Start with the feature, not the product name. Microsoft Entra ID Free covers baseline identity and security defaults. Entra ID P1 is the usual minimum for Conditional Access. Entra ID P2 adds ID Protection, risk-based policies and a valid license for Privileged Identity Management (PIM). Entra ID Governance and Entra Suite cover broader lifecycle, access-review and network-access requirements, but each has its own licensing conditions.
A suite label such as “Microsoft 365” does not prove that every Entra capability is included. Entitlement can depend on the exact SKU, user population, cloud, agreement and the feature’s row in Microsoft’s licensing table. Use Microsoft Learn’s Microsoft Entra licensing page and the Microsoft Entra service description as the controlling references, then verify the licenses assigned in your tenant before purchasing or removing anything.
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Which Microsoft Entra plan do I need?
Use this as the first-pass decision map. The “starting point” is the lowest Entra tier to investigate, not a guarantee that every related service is included.
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|---|---|---|
| Basic directory identity and security defaults | Microsoft Entra ID Free | Free is included with Microsoft cloud subscriptions. Authentication methods and management controls vary by tier. |
| Conditional Access | Microsoft Entra ID P1 | Microsoft states that Conditional Access requires P1; Microsoft 365 Business Premium customers also have access. A connected service can impose additional licensing. |
| Risk-based Conditional Access, user or sign-in risk policies, richer risk detections | Microsoft Entra ID P2 with ID Protection | Microsoft identifies ID Protection and risk-based policies as P2 capabilities. |
| Privileged Identity Management | Microsoft Entra ID P2 or Microsoft Entra ID Governance | Microsoft’s licensing guidance says either provides a valid license for PIM and its settings. |
| Access reviews, entitlement management and identity lifecycle governance | Compare P2, Entra ID Governance and Entra Suite | The detailed feature matrix separates basic and advanced functions. Check the exact feature row rather than assuming P2 includes every governance function. |
| Secure employee access to internet and SaaS traffic | Microsoft Entra Internet Access or Entra Suite | Internet Access is sold separately and is also a Suite component. Confirm the P1/P2 prerequisite and service terms. |
| Secure access to private applications and resources | Microsoft Entra Private Access or Entra Suite | Private Access is standalone or Suite-included. Evaluate it against your VPN or zero-trust network-access requirement. |
| Identity governance plus network access and protection | Microsoft Entra Suite; compare Microsoft 365 E7 where applicable | Suite combines these areas and requires P1 or a package that includes P1. |
What Microsoft Entra ID Free provides
Entra ID Free is the baseline directory service included with Microsoft cloud subscriptions. It supports core user, group and directory identity operations and provides security defaults for a baseline multifactor-authentication configuration.
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“Free” does not mean every authentication option or management control is unlimited. Microsoft’s authentication table distinguishes capabilities across Free, Office 365, P1 and P2. Check the method and management control you intend to deploy—rather than treating security defaults as proof that every MFA configuration is available.
When Free is sufficient
- You need the directory and basic sign-in functions supplied with a Microsoft cloud subscription.
- Security defaults provide an acceptable baseline and you do not need policy-by-policy Conditional Access.
- You only need the audit and sign-in logs that Microsoft lists as available in Free.
Move to a premium tier when the required control is explicitly listed as P1, P2, Governance or Suite. Do not buy P1 merely because a marketing page mentions “advanced security”; map the actual control first.
When Entra ID P1 is the right minimum
Conditional Access is the main P1 threshold. It lets an administrator create policies that evaluate signals such as the user, application, device or location before granting access. Microsoft states that Conditional Access requires Entra ID P1, and separately notes access for Microsoft 365 Business Premium customers.
Does Microsoft 365 E3 include Entra P1?
Microsoft’s licensing page lists Entra ID P1 as included in Microsoft 365 E3. It also lists P1 in Microsoft 365 E5, Microsoft 365 E7, Microsoft 365 F1, Microsoft 365 F3, Enterprise Mobility + Security E3 and Microsoft 365 Business Premium. The inclusion applies to the specific offers Microsoft lists; do not extend it to similarly named or older SKUs without checking the current service description.
What P1 does not automatically provide
P1 is not a blanket license for every Entra service. Risk-based policies require ID Protection, which Microsoft identifies as a P2 feature. PIM, advanced governance functions, Internet Access and Private Access have their own requirements. A product that consumes Conditional Access may also have separate licensing terms.
When Entra ID P2 is required
P2 adds Microsoft Entra ID Protection and the risk signals used for risk-based Conditional Access. That includes user-risk and sign-in-risk policies, adaptive risk remediation and richer risk detections. If your requirement is “block or remediate a sign-in because Microsoft assesses it as risky,” evaluate P2 rather than stopping at P1.
Which Entra license includes PIM?
Microsoft’s detailed licensing guidance says Privileged Identity Management requires either Entra ID P2 or Entra ID Governance for the users covered by PIM settings. P2 is therefore a valid PIM license, but PIM eligibility does not mean that all governance features are included. Review the separate rows for entitlement management, access reviews and lifecycle workflows.
