PPPoE Server Configuration in MikroTik Router

anna lungeli
6 min readNov 14, 2018

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PPPoE (Point to Point Protocol over Ethernet) is one of the most popular services in MikroTik Router. PPPoE is an extension of the standard Point to Point Protocol (PPP). The difference between them is expressed in transport method: PPPoE employs Ethernet instead of serial modem connection. PPPoE is a client-server protocol that means PPPoE client (IP devices such as Desktop, Laptop, wireless Router etc.) will request for IP information to PPPoE server providing security information (username and password) and PPPoE server will provide IP information by matching that security information.

PPPoE provides extensive user management, network management and accounting benefits to ISPs and network administrators. PPPoE is used mainly by ISPs to control client connections for xDSL and cable modems as well as plain Ethernet networks. PPPoE is now most popularly used in local ISP company because local ISP user can so easily be maintained with this service. So, this article is designed to show how to maintain ISP clients by configuring a PPPoE server in MikroTik Router.

ISP Setup with PPPoE Configuration

As a system administrator of an ISP company, you have to maintain various offered bandwidth packages such as 512kbps connection, 10Mbps connection, 20Mbps connection and so on. The users of these packages can so easily maintain with MikroTik PPPoE service. Now I’ll show you how to configure a PPPoE service in MikroTik router to maintain your various offered packages. But before starting configuration, I’ll show you a basic simple network diagram where a MikroTik router is serving as a PPPoE server.

PPPoE Network Diagram

In the above network diagram, MikroTik router WAN port (ether 1) is connected to internet and LAN port (ether 2, where we’ll configure PPPoE server) is connected to a distribution switch. PPPoE clients (PC, Laptop, Tablet and Wireless Router) are connected to the PPPoE server through this distribution switch. This is a basic and small network. In practical, your network will be an enterprise network where there may have thousands of clients. But the configuration will be almost same. Only the difference is that you might use multiple Ethernet ports for network simplicity, where we are using only one port here. You might use multiple WAN ports for handling load balancing or network redundancy where we are using only one WAN port here. I’ll discuss load balancing or network redundancy in my coming article. If you want to use multiple Ethernet ports for your LAN, you have to create MikroTik Bridge virtual interface for accumulating multiple interfaces into a single interface and then configure PPPoE server in that virtual interface.

As PPPoE is a client-server protocol, there are two end configurations for PPPoE service.

  1. PPPoE server configuration in MikroTik Router
  2. PPPoE client configuration

To run a PPPoE service in your network, first you have to configure PPPoE server in MikroTik router and then you have to learn how to configure various PPPoE clients. In the rest of this article I’ll show you how to configure PPPoE server in MikroTik router and how to configure PPPoE client in windows operating system. However, I’ll recommend you that search in Google and learn how to configure PPPoE client in various operating platform.

5 Steps to Configure PPPoE Server in MikroTik Router

Now we are going to configure PPPoE server in MikroTik to maintain the clients of a Local ISP. Generally any ISP company has various offered packages depending on bandwidth. It is always better to maintain client bandwidth with MikroTik Queues service although bandwidth can also be maintained with PPPoE service. Specially I‘ll recommend you to use MikroTik PCQ service which I have explained in my previous article about ISP bandwidth management with MikroTik PCQ to maintain your different bandwidth packages. Now we’ll use PPPoE server only for assigning different IP Block’s IP to different clients according to their bandwidth packages. For example, our proposed IP blocks for different bandwidth packages will be like below.

  1. 512kbps client will get 172.16.0.0/24 block IP
  2. 10Mbps client will get 172.16.1.0/24 block IP
  3. 20Mbps client will get 172.16.2.0/24 block IP

So, now we will configure our PPPoE server like that when a user purchase 512kbps connection, he/she will get a 172.16.0.0/24 block IP with his username and password. Similarly, when a user will purchase 10Mbps connection, he/she will get a 172.16.1.0/24 block IP and a 20Mbps user will get a 172.16.2.0/24 block IP. Complete PPPoE server configuration in MikroTik router can be divided into 5 steps.

  1. MikroTik router basic configuration
  2. IP Pool configuration
  3. PPPoE server configuration
  4. PPP profile configuration
  5. PPP secrets (username and password) configuration

Step 1. MikroTik Router Basic Configuration

MikroTik router basic configuration is the prerequisite to complete PPPoE server configuration. MikroTik router basic configuration includes assigning WAN and LAN IP addresses, Gateway configuration, DNS configuration and NAT configuration. If you are a new MikroTik user, feel free to spend some time to study my previous article about MikroTik router basic configuration using Winbox because how to configure MikroTik router from very beginning has been explained in that article. In this article, I assume that you have some knowledge about MikroTik router. So, if you are familiar with MikroTik router, follow below steps to complete MikroTik router basic configuration.

Step 2. IP Pool Configuration

We will now create three IP Pools because we assume that we have three offered packages and our user will get different IP block IP according to their package purchase. So, follow below steps to create IP Pools in your MikroTik router.

Step 3. PPPoE Server Configuration

Now we’ll configure our PPPoE server in MikroTik router. Follow bellow steps carefully for proper PPPoE server configuration in MikroTik router.

PPoE server configuration in MikroTik router has been completed. Now we’ll create three profiles from where our clients will get IP address.

Step 4. PPP Profile Configuration

Now we will create there profiles those will be used by our clients for getting IP addresses.

PPP profile configuration has been completed. Now we will create user secret (username and password) so that they can connect to our PPPoE server with this secret.

Step 5. PPP Secret Configuration

Now we will create secret that means username and password of a client by which he/she will be connected to our network.

PPP secret configuration has been completed as well as all the steps for configuring a PPPoE service in MikroTik router has been completed. Now I’ll show you how to configure PPPoE client in windows operating system in the rest of this article.

PPPoE Client Configuration

We have completely configured a PPPoE service in MikroTik router. Now your MikroTik is ready to accept PPPoE client. A number of PPPoE clients are present now a day. Among them, now I’ll show you how to configure PPPoE client in windows 7 operating system. All other versions of windows operating system follow almost the same procedure. So, you don’t face any difficulty, I think. However, if you feel any problem to configure PPPoE client of any operating platform, I recommend you to do Google and learn how to configure PPPoE client of that specific operating platform.

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