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Microsoft Defender for Office 365 costs $2 to $5 per user/month as of March 2026, with 2 plans available. Plans: Plan 1 at $2/user/month, and Plan 2 at $5/user/month. 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 Defender for Office 365 offers 2 pricing tiers: Plan 1, Plan 2. Paid plans include Plan 1 at $2/month, Plan 2 at $5/month. The Plan 2 plan is general users and teams.

Compared to other email security software, Microsoft Defender for Office 365 is positioned at the budget-friendly price point.

  • Median contract: $60/yr from 0 purchases
  • Average negotiated discount: 92%
  • 6 documented hidden costs beyond list price

How much does Microsoft Defender for Office 365 cost?

Microsoft Defender for Office 365 pricing ranges from $2 to $5/user/month across 2 plans. Plans include Plan 1 at $2/user/month, Plan 2 at $5/user/month.

Microsoft Defender for Office 365 Pricing Overview

Microsoft Defender for Office 365 has 2 pricing plans ranging from $2 to $5/user/month. The Plan 1 plan costs $2/user/month, best for general users and teams. The Plan 2 plan costs $5/user/month, best for general users and teams.

The median Microsoft Defender for Office 365 customer pays $60/year, with an average 92% discount available through negotiation.

There are at least 6 documented hidden costs beyond Microsoft Defender for Office 365's list price, including implementation, training, and add-on fees.

This pricing was last verified in January 29, 2026 from 5 independent sources.

Microsoft Defender for Office 365 (formerly Office 365 Advanced Threat Protection) is an integrated email security solution designed to protect Microsoft 365 environments from phishing, malware, business email compromise, and zero-day threats. Available as Plan 1 and Plan 2, Defender extends protection across email, OneDrive, SharePoint, and Microsoft Teams.

Plan 1 costs $2 per user/month and includes Safe Attachments, Safe Links with time-of-click verification, anti-phishing protection, and real-time detections. Plan 2 costs $5 per user/month and adds Threat Explorer (investigation hub), Automated Investigation and Response (AIR), attack simulation training, and cross-domain XDR capabilities. Plan 2 is included with Microsoft 365 E5 subscriptions.

Defender for Office 365 is most cost-effective for organizations already using Microsoft 365, providing native integration and unified management through the Microsoft 365 Defender portal. However, the add-on requires a Microsoft 365 E3 or E5 base subscription, making the true cost $38-62 per user/month when combined. Many organizations layer Defender with standalone solutions for defense-in-depth against sophisticated attacks.

How Microsoft Defender for Office 365 Pricing Compares

Compare Microsoft Defender for Office 365 pricing against top alternatives in Email Security.

All Microsoft Defender for Office 365 Plans & Pricing

Plan Monthly Annual Best For
Plan 1 $2 /month $2 /year General users and teams
Plan 2 $5 /month $5 /year General users and teams
View all features by plan

Plan 1

  • Safe Attachments (email, OneDrive, Teams, SharePoint)
  • Safe Links with time-of-click verification
  • Anti-phishing protection
  • Real-time detections and reporting
  • Zero-hour auto purge (ZAP)
  • Protection policies for email and collaboration

Plan 2

  • All Plan 1 features
  • Threat Trackers (trending malware campaigns)
  • Threat Explorer (advanced investigation hub)
  • Automated Investigation and Response (AIR)
  • Attack simulation training
  • Cross-domain XDR capabilities
  • Advanced threat hunting

Compare Microsoft Defender for Office 365 vs Alternatives

Before committing to Microsoft Defender for Office 365, compare pricing with these 3 alternatives in the same category.

All Microsoft Defender for Office 365 alternatives & migration guides

What Companies Actually Pay for Microsoft Defender for Office 365

The median Microsoft Defender for Office 365 buyer pays $60/year based on 0 verified purchase transactions, with an average 92% savings through negotiation.

What companies actually pay $60/yr Median across 0 purchases
92% avg. savings
with negotiation
Review scores
TrustRadius 8.2/10 (32)
Top pricing complaints
Requires specific Microsoft training to implement effectivelyCan be difficult to troubleshoot without Microsoft expertise
Source: Vendr buyer database — median calculated from 0 real purchase transactions. Savings figure reflects negotiated discounts reported by buyers.

Microsoft Defender for Office 365 Year 1 Total Cost by Company Size

Real deployment costs including licenses, implementation, training, and admin — not just the sticker price.

Small Business on E3 (50 users) Year 1 total

Microsoft 365 E3 with Defender for Office 365 Plan 1 provides baseline email security with Safe Attachments, Safe Links, and anti-phishing for Microsoft 365 environments.

