Buyer guide

What affects the cost to hire Microsoft Dynamics 365 developers?

Short answer

The cost to hire a Microsoft Dynamics 365 developer depends on the rate basis, role, seniority, product, allocation, duration, location, management, quality assurance and onboarding. A supplier's rate can include recruitment, screening and replacement that an employer pays separately. This MS Dynamics Guys guide shows how to compare a rate with a salary. It quotes no market rates.

Rate basis: what one unit of the price buys

Two offers with the same rate can lead to different totals over a year. The rate basis explains why: it sets the unit you pay for and what that unit covers.

Offers for a developer use one of three rate bases:

  • Hours or days of a named person. You pay for the time the developer records against your work. Time spent waiting for access or answers can be billed too, if the developer records it.
  • A monthly allocation. You reserve a share of one person's working month, for example half of it or all of it. You pay for the reservation, also in a quiet month.
  • A package price. You pay an agreed price for a defined result with acceptance criteria, as in an outsourced work package. The supplier plans its own hours inside that price.

The rate basis usually follows the engagement model. Staff augmentation versus project delivery compares the models by who directs the work and who carries the risk.

A rate alone tells you little. Ask every supplier the same questions, and write the answers next to each rate:

  • What is the smallest unit you bill: an hour, half a day or a full day?
  • Who records the time, in which tool, and who on our side approves it?
  • Do you bill onboarding, such as the first days spent on accounts, walkthroughs and reading existing code?
  • How much notice do we give to reduce or end the work, and is there a minimum term?
  • With a monthly allocation, what happens to unused days, holidays and sick days?

Ten drivers of the cost of a Microsoft Dynamics 365 developer

Each driver can raise the total cost, and each one has an input that you control. The last column lists what a supplier needs from you to estimate that driver.

Cost drivers for a Microsoft Dynamics 365 developer: what raises the cost and the input you provide
DriverWhat raises the costYour input
Rate basisA large minimum billable unit, or inclusions that nobody wrote downHours or days, a monthly allocation or a package price
RoleA rarer or broader skill than the work needs, paid at that skill's rateThe first tasks the developer will take from your backlog
SeniorityDesign decisions that the developer must make alone, without a reviewerThe decisions the developer will own, and who reviews the rest
ProductWork in X++, the programming language of Finance and Supply Chain Management, needs a development environment for each developer. On-premises systems need secure remote access for outside people.The app and version, and whether it runs online or on-premises
AllocationA part-time allocation that must stretch for release peaks, when extra days are hard to arrange at short noticeDays per week, and the weeks with peaks
DurationShort engagements that repeat onboarding for every new personThe expected length, and the notice you need
LocationLong daily overlap with a team in a distant time zone, which can mean shifted working hoursYour time zone, and the overlap hours you need each day
ManagementNo lead on your side, so direction must come from the supplierWho directs the work, and who accepts it
Quality assurance (QA)No automated tests, so each change needs manual retestingYour review and test rules, and the tests you have today
OnboardingNo accounts, licenses or sandbox on the first day, so paid time goes to waitingDay-one readiness: accounts, licenses, a sandbox and a first task

The drivers interact. A senior developer with clear first tasks and a ready sandbox can cost less in total than a cheaper developer who waits for access. Judge offers by the total for the same work, not by one driver.

How does a supplier's rate compare with a salary?

A salary and a supplier's rate pay for different things. Compare them line by line before you compare totals. The supplier column describes common arrangements; each proposal states its own.

What an employer pays for an employed developer and what a supplier's rate usually covers
Cost itemEmployed developerDeveloper from a supplier
Base payThe salary, paid in every month of employmentPart of the rate, for the hours, days or allocation that you buy
Employer taxes and benefitsPayroll taxes, insurance, pension and other benefits, set by local law and your policiesThe supplier's cost, carried inside the rate
Recruitment and screeningAdvertising or recruiter fees, interviews and technical testsUsually inside the rate: the supplier's search and its assessment before introductions. Our assessment process shows what an assessment can cover. Your interview time stays yours.
ToolsA laptop, software subscriptions and development toolsUsually the supplier's cost. If your security rules require your own devices, agree who provides them.
TrainingCourses, exams and the working time they takeThe supplier's cost. Training on your own processes stays with you.
Paid absence and idle timeHolidays and sick leave as your policy and local law set them, plus quiet weeks at full salaryDepends on the rate basis: time-based offers bill the time recorded, while a monthly allocation is billed whether or not you use it
ReplacementA new recruitment round when the person leaves, then onboarding for the successorThe replacement process agreed in writing. Onboarding the newcomer still takes your team's time.
Supplier marginNonePart of the rate. It covers the supplier's overheads, risk and profit.
Direction and reviewYour lead's timeYour lead's time when the developer joins your team; inside the price only when the supplier provides the lead
User licenses and environmentsYoursUsually yours as well; confirm this in the proposal

Compare two totals: the cost of employing a developer for a period, and a supplier's cost for the same work over the same period. Do not divide a salary by working hours and set the result next to an hourly rate. The salary leaves out most rows of this table, and the rate already contains many of them.

