A Guide on MSP Pricing 2026: Models, Trends, and Best Practices

In the world of Managed Service Providers (MSPs), pricing isn’t just what you charge; it’s how you reflect value, manage cost, and build a predictable revenue engine. As we step into 2026, the landscape has evolved: cloud, security, hybrid work, and automation are all part of the story. Setting your pricing model right is foundational to growth, profit, and long-term client relationships.

This guide walks you through the key models MSPs are using today, what’s shifting, how to pick what works for you (and your clients), and how to structure your pricing so you’re not chasing margins but building them.

The Changing MSP Landscape

Before choosing a pricing model, it’s worth pausing to see what’s changed:

• Many small- and mid-sized businesses (SMBs) are outsourcing more IT work, especially in security, cloud management, and hybrid-infrastructure support.
  
• Traditional “per device / per user” billing is under pressure: BYOD, remote work, mobile devices, and cloud-native workloads complicate what exactly a “device” or “user” is. 

• Cloud and hybrid models mean usage is variable; clients expect flexibility and transparency. That opens the door for more outcome-based, value-based models rather than one-size-fits-all.
  
• Automation and operational efficiency matter for the MSP: you must manage cost, not just sell services. Pricing must reflect what you deliver and what you consume.

So for 2026 your pricing must do more than cover your costs; it must anticipate complexity, scale, value, and client growth.

MSP Pricing Models in 2026

Here are the main pricing models in use today. Each has pros, cons, and appropriate use-cases. Many MSPs will blend models rather than stick to one.

1. Per-Device Model

You charge a flat fee for each device you manage. Easy for clients to understand, simple to communicate.
 

Pros: Straightforward, easy to budget for.
Cons: Devices proliferate (mobile, BYOD, IoT). Managing smartphones, tablets, and cloud-only endpoints complicates the count. Also, you might incur more cost without more revenue if the device count rises, but the fee stays flat.

Use-case: Works best for fixed, predictable endpoint estates (e.g., office PCs + laptops) where the device base is stable.

2. Per-User Model

You charge a fee per user (regardless of device count) whom you support.

Pros: Aligns with people rather than machines. If one user has multiple devices, pricing stays simple for the client.
Cons: Device count may grow, but revenue doesn’t; also harder if user profiles differ greatly (one user uses many devices, or heavy usage).

Use-case: Suitable when your support model is very user-centric (help-desk, end-user devices) rather than infrastructure-heavy.

3. Tiered / Bundled Model

You build service tiers (Bronze/Silver/Gold, etc.), each with a bundle of services at a set price.
Pros: Enables segmentation: smaller clients take the entry tier, larger clients pay for the premium. Upsell path built-in.
Cons: If tiers are too rigid, you may lose clients whose needs don’t neatly match. Also may complicate internal operations if many tiers.

Use-case: Effective when you have differentiated service levels (e.g., basic monitoring package vs full security/compliance offering).

4. Value-Based / Fixed Fee Model

You charge a flat fee for comprehensive services (acting as the client’s IT department). Fee reflects value, not just cost or count.

Pros: Easy for clients (one price), allows you to capture value rather than just activities. Good for MSPs who have streamlined operations and high trust.
Cons: If your costs rise (unanticipated events), you bear the risk. Clients may question what they’re paying for if service definitions are vague.

Use-case: For clients who commit to you as their IT partner, with a clearly defined scope and mature MSP operations.

5. Usage / Pay-As-You-Go / Consumption Model

Particularly for cloud or hybrid infrastructure, you charge based on actual usage (compute hours, storage, data transfer) or a management fee on client spend.

Pros: Closely aligns with client cost structure in the modern cloud world. Transparent. You can target growth in usage.
Cons: Revenue may fluctuate; more complex to manage; clients may expect a granular breakdown; you need tooling for usage tracking.

Use-case: Strong fit for cloud-heavy clients or MSPs managing cloud/hybrid estates where usage is variable and you add value by optimization.

6. Performance or Outcome-Based Pricing

Your fee is tied to metrics or outcomes (uptime, cost savings, SLA attainment).

Pros: High trust built; aligns incentives; differentiator in competitive bids.
Cons: You assume risk; you must monitor and report the metrics; clients may require deep visibility.

