E-learning and LMS blog articles

When it comes to choosing a Learning Management System (LMS) for your business, understanding LMS pricing is crucial for making an informed decision. With 90% of companies in the training industry now using an LMS and the global e-learning market projected to reach $370 billion in 2026 (LearningNews), selecting the right platform at the right price point has never been more critical. 

The reality is that LMS costs vary dramatically-from free open-source solutions to enterprise platforms costing hundreds of thousands of pounds annually. But here's what many businesses don't realise: the sticker price is just the beginning. The true cost of an LMS includes numerous hidden expenses that can significantly impact your budget and ROI.

TL;DR: LMS Pricing at a Glance

• LMS costs range from free to £500,000+, depending on features, user volume, and complexity.

• Common pricing models include pay-per-user, pay-per-active-user, SaaS, and custom-built.

• Hidden costs like setup, integrations, customisation, upgrades and support often inflate the base price.

• Budget options may lack support, scalability, and features needed for business growth.

• Totara Learn offers enterprise-grade functionality with mid-range pricing, ideal for scalable L&D.

• Short on time? Head straight to our Moodle and Totara pricing page to discover cost-effective, value-packed solutions designed to maximise your ROI without compromising on features and service.

Understanding LMS Pricing Models: What Are Your Options? 

Pay-Per-User Pricing 

The pay-per-user model is relatively straightforward: You pay a fee based on the number of learners in your system during each billing cycle. This model works well for organisations with stable user numbers and high engagement levels. 

Typical costs: TalentLMS starts at £90/month for up to 40 users. JoomLMS starts at £300/year for 100 users (Your2025LMSPricingGuide).

On the surface, these figures might seem reasonable but often disguise their actual high costs – for example, 40 users x £90 = £3600 per month! Contrast that with a Moodle LMS from Hubken that starts at less than £3000 per year for 150 users. 

Best for: Companies with predictable user numbers and consistent training needs 

Pay-Per-Active-User Pricing 

This model only charges you for users who actually engage with the platform during the billing cycle. iSpring Learn's rates start at £2.75 per active user per month for 500 users and go up to £5 per user per month for 100 users (Your2025LMSPricingGuide).

Best for: Organisations with seasonal staff or fluctuating user activity

SaaS-Based LMS Solutions 

SaaS-based LMS development cost varies from £3,000 - £20,000 per year for small and medium-sized businesses to £50,000-£200,000+ for large enterprises with more comprehensive operational needs (Cleveroad).  

Best for: Most businesses seeking scalable, cloud-hosted solutions without technical overhead 

Custom LMS Development 

For organisations with unique requirements, custom development might be necessary. Custom learning management system development cost can range from £75,000 to £500,000+ (Cleveroad). The pricing may differ depending on the scope of the project, functionality selection and your unique specifications.  

Best for: Large enterprises with very specific and complex requirements or unique workflows 

The Hidden Costs of LMS Implementation 

Research shows that 44% of organisations are unhappy with their existing LMS, and 48% are exploring new or different learning technologies (Hubken), often due to unexpected costs that weren't factored into their initial budget.

Setup and Implementation Costs 

Beyond the monthly or annual subscription, most LMS platforms charge additional fees for: 

• System setup and configuration 
• Data migration from existing systems 
• User onboarding and training 
• Content uploads  

Integration Expenses 

The integrations may include HR software, CRM, Content Management Systems (CMS), Virtual Classrooms, Web Conferencing tools, Learning Record Store (LRS), etc. The more integrations your e-learning software will require, the higher LMS cost estimates you'll have to budget for.  

Customisation and Branding 

While basic platforms offer standard templates, most businesses need customisation for: 

• Brand alignment  
• Custom user interfaces 
• Specialised reporting dashboards 
• Role-specific permissions and workflows 

Fortunately, many of the above often come included as part of the implementation and configuration process of your new LMS. For example, with Hubken, our Totara LMS includes branding, customised dashboards, role and departmental specific permissions and workflows as standard in our LMS pricing.    

Ongoing Support and Maintenance 

Depending on the platform, you may have access only to basic support in your package. Priority support, extended hours, email or phone support, and having a dedicated account manager may result in extra costs.  

