracts or add any needed users/licenses now to take advantage of the current pricing.

• Take Advantage of New Features: Make sure you’re using the features that have been added. For instance, if you haven’t tried out Copilot for automating descriptions or the new Power BI reports, now is the time – you’re already paying for them in your subscription. Similarly, explore the Teams integration or sustainability tracking if they align with your business. Getting more value from the product will help justify the slight cost increase and improve your business processes at the same time.

• Stay Informed on Upcoming Enhancements: Microsoft releases major updates to Business Central twice a year (wave releases). Keep an eye on the Dynamics 365 release plans to see what’s coming. Knowing which new capabilities are on the horizon can help you plan for training, process improvements, or new modules you might want to use. The Release Planner is a great resource to visualize timelines for upcoming features.

• Dynamics GP and SL Legacy Users: Now is the time to start thinking about your move to Microsoft Dynamics 365 Business Central. Purchasing your licenses before the Dynamics 365 Business Central price increase can help you save money during your transition. Whether you’re looking to stay on Dynamics GP or SL, explore cloud options, or fully migrate to Dynamics 365 BC, Velosio is here to help no matter the decision you make. Schedule a ClearPath Consultation to see what is next.

Velosio & Stratos Cloud Alliance are Here to Help

You don't have to go through the Dynamics 365 Business Central price increases alone...

For Microsoft Dynamics Users: Remember that you’re not alone in navigating this change. Your Microsoft partner is here to support you. If you need help from the #1 Dynamics 365 BC partner in North America (yes, it is true, we are not just saying that to make you impressed), reach out to us and schedule a license review for cost savings. 

For Microsoft Channel Partners: At Stratos Cloud Alliance, we are working closely with our network of partners to ensure everyone understands the changes and can make the best decisions moving forward. We can help you explore renewal options and discuss whether locking in a longer term makes sense for your clients. We also offer marketing, technical BC resources, and funding to help your organization navigate these changes and potential resource constraints. Schedule time with our team to learn more here.