Guide
Microsoft 365 Pricing Guide
Every plan, every price, every segment. Updated for 2026.
TL;DR
- • Frontline: $2.25 – $8/mo (shift workers, mobile-first)
- • Business: $6 – $22/mo (up to 300 users)
- • Enterprise: $10 – $57/mo (unlimited users, advanced security & compliance)
- • Education: Free – $8/mo (qualifying institutions only)
All Plans at a Glance
| Plan | Price/mo | Features | Segment | Max Users |
|---|---|---|---|---|
| M365 A1 | Free | 61 | Education | Unlimited |
| M365 A1+ | Free | 64 | Education | Unlimited |
| M365 F1 | $2.25 | 50 | Frontline | Unlimited |
| M365 A3 | $3.25 | 130 | Education | Unlimited |
| M365 Basic | $6 | 33 | Business | 300 |
| M365 F3 | $8 | 98 | Frontline | Unlimited |
| M365 A5 | $8 | 187 | Education | Unlimited |
| O365 E1 | $10 | 36 | Enterprise | Unlimited |
| M365 Standard | $12.5 | 35 | Business | 300 |
| M365 Premium | $22 | 99 | Business | 300 |
| O365 E3 | $23 | 45 | Enterprise | Unlimited |
| M365 E3 | $36 | 126 | Enterprise | Unlimited |
| O365 E5 | $38 | 78 | Enterprise | Unlimited |
| M365 E5 | $57 | 186 | Enterprise | Unlimited |
Prices are per user/month (annual commitment). Government pricing is not publicly available.
Business Plans
Designed for small and mid-size organizations with up to 300 users. Simpler admin, lower cost, and streamlined feature sets.
Microsoft 365 Business Basic
33 features included
$6/mo
Microsoft 365 Business Standard
35 features included
$12.5/mo
Microsoft 365 Business Premium
99 features included
$22/mo
Key limitation: All Business plans are capped at 300 users. If you're approaching that limit, consider migrating to Enterprise plans. The transition path is straightforward but should be planned ahead.
Enterprise Plans
No user cap. Two product lines: Office 365 (productivity only) and Microsoft 365 (productivity + Windows + Security + Compliance). See our M365 vs O365 guide for the full breakdown.
| Plan | Price/mo | Features | Line |
|---|---|---|---|
| Office 365 Enterprise E1 | $10 | 36 | Office 365 |
| Office 365 Enterprise E3 | $23 | 45 | Office 365 |
| Office 365 Enterprise E5 | $38 | 78 | Office 365 |
| Microsoft 365 E3 | $36 | 126 | Microsoft 365 |
| Microsoft 365 E5 | $57 | 186 | Microsoft 365 |
Frontline Plans
Built for shift workers and firstline employees. Starting at just $2.25/mo, the most cost-effective way to bring your entire workforce into Microsoft 365. See our Frontline F1 vs F3 guide for the full comparison.
Education Plans
Available to qualifying educational institutions. A1 is free with web-only Office apps. A3 and A5 add desktop apps, advanced security, and compliance features at deeply discounted prices.
| Plan | Price/mo | Features |
|---|---|---|
| Microsoft 365 Education A1 (Legacy) | Free | 61 |
| Microsoft 365 Education A1 for Devices | Free | 64 |
| Microsoft 365 Education A3 | $3.25 | 130 |
| Microsoft 365 Education A5 | $8 | 187 |
Add-On Pricing
Add-ons extend a base license with advanced security or compliance capabilities. They require a qualifying base plan.
| Add-On | Price/mo | Features | Segment |
|---|---|---|---|
| Microsoft 365 F5 Security Add-on | $6 | 45 | Frontline |
| Microsoft 365 F5 Compliance Add-on | $6 | 24 | Frontline |
| Microsoft 365 F5 Security + Compliance Add-on | $12 | 68 | Frontline |
| Microsoft 365 E5 Security Add-on | $14.5 | 46 | Enterprise |
| Microsoft 365 E5 Compliance Add-on | $12 | 23 | Enterprise |
| Microsoft 365 Education A5 Security Add-on | Free | 47 | Education |
| Microsoft 365 Education A5 Compliance Add-on | Free | 20 | Education |
Cost Optimization Tips
Mix license tiers
Not every user needs E5. Assign E5 to IT admins and security teams, E3 to knowledge workers, and F1/F3 to frontline staff. A 1,000-user org could save $15,000+/year by right-sizing licenses.
Use add-ons selectively
Instead of upgrading everyone from E3 to E5, add E5 Security ($14.50/mo) only to users who need advanced threat protection. This saves $6.50/user/month vs a full E5 upgrade.
Bundle over buy standalone
M365 E3 ($36/mo) bundles O365 E3 ($23) + Windows E3 ($7) + Intune ($8) + Azure AD P1 ($6) = $44 standalone. The bundle saves $8/user/month.
Commit annually
Monthly billing adds ~20% to the per-user cost. Annual commitment pricing (shown above) is always cheaper. For stable headcounts, annual saves significantly.