Microsoft 365 Pricing and Packaging Updates
February 16, 2025
On December 4, Microsoft announced a global price and packaging update for select Microsoft 365 commercial suites and standalone components, including Enterprise, Business, Frontline, and Government commercial equivalents. Standalone Microsoft Teams and Copilot SKUs are not included in this update. See timing details below.
- Pricing updates take effect July 1, 2026.
- Packaging updates begin rolling out in June 2026.
- Existing customers remain on current pricing until renewal.
- Customers will receive at least 30 days notice in Message Center before packaging changes become available in their tenant.
Commercial Pricing Update: Details of the new pricing (as of July 1, 2026, in USD) for commercial customers are provided in the tables below. Please note: This pricelist pricing is subject to change and may vary by country and currency. To learn more about these changes, please refer to the official announcement.
Enterprise suites
Suites with Teams
Effective July 1, 2026
| SKU | % change | Old Price New Price |
|---|---|---|
| Office 365 E1 |
--
|
$10.00
|
| Office 365 E3 |
13%
|
$23.00
$26.00 |
| Office 365 E5 |
8%
|
$38.00
$41.00 |
| Microsoft 365 E3 |
8%
|
$36.00
$39.00 |
| Microsoft 365 E5 |
5%
|
$57.00
$60.00 |
Suites without Teams
Effective July 1, 2026
| SKU | % change | Old Price New Price |
|---|---|---|
| Office 365 E1 (no Teams) |
--
|
$6.79
|
| Office 365 E3 (no Teams) |
14%
|
$14.45
$17.45 |
| Office 365 E5 (no Teams) |
10%
|
$29.45
$32.45 |
| Microsoft 365 E3 (no Teams) |
11%
|
$27.45
$30.45 |
| Microsoft 365 E5 (no Teams) |
6%
|
$48.45
$51.45 |
Frontline suites
Suites with Teams
Effective July 1, 2026
| SKU | % change | Old Price New Price |
|---|---|---|
| Microsoft 365 F1 |
33%
|
$2.25
$3.00 |
| Microsoft 365 F3 |
25%
|
$8.00
$10.00 |
Suites without Teams
Effective July 1, 2026
| SKU | % change | Old Price New Price |
|---|---|---|
| Microsoft 365 F1 (no Teams) |
43%
|
$1.75
$2.50 |
| Microsoft 365 F3 (no Teams) |
29%
|
$6.93
$8.93 |
Business suites
Suites with Teams
Effective July 1, 2026
| SKU | % change | Old Price New Price |
|---|---|---|
| Microsoft 365 Business Basic |
16%
|
$6.00
$7.00 |
| Microsoft 365 Business Standard |
12%
|
$12.50
$14.00 |
| Microsoft 365 Business Premium |
--
|
$22.00
|
Suites without Teams
Effective July 1, 2026
| SKU | % change | Old Price New Price |
|---|---|---|
| Microsoft 365 Business Basic (no Teams) |
23%
|
$4.40
$5.40 |
| Microsoft 365 Business Standard (no Teams) |
16%
|
$9.29
$10.79 |
| Microsoft 365 Business Premium (no Teams) |
--
|
$18.79
|
Standalone Components
Effective July 1, 2026
| SKU | % change | Old Price New Price |
|---|---|---|
| Purview Suite |
--
|
$12.00
|
| Windows E3 |
15%
|
$6.63
$7.63 |
| Apps for Business |
21%
|
$8.25
$10.00 |
| Enterprise Mobility + Security (EMS) E3 |
13%
|
$10.60
$12.00 |
| Entra Plan 1 |
16%
|
$6.00
$7.00 |
| Windows Enterprise (per device) |
31%
|
$5.85
$7.63 |
| SKU | % change | Old Price New Price |
|---|---|---|
| Defender Suite |
--
|
$12.00
|
| Windows E5 |
9%
|
$11.81
$12.81 |
| Microsoft 365 Apps |
17%
|
$12.00
$14.00 |
| Enterprise Mobility + Security (EMS) E5 |
10%
|
$16.40
$18.00 |
| Entra Plan 2 |
11%
|
$9.00
$10.00 |
| Microsoft 365 Apps (per device) |
17%
|
$36.00
$42.00 |
Commercial Packaging Update: New capabilities will begin to roll out in June 2026. Customers will receive a 30‑day notice in Message Center before the update becomes available in their tenant. Roll out of the following features will be complete by August 1, 2026: Microsoft Defender for Office 365 Plan 1, Intune Remote Help, Intune Advanced Analytics, Intune Plan 2, Intune Privilege Management, Microsoft Cloud PKI, and Intune Application Management. Packaging details are provided in the table below.