Which costs sit outside the developer's rate?

Some costs belong to your tenant, whoever writes the code, and they differ by product. Check them before you compare offers, because a developer's rate does not usually cover them.

Environments, licenses and update work to budget for an external Microsoft Dynamics 365 developer, by product
ProductEnvironments for development and testingLicenses and accessUpdate work
Customer relationship management (CRM) apps on Dataverse, such as Microsoft Dynamics 365 SalesA sandbox with the Microsoft Dynamics 365 apps enabled, because free developer environments cannot run these apps. Each new sandbox needs at least 1 gigabyte (GB) of free database capacity in your tenant. Extra capacity is bought as an add-on.An invited guest needs a license assigned in your tenant and a security role. A license from the guest's own company does not count.Two release waves a year, from April and from October. Early access lets your team test custom code in a sandbox first.
Microsoft Dynamics 365 Business Central onlinePremium and Essentials subscriptions include one production and three sandbox environments. You buy extra production environments through your Cloud Solution Provider (CSP) partner, and each one adds three sandboxes. Sandboxes allow only limited test runs. Large test runs belong in a container-based environment, which someone must host and pay for.License checks apply in sandboxes as they do in production. The license on each tester's account decides which features that person can test.Two major updates a year, in April and October, plus monthly minor updates. Test each extension before a major update reaches production.
Microsoft Dynamics 365 Finance and Supply Chain ManagementOne unified developer environment (UDE) for each X++ developer. A UDE is a sandbox meant for a single developer. Each new one needs at least 1 GB each of free Dataverse and operations database capacity.Creating a UDE needs a license that allows it, such as Finance or Supply Chain Management. A Power Platform or Microsoft Dynamics 365 administrator role also allows it.Microsoft releases four service updates a year, and you must take at least two. Test your extensions against each update you take.
Power Apps and Power AutomateEach developer who signs up for the free Power Apps Developer Plan gets a development environment with Power Apps, Power Automate and Dataverse. It is for building and testing only.Your administrator must allow the plan in your tenant. A guest who works in your Dataverse environments needs a license assigned in your tenant.Two release waves a year, with a release plan published before each wave. Check each plan against your apps and flows.

Microsoft updates each product on its own schedule, so update testing is a recurring cost. Reserve time for it in the developer's allocation, or regression work will push other tasks aside.

One cost is missing from every supplier's invoice: the hours that your lead, reviewer and testers spend with the developer. Budget them as carefully as the rate.

Example: an employee or a part-time developer for one year

Cost worksheet: answer these questions before you ask for quotes

Print this table, or copy it into a shared document. Fill in the last column with the person who will direct the developer, and send it with every request for a quote. Each supplier then prices the same assumptions.

Developer cost worksheet: one question per driver, with space for your answer
DriverQuestionYour answer
Rate basisDo you want to buy hours or days, a monthly allocation or a package price?
RoleWhich backlog items will the developer take first?
SeniorityWhich design decisions will the developer make, and who reviews the rest?
ProductWhich app and version do you run, and does it run online or on-premises?
AllocationHow many days a week, and in which weeks do you expect peaks?
DurationHow long do you need the developer, and how much notice do you want?
LocationWhat is your time zone, and how many hours of overlap do you need each day?
ManagementWho directs the work, who reviews it and who accepts it?
Quality assuranceWhich review and test rules apply, and which automated tests exist today?
OnboardingWill accounts, licenses, a sandbox and a first task be ready on the first day?

The worksheet works on paper and needs no script. This page has no cost calculator on purpose. A calculator needs approved rates, and this guide quotes none. Without real rates, a calculator could only show invented numbers.

How an estimate from MS Dynamics Guys starts

Each step produces something you can check. No step has a fixed duration; the pace depends on how complete your first answers are.

  1. Your answers

    Send the worksheet, or the answers you have so far. Real backlog items tell us more than a job title.

  2. Fit review

    We check whether a developer is the right answer to the work. If configuration, a project or another provider fits better, we say so.

  3. Role and seniority

    We agree the role, the product skills and how independently the developer must work. These choices shape the rate.

