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

Editorial source pass: September 11, 2026. Primary vendor references: Microsoft 365 pricing. Current-price claims on this page were reviewed against the linked primary source; the vendor checkout remains authoritative for a quote. Currency, region, taxes, usage and contract terms can change the final price.

Microsoft raised Microsoft 365 prices by 20% in March 2022 — the first price increase in over a decade. Here's every plan, every price change, and what to watch for next.

+20%

Business plan increase (2022)

$6–$57

Per user/month range

11 yrs

No price changes (2011–2022)

2022

Year of first major hike

Current Microsoft 365 Plans (2026)

Personal & Family Plans

Plan	Price	Users	Key features
Microsoft 365 Personal	$6.99/mo $69.99/yr	1 user	Word, Excel, PowerPoint, Outlook, 1TB OneDrive, 60 Skype minutes/month
Microsoft 365 Family	$9.99/mo $99.99/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 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.

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	$36/user/mo	Unlimited cloud archiving, eDiscovery, advanced compliance, no user cap
Microsoft 365 E5	$57/user/mo	Everything in E3 + Power BI Pro, Teams Phone, Advanced Threat Intelligence, SIEM
Microsoft 365 F1	$2.25/user/mo	Frontline workers: Teams, SharePoint, web Office only. No email, no desktop apps
Microsoft 365 F3	$8/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 pricing for over a decade — then changed everything in 2022.

Mar 2022

+20% Business Plans

First price increase since 2011 — all commercial plans up 20%

Business Basic: $5 → $6/user/month (+20%)
Business Standard: $12.50 → $15/user/month — wait, Standard actually stayed at $12.50
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.

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.
F-series price increase: Frontline plans (F1 at $2.25) are underpriced relative to Business plans. A normalization push is likely.
E3/E5 consolidation: Microsoft may restructure enterprise tiers to push E5 adoption (higher margin), making E3 less attractive by moving features up.
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.

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