Pricing guide
Microsoft Entra ID pricing explained: P1, P2, Suite, and what you already own
Prices as published by Microsoft, July 2026 — always verify current pricing with the vendor. Last updated July 2026.
Quick answer
How much does Microsoft Entra ID actually cost?
Short answer
Entra ID P1 is published at $7/user/month and P2 at $10/user/month (paid yearly), with the broader Entra Suite at $12/user/month on top of P1 — but many organizations already own P1 or P2 through Microsoft 365 E3/E5 bundles. Figures reflect Microsoft's published pricing as of July 2026 — verify with the vendor.
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What are Microsoft's published Entra prices?
Microsoft sells Entra as tiered ID plans (Free/P1/P2), a bundled Suite, and standalone products. The table below summarizes the published structure as of July 2026; exact figures change, so treat these as budgeting anchors, not quotes.
| Plan / product | Published price* | What to know |
|---|---|---|
| Entra ID Free | $0 | Included with Microsoft cloud subscriptions (Azure, Microsoft 365): MFA, unlimited SSO, basic reports, directory sync. |
| Entra ID P1 | $7/user/mo | Conditional access, advanced group management, RBAC, hybrid identity. Historically bundled with Microsoft 365 E3. |
| Entra ID P2 | $10/user/mo | Adds Identity Protection (risk-based conditional access) and Privileged Identity Management. Historically bundled with E5. |
| Entra Suite | $12/user/mo | Adds network access (Internet + Private Access), governance, and identity verification. Requires an existing P1 (or equivalent). |
| Entra ID Governance (add-on) | $7/user/mo | Access reviews, lifecycle workflows, entitlement management. Requires P1/P2 base. |
| Entra Internet Access / Private Access | $5/user/mo each | Standalone SSE products (secure web gateway / ZTNA) outside the core ID plans. |
| Entra Workload ID | $3/workload/mo | Priced per workload identity (service principals, apps), not per user. |
*Per user/month, paid yearly (annual commitment), as published by Microsoft (July 2026) — verify with the vendor. Enterprise agreement discounts are negotiated.
Audit what you already own first
The single most important step in Entra budgeting is not the price list — it's your existing Microsoft agreement. Microsoft 365 enterprise bundles have historically included Entra ID licenses (P1 with E3, P2 with E5), so many organizations evaluating a standalone IdP are comparing a marginal cost of roughly zero against a new per-user bill. That math is why Entra is the most common competitive quote in Okta renewals.
The counterweight: capability fit. Buyers who leave Entra usually cite third-party app lifecycle depth, admin experience outside the Microsoft ecosystem, or multi-cloud neutrality — see Microsoft Entra alternatives for when each reason holds up.
What are the pricing gotchas?
- Governance is a paid add-on: access reviews and entitlement management beyond the basics sit in Entra ID Governance ($7/user/mo published) on top of P1/P2 — a security review can double your identity line item.
- Suite requires P1 underneath: the $12 Entra Suite price is additive to an existing P1 (or equivalent) subscription, not a replacement for it.
- Annual commitment: published prices are paid yearly; there's no published month-to-month rate at these price points.
- Workload identities are separate: service principals and app identities are licensed per workload ($3/workload/mo published) — machine-heavy environments should model this line explicitly.
- Tenant-wide licensing pressure: features like conditional access are licensed per user; Microsoft's guidance expects every benefiting user to be licensed, so partial-tenant deployments need care at true-up time.
Frequently asked questions
How much does Microsoft Entra ID cost per user?
Microsoft publishes Entra ID P1 at $7 per user/month and P2 at $10 per user/month, both paid yearly on an annual commitment, as of July 2026. A free tier is included with Microsoft cloud subscriptions (Azure, Microsoft 365). The broader Microsoft Entra Suite is published at $12 per user/month on top of a P1 subscription. Verify current pricing with Microsoft — SKUs and prices change.
Is Entra ID included in Microsoft 365?
Partially. Microsoft 365 enterprise bundles have historically included Entra ID licenses (P1 with E3, P2 with E5). Before buying standalone Entra licenses, audit what your existing Microsoft agreement already includes — double-paying for identity you already own is the most common Entra budgeting mistake. Confirm entitlements with your Microsoft account team.
What does Microsoft Entra ID Governance cost?
Entra ID Governance is a separately published add-on at $7 per user/month (annual commitment) and requires a P1 or P2 base subscription, as of July 2026. Access reviews and entitlement management beyond the basics are not included in P1/P2 alone.
When is Entra ID cheaper than Okta?
If you already license Microsoft 365 E3/E5, the incremental cost of using the Entra capabilities you already own is often near zero, which is why Entra is the default competitive quote in Okta renewals. The trade-off is typically depth of third-party app lifecycle integrations and a heavier dependence on the Microsoft ecosystem — weigh capability fit, not just list price.
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