Software upgrades 

Probably the most common of ‘hidden’ costs is that of upgrading to the newest versions of the package you’ve purchased. These can run to 1000’s of pounds each year on top of your annual subscription price and is an often over-looked hidden cost of LMS ownership.   

Unlike most of the market, Hubken’s LMS pricing includes software updates as standard, meaning that our clients always have access to the latest features and security fixes without having to suddenly try to find additional budget! 

Real-World LMS Pricing Examples for 2025 

To give you a practical understanding of current LMS pricing, here's what popular platforms actually cost: 

Budget-Friendly Options: 

The following LMS solutions might be worth exploring if you are a smaller organisation with some or all of the following characteristics: 

• Annual revenue of less than £5m 
• Training budget of £1,000-10,000 per year 
• User base of 5-100 learners 
• Limited or outsourced IT resources 
• Focus is on basic training delivery and some mandatory training courses 

If the above describes your organisation, some of the products you might want to explore include: 

• Moodle: Free (if self-hosted) or cost-effective if done as a SaaS solution 
• TalentLMS: Free plans are available, and paid plans start at £90/month per user (Thirst)
• ProProfs: Starts at £15/month per user (Thirst)

While budget-friendly LMS options can seem attractive initially, they often come with significant disadvantages that can impact your organisation's training effectiveness and long-term costs: 

1. Limited Features and Functionality 

Most free or low-cost e-learning software offers limited features, which means you need to buy add-ons to meet your training needs. Budget LMS platforms typically offer: 

• Basic course creation tools only 
• Limited customisation options 
• Restricted reporting and analytics capabilities
• Fewer integration options with existing business systems 

 2. Hidden Costs That Add Up Quickly 

While LMSs can cut some training costs, budget LMS’s will inevitably contain a number of hidden costs that vendors don't always transparently display on their pricing page. These can include unexpected licensing or subscription costs, customisation fees, support and maintenance fees, and charges for upgrades, storage, or new users. 

3. Poor Customer Support 

Budget-friendly options often provide: 

• Limited support hours or channels 
• Self-service only support options 
• Slower response times to technical issues 
• No dedicated account management 

 4. Scalability Limitations 

Paying per learner means that organisations pay upfront for all users added to the learning management system, regardless of their actual usage.  

• User caps that become expensive to exceed 
• Limited storage capacity 
• Performance issues as you scale 
• Restrictions on advanced features needed for growth 

 5. Technical and Implementation Challenges 

Choosing to host your own LMS, such as Moodle, can also be a serious risk as it can cost you more in terms of time and effort. Budget solutions may require: 

• Significant technical infrastructure and expertise to set up and maintain 
• Longer implementation timelines 
• More hands-on IT management 
• Custom development for basic functionality 

6. Compliance and Security Concerns 

Lower-cost solutions may not provide: 

• Enterprise-level security features 
• Compliance reporting capabilities 
• Data backup and recovery options 
• Regular security updates and patches 

7. Limited Customisation Options 

Configuring a learning platform can take a lot of time and resources, especially if you have unique requirements. Budget LMS solutions typically offer: 

• Basic branding options only 
• Limited workflow customisation 
• Restricted integration capabilities 
• Fewer third-party app connections 

Mid-Range Solutions: 

For purposes of this blog, we’re defining a mid-range organisation as the following: 

• 50-500 employees 
• Annual revenue of £10m-£100m 
• Training budget of £10,000-£100,000 per year 
• Typically 150-1,000 learners 
• Small IT team
• Regional or multi-location presence 
• Established business looking to scale / automate training initiatives 
• Focus: Compliance, onboarding, employee training at scale 

For mid-range organisations, some of the options that deserve a closer look include: 

Totara Learn: Totara Learn is a cost-effective LMS that comes with enterprise-grade features like automated compliance tracking, collaborative working, comprehensive workflows and multi-tenancy. It’s ideal for mid-to-large organisations that are looking to scale up their learning needs. Plans with leading Totara Platinum Alliance partner, Hubken Group, start at £8730 per year for up to 500 learners.