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P2 bundle availability
Microsoft lists Entra ID P2 as a standalone subscription and as included in Microsoft 365 E5 and Microsoft 365 E7. It also lists P2 in selected Defender Suite offers and Enterprise Mobility + Security E5. Because bundle names and terms change, verify the exact offer in the current service description before relying on an inherited entitlement.
Governance: P2, Entra ID Governance or Entra Suite?
Governance requirements are broader than a single PIM deployment. Access reviews, entitlement management and identity-lifecycle controls can have different license thresholds and user rules. Microsoft’s detailed feature matrix distinguishes capabilities across Free, P1, P2, Entra ID Governance, Entra Suite and other entries, including whether a capability is basic, advanced or in preview.
Choose Entra ID Governance when
- Your primary requirement is identity lifecycle governance, entitlement management or access-review functionality.
- You need PIM and want to evaluate Governance as an alternative to P2 for the covered users.
- You do not need the network-access products bundled in Entra Suite.
Choose Entra Suite when
Entra Suite combines Entra ID Governance and ID Protection with Private Access, Internet Access and premium Verified ID capabilities. Microsoft lists it as a standalone product and as included in Microsoft 365 E7. A P1 subscription—or a package that already includes P1—is required. Suite is useful when the same workforce needs governance, risk protection and both private-resource and internet-access controls; it is not evidence that every user or guest is automatically covered.
Use the feature matrix for the exact governance row. A short product summary cannot tell you whether a particular access-review scope, entitlement workflow, preview feature or guest scenario is licensed.
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Internet Access and Private Access licensing
Microsoft lists Entra Internet Access and Entra Private Access as standalone products and as components of Entra Suite. The Global Secure Access overview states that users need Entra ID P1 or P2 to use Internet Access and Private Access, and that the Microsoft services traffic profile is included in P1/P2.
That prerequisite does not prove that every standalone capability is included in P1 or P2. Treat it as an eligibility condition, then confirm the specific profile, SKU and service terms for your deployment.
Internet Access
Internet Access is aimed at securing employee access to internet and SaaS traffic. Evaluate it when your requirement is a cloud-delivered secure-access control rather than only an identity sign-in policy. Microsoft lists a standalone offer and a Suite-included version.
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Private Access
Private Access is aimed at access to private applications and resources. Compare its scope with your existing VPN or zero-trust network-access design, and verify that every user who will connect has the required Entra entitlement.
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| Entra capability | Standalone availability | Bundles Microsoft lists |
|---|---|---|
| Entra ID P1 | Yes | Microsoft 365 E3, E5, E7, F1 and F3; Enterprise Mobility + Security E3; Microsoft 365 Business Premium |
| Entra ID P2 | Yes | Microsoft 365 E5 and E7; selected Defender Suite offers; Enterprise Mobility + Security E5 |
| Entra ID Governance | Yes | Check the current service-description matrix for the exact bundle and feature |
| Entra Suite | Yes | Microsoft 365 E7, according to Microsoft’s licensing page |
| Entra Internet Access | Yes | Entra Suite |
| Entra Private Access | Yes | Entra Suite |
This table reflects Microsoft’s listed inclusions, not a promise that a similarly named legacy or regional offer has identical terms. The service description is the place to validate your exact subscription agreement.
Other feature thresholds administrators often miss
Logs, health and usage insights
Microsoft’s licensing table lists audit and sign-in logs in Free. Provisioning logs, health information, Microsoft Graph activity logs and usage or insights require P1 or P2/Suite according to the relevant row. If an operations team needs those diagnostics, include the log requirement in the license count instead of assuming that directory access includes every report.
Built-in and custom roles
Built-in roles are listed as free. Custom roles require P1 for each assigned user. Count the administrators receiving the custom role; do not assume that licensing one global administrator licenses every person who might receive it.
Administrative units
Administrative units have distinct rules for administrators, members and dynamic membership. The person administering an administrative unit, the users placed in it and users whose membership is calculated dynamically may not share the same requirement. Read the administrative-unit rows in the current table for your configuration.
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Guests, frontline users and previews
Guest billing rules, frontline scenarios and preview features can have special conditions. A license that works for a member user is not automatically valid for a guest or a frontline population. Record the user type and cloud in your entitlement check.
How to verify a license before you buy or change one
- Write the requirement precisely. For example, say “sign-in-risk policy for 800 employees” rather than “better MFA,” or “quarterly access reviews for contractors” rather than “governance.”
- Identify the covered population. List member, guest, frontline and administrator users separately. Note whether dynamic membership or a custom role is involved.
- Map the requirement to Microsoft’s feature row. Check the Microsoft Entra licensing table for the exact capability, including whether it is Free, P1, P2, Governance, Suite or preview-only.
- Check the bundle SKU. If you rely on Microsoft 365 E3, E5, E7, F1, F3, Business Premium or Enterprise Mobility + Security, confirm that your tenant has the precise offer and not a similarly named legacy plan.