  4. Written proposal

    The proposal states the rate basis, the minimum billable unit, how time is recorded, billed onboarding, notice and replacement. It lists what the rate includes and excludes, with licenses and environments on separate lines.

  5. Your interview

    Each developer passes our technical assessment before an introduction. You interview each one and decide who joins.

  6. Agreement

    Commercial terms are agreed in writing per engagement and signed before anyone receives access to your systems.

What this guide is based on

This guide uses two kinds of material, and it labels both:

  • Microsoft documentation. Product statements, such as environment quotas, capacity rules and update cycles, come from Microsoft Learn. Each page is listed at the end of this guide with the date it was checked. Microsoft changes these rules, so read the current page before you set a budget.
  • Reasoning, not market data. The drivers, the salary comparison and the worksheet show how costs arise. The example is invented and labeled as such. No rate or salary comes from job boards, surveys or other suppliers, because such figures mix countries, roles and years.

A supplier's statements about its developers need a separate check. Ask how candidates are assessed, who reviews the work and what the assessment cannot show. Our answers to those questions are on the page about how we assess specialists.

When MS Dynamics Guys fits

MS Dynamics Guys fits buyers who want a developer estimate built on their own answers. The rate basis and its inclusions are written down before work starts. If your own hire or another provider suits you better, we say so.

A good fit when

  • You can answer most of the worksheet questions, or you want help answering them with your lead.
  • You want to compare an external developer with an employee, for the same work and the same period.
  • Your CRM apps on Dataverse need a C# developer for plug-ins, integrations or custom controls.
  • Your Business Central extensions need a developer who writes AL, the programming language of Business Central.
  • Your apps and flows in Power Apps and Power Automate need a developer.
  • Your Finance or Supply Chain Management extensions need an X++ developer.

Choose another route when

  • You want a rate card before anyone has described the work. We quote a rate only in a written proposal for a defined role.
  • You want to employ the developer yourself. We provide developers under a services agreement between two companies, and we do not recruit for your payroll.
  • You will choose on the hourly rate alone, without the other drivers on this page.

How does MS Dynamics Guys price a Microsoft Dynamics 365 developer?

We price from your answers, in a written proposal for one defined role. This site lists no rates, because each driver on this page changes the rate.

The proposal uses the rate basis of the engagement model you choose:

  • Staff augmentation: the hours, days or monthly allocation of each developer who joins your team.

Microsoft licenses, environments and capacity appear on separate lines of the proposal, as your costs. Notice, minimum term, replacement and overlap hours are agreed in writing per engagement.

Questions about the cost of Microsoft Dynamics 365 developers

What is the hourly rate for a Microsoft Dynamics 365 developer?

This guide gives no figure, because one number would mislead. A rate depends on the role, seniority, product, allocation, duration and location, and on what the rate includes. Published figures mix countries, roles and years, so they rarely match your work. Send the same worksheet to each supplier, ask for the rate basis in writing and compare totals for the same work.

Why is a supplier's rate higher than a salary divided by working hours?

The two numbers cover different costs. A salary divided by hours leaves out employer taxes and benefits, recruitment, tools, training, paid absence and quiet weeks. A supplier's rate carries those costs, plus the supplier's margin. Compare the total cost of the same work over the same period instead.

Is a part-time developer cheaper than a full-time one?

Per month, yes, at the same rate. Per finished task, it depends. A part-time developer needs the same onboarding as a full-time one, and work can stall between their days on your system. Peaks carry the main risk: before a Microsoft update or a release, extra days may not be free at short notice. Plan the peaks into the allocation from the start.

Do CRM, Business Central and X++ developers cost the same?

Not necessarily. Each product needs different skills, and the costs around the developer differ too. CRM developers write C# plug-ins on Dataverse, and each sandbox with Microsoft Dynamics 365 apps uses your tenant's capacity. Business Central developers write AL, the Business Central programming language, and three sandboxes come with the subscription. Each X++ developer needs their own UDE. Compare offers within one product, because a rate for one product says little about another.

Does a lower rate in another country cut the total cost?

Not by itself. The rate is one line of the total, and distance moves cost into lines that no invoice shows. Your lead writes fuller specifications and waits longer for answers and fixes. A long daily overlap can also raise the rate, because the developer works outside usual hours. Price the same worksheet with each supplier, then compare totals that include your lead's time.

Request a scoped estimate

Send the role, the app and version, the allocation and the expected length. Add your time zone, the overlap you need and who will direct the developer. We reply in writing, and we tell you plainly if we cannot staff the role.

Product documentation referenced on this page