Enterprise suites
| Rolling out summer 2026 | Feature additions
|
|---|---|
| Office 365 E1 |
URL time-of-click protection, Copilot Chat enhancements*, Copilot Chat Analytics
|
| Office 365 E3 |
Microsoft Defender for Office Plan 1, Copilot Chat enhancements*, Copilot Chat Analytics
|
| Office 365 E5 |
Copilot Chat enhancements*, Copilot Chat Analytics
|
| Microsoft 365 E3 |
Microsoft Defender for Office Plan 1, Intune Remote Help, Intune Advanced Analytics, Intune Plan 2, Copilot Chat enhancements*, Copilot Chat Analytics
|
| Microsoft 365 E5 |
In addition to Microsoft 365 E3 additions: Microsoft Security Copilot, Intune Endpoint Privilege Management, Microsoft Cloud PKI, Intune Enterprise Application Management
|
Frontline suites
| Rolling out summer 2026 | Feature additions
|
|---|---|
| Microsoft 365 F1 |
Copilot Chat enhancements*, Copilot Chat Analytics
|
| Microsoft 365 F3 |
Copilot Chat enhancements*, Copilot Chat Analytics
|
Business suites
| Rolling out summer 2026 | Feature additions
|
|---|---|
| Microsoft 365 Business Basic |
+50GB email, URL time-of-click protection, Copilot Chat enhancements*, Copilot Chat Analytics
|
| Microsoft 365 Business Standard |
+50GB email, URL time-of-click protection, Copilot Chat enhancements*, Copilot Chat Analytics
|
| Microsoft 365 Business Premium |
+50GB email, Copilot Chat enhancements*, Copilot Chat Analytics
|
Standalone Components
| Rolling out summer 2026 | Feature additions
|
Rolling out summer 2026 | Feature additions
|
|---|---|---|---|
| Purview Suite |
--
|
Defender Suite
|
--
|
| Windows E3 |
Quick Machine Recovery (QMR) for commercial, post-quantum security APIs
|
Windows E5
|
--
|
| Apps for Business |
--
|
Microsoft 365 Apps
|
--
|
| Enterprise Mobility + Security (EMS) E3 |
Intune Remote Help, Intune Advanced Analytics, Intune Plan 2
|
Enterprise Mobility + Security (EMS) E5
|
Via Enterprise Mobility + Security (EMS) E3: Intune Remote Help, Intune Advanced Analytics, Intune Plan 2
|
| Entra Plan 1 |
--
|
Entra Plan 2
|
--
|
| Windows Enterprise (per device) |
Basic resiliency features, Software Assurance
|
Microsoft 365 Apps
(per device) |
--
|
*Enhancements include context-aware intelligence and Agent Mode in Word, Excel, PowerPoint, and Outlook.
Nonprofit Pricing Update: Nonprofit pricing will be adjusted in line with commercial pricing, as it is tied to commercial rates through a fixed percentage discount. For the impacted products, the nonprofit discount rate is 60-75%. Details of the new pricing (as of July 1, 2026, in USD) for non-profit customers are provided in the tables below. Please note: This pricelist pricing is subject to change and may vary by country and currency.
