Microsoft 365 Cost Calculator
Enter your plan mix and seat counts and see what the subscription costs under each of Microsoft’s commitments: annual paid upfront, annual billed monthly, monthly, and a split that keeps only the seats likely to leave on monthly. Every figure is Microsoft list price from the current price list, Commercial or Nonprofit, and the quote link carries the term of every line.
01 Price list
02 Your plan mix
One row per plan or add-on. “May leave within the year” is the number of seats you expect to drop before twelve months are up: contractors, seasonal staff, approved hires who may not start.
Adds Intune, Defender for Business, Entra ID P1 and Purview basics.
Web and mobile apps, email, Teams, 1 TB OneDrive.
03 How you commit
All four are priced below; this choice decides the lines and the quote.
| Strategy | Per month | Per year | vs annual upfront |
|---|---|---|---|
| Everything annual, paid upfront | $620.00 | $7,440.00 | same |
| Everything annual, billed monthly | $651.00 | $7,812.00 | +$372.00 |
| Everything monthly commitment | $744.00 | $8,928.00 | +$1,488.00 |
| Split: predictable seats annual upfront, flexible seats monthly | $642.00 | $7,704.00 | +$264.00 |
| Line | Commitment | Qty | Unit / mo | Monthly |
|---|---|---|---|---|
| Microsoft 365 Business Premium | annual · upfront | 25 | $22.00 | $550.00 |
| Microsoft 365 Business Basic | annual · upfront | 10 | $7.00 | $70.00 |
| Total per month | 35 | $17.71 | $620.00 |
- 5 seats you marked as likely to leave sit on an annual commitment: they cannot be reduced until the term ends, outside the seven-day window. The split strategy puts them on monthly.
Microsoft list price, Commercial segment, per seat per month; the annual figures are the monthly equivalent of the committed term. Reductions follow the seven-day rule in the rules section. A quote is checked by a person before it is binding.
How commitment terms work
Three ways to commit: annual paid upfront, annual billed monthly, and monthly. An annual subscription billed monthly is still an annual commitment.
Seats can be added at any time on any term.
Reductions and cancellations are limited to the seven calendar days after purchase, after each renewal and after a mid-term seat increase. After that an annual term is committed to its end.
A monthly term renews every month, so its seven-day window reopens every month: seats can go at any monthly renewal.
Annual billed monthly and monthly commitment carry a higher list price for the flexibility. The calculator prints the difference per line from the current price list, never an assumed uplift.
The split strategy puts predictable seats on annual paid upfront and the seats that may leave within the year on monthly, so the flexibility is bought only where it is needed.
Microsoft list price for the segment you pick, taxes excluded. The quote link carries the term and billing of every line.
Quick start
- Pick the price list: Commercial or Nonprofit.
- Add one row per plan or add-on with its seats, and say how many of those seats may leave within the year.
- Choose how you commit; all four strategies are totalled, the chosen one becomes the lines and the quote.
Tip: not sure which plans? The plan-mix optimizer picks plans from what each role needs; this page prices the mix you already know. Our cancellation and refund policy spells out the seven-day rule.
Example scenarios
01Small business with contractors
25 Business Premium of which 5 may leave, 10 Business Basic, on the split.
Load this scenario →Enterprise mix, everything annual
200 Microsoft 365 E3, 40 E5, 150 F3, 60 Teams Phone, annual paid upfront.
Load this scenario →Nonprofit on Business Premium
30 Business Premium and 20 Business Basic on the nonprofit price list, annual billed monthly.
Load this scenario →Microsoft 365 list prices by commitment
Per seat per month, Microsoft list price, current price list. Commercial figures for the three commitments; the last column is the Nonprofit price on an annual commitment paid upfront.
