In 2026, the price you’ll pay for Microsoft 365 Business depends on which plan you select, how many employees you have, and whether you need things like desktop Office apps, business email, cloud storage, or advanced security. The core business offerings from Microsoft are: Business Basic, Business Standard, Business Premium, and Microsoft 365 Apps for business. Each plan has different features, so the lowest-priced option isn’t always the best value. Knowing the costs and variances before subscribing can help your business avoid paying for features it doesn’t need.
Microsoft 365 Business Plans Available 2026
Microsoft 365 has a selection of business plans to meet the needs of businesses with varying software, communication, and security needs. The best choice depends on how your employees work and what applications they need.
The four big choices are:
- Business Basic: Online Office apps, business email, meetings & cloud storage.
- Business Standard: For businesses that need desktop Office apps and online services.
- Business Premium: For companies that need productivity apps, plus enhanced device management and security features.
- Microsoft 365 Business Applications: For companies that need mostly Office applications and cloud storage, but not hosted business email.
These plans are designed for organizations with up to 300 users within Microsoft’s standard business-plan limit. Enterprise plans may be needed for larger organizations.
The Cost of Microsoft 365 Business in 2026: A Price Guide
Pricing varies by subscription, billing term, and country for Microsoft 365 Business. The table below lists commonly published US list prices for annual commitments billed per user per month. Check current amounts before making a purchase decision.
| Business plan | Reference price per user/month | Best for |
| Business Basic | $6.00 | Online apps, email, and cloud services |
| Business Standard | $12.50 | Desktop Office apps and business email |
| Business Premium | $22.00 | Productivity, security, and device management |
| Apps for business | $8.25 | Desktop Office apps without hosted business email |
These are reference prices and do not represent a guarantee of Microsoft pricing in October 2026. If monthly commitments are an option, they might be more expensive than annual commitments. Taxes and currency conversion can also affect the final bill.
For the latest pricing, please check the official Microsoft 365 for business plans and pricing page.
What Features Come With Each Microsoft 365 Business Plan?
The main difference between the plans is the combination of applications, email services, and security tools they include. These features can help you select a subscription that matches how your team works on a day-to-day basis.
What’s Included in Microsoft 365 Business Basic?
Business Basic includes web and mobile versions of Word, Excel, and PowerPoint, business email with Exchange, Microsoft Teams (where included in the selected offer), and OneDrive cloud storage. It is good for teams that work mostly in a browser.
For example, a small team that edits shared spreadsheets, stores documents online, and has virtual meetings may not need full desktop Office applications.
What comes with Microsoft 365 Business Standard?
Business Standard adds desktop versions of core Office applications such as Word, Excel, PowerPoint and Outlook to the services offered in Basic. This is useful if your staff is working with complex spreadsheets, detailed documents or files offline.
Features and app availability may vary by subscription and region. Check the specific plan details before you buy.
What’s in Microsoft 365 Business Premium?
Business Premium adds security and device-management features to the productivity tools. Depending on the service configuration included, these may include Microsoft Intune, Microsoft Entra ID Plan 1, and Microsoft Defender for Business.
It’s a good choice for organizations that manage company devices, secure business information, and need tighter controls on employee access. If you want help securing your devices and systems, see our network security solutions.
What’s included in Microsoft 365 Apps for Business?
This plan is about desktop Office applications and cloud storage, not hosted business email. It might also appeal to businesses who already use a different email provider but want licensed Office applications for employees.
Which Microsoft 365 Business Plan Is Best for Your Business?
The right solution depends on your employees’ everyday work, security needs and the software you already have. A small business may only need email and cloud storage, whereas a growing company may need desktop apps and advanced security controls.
Use these examples to help you narrow your choice:
- Small teams and freelancers: Browser-based apps may be enough for your needs with Business Basic.
- Office-based businesses: Business Standard is ideal for employees who use desktop versions of Word, Excel, PowerPoint, and Outlook.
- Businesses with confidential information: For security and device management tools, you might find Business Premium worth the extra cost.
- Email hosting separate from your business: Business apps may be more suitable if you mainly require desktop Office software.
A common mistake is to buy the same premium plan for all employees regardless of their responsibilities. Some of your employees may need desktop apps and additional security, while others may be okay with web apps. Review each user’s requirements before licensing.
How to Calculate the Cost of Microsoft 365 for Business?
Your subscription cost is based on the number of users, the plan for each user, and any other services. Five Business Standard licences, at $12.50 per user per month, would cost $62.50 monthly, or $750 for 12 months, plus applicable taxes and extras, using the reference US annual-commitment prices.
Here’s how to calculate what you’re likely to spend:
- Number of employees needing a license.
- Identify security features and applications for each employee.
- Then multiply that per-user price by the number of licences.
- Check the billing terms, taxes, add-ons, and any separate setup or support costs.
Please check the total before confirming the subscription.
Also, factor in migration costs if you’re moving existing email accounts, files, or business data into Microsoft 365. Subscription includes the services selected, but professional installation and IT support may be charged separately. Our software installation services team can help with setup and migration.
How to See Current Microsoft 365 Price Changes in 2026
Microsoft may change subscription prices, packaging, and combinations of plans available. The company also has options with and without Microsoft Teams or Copilot, so you may need to look beyond the plan name to see the full cost.
Check Microsoft’s official pricing page for the included apps, billing term, Teams availability and any Copilot add-on before you buy. For business in India, see the Microsoft India pricing page for prices in rupees and applicable GST.
How Geeks Worldwide Solutions can help with Office 365?
The right subscription can help your business manage email, documents, collaboration, and security without paying for features you don’t need. Careful comparison of Microsoft 365 Business Pricing can also help you budget expenses as your team grows.
Get more Microsoft 365 insights, business software, IT support, cloud services and cybersecurity with Geeks Worldwide Solutions. Your trusted partner. We help businesses understand what technology they need, compare the right solutions, and plan their IT setup to suit them. Ready to get started? Contact us today, or browse more guides on our blog.