- Check prerequisites and interacting services. Internet Access and Private Access require P1 or P2 access according to Microsoft’s Global Secure Access overview. Other services that work with Conditional Access may add their own license requirement.
- Check cloud and geography. Microsoft cautions that not all governance features are available in all clouds. Availability and terms can differ by commercial, government or other cloud environment.
- Validate in the tenant and agreement. Compare the licenses assigned to representative users with your purchase agreement and the service description. Keep a record of the SKU, user count and feature decision.
- Recheck before renewal or a redesign. Licensing, prices, bundle composition and preview status are volatile. Revisit the current Microsoft references before removing a license or expanding a policy.
Current U.S. list prices shown by Microsoft
The following figures were displayed on Microsoft’s U.S. Microsoft Security pricing page when accessed October 13, 2026. Each is a per-user price paid yearly. Microsoft says prices can vary by agreement, so these are not universal or guaranteed renewal prices.
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| Product | Displayed U.S. price | Billing qualification |
|---|---|---|
| Microsoft Entra ID P1 | $7.00 per user/month | Paid yearly; U.S. page, accessed October 13, 2026 |
| Microsoft Entra ID P2 | $10.00 per user/month | Paid yearly; U.S. page, accessed October 13, 2026 |
| Microsoft Entra Suite | $12.00 per user/month | Paid yearly; U.S. page, accessed October 13, 2026 |
| Microsoft Entra Internet Access | $5.00 per user/month | Paid yearly; U.S. page, accessed October 13, 2026 |
| Microsoft Entra Private Access | $5.00 per user/month | Paid yearly; U.S. page, accessed October 13, 2026 |
Your effective cost may be zero as a separate line item when the capability is already included in a qualifying bundle, but the bundle itself still has its own price and agreement terms. Do not use the standalone figures to infer the value or inclusion of an E3, E5, E7 or other suite.
Common licensing mistakes and how to avoid them
Assuming every Microsoft 365 plan includes the same Entra tier
Microsoft 365 E3 includes P1, while Microsoft 365 E5 and E7 include P2 according to the listed offers. Other Microsoft 365 names do not automatically inherit those entitlements. Match the exact SKU to the service-description matrix.
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P1 is the Conditional Access threshold, but risk-based policies require ID Protection, identified by Microsoft as P2. If risk signals are the requirement, evaluate P2 or an eligible bundle instead of relying on ordinary P1 policies.
Assuming P2 equals the whole governance portfolio
P2 provides PIM validity and risk capabilities, but governance features have separate rows and may be supplied by Entra ID Governance or Suite. Check the function—access review, entitlement management, lifecycle workflow or PIM—individually.
Counting only administrators
Some capabilities license the users being protected or managed, while custom roles and administrative units have distinct administrator and member rules. Build the count from the feature’s stated population, including guests where relevant.
Ignoring cloud availability
A feature listed for the commercial cloud may not be available in every cloud. Confirm availability for your tenant’s cloud before designing a control around it.
Treating a displayed price as permanent
The listed prices are dated U.S. observations on annual billing. Geography, currency, agreement type and later Microsoft price changes can alter the amount. Obtain the current quote under your agreement.
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Practical choices by administrator scenario
“We need MFA policies by app and location.”
Evaluate Entra ID P1 first. Security defaults in Free provide a baseline, but policy-based Conditional Access is the P1 threshold. Confirm the covered users and any separate requirements of the applications being protected.
“We need to block risky sign-ins automatically.”
Evaluate Entra ID P2 because ID Protection and risk-based Conditional Access are P2 capabilities. P1 alone is not the risk-policy entitlement described by Microsoft.
“We need just-in-time privileged administration.”
Evaluate P2 or Entra ID Governance. Microsoft lists either as a valid PIM license. Then check which administrators and role assignments are in scope.
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“We need quarterly reviews and approval-based access packages.”
Compare P2 with Entra ID Governance and Entra Suite using the detailed feature matrix. Access reviews and entitlement management can have different baseline and advanced rows, so the phrase “governance” is not specific enough for procurement.
“We want one product for governance, risk and network access.”
Evaluate Entra Suite. It combines Governance, ID Protection, Private Access, Internet Access and premium Verified ID capabilities, requires P1 or a package containing P1, and is listed as included in Microsoft 365 E7.
Bottom line for procurement
Choose the lowest tier that explicitly licenses the feature and population you will use: Free for baseline identity and security defaults, P1 for Conditional Access, P2 for ID Protection and risk-based policies, P2 or Governance for PIM, and Governance or Suite for broader lifecycle controls. Add Internet Access or Private Access only after checking their P1/P2 prerequisite and the exact service terms.
Before signing an order or changing assignments, reconcile the feature row, user type, cloud, SKU and agreement in your tenant. That verification is more reliable than assuming a broad Microsoft 365 label covers every Entra capability.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

