Terraform Free Plan 2026: What's Included & What's Not
Honest breakdown of the free tier limits and features
Terraform pricing varies by team size and features, ranging from $0 to $0.99 per resource/month in 2026. Your actual cost depends on the tier you choose, contract length, and negotiated discounts.
Use the interactive pricing calculator to estimate your exact cost based on team size and requirements.
- Free tier: No free tier available
- Billing: Monthly and annual (save 15-20%)
- Hidden costs: Add ~35% for implementation, support, and training
Terraform offers a freemium model with limited features; upgrade to unlock more.
What's Included in the Free Plan
- Terraform CLI (open source, BSL license)
- Infrastructure as Code provisioning
- HCL configuration language
- Provider ecosystem (3,000+ providers)
- Local state management
- Community modules and providers
- Community support
What's NOT Included (Paid Only)
- Everything in Free tier
- Unlimited managed resources
- Project-scoped access controls
- Team-based permissions
- Cost estimation
- Webhook notifications
- Run tasks integration
- $500 trial credit included
Free Plan Limits
| Limit | Free Plan | Paid Plans |
|---|---|---|
| State management | Local only | Unlimited/Higher |
| Collaboration | Manual (file-based state sharing) | Unlimited/Higher |
| Support | Community only | Unlimited/Higher |
You'll Need to Upgrade When...
- You exceed the user limit
- You need features like Everything in Free tier or Unlimited managed resources
- You require premium support or SLA guarantees
- You need to remove branding or watermarks
- You need advanced integrations or API access
Hidden Restrictions on Free Plan
- Terraform branding may appear on your content or communications
- Support is limited to community forums or email with longer response times
- Export options may be restricted or include watermarks
- API access is typically limited or not available
- Advanced reporting and analytics require paid plans
Free vs Paid: Which Do You Need?
Free Plan is Enough If...
- You're an individual or very small team
- You need only basic features
- You don't mind usage limits
- Branding on output is acceptable
- Community support is sufficient
You Need Paid If...
- Your team is growing beyond limits
- You need advanced features
- Professional branding is required
- You need priority support
- Integrations/API access is critical
Free vs HCP Terraform Essentials Plan Comparison
| Free (Open Source) $0 | HCP Terraform Essentials $0.1/resource/month ($0.0001359/resource/hour) | |
|---|---|---|
| Features | 7 included | 8+ included |
| Support | Community/Email | Priority Support |
| Branding | Terraform branding | Your branding |
| Best For | Individual developers and small teams comfortable managing state locally | Teams getting started with paid IaC management who need basic governance and cost estimation |
Frequently Asked Questions
01 Is Terraform free?
Yes, Terraform offers a freemium plan with 7 core features included. However, there are limits on state management, collaboration that may require upgrading.
02 What's included in Terraform's free plan?
Terraform's free plan includes: Terraform CLI (open source, BSL license), Infrastructure as Code provisioning, HCL configuration language, Provider ecosystem (3,000+ providers), Local state management, and 2 more features. Key limits include State management: Local only, Collaboration: Manual (file-based state sharing), Support: Community only.
03 What's NOT included in Terraform's free plan?
The free plan excludes: Everything in Free tier, Unlimited managed resources, Project-scoped access controls, Team-based permissions, Cost estimation. You'll also have Terraform branding and limited support options.
04 When should I upgrade from Terraform's free plan?
Consider upgrading when: you hit user or storage limits, need features like Everything in Free tier or Unlimited managed resources, require premium support, or want to remove branding. The cheapest paid plan starts at $0.1/resource/month ($0.0001359/resource/hour).
05 Is Terraform's free plan really free forever?
Yes, Terraform's free plan is available indefinitely with no time limit. However, feature and usage limits may restrict what you can do without upgrading to a paid plan.
Get Terraform pricing updates
We'll notify you when pricing changes or new free features are added.