How Much Does
Microsoft 365 Cost in 2026?
Microsoft 365 is the choice for teams deeply embedded in Windows or reliant on desktop Office apps (Outlook, Word, Excel). Business Basic at $6/user/mo annual gives 1TB OneDrive + web Office + email — the cheapest path to Microsoft ecosystem. Business Standard at $12.50/user/mo annual adds desktop Office apps — the tier most organizations actually need.
Prices in USD, verified from the United States. Regional pricing may vary.
Plans & Pricing
Business Basic
$6/mo billed annually
- storage 1TB/user OneDrive
- apps Web + mobile only
- email 50GB mailbox
- users Up to 300
Apps for Business
$8.25/mo billed annually
- storage 1TB/user OneDrive
- apps Desktop + web + mobile
- email Not included
- users Up to 300
Business Standard
$12.5/mo billed annually
- storage 1TB/user OneDrive
- apps Desktop + web + mobile + Teams + Email
- email 50GB mailbox
- users Up to 300
Business Premium
$22/mo billed annually
- storage 1TB/user OneDrive
- apps Standard + advanced security + Intune device management
- users Up to 300
Enterprise E3
$22/mo billed annually
- scope Enterprise — no user cap + advanced compliance
From the StackScored blog
Features
Our Verdict
Microsoft 365 vs Google Workspace is a philosophical question. If your team lives in Outlook, Word, Excel desktop apps and Windows environments, Microsoft 365 is the right call. Business Basic at $6/user/mo annual is the cheapest entry in any major productivity suite — $1 less than Google Workspace Starter ($7) with 1TB OneDrive (3.3x Google's 30GB). Apps for Business at $8.25/user/mo annual is unusual — it gives you desktop Office apps but no email. Useful only if you have Gmail or another email provider already. Business Standard at $12.50/user/mo annual is the tier most SMBs pick: desktop Office + Teams + Outlook email + 1TB OneDrive. That's directly comparable to Google Workspace Business Standard at $14, and the right call is which ecosystem matches your existing tools. Business Premium at $22/user/mo annual adds Intune device management, advanced security, and compliance — required for regulated industries or teams with mixed device ownership. The 300-user cap on all Business tiers is strict — you jump to Enterprise E3 at $22/user/mo (equivalent pricing to Premium but removes the cap). Microsoft's Copilot AI is a $30/user/mo add-on — significantly more expensive than Google's Gemini which is included in Standard+ Workspace tiers. For anyone running a heavy AI-assisted team, Google wins on total cost.
Pros
- Business Basic at $6/user/mo annual is $1 cheaper than Google Workspace Starter with 33x more storage (1TB vs 30GB)
- Desktop Office apps (Outlook, Word, Excel) are still the gold standard for power users
- 1TB OneDrive per user on every tier — Google Starter gives only 30GB at similar price
- Microsoft Teams at Business Standard replaces Zoom for most orgs — saves $15/user/mo
- 30-day free trial is 2x Google's 14-day
Cons
- Copilot AI is $30/user/mo ADD-ON vs Google Gemini included in Workspace Standard+
- Apps for Business tier gives you Office without email — weird stranded SKU for most use cases
- 300-user cap on Business tiers forces Enterprise upgrade (E3 at same $22 as Premium) for larger orgs
- Microsoft 365 Personal vs Business split is confusing — Personal at $7/mo has different features than Business Basic at $6
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Frequently Asked Questions
- How much does Microsoft 365 cost per month?
- Microsoft 365 plans start at $7.2/mo. They offer 5 plans total.
- Does Microsoft 365 offer a free trial?
- Yes, Microsoft 365 offers a free trial for 30 days. No credit card is typically required to start.
- Is Microsoft 365 worth the price?
- With a score of 8.7/10 and plans from $7.2/mo, Microsoft 365 delivers strong value for the price.
- What are cheaper alternatives to Microsoft 365?
- Cheaper cloud storage alternatives include pCloud ($4.99/mo), Backblaze ($6/mo), Google Workspace ($7/mo). See all options on our [Cloud Storage pricing comparison](/pricing/cloud-storage/) page.
- Does Microsoft 365 offer discounts?
- Yes. Microsoft 365 saves you up to 17% when you choose annual billing — the Business Basic plan drops from $7.2/mo to $6/mo with an annual commitment.