Dynamics 365 Licensing Overview
Microsoft Dynamics 365 is a comprehensive suite of cloud-based business applications spanning both CRM (Customer Relationship Management) and ERP (Enterprise Resource Planning) functions.
It includes customer-focused CRM modules, such as Sales, Customer Service, Field Service, and Marketing, as well as ERP modules, including Finance, Supply Chain Management, Commerce, and Human Resources. Read our ultimate guide to Dynamics 365 Licensing & Negotiation.
Each application addresses a specific business area, but they all work within a unified Dynamics 365 platform. Licensing for Dynamics 365 is primarily offered as subscription licenses per user per month, which provides flexibility but can also introduce complexity.
Historically, Microsoft offered large, bundled licensing plans that covered a wide range of apps; however, today the approach is more modular. You choose the individual modules you need and mix-and-match licenses — ensuring you pay only for what your organization will actually use.
Dynamics 365 Full User Licenses
Full user licenses (sometimes called “Base” licenses) are the primary, comprehensive subscriptions for Dynamics 365 apps. They’re intended for core employees who require the complete functionality of a given module as part of their day-to-day job.
For example, a sales representative working in Dynamics 365 Sales or an accountant using Dynamics 365 Finance would each need a full user license for those apps.
This license provides unrestricted access to all standard features of the application – from entering or editing data to generating reports and configuring workflows.
Because full user licenses offer the entire range of capabilities, they are the most expensive option.
Pricing typically ranges from about $95 up to $210 per user per month, depending on the module. Given this cost, it’s wise to assign full licenses only to users who truly need the full breadth of features.
Dynamics 365 Attach Licenses
Dynamics 365 Attach licenses provide a cost-effective way to give users access to multiple Dynamics 365 modules. Once a user holds one Dynamics 365 app license as their primary base license (at full price), they can be assigned additional qualifying apps at a steeply discounted rate.
An attach license offers the same functionality as the full (base) license for that app – the only difference is the lower price.
For example, a Customer Service licensed user could add Dynamics 365 Sales for roughly $20 per month (versus paying $95 again), or a Finance user could attach Supply Chain Management for about $30 (instead of another $210). In both cases, the user has full access to the second app without incurring the full cost.
This attached model enables power users who work across multiple business areas to be licensed for all the necessary apps without incurring duplicate payments.
Each user still must have at least one full-priced base license, but any additional apps for that same person can be attached at the lower price.
This modular approach replaces the old all-in-one “Plan” licenses and ensures you only pay for extra functionality when it’s actually needed. Read our Dynamics 365 Negotiation Tactics: Reducing Your Microsoft CRM/ERP Costs.
Illustrative comparison of standalone vs. attach pricing:
| Dynamics 365 Module License | Standalone Base License | Attach License (for existing users) |
|---|---|---|
| Sales Enterprise (CRM) | $95 per user/month | $20 per user/month (when attached) |
| Customer Service Enterprise (CRM) | $95 per user/month | $20 per user/month (when attached) |
| Finance (ERP) | $210 per user/month | $30 per user/month (when attached) |
| Supply Chain Management (ERP) | $210 per user/month | $30 per user/month (when attached) |
Dynamics 365 Team Member Licenses
The Team Member license is a low-cost, light-use license designed for users who only require basic interaction with Dynamics 365 data.
Priced at roughly $8 per user per month, a Team Member license allows an individual to read data across the system and perform very limited tasks (for example, entering a time sheet or updating a personal info record).
Team Member users do not get the full capabilities of the main applications. They are restricted to special Team Member app experiences that allow viewing records and making minor updates. Anything beyond those simple read-and-write actions is not permitted under a Team Member license.
This license type is ideal for broad deployment to infrequent users, allowing system access without incurring excessive costs. For instance, a manager who only needs to read reports or an associate who just logs time could use a Team Member license.
The savings are significant – at ~$8, it’s only a fraction of a full license cost. Just remember: if a Team Member’s role expands beyond those basic tasks, you will need to upgrade them to a higher license to avoid any workflow roadblocks.
Dynamics 365 Device Licenses
While most Dynamics 365 licenses are assigned to named users, Microsoft also offers Device licenses for scenarios where multiple people share a single device.