| Plan | Annual, upfront | Annual, billed monthly | Monthly | Nonprofit, annual upfront |
|---|---|---|---|---|
| Microsoft 365 Business Basic | $7.00 | $7.35 | $8.40 | $0.00 |
| Microsoft 365 Business Standard | $14.00 | $14.70 | $16.80 | $3.50 |
| Microsoft 365 Business Premium | $22.00 | $23.10 | $26.40 | $5.50 |
| Microsoft 365 Apps for business | $10.00 | $10.50 | $12.00 | — |
| Microsoft 365 Apps for enterprise | $14.00 | $14.70 | $16.80 | $3.50 |
| Office 365 E1 | $10.00 | $10.50 | $12.00 | $2.50 |
| Office 365 E3 | $26.00 | $27.30 | $31.20 | $6.50 |
| Office 365 E5 | $41.00 | $43.05 | $49.20 | $16.40 |
| Microsoft 365 E3 | $39.00 | $40.95 | $46.80 | $9.75 |
| Microsoft 365 E5 | $60.00 | $63.00 | $72.00 | $24.00 |
| Microsoft 365 F1 | $3.00 | $3.15 | $3.60 | $1.20 |
| Microsoft 365 F3 | $10.00 | $10.50 | $12.00 | $2.50 |
| Office 365 F3 | $4.00 | $4.20 | $4.80 | $1.00 |
| Exchange Online (Plan 1) | $4.00 | $4.20 | $4.80 | — |
| Exchange Online (Plan 2) | $8.00 | $8.40 | $9.60 | — |
| Exchange Online Kiosk | $2.00 | $2.10 | $2.40 | — |
| Microsoft Teams Essentials | $4.00 | $4.20 | $4.80 | — |
| Microsoft 365 Copilot | $21.00 | $22.05 | $25.20 | $25.50 |
| Microsoft Teams Phone Standard | $10.00 | $10.50 | $12.00 | $4.00 |
| Microsoft Defender for Business | $3.00 | $3.15 | $3.60 | $1.20 |
| Microsoft Entra ID P1 | $7.00 | $7.35 | $8.40 | $1.75 |
| Microsoft Intune Plan 1 | $8.00 | $8.40 | $9.60 | $2.00 |
| Exchange Online Archiving | $3.00 | $3.15 | $3.60 | $0.75 |
| Office 365 Extra File Storage (per GB) | $0.20 | $0.21 | $0.24 | $0.08 |
Assumptions and sources
- Prices. Every figure comes from the subscription page of the plan in our catalog and the current price list behind it: the plan’s primary SKU (the Teams-included variant where Microsoft sells both), annual commitment paid upfront, annual commitment billed monthly, and monthly commitment, each shown as the monthly equivalent. Trial rows are never used.
- Segments. Commercial and Nonprofit. A plan without a nonprofit offer shows as not available on that list. A nonprofit price of $0.00 is Microsoft’s donated offer; Microsoft caps donated quantities, which the quote confirms. Education and Government buy the A and G plans, which this calculator does not model. Taxes are excluded.
- Rules. The seven-day window, the add-anytime rule and the monthly renewal follow Microsoft’s New Commerce terms as our cancellation and refund policy and the NCE guide below state them.
- Not modelled. Three-year commitments, promotions, the no-Teams variants, Microsoft 365 Copilot prerequisites and minimum quantities. A quote adds what a scenario needs.
Plan and term guides
- Microsoft NCE Explained: What Changed and Why It Matters
- Microsoft 365 Business Basic vs Standard vs Premium (October 2026 Prices): Which Plan for 10, 50 and 200 Users
- Office 365 E1 vs Office 365 E3 vs Microsoft 365 E3: What Each Includes, October 2026 Prices, and Who Should Pick Which
- Exchange Online Plan 1 vs Plan 2 vs Kiosk vs Business Basic: The Mailbox Decision
- Microsoft 365 License Cleanup Before Renewal: Unassigned, Duplicated and Over-Provisioned Seats
Questions this calculator gets asked
What does annual billed monthly cost compared with annual paid upfront?
Both are twelve-month commitments; the billed-monthly variant spreads the invoice and carries a higher list price on most plans. The calculator prints both from the current price list per plan, so the difference is the real one for your mix, not an assumed uplift.
Can we reduce seats on an annual subscription?
Only within seven calendar days of the purchase, of each renewal, or of a mid-term seat increase. After that the subscription is committed to the end of its term; seats can still be added at any time. The same seven-day window is when a cancellation refunds the unused days.
When is monthly commitment worth the higher price?
For seats you expect to drop within the year: contractors, seasonal staff, approved hires with uncertain start dates. A monthly term renews every month, so its seven-day window reopens every month. For seats you know will stay, the annual commitment costs less over the year. The split strategy prices exactly that mix.
Can one tenant mix annual and monthly subscriptions of the same plan?
Yes. The same plan can run as two subscriptions on different terms in one tenant, which is how the split strategy is bought. Keep the renewal dates in view: fragmented dates are where reductions get missed.
Why does a plan show as not on the nonprofit price list?
Some plans have no nonprofit offer on Microsoft's price list, so the calculator leaves the line unpriced rather than substituting the commercial price. The nonprofit figure for the plans that have one is the one shown.
Are these the prices we would pay?
They are Microsoft's list prices from the current price list for the segment you pick, per seat per month, taxes excluded. The quote link carries the exact SKU, term and billing of every line, and a person checks it before it is binding.
24 plans and add-ons on the list. Sources: IT Partner price list, November 2026; the subscription pages linked in the table; Microsoft’s New Commerce cancellation terms as recorded in our cancellation and refund policy. Nonprofit prices are Microsoft’s nonprofit offers.