How much does a learning management system cost? 

Other things to consider will be the size of your business and scalability of the system, and what may be considered ‘hidden costs’ which could show up later down the line. Being knowledgeable about all of these points up front will allow you to make the right decision for your business.

A typical LMS will feature a user-based pricing structure. The cost per-user normally reduces as more users are added. This will combine with fees for e-learning courses, if the supplier provides them. You should also ensure any other criteria will be captured such as support options, implementation charges and other modules of the LMS if applicable. For a market value price it could range from completely free LMS providers all the way to millions of pounds per-year for enterprise level global solutions. At Access, example annual charges for an LMS will likely range from £7 Per-User Per-Year to £60 Per-User Per-Year.*

LMS price structures

One of the first things you will need to be aware of is specific LMS fee models and how they differ from each other. From here, you can make sure the LMS model suits your specific needs. 

Below are some examples of potential pricing structures that an LMS provider may offer: 

Model #1. Pay Per Learner 

A pay per learner price model means that you will pay a set price for a specific number of learners.  

Model #2. Pay Per Active User 

Under the pay-per-active-user pricing model, there are no charges for adding unlimited users to your LMS unless they actively log in and utilise the system within the billing cycle. While this structure may involve an upfront fee, the monthly fees vary based on actual usage.

Model #3. Pay as You Go 

This model is directly linked to usage so you will pay for the learning you undertake.   

Model #4. License Fee or Subscription 

The license fee model requires a subscription to be paid on a yearly basis and all users will have full use of the platform features and courses on offer.  

Model #5. Free to Use  

This model may be free to use, but that doesn’t mean there aren’t additional costs further down the line. It is important to be aware of things such as set-up costs, maintenance and customisation which can add up, so it won’t be entirely free to use.  

You can learn more about LMS Pricing Models in our article.   

Features that will impact the cost of LMS systems 

Before looking at the fee of an LMS, you should have a clear idea on what you want your LMS to offer you. At is most simple level, your LMS must provide the tools you need to assign, track and measure learning across your organisation.  

However, many Learning Management Systems have different levels or packages which offer additional features or benefits at a higher price point. Our article discussing how to choose an LMS will cover exactly what to look for.  

Some providers will have features grouped into different packages. For example, at Access we have three packages within our LMS offering:  

• Learning Lite includes features such as mobile access to learning, reporting tools to track progress and team dashboards
• Learning allows users to do all of the above and also build custom reports and learning pathways, track and report on continued professional development and the option to subscribe to additional eLearning content
• Learning+ offers everything within Learning Lite and Learning as well as our gamified mobile app Access Gamebrain, MS Teams and Zoom integration and customer learning and banner themes. 

Once you understand what features a supplier can offer, ask yourself what is essential for you. For example, are you looking to build question banks aligned to your specific learning that can be used to assess knowledge within diagnostic tools?

If so, this feature is only available in our Learning+ package. Although this costs more than the standard package, if it is a must-have feature for your organisation, it will be worth the additional costs in order to fulfil your needs effectively.  

Ten considerations that impact the learning management system cost 

1. Implementation
2. Migration
3. LMS features
4. Number of users
5. Hosting
6. Integrations
7. Training
8. Included content
9. Update/maintenance fees
10. Support

What support is included in the costs of an LMS?

When it comes to the LMS fee, it’s important to understand what features are impacting the overall cost. However, it may just be that your L&D budget doesn’t stretch very far.

If so, it’s important to look into any cost-saving opportunities that may be available. Below are some conversations to have with each of the LMS suppliers: 

• If there are discounts available for bulk product purchasing – such as HR tools or content packages
• Reduced annual fees or a cut to setup fees may be offered when signing up for a longer contract 
• Training or customer support package offers, when arranged in advanced, or planned on an annual or quarterly basis

Ten LMS cost questions to discuss with potential providers 

If you’re looking at different LMS providers and what they can offer, you need to have the right questions to hand. Getting direct answers to these questions will give you the crucial information regarding which provider can offer you the pricing and features that suit your specific LMS needs. Consider the following questions as discussion points: 

1. What is your pricing model? 
   
   
2. What LMS features does your basic LMS package include?
    
3. What features does your basic LMS package not include, that can be purchased additionally, or as part of a more comprehensive package? 
   
   
4. Do you have any implementation costs? 
   
   
5. Are there any costs for migration? (This applies if you are currently using another supplier)
   
   
6. Is training to use the system included, if not what is the cost for training? 
   
   
7. Is support for any issues included in the cost? If not, are there different support packages available? 
   
   
8. Is content included in the package and when content is updated, how is this managed?
   
   
9. Are there hosting fees involved?
   
   
10. Do you offer any discounts for the purchase of multiple products, such as a bundle offer?

Asking these questions will help guide the conversation surrounding cost. You’ll know exactly what you are getting within your LMS and what you will be paying overall. This will also assist when discussing options with decision-makers later down the line as you will be in a position to align your budget with your LMS needs.  

As we have explored within this article, there are many variables that will influence the question ‘How much does an LMS system cost?’. Understanding each type of LMS fee model and what it can offer your business will mean you can choose the right one for your specific needs whilst working within budgetary restrictions and larger business needs.  

*actual per user price is typically calculated based on total user numbers and if Learning content bundles are also included.