Enterprise suites
Suites with Teams
Effective July 1, 2026
| SKU | % change | Old Price New Price |
|---|---|---|
| Office 365 E1 |
--
|
$2.50
|
| Office 365 E3 |
13%
|
$5.75
$6.50 |
| Office 365 E5 |
8%
|
$15.20
$16.40 |
| Microsoft 365 E3 |
8%
|
$9.00
$9.75 |
| Microsoft 365 E5 |
5%
|
$22.80
$24.00 |
Frontline suites
Suites with Teams
Effective July 1, 2026
| SKU | % change | Old Price New Price |
|---|---|---|
| Microsoft 365 F1 |
33%
|
$0.56
$0.75 |
| Microsoft 365 F3 |
25%
|
$2.00
$2.50 |
Business suites
Suites with Teams
Effective July 1, 2026
| SKU | % change | Old Price New Price |
|---|---|---|
| Microsoft 365 Business Basic |
N/A
|
Free
|
| Microsoft 365 Business Standard |
17%
|
$3.00
$3.50 |
| Microsoft 365 Business Premium |
--
|
$5.50
|
Standalone Components
Effective July 1, 2026
| SKU | % change | Old Price New Price |
|---|---|---|
| Purview Suite |
--
|
$4.80
|
| Windows E3 |
15%
|
$1.65
$1.90 |
| Enterprise Mobility + Security (EMS) E3 |
13%
|
$2.65
$3.00 |
| Entra Plan 1 |
16%
|
$1.50
$1.75 |
| Microsoft 365 Apps |
17%
|
$3.00
$3.50 |
| Microsoft 365 Apps (per device) |
17%
|
$9.00
$10.50 |
| SKU | % change | Old Price New Price |
|---|---|---|
| Defender Suite |
--
|
$4.80
|
| Windows E5 |
9%
|
$4.40
$5.12 |
| Enterprise Mobility + Security (EMS) E5 |
10%
|
$6.56
$7.20 |
| Entra Plan 2 |
11%
|
$3.60
$4.00 |
| Windows Enterprise (per device) |
31%
|
$1.46
$1.91 |
Government Pricing Update: Government pricing will be adjusted in line with commercial pricing. Details of the new pricing (as of July 1, 2026, in USD) for Government customers are provided in the tables below.
| Commercial SKU | Government SKU | Total % Increase |
|---|---|---|
| Microsoft 365 E3 |
Microsoft 365 G3 GCC
|
8%
|
| Microsoft 365 E3 |
Microsoft 365 G3 GCC High
|
8%
|
| Microsoft 365 E3 |
Microsoft 365 G3 DoD
|
8%
|
| Commercial SKU | Government SKU | Total % Increase |
|---|---|---|
| Microsoft 365 E5 |
Microsoft 365 G5 GCC
|
5%
|
| Microsoft 365 E5 |
Microsoft 365 G5 GCC High
|
5%
|
| Microsoft 365 E5 |
Microsoft 365 G5 DoD
|
5%
|
| Commercial SKU | Government SKU | Total % Increase |
|---|---|---|
| Office 365 E1 |
Office 365 G1 GCC
|
--
|
| Office 365 E1 |
Office 365 E1 GCC High
|
--
|
| Office 365 E1 |
Office 365 E1 DoD
|
--
|
| Commercial SKU | Government SKU | Total % Increase |
|---|---|---|
| Office 365 E3 |
Office 365 G3 GCC
|
13%*
|
| Office 365 E3 |
Office 365 E3 GCC High
|
13%*
|
| Office 365 E3 |
Office 365 E3 DoD
|
13%*
|
| Commercial SKU | Government SKU | Total % Increase |
|---|---|---|
| Microsoft 365 Business Premium |
Business Premium GCC High
|
--
|
| Commercial SKU | Government SKU | Total % Increase |
|---|---|---|
| Microsoft 365 Frontline |
Microsoft 365 F1
|
33%*
|
| Microsoft 365 Frontline |
Microsoft 365 F3
|
25%*
|
*In accordance with federal regulations, for suites with total increases exceeding 10%, the increase will be phased over multiple years.
Government Packaging Update: While commercial customers will see expanded access to capabilities like advanced security tools, productivity enhancements, and IT management features immediately, Government customers will continue to receive updates aligned with their compliance frameworks and roadmap. This helps ensure that features meet strict standards for data residency, FedRAMP, and other government-specific mandates. Microsoft remains committed to delivering innovation across all clouds, and many of the same enhancements will be introduced to Government offerings over time, following the necessary validation steps.