What a small business really pays for software each month
Quick answer
A 5-person small business typically pays somewhere between $150 and $850 a month for its core software: email and docs, chat, accounting, payroll, a CRM, email marketing and a password manager. Our "typical" example stack comes to $402.70 a month, about $80 per person, or $4,832 a year.
Want your own number? Plug your tools into the Software Stack Cost Calculator.
Here's how it usually goes. You sign up for one tool on a free plan. Then another. Somebody joins and needs a seat. Six months later there's a column of $8.75s and $14s on the card statement and nobody's quite sure what half of them are for.
Subscription creep. Every business gets it.
Why does small business software cost so much more than you expected?
Because almost nothing is priced as a single monthly fee anymore. Most tools charge per user. Some charge a base fee plus per person. A few charge per "seat" only for the people who need the paid features. And many advertise a monthly price that only applies if you commit for a year.
So a tool that looks like "$14 a month" is really $70 a month for five people, billed as $840 upfront. Not a scam. Just easy to underestimate.
What does a typical 5-person software stack cost?
Say you run a 5-person marketing agency (an example). You need business email and shared docs, a chat tool, accounting software your bookkeeper can log into, payroll for your team, a simple CRM for three people who sell, a newsletter tool and a password manager. Here's that stack at list prices.
| Job | Tool and plan | How it's priced | Per month |
|---|---|---|---|
| Email, docs, calendar | Google Workspace Business Standard | $14 per user × 5 | $70.00 |
| Team chat | Slack Pro | $8.75 per user × 5 (paying monthly) | $43.75 |
| Accounting | QuickBooks Online Essentials | Flat, up to 3 users | $85.00 |
| Payroll | Gusto Simple | $49 + $6 per person × 5 | $79.00 |
| CRM | HubSpot Starter | $20 per seat × 3 seats | $60.00 |
| Email marketing | Mailchimp Standard | Starts at $20 a month | $20.00 |
| Passwords | 1Password Business | $8.99 per user × 5 (billed annually) | $44.95 |
| Total | $80.54 per person | $402.70 ($4,832.40 a year) |
About $400 a month. Easy to forget, because it's spread across seven invoices on seven different dates.
A few notes on where those prices come from. Google Workspace lists Business Standard at $14 per user a month with an annual commitment, though new customers were being shown discounted rates when we checked[1]. Slack Pro is $8.75 per user when paying monthly, and Slack was running a 50%-off-for-3-months offer[3]. HubSpot listed Starter at $20 per seat, also with a lower promotional price shown[7]. I've stuck to list prices throughout so you're not budgeting on a discount that disappears in month four.
How much can it vary? Lean vs typical vs loaded
A lot. Free tiers and annual billing can take the same team down to about $150 a month. Upgraded plans across the board push it past $800.
| Job | Lean | Typical | Loaded |
|---|---|---|---|
| Email & docs | Workspace Starter $35 | Workspace Standard $70 | Workspace Plus $110 |
| Chat | Slack Free $0 | Slack Pro $43.75 | Slack Business+ $90 |
| Accounting | Zoho Books Standard $15 | QuickBooks Essentials $85 | QuickBooks Plus $140 |
| Payroll | Gusto Simple $79 | Gusto Simple $79 | Gusto Plus $140 |
| CRM | HubSpot Free $0 | HubSpot Starter (3 seats) $60 | HubSpot Professional (3 seats) $300 |
| Email marketing | Mailchimp Free $0 | Mailchimp Standard $20 | Mailchimp Standard $20 |
| Passwords | 1Password Teams Starter Pack $24.95 | 1Password Business $44.95 | 1Password Business $44.95 |
| Monthly total | $153.95 | $402.70 | $844.95 |
| Per person | $30.79 | $80.54 | $168.99 |
| Per year | $1,847.40 | $4,832.40 | $10,139.40 + $1,500 HubSpot onboarding |
The lean stack is perfectly workable for plenty of businesses. Zoho Books Standard is $15 a month billed annually[5]; HubSpot's free tools cover up to 2 users[7]; and 1Password's Teams Starter Pack is $24.95 a month billed annually for up to 10 people[9].
The loaded stack is where costs jump. HubSpot Professional is listed at $90 to $100 per seat a month, depending on billing, and carries a required one-time $1,500 onboarding fee[7]. QuickBooks Plus lists at $140[4]. Gusto Plus is $80 a month plus $12 per person[6]. Do you need all that? Maybe. But upgrade for a specific reason, not because the comparison chart made you nervous.
Honestly, most 5-person teams land closer to the typical column than either end.
Why does every new hire cost you software money?
Because the biggest lines grow with headcount. In the typical stack, each extra person adds $14 (Workspace) + $8.75 (Slack) + $6 (Gusto) + $8.99 (1Password) = $37.74 a month, or $452.88 a year, before any CRM seat[1][3][6][9].
