Microsoft Entra ID Pricing: Plans & Features 2026
From a free basic tier to the $12/user/mo Suite, Entra ID spans four plans. Pure Microsoft shops get the most value compared to Okta.
Microsoft Entra ID plans and pricing
Free
FreeBest for: Ideal for basic identity and access management needs
- ✓Basic user management
- ✓Directory synchronization
- ✓Security defaults with multi-factor authentication (MFA) via Authenticator only
- ✓Single Sign-On (SSO) across SaaS apps
- ✓Self-service password changes for cloud users
Microsoft Entra ID P1
$6/user/moBest for: Enterprise (M365 E3) and SMB (M365 BP)
- ✓Conditional Access with policy-based granular control
- ✓Phone call and SMS as MFA second factors
- ✓Self-service password reset (SSPR) with password writeback to on-premises Active Directory
- ✓Application Proxy for on-premises app access
- ✓Automated user and group provisioning to SaaS apps
Microsoft Entra ID P2
$9/user/moBest for: Enterprise (M365 E5)
- ✓Risk-based Conditional Access
- ✓Privileged Identity Management (PIM)
- ✓Identity Protection
- ✓Access reviews
- ✓Complete Identity Governance
Microsoft Entra Suite
$12/user/moBest for: Full Zero Trust identity + network access suite
- ✓Combines network access, identity protection, governance, and identity verification solutions
- ✓Includes ID Protection
- ✓Includes full ID Governance
- ✓Includes Internet Access
- ✓Includes Private Access
Microsoft Entra ID pricing: the quick answer
Microsoft Entra ID has a real free tier, and paid plans price per user per month on an annual commitment as of July 2, 2026: P1 is $6, P2 is $9, and the full Entra Suite is $12. P1 adds Conditional Access; P2 adds Identity Protection and Privileged Identity Management. Standalones sit alongside, Internet and Private Access at $5, ID Governance at $7. There is no month-to-month option, and if you already hold Microsoft 365 E3 or E5, P1 or P2 is likely bundled in already.
At $6/mo to start, Microsoft Entra ID sits 20% above the $5/mo median across 7 identity & access management tools we track.
Microsoft Entra ID cost calculator
What Microsoft Entra ID really costs
The per-user rates are clean, but two Microsoft-specific rules quietly raise the effective cost: how the licensing is enforced and what the Suite requires underneath it.
Pricing Expert Take
Independent analysis · Microsoft Entra ID
Value Analysis
Microsoft Entra ID is highly competitive, with its P1 plan priced at $6/user/mo and P2 at $9/user/mo, matching the category median of $9/mo. The Free plan offers basic SSO and MFA, but most businesses will need the P1 plan for essential Conditional Access and self-service password resets. For enterprise-grade risk-based access and identity governance, the P2 plan or the $12/user/mo Entra Suite are required, offering strong value for organizations already committed to the Microsoft ecosystem.
Hidden Costs
- Licensing compliance traps: Features like Conditional Access or Access Reviews require every user benefiting from the feature to have a P1 or P2 license, preventing partial tenant licensing.
- Implementation overhead: Small businesses often face high external consultant fees to properly deploy and configure Entra ID alongside Intune.
- Hybrid synchronization costs: Integrating on-premises Active Directory with cloud features requires additional infrastructure management and administrative time.
Red Flags
Microsoft strictly enforces tenant-wide licensing compliance, meaning buying a single P1 or P2 license to unlock advanced features for the whole tenant violates their terms of service. Users frequently get tripped up by these licensing requirements when configuring advanced governance policies.
"conditional access policy for just one user? ... Any things (problems) to consider"
"We had P1 and a couple of P2 when we configured Access Reviews."
Based on analysis of recent Reddit and G2 discussions.
Green Wins
The Microsoft Entra ID P1 plan at $6/user/mo offers best value for Microsoft 365 shops.
- Best value for Microsoft 365 shops
- Privileged Identity Management built in P2
- Massive scale and global reliability
User Voices
"what should we budget to hire someone to deploy Entra ID and inTune"
"Currently we are already in a Hybrid Szenario in most cases."
Verdict
Small businesses with basic cloud setups should stick to the Free plan, while growing teams requiring secure, policy-based access must opt for the P1 plan at $6/user/mo. Large enterprises needing strict compliance and risk-based security should invest in the P2 plan. If you want a dedicated, platform-agnostic identity provider outside the Microsoft ecosystem, consider Okta as a highly scalable alternative.
Microsoft Entra ID price history
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Frequently asked questions
How does Microsoft Entra ID pricing compare?
See how Microsoft Entra ID's 4 pricing plans stack up against similar Identity & Access Management tools.
Research Reports
Sources & Data Trail · Microsoft Entra ID
- 1.Official Pricing Page·Source of verified tiers(Checked: 2026-07-02)
- 2.Official Website·Official vendor website
- 3.G2·G2 verified user reviews · 4.5/5 · 909 reviews
- 4.Capterra·Capterra verified user reviews · 4.6/5
- 5.TrustRadius·TrustRadius verified reviews
- 6.PeerSpot·PeerSpot enterprise peer reviews