Microsoft Defender for Office 365 Pricing 2026
Complete pricing guide with plans, hidden costs, and negotiation tips
Microsoft Defender for Office 365 pricing varies by team size and features, ranging from $2 to $5 per user/month in 2026. Your actual cost depends on the tier you choose, 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
- Billing: Monthly and annual (save 15-20%)
- Hidden costs: Add ~35% for implementation, support, and training
Microsoft Defender for Office 365 offers 2 pricing tiers: Plan 1, Plan 2. Standard 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.
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.
All Microsoft Defender for Office 365 Plans & Pricing
| Plan | Monthly | Annual | Best For |
|---|---|---|---|
| Plan 1 | $2 /month | $24 /month | General users and teams |
| Plan 2 | $5 /month | $60 /month | 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
Get a custom Microsoft Defender for Office 365 quote
Enter your work email and we'll send you a detailed cost breakdown.
Frequently Asked Questions
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.