Azure API Management Pricing (2026)
API gateway services manage, secure, and monitor APIs at any scale. They handle authentication, rate limiting, caching, and request transformation, acting as the front door for your microservices. Starting from $0.0250/hr ($18.25/mo) for Standard v2 - Standard v2 Calls.
Key Features
- ✓Request routing, transformation, and validation
- ✓Authentication and authorization (API keys, OAuth, JWT)
- ✓Rate limiting and throttling
- ✓Caching for improved performance
- ✓Usage monitoring and analytics
Common Use Cases
API Management
Expose internal microservices as managed APIs with versioning and access control.
Serverless APIs
Pair with serverless functions to build fully managed API backends.
Partner APIs
Create developer portals and manage third-party API access with usage plans.
On-Demand Pricing
Pay-as-you-go pricing with no upfront commitment. You are billed per hour of usage and can start or stop at any time. Hourly rates start at $0.0250/hr ($18.25/mo) for Standard v2 - Standard v2 Calls.
| Instance | vCPU | Memory | Price/hr | Price/mo |
|---|---|---|---|---|
| Secondary - Secondary Unit | - | - | $1.9145 | $1,397.59 |
| Isolated - Isolated Unit | - | - | $21.7700 | $15,892.10 |
| Standard v2 - Standard v2 Secondary Unit | 2 | 8 GB | $0.6849 | $500.00 |
| Consumption - Consumption Calls | - | - | $0.0350 | $25.55 |
| Gateway - Gateway Unit | - | - | $0.3425 | $250.00 |
| Standard v2 - Standard v2 Self-hosted Gateway | 2 | 8 GB | $0.3425 | $250.00 |
| Basic v2 - Basic v2 Secondary Unit | 2 | 8 GB | $0.2055 | $150.00 |
| Premium v2 - Premium v2 Secondary Unit | 2 | 8 GB | $1.9178 | $1,400.00 |
| Developer - Developer Unit | - | - | $0.0658 | $48.03 |
| Premium v2 - Premium v2 Workspace Pack | 2 | 8 GB | $0.1370 | $100.00 |
| Standard - Standard Workspace Pack | - | - | $0.1370 | $100.00 |
| Standard - Standard Unit | - | - | $0.9407 | $686.71 |
| Basic - Basic Unit | - | - | $0.2016 | $147.17 |
| Standard v2 - Standard v2 Workspace Pack | 2 | 8 GB | $0.1370 | $100.00 |
| Premium - Premium Unit | - | - | $3.8290 | $2,795.17 |
| Isolated - Isolated Workspace Pack | - | - | $0.1370 | $100.00 |
| Basic v2 - Basic v2 Unit | 2 | 8 GB | $0.2055 | $150.00 |
| Premium v2 - Premium v2 Self-hosted Gateway | 2 | 8 GB | $0.3425 | $250.00 |
| Standard v2 - Standard v2 Unit | 2 | 8 GB | $0.9589 | $700.00 |
| Premium - Premium Workspace Pack | - | - | $0.1370 | $100.00 |
| Workspace Gateway Premium - Workspace Gateway Premium Workspace Pack | - | - | $0.1370 | $100.00 |
| Workspace Gateway Standard - Workspace Gateway Standard Unit | - | - | $0.6849 | $500.00 |
| Premium v2 - Premium v2 Unit | 2 | 8 GB | $3.8356 | $2,800.00 |
| Workspace Gateway Premium - Workspace Gateway Premium Unit | - | - | $1.9178 | $1,400.00 |
| Basic v2 - Basic v2 Calls | 2 | 8 GB | $0.0300 | $21.90 |
| Standard v2 - Standard v2 Calls | 2 | 8 GB | $0.0250 | $18.25 |
Reserved Instance & Savings Plans Pricing
Commit to 1 or 3 years for lower hourly rates.
