Microsoft 365 Pricing Changes Coming in 2026
Starting July 1, 2026, Microsoft will increase prices for several commercial Microsoft 365 plans while adding new security, AI, and device management capabilities to those suites. These changes apply globally and affect both new subscriptions and renewals.
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Effective July 1, 2026, Microsoft will update commercial Microsoft 365 pricing and expand what’s included in key suites. These changes apply globally across all purchasing channels and affect both new customers and renewals on or after that date. Customers renewing before July 1, 2026 can lock in current pricing until their next renewal.
If your organization uses Microsoft 365, now is the time to assess current plans, understand what’s changing, and plan renewals or upgrades before prices go up.
What is Changing with Microsoft 365 Pricing
Microsoft is increasing list prices for many commercial Microsoft 365 licenses as part of a broader effort to include expanded AI, security, and endpoint management capabilities directly in the suites.
Here’s how some of the major suite list prices compare today versus the new prices starting July 1, 2026:
| Plan | Current Price* | New Price from July 1, 2026 |
|---|---|---|
| Microsoft 365 Business Plans | ||
| Microsoft 365 Business Basic | $6 | $7 (+16.7%) |
| Microsoft 365 Business Standard | $12.50 | $14 (+12%) |
| Microsoft 365 Business Premium | $22 | $22 |
| Office 365 & Microsoft 365 Enterprise | ||
| Office 365 E1 | $10 | $10 |
| Office 365 E3 | $23 | $26 (+13%) |
| Microsoft 365 E3 | $36 | $39 (+8.3%) |
| Microsoft 365 E5 | $57 | $60 (+5.3%) |
| Microsoft 365 F1 | $2.25 | $3 (+33%) |
| Microsoft 365 F3 | $8 | $10 (+25%) |
| Security & Compliance Suites | ||
| Purview Suite | $12 | $12 |
| Defender Suite | $12 | $12 |
| Windows | ||
| Windows E3 | $6.63 | $7.63 (+15%) |
| Windows E5 | $11 | $12.80 (+9%) |
| Windows Enterprise (per device) | $5.04 | $7.63 (+31%) |
| Microsoft 365 Apps | ||
| Microsoft 365 Apps for Business | $8.25 | $10 (+21%) |
| Microsoft 365 Apps for Enterprise | $12 | $14 (+20%) |
| Microsoft 365 Apps (per device) | $36 | $42 (+17%) |
| EMS & Entra | ||
| EMS E3 | $10.60 | $12 (+13%) |
| EMS E5 | $16.40 | $18 (+10%) |
| Entra P1 | $6 | $7 (+16%) |
| Entra P2 | $9 | $10 (+11%) |
*Per user/month, paid yearly, annual commitment
New Capabilities Being Added
Microsoft is expanding built-in value across suites by including capabilities that were previously separate add-ons or available only at higher tiers. These include enhancements in three core areas: AI productivity, security, and endpoint management.
AI and Productivity
- Copilot Chat is now integrated into Word, Excel, PowerPoint, Outlook, and OneNote.
- Copilot Agent Mode will allow iterative AI collaboration to draft, revise, and refine documents.
- Enterprise-grade admin controls for Copilot are included.
These enhancements bring AI into everyday workflows and reduce the need for separate Copilot add-ons.
Security
- Microsoft Defender for Office 365 Plan 1 is added to Office 365 E3 and Microsoft 365 E3, bringing enhanced phishing, malware, and malicious link protection across email and Teams.
- URL checks (similar to Safe Links) are included in Office 365 E1, Business Basic, and Business Standard to block known malicious sites.
These capabilities help protect more users without requiring third-party tools or additional licenses.
Endpoint and Device Management
Microsoft is standardizing endpoint management features previously sold separately:
- Intune Remote Help
- Intune Advanced Analytics
- Intune Plan 2
- Endpoint Privilege Management
- Enterprise Application Management
- Microsoft Cloud PKI
- Security Copilot
These features empower IT teams to troubleshoot issues, monitor device risks, and maintain productivity.
When the Price Increase Takes Effect
The new pricing will apply as follows:
- New customers starting July 1, 2026
- Renewing customers with renewals on or after July 1, 2026
- Existing customers will see the new pricing at their first renewal after July 1, 2026
Customers who renew before this date can keep their current pricing until their next renewal cycle.
Why Renewing Early Matters
Renewing ahead of the July 1, 2026 deadline allows organizations to:
- Lock in current Microsoft 365 pricing
- Avoid unexpected budget increases
- Maintain service continuity without disruption
- Plan future upgrades on their own timeline
Microsoft data shows that renewals completed on time are significantly more successful than late renewals, making early action a smart financial decision.
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Opportunity to Upgrade Microsoft 365 Plans
The 2026 pricing update also creates a natural moment to review your Microsoft 365 plan.
Many organizations are using this time to consider upgrades such as:
Upgrading at renewal can provide stronger security, better compliance tools, and access to AI powered features that help teams work more efficiently.
How 365 Cloud Store Helps You Prepare
At 365 Cloud Store, we help customers navigate Microsoft licensing changes with clear guidance and proactive planning. We can help you:
Review upcoming Microsoft 365 renewals
Compare current plans with E3, E5, or Copilot options
Lock in current pricing before July 1, 2026
Align licensing decisions with your business and security goals
If your Microsoft 365 renewal is approaching, now is the time to act.
Contact 365 Cloud Store to review your renewal options, understand the 2026 Microsoft 365 pricing changes, and secure the best path forward before prices increase.
Written by Iovalli Acevedo Marketing Manager
December 4, 2025
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