Microsoft raised list prices for most Microsoft 365 commercial suites on July 1, 2026. Existing customers keep their current price until renewal, so most organizations meet the new prices at their next renewal date. This guide sets out the confirmed changes, what to review before you sign, and when it is worth comparing Google Workspace.
OPS is not a Microsoft partner or reseller and does not sell licences. This is an independent planning guide. Prices below are Microsoft's published US dollar list prices, checked on October 27, 2026.
What changed on July 1, 2026
Microsoft announced a global price and packaging update for Microsoft 365 commercial suites on December 4, 2025. Its licensing update dated February 16, 2026 confirms four points:
- New pricing took effect on July 1, 2026.
- Existing customers remain on current pricing until renewal.
- Packaging changes began rolling out in June 2026, with at least 30 days of notice in Message Center before they reach a tenant.
- Standalone Microsoft Teams and Copilot products are not part of this update.
List prices for suites with Teams
Scroll to read all columns.
| Plan | Before July 1, 2026 | From July 1, 2026 |
|---|---|---|
| Microsoft 365 Business Basic | $6.00 | $7.00 |
| Microsoft 365 Business Standard | $12.50 | $14.00 |
| Microsoft 365 Business Premium | $22.00 | $22.00 (unchanged) |
| Office 365 E1 | $10.00 | $10.00 (unchanged) |
| Office 365 E3 | $23.00 | $26.00 |
| Office 365 E5 | $38.00 | $41.00 |
| Microsoft 365 E3 | $36.00 | $39.00 |
| Microsoft 365 E5 | $57.00 | $60.00 |
| Microsoft 365 F1 | $2.25 | $3.00 |
| Microsoft 365 F3 | $8.00 | $10.00 |
Prices are per user per month in USD. Microsoft states that these list prices are subject to change and may vary by country and currency. What you pay also depends on your agreement type, term, billing frequency and any discounts, so check your own quote line by line.
Standalone components rose too. Examples from the same Microsoft page include Apps for Business ($8.25 to $10.00), Entra Plan 1 ($6.00 to $7.00) and Enterprise Mobility + Security E3 ($10.60 to $12.00). Nonprofit and government prices moved in line with commercial prices.
Teams and no-Teams versions
Microsoft publishes separate prices for suites without Teams.
Scroll to read all columns.
| Plan without Teams | Before July 1, 2026 | From July 1, 2026 |
|---|---|---|
| Microsoft 365 Business Basic (no Teams) | $4.40 | $5.40 |
| Microsoft 365 Business Standard (no Teams) | $9.29 | $10.79 |
| Microsoft 365 Business Premium (no Teams) | $18.79 | $18.79 (unchanged) |
| Office 365 E3 (no Teams) | $14.45 | $17.45 |
| Microsoft 365 E3 (no Teams) | $27.45 | $30.45 |
| Microsoft 365 E5 (no Teams) | $48.45 | $51.45 |
A no-Teams suite saves money only if you already run another meetings and chat platform, or the cost of buying Teams separately still comes out lower. Before you switch, check three things:
- Whether the no-Teams version is available under your agreement and in your country.
- What calling, meeting rooms, guest access and recordings would move to, and who would support them.
- Whether you plan to use Copilot in Teams. Microsoft's pricing page notes that Copilot in Teams needs a Teams licence.
What the new price adds
The update also adds features to several suites, rolling out from summer 2026. According to Microsoft:
- Microsoft 365 E3 gains Defender for Office 365 Plan 1, Intune Remote Help, Intune Advanced Analytics and Intune Plan 2.
- Office 365 E3 gains Defender for Office 365 Plan 1.
- Business Basic, Standard and Premium gain 50 GB of extra email storage.
- Business Basic and Standard gain URL time-of-click protection.
- Most suites gain Copilot Chat enhancements and Copilot Chat Analytics.
Compare that list with the security and device tools you already pay for separately. Where a feature now comes with your suite, you may be able to drop a separate licence at its own renewal. Where it does not replace what you use, it adds nothing to your business case.
