1Password, one of the most popular paid password managers, has announced significant price increases for its basic subscription plans. The individual subscription will rise from $2.99 to $3.99 per month, representing an annual cost increase of 33.4%, from $35.88 to $47.88. The family plan will increase from $4.99 to $5.99, with its annual fee rising by 20% to $71.88. The new rates will take effect from March 27, 2026, and will be applied at the next subscription renewal after that date. The company explains the decision as necessary to invest in the development of advanced security features and technical support.
Scale of the price increase
The monthly individual subscription will increase from $2.99 to $3.99 USD, and the annual one from $35.88 to $47.88 USD (an increase of 33.4%). The family plan will increase from $4.99 to $5.99 USD per month, and the annual one from $59.88 to $71.88 USD (an increase of 20%).
Implementation date of the changes
The new prices will take effect from March 27, 2026. They will affect customers at the time of their next subscription renewal after that date. Those whose billing cycle ends earlier will pay the old rate for one more period.
The company's justification
1Password explains the price increase as necessary for further investment in product development, including advanced security features, phishing protection, and maintaining a high level of customer support.
Customer response and competition
The decision has been met with criticism from some users. Free alternatives such as KeePass or Bitwarden are available on the market, as well as paid offers from competitors like Dashlane or LastPass, which may benefit from the migration of dissatisfied customers.
The company 1Password, provider of one of the world's leading password managers, will introduce significant price increases for its basic subscription plans at the end of March 2026. The decision, announced in a communication to users and widely reported by international technology portals, marks the end of years of price stagnation. The subscription for a single person will increase from $2.99 to $3.99 per month. On an annual basis, this cost will rise from $35.88 to $47.88, representing an increase of exactly $12, or 33.4 percent. The family plan, intended for five users, will increase from $4.99 to $5.99 per month. Its annual fee will jump from $59.88 to $71.88, or by 20 percent.
The password manager market, consisting of applications for securely storing and generating unique access codes, has grown dynamically over the last two decades, driven by the increasing number of online accounts and growing awareness of cyber threats such as data breaches and phishing attacks. High competition in this market has kept prices at a relatively low level for years, offering users a choice between free, often open-source solutions and premium paid services.
The new rates will officially take effect on March 27, 2026. However, they will not immediately affect all subscribers. They will only be applied at the time of the next subscription renewal after that date. This means that customers whose billing cycle ends before March 27 will pay the old price one more time. In its official justification, the company emphasizes that it has maintained unchanged prices for many years, despite significant development of the product's functionality. „Since 2005, 1Password has been on a mission to make security simple, reliable, and accessible for everyone. As the way people work and live online has evolved, so has 1Password. While 1Password has grown substantially in value and capability, our pricing has remained largely unchanged for many years.” — CEO of 1Password CEO Jeff Shiner had previously indicated that scaling the business had allowed them to maintain low prices until now, but increased revenue is now necessary to fund further investments. The company argues that its product has evolved from a simple password storage tool into a comprehensive digital identity management platform, also encompassing document storage, two-factor authentication (2FA) codes, or access keys.
Annual cost of 1Password subscription before and after the price increase: Individual (old price): 35.88, Individual (new price): 47.88, Family (old price): 59.88, Family (new price): 71.88 The decision to raise prices has met with a mixed reaction from the user community. Some customers considered it unjustified, especially in the context of the growing number of free alternatives. Other, more loyal users admit that despite the price increase, the service still offers value. There are several competitive solutions on the market that may benefit from this. Free, open-source options include KeePass and Bitwarden in their basic version. Among paid competitors are Dashlane, LastPass, and NordPass. Some of them offer similar plans at a comparable or lower price, which may prompt dissatisfied 1Password customers to migrate.
Changes in 1Password subscription prices: Individual subscription (monthly): 2.99 USD → 3.99 USD; Individual subscription (annually): 35.88 USD → 47.88 USD; Family subscription (monthly): 4.99 USD → 5.99 USD; Family subscription (annually): 59.88 USD → 71.88 USD The price increase by 1Password is a symptom of broader trends in the software-as-a-service (SaaS) market. After years of aggressively acquiring users, often through low prices or free trial periods, many mature technology companies are moving towards increasing margins by raising fees for their flagship products. In the case of security-related tools, the argument for investing in development is particularly important, as data protection requirements are constantly growing. Customers now face a choice: accept higher costs from a proven provider, look for a cheaper substitute, or switch to a free solution that may offer fewer features or require more self-configuration.
Mentioned People
- Jeff Shiner — Chief Executive Officer (CEO) of 1Password