How do I calculate my effective hourly rate?

Total MRR from a client divided by total hours spent on work covered by that agreement. Support tickets, QBRs, and admin time count. Projects typically don't; they're priced separately. Most MSPs are shocked when they do this math. A $150/user client often nets $40/hour when you count everything included in the agreement.

Should I price per user or per device?

Per user is cleaner for forecasting and scales better with remote work. Per device made sense when employees had one workstation. Now they have three. Per user wins unless you're supporting manufacturing floors or labs.

What pricing models work best for MSPs?

Per-user all-inclusive is the cleanest. Tiered packages (Good/Better/Best) work for sales teams. Per-device still works for infrastructure-heavy clients. Avoid hourly - it punishes efficiency and creates misaligned incentives.

MSP Pricing: Per User vs Per Device Guide | Scopable

If you're an MSP trying to figure out how to price managed services, you've probably run into the same debate over and over: Do we price per user or per device?

There's no universal right answer. Both models work. Both can fail. What matters is whether your pricing aligns with how you actually deliver services and who your clients are.

That said, we are seeing more MSPs move toward per-user pricing, especially as environments become more cloud-first. Below is a realistic breakdown of the pros and cons of each model, based on how MSPs actually operate today.

Per Device Pricing for MSPs

What per device pricing means

You charge based on the number of managed endpoints. This usually includes:

Workstations
Servers
Network devices
Firewalls
Sometimes mobile devices

This model has been common for a long time because it lines up well with traditional MSP tooling.

Pros of per device pricing

It matches how most MSP tools are licensed

RMM, EDR, patching, monitoring, and backup are usually priced per endpoint. When a device exists, it costs money.

Easier margin tracking

More devices generally mean more alerts, more tickets, and more time. Per-device pricing makes that relationship obvious.

Works well in infrastructure-heavy environments

Manufacturing, healthcare, and hybrid environments often have:

Shared workstations
Specialized hardware
Lots of servers

Per-user pricing can struggle here. Per-device pricing does not.

Cons of per device pricing

It breaks down in cloud-first environments

Companies with few devices but lots of SaaS, identity, security, and compliance needs can be underpriced.

Clients focus on counting devices

You'll hear questions like:

"Do we really need to include this device?"
"What if this laptop is barely used?"

That leads to scope debates and exceptions.

It undervalues user-centric work

Security, identity, access control, training, and compliance are driven by users, not hardware.

Per User Pricing for MSPs

What per user pricing means

You charge based on the number of employees or named users, regardless of how many devices they use.

This model has grown as MSPs shift toward cloud services and bundled offerings.

Pros of per user pricing

It reflects how modern work actually happens

One user often has:

A laptop
A phone
A home device
Access to dozens of cloud apps

Pricing per user makes sense in that reality.

Easier for clients to understand and budget

Clients plan around headcount. "Per user per month" is simple and predictable.

Supports bundled MSP services

Per-user pricing works well when you include:

Microsoft 365 or Google Workspace
Security tooling
Helpdesk
Identity and access management
Policy and compliance support

You're pricing the user experience, not just the endpoint.

Cons of per user pricing

Devices still create real cost

Users with multiple devices increase support load. If you don't account for that, margins erode quietly.

Shared device environments don't fit cleanly

Warehouses, call centers, and shift-based workplaces often don't map one-to-one with users.

It can hide operational complexity

Without strong asset tracking and standards, it's easy to lose visibility into what's actually being managed.

Why More MSPs Are Moving to Per User Pricing

We're seeing more MSPs adopt per-user pricing because:

Identity and security are user-centric
Cloud services are central to delivery
Clients want predictable billing
MSPs are bundling more than just "IT support"

This doesn't mean per-device pricing is wrong or outdated. It just means the operating model of MSPs is changing.

The Real Answer: Use the Model That Fits Your MSP

The biggest pricing mistakes MSPs make aren't about choosing per user vs per device.

They happen when:

Pricing doesn't match internal workflows
Services are bundled without clear boundaries
Exceptions are handled inconsistently
Tooling and pricing are misaligned

Many MSPs quietly use hybrid models, even if they don't market them that way. That's fine — as long as it's intentional and documented.

Final Takeaway

There is no perfect MSP pricing model.

The right approach is the one that:

Matches how your team actually works
Fits your client base
Is easy to explain and enforce
Protects your margins as you scale

Per user. Per device. Hybrid.

If it works for your workflows, your processes, and your clients — it's the right model.

MSP Pricing: Per User vs Per Device