IoT Hub is offered in four editions: Free, S1, S2, and S3. IoT Hub is generally available. In this section, we will understand the different instance sizes and will apply a calculation to find the pricing of IoT Hub. This will help you to identify the right size, and right cost for your IoT solution.

The pricing table based on Microsoft Azure IoT Hub pricing is as follows:

To find out the what will be the price based on the IoT solution needs we will use the pricing calculator provided by Microsoft Azure:

1. The price is per size of the IoT Hub instance.
2. First find out the size and units per size required.
3. First use the following link to go to Azure pricing calculator:

https://azure.microsoft.com/en-gb/pricing/calculator/

4. Now select the Azure service for which you want to estimate the price, in our case it is IoT Hub:

5. Once you have selected IoT Hub service, it will show the estimation area:

6. Select the IoT Hub tier based on the number of messages per day capability you want to build in your IoT solution:

7. Select the number of units required to full fill your requirement amount of messages per day:

8. I have selected S1 tier with 2 units. It will support 800 k messages per day at $100.

Let's consider an example to understand how the pricing works.

A device ingests the 1 KB device-to-cloud message size data per minute to the IoT Hub. The solution backend invokes a method (with 512 bytes of payload) on the device every ten minutes to trigger a specific action. The device responds to the method with a result of 200 bytes.

The device consumes 1 message * 60 minutes * 24 hours = 1440 messages per day for the device-to-cloud messages, and 2 requests plus responses * 6 times per hour * 24 hours = 288 messages for the methods, for a total of 1728 messages per day.

You can refer to Microsoft documentation for similar examples; click here https://docs.microsoft.com/en-us/azure/iot-hub/iot-hub-devguide-pricing.