Microsoft raised list prices on most Microsoft 365 business and enterprise suites on July 1, 2026. Existing customers stay on their current price until renewal, so the increase reaches each firm on its own renewal date. For a business on an annual term, that means renewals landing between now and mid-2027 are when the new price shows up on the invoice.
Here is what changed, line by line, with the math for a 10-person and a 25-person firm, and what to check before you sign.
What Microsoft changed
Microsoft announced the update on December 4, 2025. Its Licensing Resources page, dated February 16, 2026 and re-read on November 4, 2026, sets out the details:
- Pricing took effect July 1, 2026.
- Existing customers remain on current pricing until renewal.
- Prices are list prices in U.S. dollars, per user per month, and “may vary by country and currency.”
- Standalone Teams and Copilot SKUs are not included.
Business plans (with Teams)
Swipe the table sideways to see every column.
| Plan | Old | New | Change |
|---|---|---|---|
| Microsoft 365 Business Basic | $6.00 | $7.00 | 16% |
| Microsoft 365 Business Standard | $12.50 | $14.00 | 12% |
| Microsoft 365 Business Premium | $22.00 | $22.00 | No change |
| Microsoft 365 Apps for business | $8.25 | $10.00 | 21% |
The no-Teams versions move the same way: Business Basic $4.40 to $5.40, Business Standard $9.29 to $10.79, Business Premium unchanged at $18.79.
Enterprise and add-ons
| Plan | Old | New |
|---|---|---|
| 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 Apps (per user) | $12.00 | $14.00 |
| Entra ID Plan 1 | $6.00 | $7.00 |
| Entra ID Plan 2 | $9.00 | $10.00 |
| Microsoft 365 F3 | $8.00 | $10.00 |
Microsoft pairs the price change with additions. The Business suites get 50GB more email storage and Copilot Chat enhancements; Business Basic and Standard also get URL time-of-click protection. Microsoft 365 E3 adds Defender for Office 365 Plan 1 and several Intune features. Nonprofit pricing moves with commercial at a fixed 60 to 75% discount, and Business Basic stays free for nonprofits.
The math for a small firm
Examples computed from Microsoft’s list prices, annual totals. Your price may differ if you buy through a reseller, pay monthly, or are outside the U.S.
- 10 seats of Business Standard: $1,500 a year before, $1,680 after. Up $180.
- 25 seats of Business Standard: $3,750 before, $4,200 after. Up $450.
- 25 seats of Business Basic: $1,800 before, $2,100 after. Up $300.
- 10 seats of Apps for business: $990 before, $1,200 after. Up $210.
- 25 seats of Business Premium: $6,600 before and after. No change.
- A mixed 25-person firm, 15 Business Standard and 10 Business Basic, plus Entra ID Plan 1 on 5 admins: $2,250 + $720 + $360 = $3,330 before; $2,520 + $840 + $420 = $3,780 after. Up $450, about 14%.
Those are not large sums. The point is the shape. The gap between Business Standard and Business Premium narrowed from $9.50 to $8.00 per user per month. If you were paying for Standard plus separate security add-ons that Premium already includes, the renewal is the moment to do that comparison again.
What it means for CFOs and CISOs
- The increase lands on your renewal date, not on July 1. Check the date on your Microsoft 365 admin center billing page or your reseller’s invoice. If it is in the next six months, you have time to act.
- Unused seats now cost more. A licensed account belonging to someone who left in the spring is a 12 to 16% bigger waste on Basic or Standard after renewal.
- Premium is relatively cheaper. Business Premium did not move. For firms that need Intune device management or Defender, the case for consolidating onto Premium got slightly better.
- New features may change your stack. URL time-of-click protection in Basic and Standard may overlap with an email security add-on you already pay for. Overlap is the easiest saving at renewal.
What to do this week
- Find the renewal date and term. In the Microsoft 365 admin center, go to Billing, then Your products. Note each subscription’s renewal date, seat count and whether it is annual or monthly.
- Export active users. Pull the sign-in report and list licensed accounts with no sign-in in 90 days. Remove or downgrade them before renewal, not after.
- Price the renewal yourself. Multiply seats by the new list price for each plan. Compare that to any renewal quote from your reseller.
- Run the Premium comparison. List every security or device-management add-on you pay for alongside Business Standard. If the total per user is close to $22, price Premium.
- Ask your reseller in writing for the renewal price per SKU, the term, and whether any promotion or multi-year option is available.
If you would rather hand this off, our Renewal Audit reviews up to 25 software renewals, Microsoft 365 included, for a fixed $199 and returns a written report in 5 business days. If you want the spreadsheet instead, the Renewal & Risk Operator Pack ($29) includes a renewal scorecard, and the free software renewal scorecard runs in your browser.
What to watch next
- Message Center notices. Microsoft says tenants get at least 30 days’ notice before packaging changes arrive. Watch for the feature additions that come with your plan.
- Country and currency pricing. Microsoft’s page says prices may vary outside the U.S. If you pay in another currency, ask your reseller for the local figure.
- Other vendors. Software renewal increases rarely come alone. Use the same pass on your other large subscriptions this quarter; our guide How to read a SaaS renewal sets out the 90-day timeline.
Sources
- Microsoft Licensing Resources, “Microsoft 365 Pricing and Packaging Updates,” February 16, 2026, checked November 4, 2026
Related: How to build a software renewal tracker and Software buying is an operating skill.