TalentLMS: TalentLMS is a lightweight, cloud-based LMS designed for small to mid-sized businesses that need to roll out training quickly, starting at £90 per user per month 

Absorb LMS: Absorb LMS is built for mid-sized organisations that want core employee training functionality without a long implementation process.  

LearnUpon: LearnUpon is a cloud-based LMS built for organisations delivering training to diverse audiences, from employees to customers and partners Plans start at £15,000 per year (Capterra).

Enterprise Solutions: 

For organisations with the following characteristics, an enterprise-grade LMS is probably your best bet: 

• 500+ employees 
• Annual revenue £100m+ 
• Training budget between £100,000-£500,000 per year 
• Over 1000 users 
• Full enterprise IT infrastructure
• Integrations with other systems required 
• Focus: Complex compliance, comprehensive reporting and analytic needs, global deployment likely 

Totara: Totara Suite comprised of Learn and Perform also works as an Enterprise LMS solution, with a unique value proposition underpinned by its open-source foundation. Totara Learn offers robust compliance management, multi-tenancy capabilities and has LXP features built in as standard. Paired with Perform, it offers a completely integrated online learning and performance management solution. In addition, the system scales securely to support enterprise deployments with hundreds of thousands of users, yet requires less infrastructure than traditional LMSs. Totara prices with Hubken start from £8730 per year for up to 500 users.  

Docebo: Docebo is a cloud-based LMS designed for mid-sized and large enterprises, with costs starting at approximately £18,000 per year  (EducateMe).

Cornerstone OnDemand: Cornerstone OnDemand's pricing is subscription-based and typically starts around £6 to £10 per user per month (For 500 employees at £6 per user per month = a minimum cost of £3000 per month (Outsail), which is a very significant investment over a year (Over £100,000). 

Adobe Learning Manager: Adobe Learning Manager is mostly geared toward larger learning institutions such as academies, universities, etc.  It works well for internal training and onboarding new employees.  While the exact pricing isn't advertised, some sources suggest a per-user fee, with one mentioning a price point of £7 per user (Courseplatformreview). 

Our Recommendations 

If you’re a smaller organisation looking for a versatile yet comprehensive LMS solution that won’t break the bank, we’d recommend that you look at a Moodle LMS. With over two decades of development, Moodle remains a trusted platform thanks to its global community, continuous updates, and ability to support diverse learning needs. Even in today's competitive landscape, Moodle continues to lead the way for many L&D professionals. 

We’d also highly recommend Totara Learn as a versatile and powerful option for Mid-Range and Enterprise L&D needs. It easily bridges the gap between mid-range and enterprise solutions, and what makes Totara unique is: 

• Its open-source foundation means it is fully customisable with numerous APIs for seamless integration.
• Ability to define different hierarchical structures to automate complex workflows. 
• Advanced compliance and certification management means that Totara can adapt to your unique business needs with sophisticated compliance tracking, automated recertification workflows and detailed audit trails.
• Built in LXP collaborative working features and integrates performance management directly into the learning experience to connect individual development with organisational goals and competency frameworks. 
• Very cost-effective compared to most other LMS solutions.
• Scalability, the system scales securely to support enterprise deployments with tens (even hundreds) of thousands of users, yet requires less infrastructure than traditional LMSs.

Making the Smart Choice for Your Business 

Choosing your ideal LMS and deciding on which is the best LMS pricing model for your organisation depends on your specific needs, user base, and long-term goals. While it might be tempting to choose the lowest-cost option, remember that LMSs also account for 38% of the average learning technology budget (read our eBook, The Hidden Costs of Buying an LMS), making this a significant investment that deserves careful consideration.

Platforms like Totara Learn demonstrate that mid-range solutions can offer enterprise-level features while remaining more cost-effective than other LMS solutions. However, because research shows that 44% of organisations were found to be unhappy with their current LMS, it's imperative that you choose a platform that works for your organisation and can grow with your business and adapt to changing training needs. Don’t become part of this statistic! 

The right LMS at the right price will not only fit your current budget but will also deliver measurable value that justifies the investment for years to come. 

Ready to explore LMS options? Get in touch or book a demo with one of our LMS experts to discover what a powerful LMS from Hubken can do for your L&D initiatives.