Mid-Size Company on E3 with Plan 2 (250 users) Year 1 total

E3 base with Defender Plan 2 adds Threat Explorer, Automated Investigation and Response, and attack simulation training—ideal for organizations needing advanced threat hunting and automated remediation.

Enterprise on E5 (1,000 users) Year 1 total

Microsoft 365 E5 includes Defender for Office 365 Plan 2 with no additional cost, plus full compliance, advanced analytics, and Power BI. Most cost-effective for large enterprises needing comprehensive Microsoft security suite.

How Microsoft Defender for Office 365 Pricing Compares

Software Starting Price Top Price
Microsoft Defender for Office 365 $2/user/month $5/user/month
Abnormal Security $3/user/month $8/user/month
Barracuda Email Protection $5/user/month $5/user/month
Mimecast Custom Custom
Proofpoint $2/user/month $15/user/month

6 Microsoft Defender for Office 365 Hidden Costs Beyond the List Price

Beyond the listed price, Microsoft Defender for Office 365 has at least 6 documented hidden costs that can significantly increase total cost of ownership.

Watch for 6 hidden costs
  • Microsoft 365 E3/E5 base subscription required: $36-57/user/month
  • Audit log retention beyond 1 year: requires E5 Compliance add-on
  • Advanced compliance features: E5 Compliance add-on at $12/user/month
  • Defender Suite bundle: $12/user/month for most E5 security features on E3 base
  • Premium support plans: additional cost beyond standard support
  • Training for security operations: Microsoft security training programs priced separately
Tip

Ask your Microsoft Defender for Office 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 2 independent sources
Vendr Verified buyer transactions TrustRadius Enterprise reviews
Key claims include inline source attribution. Data verified against multiple independent sources. 1 source citations total.

Microsoft Defender for Office 365 Pricing FAQ

01 How much does Microsoft Defender for Office 365 cost?

Microsoft Defender for Office 365 Plan 1 costs $2 per user/month ($24/year) with Safe Attachments, Safe Links, and anti-phishing. Plan 2 costs $5 per user/month ($60/year) adding Threat Explorer, Automated Investigation and Response (AIR), and attack simulation training. Both require a Microsoft 365 E3 base subscription ($36/user/month), making total cost $38-41/user/month for complete protection.

02 Is Defender for Office 365 included with Microsoft 365 E5?

Yes, Microsoft 365 E5 ($57/user/month) includes Defender for Office 365 Plan 2 with all advanced features. E3 users ($36/user/month) must purchase Defender for Office 365 separately as an add-on ($2-5/user/month). Alternatively, the Defender Suite add-on ($12/user/month) provides most E5 security features on an E3 base, saving compared to full E5.

03 What are the hidden costs of Defender for Office 365?

The main hidden cost is the required Microsoft 365 E3 base subscription ($36/user/month), making the true cost $38-41/user/month with Defender add-ons. Additional costs include E5 Compliance add-on for audit log retention beyond 1 year ($12/user/month), premium support plans, and Microsoft security training programs. Organizations already on E5 have no additional cost.

04 How does Defender for Office 365 compare to standalone solutions?

For Microsoft 365 users, Defender is cost-effective. Plan 1 ($2/user/month) is cheaper than Proofpoint ($3-6/user), Barracuda ($2.66+/user), or Abnormal ($3+/user). However, standalone solutions often include archiving, DLP, and encryption—features requiring separate Microsoft add-ons. Standalone solutions may also detect threats missed by Microsoft. Many organizations layer Defender with tools like Abnormal for AI-powered BEC detection.

05 What's the difference between Plan 1 and Plan 2?

Plan 1 ($2/user/month) provides core protection: Safe Attachments, Safe Links, anti-phishing, and real-time detections. Plan 2 ($5/user/month) adds advanced investigation and response tools: Threat Explorer (investigation hub), Automated Investigation and Response (AIR), Threat Trackers, attack simulation training, and cross-domain XDR. Plan 2 is designed for security teams needing proactive threat hunting and automated remediation.

06 Is Defender for Office 365 enough, or do I need additional security?

Defender provides solid baseline protection for Microsoft 365 environments, especially Plan 2 with AIR and Threat Explorer. However, it may miss sophisticated attacks like advanced BEC and credential phishing. Many organizations supplement Defender with AI-powered solutions (Abnormal Security) or layer it behind traditional gateways (Proofpoint, Mimecast) for defense-in-depth. Assess based on your threat landscape and risk tolerance.

07 Do I need special training to use Microsoft Defender for Office 365?

While the product can be deployed effectively, reviewers note that if you don't have specific Microsoft training, you may run into issues during implementation and troubleshooting. Familiarity with the Microsoft ecosystem helps with integration.

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