Microsoft 365 Business Basic costs $7/user/month with annual commitment (from 1 July 2026) and is the cheapest plan for businesses with up to 300 users. The subscription provides web versions of Office (Word, Excel, PowerPoint in the browser), Microsoft Teams with video meetings, a 100 GB Exchange mailbox and 1 TB OneDrive storage. There are no installed desktop apps and no advanced security.
Official USD list prices at annual billing. Monthly billing adds 5%. The currency adapts to your selected display at the top of the page.
Key benefits
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Lowest Microsoft 365 price: $7/user/mo from 1 July 2026 (up 17% from $6)
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Microsoft Teams with video meetings, chat, calls and file sharing
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1 TB OneDrive and SharePoint Online per user
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Exchange Online with 100 GB mailbox and company email on your own domain
When is Business Basic the right choice?
Business Basic is the right choice if your employees primarily use email, Teams and file sharing, and don't need installed desktop apps. Perfect for small teams under 10 users with simple needs.
When should you choose a different plan?
Choose a different plan if anyone needs desktop Office apps (macros, advanced Excel, offline work), device management, security beyond basics, or you have over 300 users.
Included features
18 features included
Productivity & Apps
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Word, Excel, PowerPoint (web)
Use Word, Excel, and PowerPoint directly in the browser without installation.
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Microsoft Teams
Chat, video meetings, file sharing, and collaboration in one platform.
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Exchange Online (100 GB)Coming/enhanced
Hosted email with a 100 GB mailbox per user. The Business plans went from 50 to 100 GB on 1 July 2026.
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OneDrive (1 TB)
1 TB personal cloud storage with sync and sharing.
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SharePoint
Intranet sites, document libraries, and team collaboration.
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Microsoft Bookings
Online booking system that lets customers schedule meetings directly.
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Microsoft Loop
Real-time collaboration tool with components that work across apps.
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Clipchamp
Video editing tool for quick content production.
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Microsoft Planner
Task management with boards, lists, and timelines for teams.
AI & Copilot
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Copilot Chat (web-grounded)
AI assistant that answers questions based on web data. Free in all plans.
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Copilot Chat in apps (Word, Excel, PPT, Outlook)
Copilot Chat integrated directly into Word, Excel, PPT, and Outlook.
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Copilot add-on (Business plans)
Copilot can be added to Business Basic, Standard and Premium: Copilot Business at $21/user/mo (up to 300 users) or Microsoft 365 Copilot at $30/user/mo.
Security & Identity
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Entra ID (Basic) + MFA
Basic identity management with user administration and MFA.
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Self-service password reset
Users can reset their own password without contacting the helpdesk.
Threat Protection
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Exchange Online Protection (EOP)
Basic email security with spam and malware filtering.
Compliance & Purview
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Audit (Standard)
Standard logging of user and admin activities for 180 days.
Telephony & Advanced
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Viva Insights (personal)
Personal productivity insights based on your work patterns.
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Microsoft Places
Office management with booking of desks, rooms, and resources.