Microsoft 365 pricing, price hikes and cheaper alternatives
Microsoft 365 (microsoft.com) is a business email & office suite. Per user per month; annual commitment is cheapest, month-to-month commitment costs 20% more.. No free plan.
What Microsoft 365 costs
- 1 user: $8.40/mo (Business Basic $8.40/user/mo on monthly commitment ($7.00 annual x 1.2); 50 GB Exchange mailbox on your domain)
- 10 users: $84/mo (Business Basic $8.40 x 10 users on monthly commitment)
- 10 users + office: $84/mo (Business Basic includes web/mobile Word, Excel, PowerPoint: $8.40 x 10)
Plan compared: Business Basic (monthly commitment). Prices are USD per month on month-to-month billing for one person with email on their own domain (the headline), a 10-person team with their own mailboxes, and 10 people editing docs, sheets and slides. Regular prices without first-year promos; a product that does not do a job shows no price for it.
Microsoft 365 price hikes
- Microsoft 365 Business Basic rose from $6 to $7 per user · Jul 1, 2026
Business Basic went from $6 to $7/user/mo (annual) and Business Standard from $12.50 to $14; Business Premium stayed at $22. Month-to-month Basic rose from $7.20 to $8.40. - Microsoft 365 Business Basic rose from $5 to $6 per user · Mar 1, 2022
Microsoft's first major commercial price rise: Business Basic $5 to $6, Business Premium $20 to $22, Office 365 E3 $20 to $23, Microsoft 365 E3 $32 to $36; Business Standard unchanged at $12.50.
Cheaper alternatives to Microsoft 365
At 1 user, Microsoft 365 costs $8.40/mo. 1 business email & office suite costs less:
- Tuta: $4.21/mo (Revolutionary (monthly billing))
Microsoft 365 alternatives: 2 business email & office suites compared, at every size.
Every change we logged
- Jul 1, 2026 · Price increase: Business Basic went from $6 to $7/user/mo (annual) and Business Standard from $12.50 to $14; Business Premium stayed at $22. Month-to-month Basic rose from $7.20 to $8.40.
- Mar 1, 2022 · Price increase: Microsoft's first major commercial price rise: Business Basic $5 to $6, Business Premium $20 to $22, Office 365 E3 $20 to $23, Microsoft 365 E3 $32 to $36; Business Standard unchanged at $12.50.
Sources
Pricing page: microsoft.com/en-us/microsoft-365/business/compare-all-microsoft-365-business-products. Prices last checked Oct 16, 2026. Microsoft's pricing pages block automated fetching (403/timeouts); prices from the July 2026 increase coverage (UC Today, PricingSaaS) and reseller listings of the $8.40 Basic monthly-commitment price. PricingSaaS shows Standard $23.50 / Premium $32, which are the new Copilot-bundled SKUs, not the base plans; annual plans billed monthly carry an extra 5% surcharge.