Azure Active Directory External Identities pricing

Secure and manage identity and access for your customers and partners

Azure Active Directory (Azure AD) External Identities is a cloud-based IAM solution that secures and manages customers and partners beyond your organizational boundaries. Built on an enterprise-grade secure platform, Azure AD External Identities is a highly-available global service scaling to millions of identities.

Pricing details

Azure AD External Identities pricing is based on Monthly Active Users (MAU), helping you to reduce costs and forecast with confidence. Benefit from a free tier and flexible, predictable pricing for external users:

  • Free goes further: Your first 50,000 MAUs per month are free for both Premium P1 and Premium P2 features.
  • Flexible: Connect with customers and partners based on the usage and features you need, rather than the licenses you have.
  • Predictable: Pay only for what you use. Forecast with ease as your business and usage scales. Customers are not charged for a MAU’s subsequent authentications or for storing inactive users within that calendar month.

Azure AD External Identities is billed starting at the following rates, including for Enterprise Agreement customers. Premium P2 features include all the Premium P1 features and market-leading Identity Protection and Identity Governance controls, such as risk-based Conditional Access policies and Identity Protection reporting for Azure AD B2C.

Premium P1 Premium P2
First 50,000 MAU $-/Monthly Active Users $-/Monthly Active Users
More than 50,000 MAU $-/Monthly Active Users $-/Monthly Active Users

Separate Charges

A flat fee of $- is billed for each SMS/Phone-based multi-factor authentication attempt.

Support & SLA

  • Technical support for Azure AD External Identities is available through Azure Support, starting at $29. Billing and subscription management support is provided at no cost.
  • Guaranteed 99.9% uptime of the Azure AD External Identities service. Read the SLA.


  • Read our documentation on how to set up your tenant for billing.
  • Only external and guest users—including customers, partners, and other collaborators—are eligible to use this service. Employee users must have an Azure AD license.
  • If you choose to provide higher levels of assurance using Multi-Factor Authentication (MFA) for Voice and SMS, you will continue to be charged a worldwide flat fee of $- for each MFA attempt that month, whether the log in is successful or unsuccessful. The worldwide flat rate provides greater predictability, by removing the price variations for SMS messages that are dependent on the telecom carrier or destination phone number. For example, if you have 100 monthly active users (MAUs) who make two MFA attempts that month, you would be billed $-, in addition to your usage: 100 MAUs x 2 MFA attempts/each = 200 MFA attempts x $-/attempt = $-
  • You have the option to switch to per-MAU billing, which offers your first 50,000 MAU for free at any tier. For nearly all Azure AD customers, this free credit of 50,000 MAU exceeds the number of guest seats currently granted based on employee licenses purchased.

    Azure AD customers who do not switch over will continue receive a free credit for 5 guest user seats for each the P1 or P2 license purchased.
  • All MAUs will be billed at the selected tier’s pricing. To learn about which features are suitable for your needs, please contact your partner or Microsoft representative.
  • No, you are not required to purchase Premium P2 licenses for employees in order to provide External Identities at Premium P2 to external users. You may need to purchase at least one Azure AD Premium P2 license for your admin to enable and manage Premium P2 features.
  • If you are an Azure AD B2C customer and have already been billed on a per-MAU basis, you will be automatically transitioned to this more affordable meter. Customers will gain new Premium features while continuing to enjoy the first 50,000 MAU free at every tier and incremental users billed at a low, flat rate.

    If you are billed on a pre-authentication basis, you will not see any changes to your billing until you switch. You have the option to switch to this simplified per-MAU billing at any time.

  • We worked closely with our customers to develop flexible, predictable, and cost-efficient billing that reflects the usage and features you need, rather than the licenses you have.

    With 50,000 free MAU at every tier, the vast majority of customers are able to use Azure AD External Identities for free. Incremental pricing for our Premium P1 and Premium P2 features enables organizations the flexibility to offer world-class security to any user, without needing to purchase more Azure AD licenses. All customers benefit from more accurate forecasting, with predictable month-to-month charges.

  • A monthly active user (MAU) is a unique user that performs an authentication within a given month. For example, a user that authenticates multiple times within a given month is counted as one MAU. Customers are not charged for a MAU’s subsequent authentications during the month, nor for inactive users.
  • Authentications may include:

    • Active, interactive login by the user;
    • Passive, non-interactive login (such as single sign-on, sign-up, sign-in, token refresh, and password change)

    Additional operations that are counted as an authentication include: login to a portal; redeeming an invitation; authenticating to perform an admin action; and when an application exchanges a refresh token for a new identity token or access token for that user.

  • Enterprise Agreement customers are eligible to switch to MAU-based billing, with 50,000 free MAU at any tier and a low, flat rate for incremental MAU. For more information, please contact your partner or Microsoft representative.


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