How to Negotiate Microsoft Entra ID Pricing in 2026
Proven tactics to save 15-30% on your contract
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.
Microsoft Entra ID pricing is negotiable — most buyers save 15-30% off list price. Base pricing ranges from $0-$12/user/month. Best times to negotiate: end of quarter (March, June, September, December). Verified from 1 sources by CostBench.
Negotiation Tactics
Bundle with Microsoft 365
Entra ID P1 is included in Microsoft 365 Business Premium and many E3/E5 SKUs. Negotiate your Microsoft 365 licensing deal to get Entra ID P1 or P2 included rather than paying per-user add-on pricing. Enterprise Agreement customers often get Entra ID features bundled.
Source: Microsoft licensing structure (current tier data)
Evaluate Entra Suite vs. Separate Add-Ons
The Microsoft Entra Suite at $12/user/month bundles capabilities that would otherwise be purchased as separate SKUs. For organizations needing multiple Entra products, compare the suite price against buying Entra ID P2 ($9) plus individual add-ons to determine which bundle is cheaper.
Source: Microsoft Entra Suite pricing (current tier data)
Best Times to Negotiate
Pro tip: The last week of each quarter has the best discounts. Sales teams are most motivated to close deals right before quotas reset.
Use These Alternatives as Leverage
Mentioning these alternatives during negotiation shows you've done your research and have real options:
Okta
Alternative to Microsoft Entra ID in the same category
JumpCloud
Alternative to Microsoft Entra ID in the same category
Cisco Duo
Alternative to Microsoft Entra ID in the same category
What's Negotiable vs. Non-Negotiable
Usually Negotiable
| List price / per-user cost | High |
| Multi-year discount | High |
| Free months / extended trial | High |
| Premium support inclusion | Medium |
| Professional services fees | Medium |
| Payment terms (Net 60/90) | Medium |
| Price lock for renewals | Medium |
| Custom contract terms | Low |
Rarely Negotiable
- Core product features (available to all customers)
- Data security & compliance standards
- Basic SLA commitments
- Platform architecture or roadmap
Focus your negotiation energy on pricing, terms, and fees rather than trying to change core product features or compliance requirements.
Sample Negotiation Email
Subject: Microsoft Entra ID Pricing Discussion - [Your Company Name] Hi [Sales Rep Name], We're evaluating Microsoft Entra ID for [use case] and are impressed with the platform. We're ready to move forward, but need to align on pricing for our [X]-person team. Our budget for this category is $[amount], and we're comparing Microsoft Entra ID with Okta. Given our readiness to commit to a multi-year contract, I'd like to discuss: • Discount for [2-3] year commitment • Fee waiver or credit • Fee waiver or credit • Price lock to prevent increases during contract term Can we schedule a call this week to finalize terms? Best, [Your Name]
Email Tips:
- Be specific: Mention exact user count and budget range
- Show alternatives: Name 1-2 competitors you're evaluating
- Bundle requests: Ask for multiple concessions at once
- Create urgency: Mention your timeline or decision deadline
Common Mistakes
- Accepting the first price offered
- Negotiating without competitive quotes
- Revealing your budget too early
- Signing at the beginning of a quarter
- Forgetting to negotiate renewal terms upfront
Frequently Asked Questions
01 Is Microsoft Entra ID pricing negotiable?
Yes, Microsoft Entra ID pricing is highly negotiable, especially for deals over 10 users or $10,000 annually. Most companies that negotiate save 15-30% off list price.
02 When is the best time to negotiate with Microsoft Entra ID?
End of quarter (March, June, September, December) and especially end of fiscal year. Sales reps are motivated to hit quotas and more willing to offer discounts to close deals.
03 What discounts can I expect from Microsoft Entra ID?
Typical discounts range from 10-30% depending on deal size, commitment length, and timing. Multi-year commitments typically get 15-25% off. Larger deployments (50+ users) often get 20-30% off.
04 Should I use a procurement team or negotiate directly?
For deals over $50K annually, consider involving procurement or a buying group. They have experience negotiating software contracts and may get better terms. For smaller deals, negotiating directly works well.
05 What if Microsoft Entra ID says the price is non-negotiable?
This is often a starting position. Ask to speak with a manager, mention you're evaluating competitors, or wait until quarter-end. If truly non-negotiable, negotiate on other terms like payment terms, support, or contract length.
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Prices and terms change; verify against the live pricing page.
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