Price checkPer seat
Business Basic$8.40/user/moBusiness Standard$16.80/user/moBusiness Premium$26.40/user/mo
See all 6 plans

All Microsoft 365 Plans & Pricing

Plan Monthly Annual Best For
View all features by plan (compare side-by-side)

Business Basic

  • Web and mobile versions of Word, Excel, PowerPoint and Outlook
  • Business email (Exchange)
  • Microsoft Teams chat and meetings
  • 1 TB OneDrive cloud storage per user
  • Up to 300 users

Business Standard

  • Everything in Business Basic
  • Desktop versions of the Office apps
  • Webinars and attendee registration
  • Up to 300 users

Business Premium

  • Everything in Business Standard
  • Advanced security (Microsoft Defender for Business)
  • Device management (Intune)
  • Identity and access management (Entra ID P1)
  • Up to 300 users

Apps for business

  • Desktop, web and mobile Office apps
  • 1 TB OneDrive cloud storage per user
  • No business email or Teams
  • Up to 300 users

E3

  • Office apps, email, Teams and storage for enterprises
  • Enterprise security, compliance and device management
  • No user cap
  • Annual commitment

E5

  • Everything in E3
  • Advanced security and threat protection
  • Advanced compliance and analytics (Power BI Pro)
  • Teams Phone and audio conferencing
  • Annual commitment
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What does Microsoft 365 actually cost you?

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Tier
Billing
Your projected cost$210per month · $8.4/seat × 25seats
Year 1 license$2.1K12 months at this rate
At a glance

List price by tier (annualized, per seat)

Per-seat list price across Microsoft 365's plans, annualized. Custom-priced tiers show a hatched bar.

Business Basic$84/yr
Business Standard$168/yr
Business Premium$264/yr
Apps for business$120/yr
E3$468/yr
E5$720/yr
Quick Answer
Last verified:
High confidence

Microsoft 365 costs $7 to $60 per user/month as of October 2026, with 6 plans available. Plans: Business Basic at $8.40/user/month, Business Standard at $16.80/user/month, Business Premium at $26.40/user/month, Apps for business at $12/user/month, E3 at $39/user/month (billed annually), and E5 at $60/user/month (billed annually). Pricing depends on your chosen tier, contract length, and negotiated discounts.

Use the interactive pricing calculator to estimate your exact cost based on team size and requirements.

  • Free tier: No free tier available

Microsoft 365 offers 6 pricing tiers: Business Basic, Business Standard, Business Premium, Apps for business, E3, E5. Paid plans include Business Basic at $8.40/user/month, Business Standard at $16.80/user/month, Business Premium at $26.40/user/month. The Business Standard plan is small businesses that need the desktop office apps.

Compared to other communication software, Microsoft 365 is positioned at the budget-friendly price point.

  • 3 documented hidden costs beyond list price
  • Contracts auto-renew
Last verified: | Sources: 3 pricing pages and reviews

How much does Microsoft 365 cost?

Microsoft 365 pricing ranges from $7 to $60/user/month across 6 plans. Plans include Business Basic at $8.40/user/month, Business Standard at $16.80/user/month, Business Premium at $26.40/user/month, Apps for business at $12/user/month, E3 at $39/user/month (billed annually), E5 at $60/user/month (billed annually).

Microsoft 365 Pricing Overview

Microsoft 365 has 6 pricing plans ranging from $7 to $60/user/month. The Business Basic plan costs $8.40/user/month, best for teams that need business email, teams and web office apps. The Business Standard plan costs $16.80/user/month, best for small businesses that need the desktop office apps. The Business Premium plan costs $26.40/user/month, best for businesses that need security and device management in the same plan. The Apps for business plan costs $12/user/month, best for teams that only need the office apps and storage. The E3 plan costs $39/user/month (billed annually), best for organizations over 300 users. The E5 plan costs $60/user/month (billed annually), best for enterprises that need advanced security, compliance and voice.

Microsoft 365 contracts auto-renew.