Use-case: For larger clients, or when you have a proven track record and can credibly commit to results.

7. À La Carte Model (Add-On / Pick-and-Choose)

Rather than buying a bundle, clients select only the services they need, like patch management, endpoint protection, backup, disaster recovery, security audits, and so on. You become a menu, not a set meal.

Pros: High flexibility; ideal for clients wanting to fill gaps in their internal IT.
Cons: Revenue can fluctuate; piecemeal support may increase administrative effort.

Use-case: MSPs targeting mature customers who already handle some IT functions but want expert coverage in key areas. Many successful MSPs pair the à la carte model with a base per-user or tiered framework, so the core remains predictable while add-ons stay flexible.

What’s Trending for 2026

Looking ahead into 2026, some clear shifts are ahead:

• The combination of per-user + per-device continues to appear: many MSPs don’t stick to one count metric.
  
• Value-based and fixed-fee models are gaining traction because clients want predictable costs, fewer surprises.
  
• Usage-based / consumption pricing is more common for cloud-centric services. The MSP who masters usage metrics has an edge.
  
• Bundles remain relevant but must be flexible: clients will demand add-ons and scalability.
  
• Margins and profitability become more important: MSPs must think not just “what do I charge,” but “what margin do I get after I deliver and operate the service.”
  
• Automation, tool efficiency, and service standardisation pay off, especially when you move beyond devices to outcomes.
  
• Security, cloud management, and BCDR (business continuity/disaster recovery) are the growing service streams driving revenue. 

How to Choose a Pricing Model (and Move Between Models)

Here’s a practical approach for MSPs:

1. Understand your cost structure
   
   • Break down what it costs you to deliver each service: people (techs, help-desk), tools, licences, monitoring, support.
     
   • Map the client’s environment: how many users, devices, servers, cloud instances, and critical services.
     
   • Decide target margin: you’re not just covering cost, you’re making a return.
     
2. Understand your client’s profile & growth potential
   
   • What type of client is this? SMB with a stable device base, or one who is heavily cloud-consuming and scaling fast?
     
   • What services does the client need (desktop support vs cloud engineering vs security)?
     
   • What growth is expected (they’ll add users, devices, and cloud spend)? Pricing must scale with their growth (or limit your upside).
     
3. Pick a primary model, but design for flexibility
   
   • For example: for basic endpoint support use per-user; for cloud infrastructure use usage/consumption; for full IT outsourcing use value-based fixed.
     
   • Build add-on modules (tiered bundles) so you can upsell migration to higher tiers or extra services (security, compliance, monitoring).
     
   • Consider hybrid models: e.g., base fixed-fee + usage add-ons + outcome-based bonus.
     
4. Define scope, metrics, and boundaries clearly
   
   • Ensure clients and you agree on what’s included (devices, users, hours, response times).
     
   • For outcome models: define what “success” means (uptime, cost savings, incident response time).
     
   • For usage models: define how you measure usage, when you bill, and when you cap.
     
5. Communicate value, not just cost
   
   • When you shift from “I support X devices” to “I reduce your downtime by Y%” or “I optimise your cloud spend by Z%”, you’re shifting into value mode.
     
   • Explain why your pricing is what it is. Clients appreciate transparency. In surveys, MSPs say flexibility and clarity attract customers. 

6. Review regularly and iterate
   
   • Every 12-18 months, re-assess your model in light of: client growth, new service lines, tool cost changes, and automation gains.
     
   • If you’re locked into an outdated device-count model but the client is now fully cloud-based, you’ll drift margin or misalign cost.
     
   • Keep your pricing model scalable and aligned with your operations efficiency.
     

Practical Examples for 2026

Here are stylised examples you can adapt for DeskDay’s target MSPs (smaller MSPs scaling up) to illustrate how pricing might look.

• Example A: SMB with 50 users, 100 devices, small on-prem servers
  
  • Use per-user model: e.g., USD $70/user/month (so $3,500 / month)
    
  • Offer a tiered bundle: tier-1 includes monitoring/patching, tier-2 adds cloud backup/security.
    
