Microsoft 365 Pricing 2026: All Plans, History & What Changed

Editorial source pass: September 29, 2026. Primary vendor references: Microsoft's July 2026 pricing update and Microsoft 365 pricing. The vendor checkout remains authoritative for a quote. Currency, region, taxes, usage and contract terms can change the final price.

Microsoft changed selected commercial suite prices on July 1, 2026 and now sells several with-Teams, without-Teams and Copilot-inclusive variants. This guide separates the current US list prices from older pricing history.

Business Basic with Teams

$14

Business Standard with Teams

$22

Business Premium with Teams

Jul 2026

Latest commercial update

Current Microsoft 365 Plans (2026)

Personal & Family Plans

Plan	Price	Users	Key features
Microsoft 365 Personal	$9.99/mo $99.99/yr	1 user	Word, Excel, PowerPoint, Outlook, 1TB OneDrive, 60 Skype minutes/month
Microsoft 365 Family	$12.99/mo $129.99/yr	Up to 6 users	All Personal features × 6, 1TB OneDrive per person (6TB total), Family Safety app

Business Plans (US list prices)

Plan	Price	Billing context	Key features
Business Basic with Teams	$7/user/month	Paid yearly; up to 300 users	Web/mobile apps, business email, Teams and 1 TB storage per user
Business Basic without Teams	$5.40/user/month	Paid yearly; up to 300 users	Web/mobile apps, business email and 1 TB storage per user
Business Standard with Teams	$14/user/month	Paid yearly; up to 300 users	Desktop, web and mobile apps, email, Teams and 1 TB storage per user
Business Premium with Teams	$22/user/month	Paid yearly; up to 300 users	Standard features plus device management and advanced security
Business Standard with Copilot and Teams	$23.50/user/month	Paid yearly; current US bundle	Desktop apps, Teams and Microsoft 365 Copilot
Business Premium with Copilot and Teams	$32/user/month	Paid yearly; current US bundle	Standard features plus device management and advanced security

Microsoft offers with/without-Teams and with/without-Copilot variants. Availability and displayed prices vary by market and selector; use Microsoft's configurator for a contractual quote. US public prices checked September 11, 2026.

Current billing and Copilot offer (September 2026)

Current suite prices: Microsoft's July 1, 2026 packaging is already active. The annual-commitment US list prices shown above are current, not future increases.

Current Copilot promotion: Microsoft lists the Microsoft 365 Copilot Business add-on at $18/user/month, reduced from $21, for eligible existing Business customers. The offer runs through December 31, 2026, requires an annual commitment, applies to the first year, auto-renews, and is not available with trials. This is a time-limited add-on offer, not a permanent cut to every Microsoft 365 plan.

Subscription versus usage: the user subscription covers everyday Copilot productivity. Advanced agentic experiences including Cowork, Code and Autopilot use usage-based billing through Copilot Credits and require an administrator-configured billing policy. Their cost is not an unlimited entitlement bundled into the advertised seat price. Microsoft says task consumption depends on model use, context retrieval, tool calls and runtime.

Billing choice: Microsoft distinguishes monthly commitment with monthly payment, annual commitment with monthly payment, and annual commitment paid upfront. A monthly payment schedule does not necessarily mean a month-to-month commitment.

Enterprise Plans (Microsoft 365 E-series)

Plan	Price	Key additions
Microsoft 365 E3	$39/user/mo	Unlimited cloud archiving, eDiscovery, advanced compliance, no user cap
Microsoft 365 E5	$60/user/mo	Everything in E3 + Power BI Pro, Teams Phone, Advanced Threat Intelligence, SIEM
Microsoft 365 F1	$3/user/mo	Frontline workers: Teams, SharePoint, web Office only. No email, no desktop apps
Microsoft 365 F3	$10/user/mo	Frontline workers with more features: desktop apps, Exchange, Power Apps

Copilot packaging changed in 2026

Microsoft now publishes Copilot-inclusive Business bundles alongside variants without Copilot. The current US annual list prices shown above are $23.50/user/month for Business Standard with Copilot and Teams and $32/user/month for Business Premium with Copilot and Teams.

Do not treat the former $30 standalone Copilot add-on as a universal current SMB price. Packaging, Teams inclusion and regional availability vary.

Microsoft 365 Price History

Microsoft was remarkably stable on commercial pricing for over a decade, then introduced major changes in 2022 and another selected-suite update in July 2026.

Jul 2026

Commercial price update

Microsoft raises selected Business, Enterprise and Frontline suite prices

Effective July 1, 2026, US list pricing changed for Business Basic from $6 to $7 (+16%), Business Standard from $12.50 to $14 (+12%), Microsoft 365 E3 from $36 to $39 (+8%), Microsoft 365 E5 from $57 to $60 (+5%), F1 from $2.25 to $3 (+33%) and F3 from $8 to $10 (+25%). Business Premium with Teams remained $22. Microsoft also launched permanent Business Standard with Copilot ($23.50) and Business Premium with Copilot ($32) annual bundles.

