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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.

Last verified: | Sources: 3 pricing pages and reviews
Know Before You Buy — See Microsoft 365 Plans

Microsoft 365 lists $7-$60/user/month, but hidden costs like implementation and support add to the total as of October 2026. Key hidden costs: teams phone calling plans, teams phone network readiness, teams phone sms and contact center features. Verified from 3 sources by CostBench.

Hidden Costs Breakdown

1

Teams Phone Calling Plans

medium addon

Calling Plans can add $12-$24 per user per month for domestic or domestic and international minutes, separate from the Teams Phone Standard license.

Grounded summary

Calling Plans can add $12-$24 per user per month for domestic or domestic and international minutes.

2

Teams Phone Network Readiness

high implementation

Organizations often incur costs for network setup, including ensuring sufficient bandwidth and configuring network priority settings for Teams Phone.

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 dropped calls.

3

Teams Phone SMS and Contact Center Features

high addon

Basic Teams Phone licensing often lacks robust SMS capabilities and contact center features, necessitating additional tools or a separate cloud contact center platform, adding thousands of dollars annually.

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 thousands of dollars annually for some organizations.

Frequently Asked Questions

01 What hidden costs should I budget for with Microsoft 365?

Beyond the license fee, budget for: Teams Phone Calling Plans ($12-$24 per user per month); Teams Phone SMS and Contact Center Features (thousands of dollars annually). Exact totals depend on your deployment size and negotiated terms.

02 Does Microsoft 365 charge for implementation?

Microsoft 365 implementation is not included in the license cost. Organizations often incur costs for network setup, including ensuring sufficient bandwidth and configuring network priority settings for Teams Phone..

03 How much does Microsoft 365 support cost?

Premium support pricing for Microsoft 365 depends on your tier and contract terms. See the sourced cost breakdown above for any verified figures we have.

04 Are there overage or storage costs with Microsoft 365?

Overage and storage policies for Microsoft 365 depend on tier limits. Check the sourced cost breakdown above for verified data.

05 What add-ons cost extra with Microsoft 365?

Add-on pricing for Microsoft 365 varies by feature. The sourced cost breakdown above lists any verified add-on costs we have.

Now You Know the Real Cost — See Microsoft 365 Plans

Check current Microsoft 365 pricing

Prices and terms change; verify against the live pricing page.

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