A device license permits any number of users to access Dynamics 365 on one licensed device (for example, a shared store register or warehouse kiosk) without each user needing their own license.
This model is particularly useful in environments such as warehouses, factory floors, call centers, or retail stores. For instance, one device license on a shop-floor PC or retail POS terminal can cover all the employees who use that station across shifts. Instead of licensing every individual worker, you just license the device once.
Device licenses are significantly cheaper than full user licenses – often around $50–$75 per device per month.
This can drastically reduce costs when you have many users but only a few shared workstations. In the right situations, device licensing lets you avoid paying for dozens of separate user subscriptions by covering their usage under a single device license.
Capacity & Add-On Licenses
Beyond user and device licenses, you may need to license additional capacity or specialized features as add-ons. Each Dynamics 365 tenant comes with a certain amount of included storage and other resources.
Still, suppose your organization’s usage exceeds those limits. In that case, you’ll have to purchase extra capacity. Common add-ons include extra Dataverse storage, additional marketing contact packs, or AI and analytics features that are not covered by standard user licenses.
These capacity add-ons are generally licensed at the tenant level (not per user) and priced based on the quantity you need. For example, you might pay a set fee per additional gigabyte of database storage per month.
Because these costs can add up, it’s important to monitor your usage (storage, contacts, etc.) in the admin center. By keeping an eye on consumption, you can budget for extra capacity in advance and avoid unexpected overage charges or service limitations.
Dynamics 365 Cost Structure
Now let’s pull together the overall cost structure of Dynamics 365 licensing.
Below is a breakdown of typical subscription costs for the different license types:
- Full User licenses: ~$95 to $210 per user/month, depending on the app.
- Attach licenses: ~$20 per user/month for an added CRM app (about $30 for an ERP app) if the user already has a base license.
- Team Member: ~$8 per user/month (flat).
- Device license: ~$50–$75 per device/month.
- Capacity add-ons: Varies (e.g., additional storage, contacts, or AI features, often charged per unit).
All Dynamics 365 licenses are subscription-based. Under enterprise agreements, you typically make an annual commitment for a set number of licenses (even if billed monthly).
Be aware of Microsoft’s cancellation policy: you can usually reduce license counts only within ~72 hours of purchase or renewal.
After that, you’re locked in for the term (month or year). Plan carefully to avoid paying for unused seats, and adjust at the next renewal if needed.
Summary of Dynamics 365 license types and typical costs:
| License Type | Typical Price (per month) | Notes on Usage |
|---|---|---|
| Full User (Base) | ~$95–$210 per user | Full functionality for one Dynamics 365 module (e.g. Sales, Customer Service, Finance). Use for primary users of each core app. |
| Attach License | ~$20 (CRM) or $30 (ERP) per user | Discounted add-on license for additional apps, used by someone who already has a base license. Same features as a full license for that app. |
| Team Member | ~$8 per user | Light-use license with read access and basic writes. Ideal for infrequent or supervisory users who just need to view or log data. |
| Device License | ~$50–$75 per device | Shared device license for multiple users on one device (e.g. retail register, warehouse terminal). Cost-effective for shift environments. |
| Capacity Add-Ons | Varies by resource | Extra storage, contacts, AI credits, etc., purchased per tenant as needed (e.g. per GB of storage). Plan and monitor usage to control these costs. |
Checklist – Key Considerations for Dynamics 365 Licensing
- Identify which modules your users actually need. Don’t assume everyone needs every app; only license users for the modules they’ll use.
- Use attached pricing for multi-app users. If a user needs multiple Dynamics 365 apps, leverage attached licenses for any secondary apps to save money.
- Assign Team Member licenses for light users. Give occasional or read-only users the cheaper Team Member license instead of an expensive full license.
- Consider device licenses for shared environments. In retail, warehouse, or other shift-based scenarios, use a device license to cover all users on a shared terminal.
- Track capacity usage to avoid extra charges. Monitor storage, contact counts, etc., so you can buy add-ons before hitting limits (and to prevent surprise fees).
- Align license counts with actual user numbers. Don’t over-purchase long-term subscriptions; regularly audit and right-size your licenses to avoid paying for unused seats.
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