On 1 July 2026 Microsoft raised prices on 8 of the 10 plans. See the changes
Microsoft 365 licensing,
made simple
Compare the 10 Microsoft 365 plans side by side, see what each licence includes, and find the one that fits you.
10 Microsoft 365 plans. 60 features to compare. Prices rose on July 1, 2026, and we show the new numbers so you can see whether you're on the right plan.
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How many users do you have?
Price changes July 1, 2026
List price in USD per user per month. The change is compared to the price before 1 July 2026.
Business Basic
$7
↑ +16.7 %
Business Std
$14
↑ +12 %
Business Prem
$22
Unchanged
O365 E3
$26
↑ +13 %
M365 E3
$39
↑ +8.3 %
O365 E5
$41
↑ +7.9 %
M365 E5
$60
↑ +5.3 %
M365 E7
$99
New plan
M365 F1
$3
↑ +33.3 %
M365 F3
$10
↑ +25 %
About the prices: All prices are Microsoft's official list prices in USD per user per month with annual commitment. Monthly commitment costs ~20% more. Your actual price depends on CSP (Cloud Solution Provider) agreement, exchange rate, and EA terms (volume discounts collapsed in November 2025).
Does one of the prices look off for your organization, or do you just want to make sure you are paying the right amount? Write to me
Latest from the blog
License changes, pricing and comparisons. Written with sources.
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Prices range from $3 to $99 per user per month depending on the plan. Business Basic costs $7/user/mo, Business Standard $14, Business Premium $22, E3 $39, E5 $60, and the new E7 $99. For frontline workers, F1 starts at $3 and F3 at $10. All prices are for annual billing, monthly billing has a 5% surcharge. Use our comparison tool to calculate the exact annual cost for your number of users.
E5 adds advanced security (Defender XDR, Endpoint P2), compliance (Insider Risk, eDiscovery Premium), analytics (Power BI Pro) and Security Copilot. E3 covers basic productivity, identity management and baseline compliance. E3 costs $39/user/mo and E5 costs $60/user/mo. For most SMBs with under 300 users, E3 is sufficient unless you have strict compliance requirements or need advanced threat detection.
Business Premium ($22/user/mo) is designed for companies with up to 300 users and includes Intune P1, Defender for Office 365 P1, and Conditional Access. E3 ($39/user/mo) is for enterprise customers with no user cap and adds Intune Suite, Windows Enterprise license, advanced compliance, and eDiscovery. If you grow beyond 300 users, you must switch to E3. For most SMBs under 300 users, Business Premium offers the best value unless you need advanced compliance.
Microsoft 365 Copilot (the full AI assistant in Word, Excel, Outlook, etc.) is included in E7. For all other qualifying plans, Copilot is a $30/user/mo add-on (Enterprise), or $21/user/mo as Copilot Business for SMBs with up to 300 users. The SMB version launched on 2 December 2025. Business Basic, F1 and F3 can also add Copilot, but without desktop apps it only works in the web versions. Everyone gets free access to the web-based Copilot Chat with commercial data protection. E7 at $99/user/mo is the most cost-effective bundle if you want Copilot + advanced security.
Yes. You can assign different Microsoft 365 licenses to different users in the same tenant. It's perfectly normal to combine e.g. E3 for office workers, F3 for frontline workers, and Business Premium for a smaller department. Be aware that Business plans (max 300 users) and Enterprise plans can be mixed, but certain tenant-wide features like Conditional Access policies require the appropriate license for all affected users. Keep your license mix simple to ease administration and avoid compliance risks.
The price increase took effect on July 1, 2026, so the window to renew at the old prices beforehand has closed. But you can still influence the cost: with an Enterprise Agreement (EA) or Microsoft Customer Agreement (MCA) you can lock the price at your next renewal, and you can always remove redundant licenses, move communication-only users to F3, or choose Business Premium, which did not rise. Contact your Microsoft partner for your specific options.