Mar 2022

+20% Business Plans

First broad commercial price increase since 2011

Business Basic: $5 → $6/user/month (+20%)
Business Standard: remained $12.50/user/month in this update
Apps for Business: $8.25 (new SKU replacing old Office 365 Business)
Business Premium: $20 → $22/user/month (+10%)
E3: $32 → $36/user/month (+12.5%)
E5: $57/user/month (unchanged, was already high)

Jan 2024

AI Add-on Launch

Copilot for Microsoft 365 goes GA, min seat requirement drops to 1

Microsoft 365 Copilot launches at $30/user/month. Initially required 300 seats (enterprise only), then dropped to 1 seat minimum in January 2024 to open SMB market. Net effect: Microsoft nearly doubled their revenue per enterprise user if Copilot adoption takes hold.

Apr 2023

Feature Bundle Change

Teams unbundled in Europe following EU antitrust ruling

Under EU pressure, Microsoft began offering Microsoft 365 without Teams in Europe, reducing prices slightly for EU customers who wanted the full suite. This didn't affect US/global pricing.

2011–2021

10 Years Stable

No price increases for an entire decade

From Office 365's launch in 2011 through 2021, Microsoft did not raise commercial prices. This made the 2022 hike more jarring — it hit organizations that had budgeted for stable costs for years.

Team Cost Scenarios

Scenario	Monthly seat cost	Annual seat cost	Decision point
10 users, Business Basic	$70	$840	Email, web apps and Teams without desktop Office
10 users, Business Standard	$140	$1,680	Desktop Office adds $840/year over Basic for this team
10 users, Business Premium	$220	$2,640	Security and device management add $960/year over Standard
10 users, Standard with Copilot	$235	$2,820	Permanent Copilot bundle adds $1,140/year over Standard
100 users, Microsoft 365 E3	$3,900	$46,800	Enterprise compliance and management, before optional add-ons

US list-price examples use annual subscriptions with annual billing and exclude tax, regional adjustments and usage-based Copilot Credits. Confirm the selected Teams and Copilot variant in Microsoft's configurator.

Microsoft 365 vs Google Workspace: billing context

Google Workspace's standard US annual list prices are $7, $14 and $22 per user/month for Business Starter, Standard and Plus. Microsoft publishes multiple with/without-Teams and with/without-Copilot variants, so a fair comparison must use the exact selected bundles rather than the retired $6/$12.50/$22 grid. Compare both vendor checkouts for the same region, cadence and AI inclusion.

Is Microsoft 365 Worth the Price?

When Microsoft 365 is the clear choice

You need desktop apps: Excel on desktop is still far more capable than Google Sheets for financial modeling, pivot tables, and complex macros. No real alternative.
You're already in the Microsoft ecosystem: Active Directory, Azure, Intune, SharePoint — switching has high hidden costs.
Regulated industries: Healthcare, legal, and government often require M365 compliance features (eDiscovery, archiving, DLP) that Workspace can't match at the same tier.
Windows-heavy org: M365 manages Windows devices natively via Intune in Business Premium.

When to consider switching

Cloud-first teams: If your team lives in browser tabs and doesn't need desktop Office, Google Workspace is cheaper and simpler.
Startups: Google Workspace's startup program offers free usage up to a year. M365 has no equivalent.
You're adding Copilot: At $30/user vs $10/user for Google's Gemini, the cost gap is real. Gemini is deeply integrated — no add-on required.
Mac/Linux teams: M365 is better on Windows. Workspace runs equally well on every platform.

Microsoft 365 Pricing: What to Watch Next

Based on Microsoft's pattern, these are the most likely pricing moves in 2026–2027:

Copilot bundling: Microsoft will likely bundle Copilot into higher-tier plans rather than keeping it as an optional add-on — forcing enterprises to pay for AI whether they use it or not.
Renewal basis: confirm whether your agreement uses annual list pricing, a monthly commitment, a partner discount or a negotiated enterprise agreement.
Copilot Credits: advanced agent usage can add consumption charges beyond the seat subscription, so monitor both license and usage invoices.
Teams unbundling globally: Following EU antitrust, there's pressure to extend Teams unbundling globally, which could complicate pricing for IT managers.

Frequently Asked Questions

Does Microsoft 365 include Teams?

Microsoft sells both with-Teams and without-Teams business variants. Check the selected SKU rather than assuming Teams is included.

How is Copilot priced?

Copilot is included in some current Business bundles and may also be available through other licensing paths. The former $30 add-on is historical context, not a universal current SMB price.

Know Before Your Renewal

Monitor Microsoft 365 Free →