That's small next to a salary, but it's real. The Employee Cost Calculator lets you add it to the true cost of a hire.
Some tools are friendlier as you grow. QuickBooks Essentials covers up to 3 users at one price[4], and in our example only the three people who sell get a HubSpot seat.
What do the main categories cost per user?
Email and office apps
Google Workspace: Business Starter $7, Standard $14 and Plus $22 per user a month on an annual commitment[1]. Microsoft 365: Business Basic $7, Business Standard $23.50 and Business Premium $32 per user a month, paid yearly[2]. If your team lives in Excel and Word, the Microsoft side may be the cheaper path overall; if not, Workspace Standard is a common pick.
Payroll
Gusto lists Simple at $49 a month + $6 per person, Plus at $80 + $12 and Premium at $180 + $22[6]. Worth knowing: Gusto holds a 1.9 TrustScore from 2,540 reviews on Trustpilot, where Trustpilot's AI summary says reviewers report slow support and payroll and tax-handling problems[10]. Payroll mistakes cause real stress, so read recent reviews before you switch.
Chat
Slack has a free plan; Pro is $8.75 per user paying monthly; Business+ is $18; Enterprise+ is $45 on annual billing[3]. Slack's Trustpilot score is 2.1 from 367 reviews, with complaints about support and login problems[11]. Many small teams stay on the free plan longer than they expect.
Accounting and CRM
We've compared these in depth: see the best cloud accounting software and best CRM for small business guides. And if you sell in person, a POS system is another monthly line to budget.
How can you cut your software bill?
Start with an audit. Pull three months of card statements, list every subscription, and ask one question about each: who used this last month?
You'll probably find something. An unused seat for someone who left. Two tools that do the same job. A "Pro" plan you upgraded to for one feature you never set up.
Then look at annual billing for the tools you're sure you'll keep. Google's listed prices assume an annual commitment, and 1Password's and Zoho's quoted prices are for annual billing[1][9][5]. Paying yearly saves money but locks you in, so do it only for the keepers.
And watch the renewal date on any promotional price. Put it in your calendar. Future-you will thank you.
Ready to add up your own stack? Try the Software Stack Cost Calculator. It's free and runs in your browser.
Frequently asked questions
How much does software cost for a small business per month?
For a 5-person team, our example stacks run from about $154 a month (free tiers and starter plans) to $845 a month (upgraded plans), with a typical stack at $402.70, or about $80 per person, at list prices (checked Oct 2026).
What software does a small business need?
Most need business email and documents, accounting, and payroll once they have employees. Many add team chat, a CRM, email marketing and a password manager. Start with the essentials and add tools when a real problem appears.
Is Google Workspace or Microsoft 365 cheaper?
Both start at $7 per user a month on annual billing. Google Workspace Business Standard is $14 and Microsoft 365 Business Standard is $23.50 per user a month (checked Oct 2026). Compare what each plan includes before choosing.
How much does each new employee add to software costs?
In our typical stack, about $37.74 a month per person for Google Workspace, Slack, Gusto and 1Password, or $452.88 a year, plus a CRM seat if they sell.
Should I pay for software annually or monthly?
Annual billing is usually cheaper and many listed prices assume it, but it locks you in. Pay yearly for tools you're sure you'll keep and monthly for anything you're still trying out.
Sources
Plan prices come from each vendor's US pricing page; review figures from Trustpilot, checked Oct 2026. Promotions and per-user prices change often, so check before you buy. See our editorial policy, methodology and affiliate disclosure.
- [1] Google Workspace pricing: https://workspace.google.com/pricing (checked Oct 2026)
- [2] Microsoft 365 for business plans and pricing: https://www.microsoft.com/en-us/microsoft-365/business/microsoft-365-plans-and-pricing (checked Oct 2026)
- [3] Slack pricing: https://slack.com/pricing (checked Oct 2026)
- [4] QuickBooks Online pricing: https://quickbooks.intuit.com/pricing/ (checked Oct 2026)
- [5] Zoho Books US pricing: https://www.zoho.com/us/books/pricing/ (checked Oct 2026)
- [6] Gusto pricing: https://gusto.com/product/pricing (checked Oct 2026)
- [7] HubSpot pricing (Sales / customer platform): https://www.hubspot.com/pricing/sales (checked Oct 2026)
- [8] Mailchimp marketing pricing: https://mailchimp.com/pricing/marketing/ (checked Oct 2026)
- [9] 1Password Business and Teams pricing: https://1password.com/pricing/business (checked Oct 2026)
- [10] Trustpilot: Gusto reviews page: https://www.trustpilot.com/review/gusto.com (checked Oct 2026)
- [11] Trustpilot: Slack reviews page: https://www.trustpilot.com/review/slack.com (checked Oct 2026)