Copilot add-on pricing
On October 27, 2026, Microsoft's Copilot business pricing page listed:
Scroll to read all columns.
| Copilot option | Listed price |
|---|---|
| Microsoft 365 Copilot Business (add-on) | $18.00 per user per month, paid yearly, shown as reduced from $21.00 |
| Microsoft 365 Business Standard with Copilot | $23.50 per user per month, paid yearly |
| Microsoft 365 Business Premium with Copilot | $32.00 per user per month, paid yearly |
The page did not show the full conditions or end date of the reduced add-on price when we checked. Confirm eligibility and timing on Microsoft's page or in your quote before you budget on it.
Microsoft also explains how Copilot billing now splits:
- Copilot Chat comes at no extra cost with eligible Microsoft 365 plans.
- Everyday Copilot features in Word, Excel, PowerPoint, Outlook and Teams are included in a Copilot licence.
- Advanced features such as Copilot Cowork and Autopilot are billed on usage through Copilot Credits, and administrators can manage that spend.
For larger organizations, Microsoft 365 Copilot is an add-on that requires a qualifying Microsoft 365 plan. Check current terms on Microsoft's Copilot enterprise pricing page.
Renewal is a good moment to decide Copilot scope on evidence. Start with a defined pilot group, name the tasks it should speed up, and measure usage before you license everyone.
What to check before renewal
Work through this list at least one full billing cycle before your renewal date.
- Renewal date. List every subscription, its renewal date and its billing frequency. Microsoft's annual subscriptions auto-renew, so changes are easier before the date than after it.
- Seat count. Remove leavers, duplicate accounts and users who no longer need a paid licence.
- Plan fit by role. Match frontline, business and enterprise plans to what each group actually uses, rather than giving everyone the top tier.
- Teams option. Decide whether each group needs Teams in the suite, as a separate licence, or not at all.
- Copilot scope. Set the pilot group, success measures and a spending limit for usage-based features.
- Security and device add-ons. Check for overlap with the features Microsoft is adding to your suite.
- Term and billing. Compare paid-yearly and paid-monthly options. Microsoft lists different prices for each on some plans.
- Decision owner. Agree who signs off across IT, finance and security, and record why each choice was made.
When to compare Google Workspace
A price rise is a reasonable prompt to test the alternative, but not every organization benefits from a move. Neither platform is right for everyone.
Comparing Google Workspace makes sense when:
- Most users rely on email, documents, chat and meetings, with little dependence on desktop Office features.
- Parts of the business already use Google tools, for example after an acquisition.
- You are already planning a major change to identity, devices or file storage.
Staying on Microsoft 365 usually makes more sense when:
- Core processes depend on Excel models and macros, SharePoint sites or Teams-based workflows.
- You manage Windows devices through Intune and run Microsoft's security tools.
- Line-of-business systems, telephony or compliance tooling integrate tightly with Microsoft.
Compare total cost, not just the per-seat price. Include migration effort, retraining, third-party integrations, email and file archives, retention obligations and a period of running both platforms. Check Google's current pricing for your country, because it also varies by region and plan.
Common questions
Does my Microsoft 365 price change straight away?
No. Microsoft states that existing customers remain on current pricing until renewal. The new list prices apply when your subscription renews.
Are the new prices the same in every country?
No. Microsoft says its list prices may vary by country and currency. Use the USD figures here to understand the size of the change, then check your local quote.
Did standalone Teams or Copilot prices rise in this update?
Microsoft says standalone Microsoft Teams and Copilot products are not included in the July 1, 2026 update. Copilot pricing is published separately on Microsoft's Copilot pages.
Is OPS a Microsoft partner or reseller?
No. OPS does not resell Microsoft licences. Its Collaboration & Workplace practice helps organizations deploy and migrate Microsoft 365 or Google Workspace and plan renewals as an independent adviser.
Plan the renewal before the date arrives
The Collaboration & Workplace practice at OPS works across Microsoft 365, Google Workspace, Zoom, Webex and Threema Work, with identity, device and governance controls built in. Bring your renewal dates, licence counts and current plan mix, and OPS can help you decide what to keep, change or compare before you commit to another term.
Sources
- Microsoft, Microsoft 365 pricing and packaging updates, February 16, 2026. Checked October 27, 2026.
- Microsoft, Copilot plans and pricing for business. Checked October 27, 2026.
- Microsoft, Copilot plans and pricing for enterprise. Checked October 27, 2026.