There are at least 3 documented hidden costs beyond Microsoft 365's list price, including implementation, training, and add-on fees.

This pricing was last verified in October 20, 2026 from 3 independent sources.

See Microsoft 365 Plans

Microsoft 365 is sold per user in two families: Business plans (Basic, Standard, Premium and Apps for business) for organizations up to 300 users, and Enterprise plans (E3, E5) with no user cap. Business plans have two prices — a lower rate on an annual subscription paid yearly and a higher month-to-month rate — while E3 and E5 are sold on annual commitment only. The tier table below lists each published rate.

Microsoft also sells variants without Teams and bundles that include Copilot; those are priced separately on Microsoft's plan pages.

How Microsoft 365 Pricing Compares

Compare Microsoft 365 pricing against top alternatives in Communication.

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Compare Microsoft 365 vs Alternatives

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What Companies Actually Pay for Microsoft 365

Review scores
Third-party review aggregates, as of Oct 2026
Top pricing complaints
Outlook's Search Functionality and PerformanceSharePoint and OneDrive IssuesHigh Cost and Complex LicensingComplexity and Overwhelming Features

How Microsoft 365 Pricing Compares

Software Starting Price Top Price
Microsoft 365 $7/user/month $60/user/month
Discord Free $9.99/user/month
Google Meet Free $26.4/user/month
Loom Free $20/user/month
Microsoft Teams Free $23.5/user/month
RingCentral $30/user/month $45/user/month

Browse all Communication pricing →

3 Microsoft 365 Hidden Costs Beyond the List Price

Beyond the listed price, Microsoft 365 has at least 3 documented hidden costs that can significantly increase total cost of ownership.

Watch for 3 hidden costs
  • Teams Phone Calling Plans $12-$24 per user per month
    medium 1 source
    Grounded summary Calling Plans can add $12-$24 per user per month for domestic or domestic and international minutes.
  • Teams Phone Network Readiness
    high 1 source
    Grounded summary Network Readiness: Organizations often incur costs for network setup, including ensuring sufficient bandwidth (100-500 Kbps per live call; 5-25 Mbps for 50 concurrent calls) and configuring network priority settings to prevent choppy audio and dro...
  • Teams Phone SMS and Contact Center Features thousands of dollars annually
    high 1 source
    Grounded summary SMS and Contact Center Features: Basic Teams Phone licensing often lacks robust SMS capabilities for business messaging workflows and contact center features, necessitating additional tools or a separate cloud contact center platform, adding thous...
Tip

Ask your Microsoft 365 sales rep about these costs upfront. Getting them in writing before signing can save you from surprise charges later.

Full hidden costs breakdown →

Intelligence sourced from 1 independent sources
grounded summary
Key claims include inline source attribution. Data verified against multiple independent sources. 5 source citations total.

Microsoft 365 Contract Terms

Microsoft 365 contracts auto-renew. Changes require advance notice. These terms are sourced from verified buyer experiences.

Contract Terms
Auto-Renewal Yes
Minimum Commitment Enterprise Agreements typically involve three-year cycles with annual 'true-up' provisions; under the New Commerce Experience, annual subscriptions generally only allow quantity reductions once a year.
Based on 2 verified sources

Microsoft 365 Pricing FAQ

01 How much does Microsoft 365 cost per user?

Business Basic is the cheapest plan that includes business email and Teams; Business Standard adds the desktop Office apps; Business Premium adds security and device management. The tier table shows the per-user price for each on annual and monthly billing.

02 Is Microsoft 365 cheaper with an annual commitment?

Yes. Every Business plan is priced lower on an annual subscription paid yearly than on a monthly subscription; the monthly rate is about 20% higher.

03 What is the difference between Microsoft 365 Business and Enterprise plans?

Business plans are capped at 300 users. Enterprise plans (E3, E5) have no user cap, add enterprise compliance and security features, and are sold on annual commitment only.

04 Does Microsoft 365 have a free plan?

No. Microsoft offers a one-month free trial on Business plans that converts to a paid subscription; there is no free business plan.

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