| Instance | vCPU | Memory | Price/hr | Price/mo | 1yr RI/hr | 3yr RI/hr |
|---|---|---|---|---|---|---|
| Secondary - Secondary Unit | - | - | $1.9145 | $1,397.59 | - | - |
| Isolated - Isolated Unit | - | - | $21.7700 | $15,892.10 | - | - |
| Standard v2 - Standard v2 Secondary Unit | 2 | 8 GB | $0.6849 | $500.00 | - | - |
| Consumption - Consumption Calls | - | - | $0.0350 | $25.55 | - | - |
| Gateway - Gateway Unit | - | - | $0.3425 | $250.00 | - | - |
| Standard v2 - Standard v2 Self-hosted Gateway | 2 | 8 GB | $0.3425 | $250.00 | - | - |
| Basic v2 - Basic v2 Secondary Unit | 2 | 8 GB | $0.2055 | $150.00 | - | - |
| Premium v2 - Premium v2 Secondary Unit | 2 | 8 GB | $1.9178 | $1,400.00 | - | - |
| Developer - Developer Unit | - | - | $0.0658 | $48.03 | - | - |
| Premium v2 - Premium v2 Workspace Pack | 2 | 8 GB | $0.1370 | $100.00 | - | - |
| Standard - Standard Workspace Pack | - | - | $0.1370 | $100.00 | - | - |
| Standard - Standard Unit | - | - | $0.9407 | $686.71 | - | - |
| Basic - Basic Unit | - | - | $0.2016 | $147.17 | - | - |
| Standard v2 - Standard v2 Workspace Pack | 2 | 8 GB | $0.1370 | $100.00 | - | - |
| Premium - Premium Unit | - | - | $3.8290 | $2,795.17 | - | - |
| Isolated - Isolated Workspace Pack | - | - | $0.1370 | $100.00 | - | - |
| Basic v2 - Basic v2 Unit | 2 | 8 GB | $0.2055 | $150.00 | - | - |
| Premium v2 - Premium v2 Self-hosted Gateway | 2 | 8 GB | $0.3425 | $250.00 | - | - |
| Standard v2 - Standard v2 Unit | 2 | 8 GB | $0.9589 | $700.00 | - | - |
| Premium - Premium Workspace Pack | - | - | $0.1370 | $100.00 | - | - |
| Workspace Gateway Premium - Workspace Gateway Premium Workspace Pack | - | - | $0.1370 | $100.00 | - | - |
| Workspace Gateway Standard - Workspace Gateway Standard Unit | - | - | $0.6849 | $500.00 | - | - |
| Premium v2 - Premium v2 Unit | 2 | 8 GB | $3.8356 | $2,800.00 | - | - |
| Workspace Gateway Premium - Workspace Gateway Premium Unit | - | - | $1.9178 | $1,400.00 | - | - |
| Basic v2 - Basic v2 Calls | 2 | 8 GB | $0.0300 | $21.90 | - | - |
| Standard v2 - Standard v2 Calls | 2 | 8 GB | $0.0250 | $18.25 | - | - |
How API Management Pricing Works
On-Demand
Pay per hour with no long-term commitment. Ideal for variable workloads and development environments.
Reserved / Committed Use
Commit to 1 or 3 years for significant discounts.
Spot / Preemptible
Use spare capacity at steep discounts. Best for fault-tolerant, batch, and stateless workloads.
Monthly Cost Examples
Azure API Management Free Tier
Free limit: 1M calls/mo free. This free tier never expires and renews monthly.
Free Tier Comparison
| Provider | Service | Free Offering | Duration | Limit |
|---|---|---|---|---|
| Azure | API Management | Consumption | Always | 1M calls/mo free |
| AWS | API Gateway | REST API calls | 12 months | 1M calls/mo |
Frequently Asked Questions
What is Azure API Management?
Azure API Management is a cloud service offered by Microsoft Azure. It provides various configurations (26 pricing tiers available) with pay-as-you-go and committed-use pricing options.
How much does Azure API Management cost per month?
Prices range from $18.25/month for Standard v2 - Standard v2 Calls to $15,892.10/month for Isolated - Isolated Unit on On-Demand pricing in eastus.
Does Azure API Management have a free tier?
Azure offers various free tier options. Check the official Azure pricing page for the most current free tier details for API Management.
How many Azure API Management pricing tiers are available?
There are 26 pricing tiers available for Azure API Management. These range from entry-level configurations to high-performance options for enterprise workloads.
What pricing models does Azure API Management offer?
Azure API Management offers On-Demand (pay-per-hour, no commitment), Reserved/Committed Use (1-3 year commitments for significant discounts), and in some cases Spot/Preemptible pricing for interruptible workloads at the lowest cost.
When does serverless become more expensive than a dedicated instance?
Serverless is typically cheaper for sporadic or bursty workloads under ~1 million invocations per month. Once sustained utilization exceeds 30-40% of a dedicated instance, a reserved VM or container usually costs less. Profile your actual request patterns before committing to either model.