Office 365 E3 vs E5
49 shared features. 33 O365 E5 exclusives. 1 upgraded.
Last updated 2026-02-15
O365 E3
Office 365 Enterprise E3
50 features included
Core productivity + baseline security
Conditional Access, Defender P1
O365 E5
Office 365 Enterprise E5
83 features included
Everything in O365 E3 + advanced security
Defender P2, advanced compliance, Phone System
Overview
Office 365 E3 and E5 share the same core productivity apps—Word, Excel, PowerPoint, Outlook, Teams, Exchange Online, and SharePoint—but the $15/month gap between them unlocks a fundamentally different security and compliance stack. E3 at $23/user/month is the workhorse plan most enterprises standardize on: full desktop apps, 50 GB mailboxes, unlimited OneDrive storage, and baseline data loss prevention.
E5 at $38/user/month adds 32 features concentrated in three areas: advanced threat protection (Defender for Office 365 Plan 2, Safe Attachments, Safe Links), compliance automation (advanced eDiscovery, Communication Compliance, Information Barriers, Records Management), and analytics (Power BI Pro, MyAnalytics Full). It also includes Audio Conferencing and Teams Phone at no additional cost.
The deciding factor is usually security posture. If your organization needs Defender for Office 365 Plan 2 ($5/user/month as an add-on), Safe Attachments, Attack Simulation Training, or any two of the advanced compliance features, E5 bundles them at a lower total cost than buying E3 plus individual add-ons.
Breakdown by Category
| Category | Shared | O365 E5 Only | Total |
|---|---|---|---|
| Compliance | 7 | 13 | 20 |
| Productivity | 20 | 11 | 32 |
| Security | 1 | 7 | 8 |
| Collaboration | 20 | 1 | 21 |
| Devices | 0 | 1 | 1 |
| Identity | 1 | 0 | 1 |
Feature Comparison
| Feature | O365 E3 $23 | O365 E5 $38 |
|---|---|---|
| — | ✓ | |
Audit (premium) CMP | — | ✓ |
| — | ✓ | |
Customer Key CMP | — | ✓ |
Customer Lockbox CMP | — | ✓ |
| — | ✓ | |
| — | ✓ | |
| — | ✓ | |
Exact Data Match PRD | — | ✓ |
| — | ✓ | |
| — | ✓ | |
| — | ✓ | |
| — | ✓ | |
| — | ✓ | |
Campaign Views PRD | — | ✓ |
| — | ✓ | |
Threat Explorer SEC | — | ✓ |
Threat Trackers SEC | — | ✓ |
| — | ✓ | |
Anti-Phishing PRD | — | ✓ |
| — | ✓ | |
Safe Attachments SEC | — | ✓ |
Safe Links SEC | — | ✓ |
| — | ✓ | |
Power BI Pro PRD | — | ✓ |
| — | ✓ | |
| — | ✓ | |
| — | ✓ | |
| — | ✓ | |
| — | ✓ | |
Teams Phone COL | — | ✓ |
| — | ✓ | |
| — | ✓ |
Who Should Choose O365 E3?
E3 is the right fit for organizations that need the full Microsoft 365 desktop apps, Exchange Online, SharePoint, and Teams without advanced threat protection or compliance automation. If your security requirements are met by basic anti-spam, anti-malware, and standard DLP policies, E3 delivers excellent value at $23/user/month. Many organizations start with E3 and selectively upgrade security-critical users to E5 as compliance requirements grow.
Who Should Choose O365 E5?
E5 is built for organizations that need advanced email security, compliance tooling, or both. If you would otherwise buy E3 plus Defender for Office 365 Plan 2, Advanced eDiscovery, or Power BI Pro as add-ons, E5 is almost certainly cheaper. It is particularly compelling for regulated industries (finance, healthcare, legal) that need Communication Compliance, Information Barriers, Customer Lockbox, or Privileged Access Management. The inclusion of Audio Conferencing and Teams Phone adds further value for organizations consolidating their telephony stack.
Cost Analysis
O365 E3 monthly
$23
O365 E5 monthly
$38
Monthly delta
+$15
Annual delta (per user)
+$180
The Verdict
If you need advanced threat protection or more than one premium compliance feature, E5 at $38/user/month is the better deal compared to E3 ($23) plus individual add-ons. For organizations with straightforward security needs and no regulatory compliance pressure, E3 remains the cost-effective choice at $15/month less per user.