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Microsoft Entra ID costs Free to $12 per user/month as of July 2026, with 4 plans available including a free tier. Plans: Entra ID Free (free), Entra ID P1 at $6/user/month, Entra ID P2 at $9/user/month, and Microsoft Entra Suite at $12/user/month. Pricing depends on your chosen tier, contract length, and negotiated discounts.

Use the interactive pricing calculator to estimate your exact cost based on team size and requirements.

  • Free tier: Yes

Microsoft Entra ID offers 4 pricing tiers: Entra ID Free, Entra ID P1, Entra ID P2, Microsoft Entra Suite. A free plan is available. Paid plans include Entra ID P1 at $6/user/month, Entra ID P2 at $9/user/month, Microsoft Entra Suite at $12/user/month.

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−94% above list price
Know Before You Buy — Try Microsoft Entra ID Free

Microsoft Entra ID true cost runs -94% above the listed $0-$12/user/month price as of July 2026. For a 25-person team, expect ~$150 in year-one costs vs the $2,700 base license. Key hidden costs: migration costs, consulting and professional services, licensing for all beneficiaries. Verified from 1 sources by CostBench.

Hidden Costs Breakdown

1

Migration Costs

high migration

Migrating to Microsoft Entra ID, especially from on-premises Active Directory, can incur significant costs, ranging from $25,000 (for Entra ID P1 entry) to $50,000-$150,000 if migrating off Entra ID.

industry

External Identities (B2B): While the first 50,000 Monthly Active Users (MAU) for Microsoft Entra External ID Basic tier are free, additional usage or premium features like SMS phone authentication incur charges.

2

Consulting and Professional Services

medium implementation

Organizations often require external expertise for planning, implementation, and configuration of Microsoft Entra ID, particularly for advanced features, and these costs are not typically included in licensing.

industry

External Identities (B2B): While the first 50,000 Monthly Active Users (MAU) for Microsoft Entra External ID Basic tier are free, additional usage or premium features like SMS phone authentication incur charges.

3

Licensing for All Beneficiaries

high overage

Microsoft's licensing model dictates that each user benefiting from a feature must be licensed, which can lead to higher-than-anticipated license counts.

industry

Licensing for All Beneficiaries: Microsoft's licensing model dictates that "each user that benefits from a feature must be licensed." This means if a feature like Conditional Access is applied, every account in scope, including privileged and secondary admin accounts, needs the appropriate license.

4

Long-term Audit Retention

medium compliance

Longer-term audit log retention beyond 30 days requires a separate Azure Log Analytics workspace, incurring additional Azure costs.

industry

Longer-term retention requires a separate Azure Log Analytics workspace, incurring additional Azure costs.

5

Azure Infrastructure Costs

medium addon

For hybrid environments or specific services, underlying Azure infrastructure costs like data transfer, VPN/ExpressRoute gateways, and private endpoints can add up.

industry

This includes data transfer (egress) charges, VPN and ExpressRoute gateways, and private endpoints, which have fixed hourly costs regardless of usage.

6

Workload Identities

low addon

Microsoft Entra Workload ID Premium, for managing non-human identities, costs $3.00 per workload identity per month and is not included in any Microsoft 365 plan or Entra Suite.

industry

Workload Identities: Microsoft Entra Workload ID Premium, for managing non-human identities like applications and services, costs $3.00 per workload identity per month and is not included in any Microsoft 365 plan or Entra Suite.

7

External Identities (B2B)

medium overage

While the first 50,000 Monthly Active Users (MAU) for Microsoft Entra External ID Basic tier are free, additional usage or premium features incur charges.

industry

External Identities (B2B): While the first 50,000 Monthly Active Users (MAU) for Microsoft Entra External ID Basic tier are free, additional usage or premium features like SMS phone authentication incur charges.

8

Hidden Labor Costs

high implementation

Managing Entra ID, especially in complex or hybrid environments, requires skilled IT time for various tasks, and these labor costs can be substantial.

industry

Entra ID P1: Costs $6.00 per user per month on an annual commitment.

9

Azure Outbound Network Configuration Costs

medium integration

Starting September 30, 2025, Azure removed default public IPs from VMs. Organizations using Entra ID with Azure-hosted services must now explicitly configure and pay for outbound internet access via NAT Gateway (~$38/mo), Azure Firewall Basic SKU (~$490/mo), or dedicated public IPs (~$3.65/IP/mo).

reddit

Starting September 30, 2025, Microsoft Azure is ditching the default public IP addresses for virtual machines (VMs). While this is a win for security (goodbye accidental exposure!), it's going to make things trickier for anyone relying on VMs for outbound internet access.

Example: True Cost for 25 Users

License (25 × $9 × 12) $2,700/yr
Migration Costs +$25,000 to $150,000
Workload Identities +$3.00 per workload identity per month
Azure Outbound Network Configuration Costs +$38-$490/month
Estimated Year 1 Total ~$150
That's roughly 0.1× the advertised license price.

Frequently Asked Questions

01 What hidden costs should I budget for with Microsoft Entra ID?

Beyond the license fee, budget for: Migration Costs ($25,000 to $150,000); Workload Identities ($3.00 per workload identity per month); Azure Outbound Network Configuration Costs ($38-$490/month). Total ownership typically runs -94% higher than the listed price.

02 Does Microsoft Entra ID charge for implementation?

Microsoft Entra ID implementation is not included in the license cost. Organizations often require external expertise for planning, implementation, and configuration of Microsoft Entra ID, particularly for advanced features, and these costs are not typically included in licensing..

03 How much does Microsoft Entra ID support cost?

Premium support pricing for Microsoft Entra ID depends on your tier and contract terms. See the sourced cost breakdown above for any verified figures we have.

04 Are there overage or storage costs with Microsoft Entra ID?

Microsoft's licensing model dictates that each user benefiting from a feature must be licensed, which can lead to higher-than-anticipated license counts..

05 What add-ons cost extra with Microsoft Entra ID?

Add-on pricing for Microsoft Entra ID varies by feature. The sourced cost breakdown above lists any verified add-on costs we have.

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Check current Microsoft Entra ID pricing

Prices and terms change; verify against the live pricing page.

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