  • If the client adds more users or devices, you increment accordingly.
    
• Example B: Mid-market client with cloud + on-prem hybrid, dynamic usage
  
  • Base fixed fee: e.g., USD $2,000/month for core monitoring/support.
    
  • Usage add-on: 5% of the client’s cloud spend or $X per vCPU used beyond base.
    
  • Outcome bonus: if MSP achieves 99.9% uptime or reduces cloud spend by >10% you get a bonus/adjusted rate.
    
• Example C: Full outsourcing (MSP becomes client’s IT department)
  
  • Value-based fixed fee: e.g., USD $15,000/month covering all IT services (help-desk, infrastructure, security, cloud).
    
  • Clearly define the scope (users/devices/servers/cloud) and review annually.
    
  • Optionally include service-level bonus/penalty.
    

Margin & Profit Considerations

Pricing isn’t meaningful unless you track the margin behind it.

• According to recent benchmarks, many MSPs report device-based fees between USD $50-$100 per device/month, and user-based fees between USD $50-$100 per user/month.
  
• But device-based models are less common than they used to be: one survey found only ~13% of MSPs used per-device as the primary model, while ~26% used a combination of per-user & per-device.
  
• Cloud services margins vary: e.g., for cloud services managed by MSPs, gross margins of 31-40% noted in some firms.
  
• For your pricing to be sustainable:
  
  • You must factor in your cost of tools, licences, labour, overhead, and escalation.
    
  • You must assume future growth (more users/devices/cloud spend) and pricing must scale (not require renegotiation each month).
    
  • If you pick a fixed fee, you must ensure you can operate efficiently and deliver value without cost overruns.
    

Common Pitfalls & How to Avoid Them

• Pitfall: Pricing purely on device count while client shifts to cloud-native or BYOD usage. Outcome: revenue stagnates, cost rises.
  
  • Avoid by: combining metrics (user + device) or moving to a usage/consumption model over time.
    
• Pitfall: Offering too many tiers or too many custom modules; operational complexity kills margin.
  
  • Avoid by limiting to 3-4 clear tiers, using add-ons sparingly, and automating delivery.
    
• Pitfall: Not clearly defining scope or exit conditions; clients expect “everything” for the fee.
  
  • Avoid by writing a scope, revisiting annually, and adjusting as the situation changes.
    
• Pitfall: Under-pricing because you’re chasing a deal rather than covering cost + margin.
  
  • Avoid by calculating your full cost, your target margin, then applying a value-based adjustment.
    
• Pitfall: Not reviewing pricing as the client’s usage grows or changes; you get locked in.
  
  • Avoid by scheduling annual reviews, building clauses that adjust for major changes.
    

Action Plan: What to Do in 2026

For MSPs, here’s a three-step plan:

1. Audit your current pricing
   
   • List all clients, what model you use, what you charge, and what you deliver.
     
   • Compare your costs, margin, and whether client growth is covered.
     
   • Identify any legacy models that don’t scale (hourly, device-only, etc).
     
2. Define your ideal pricing model for the next 12-24 months
   
   • Choose the primary model (or hybrid) that aligns with your service strategy (help-desk + cloud + automation + security).
     
   • Build 3 tiers: entry/standard/premium. Clearly define what each includes.
     
   • Define add-ons for cloud spend optimisation, outcome-based incentives, etc.
     
   • Set your pricing targets (minimum margin, growth rate, MRR goals).
     
3. Communicate and migrate
   
   • Create messaging for your clients: explain why you’re evolving pricing (better predictability, aligned value, stronger service).
     
   • For new clients: implement the new model from day one.
     
   • For existing clients: migrate with care – grandfather old pricing but set end-of-term for change, or offer upgrade path.
     
   • Monitor results: track margin, client satisfaction, churn, and adjust model if needed.
     

Conclusion

Pricing for MSPs in 2026 is more than just setting a number. It’s about aligning your delivery model, client needs, cost structure, and value proposition in a world that’s shifting fast. Whether you choose per-user, tiered, usage-based, or value-based, the key is clarity, scalability, and aligning your revenue engine with your operational engine.

FAQs: MSP Pricing Guide 2026: Models, Trends, and Best Practices