Microsoft 365 not only includes the popular Microsoft Office programs but also cloud-based services that enable efficient work. Microsoft 365 pricing varies by subscription model: Scope, features, and target audience determine the costs incurred.

All data in this article is current as of August 2025.

Benefits of Microsoft 365 in the subscription model

Microsoft 365 offers not only classic office software but also services for centralised data management and web-based teamwork. Text documents, spreadsheets, and presentations can be shared with a click and collaboratively edited within the team.

This is made possible by the integration of the Office suite into Microsoft’s cloud services like OneDrive, Exchange Online, or SharePoint.

Microsoft 365 is not purchased once like Microsoft Office but is only available as a subscription. With all plans, users always have the latest version of the office software and 1 TB of cloud storage in Microsoft data centres. Comparisons of the different licensing models with Microsoft 365 pricing and features are found in the tables below.

Information

With the Microsoft rebranding in 2020, Office 365 became Microsoft 365.

Overview of all Microsoft 365 plans and their costs

Microsoft 365 for personal use

The Microsoft 365 Personal and Microsoft 365 Family plans are designed for personal use and provide subscription options for individuals and families. Users can choose between monthly payments and a discounted annual subscription. Business use is not intended. In addition to PC and Mac versions, there are also apps for tablets and mobile phones.

Microsoft 365 Personal Microsoft 365 Family
Subscription (annually) £84.99 £104.99
Subscription (monthly) £8.49 £10.49
Maximum number of users 1 6
Licensing For private use only For private use only
Installable Office applications Word, Excel, PowerPoint, OneNote, Outlook, Publisher, Access Word, Excel, PowerPoint, OneNote, Outlook, Publisher, Access
Number of supported devices 5 PCs or Macs 5 PCs or Macs
OneDrive cloud storage 1 TB 1 TB per user
Automatic updates including new software versions and features Included Included
Free technical support Included Included

Microsoft 365 for small and medium businesses

Microsoft 365 plans Business Basic, Apps for Business, Business Standard, and Business Premium are aimed at small and medium businesses. The subscription is limited to a maximum of 300 users.

Microsoft 365 Business Basic Microsoft 365 Apps for Business Microsoft 365 Business Standard Microsoft 365 Business Premium
Price per user and month with annual subscription £4.60 £8.10 £9.60 £16.90
Maximum number of users 300 300 300 300
Installable Office applications None (online use only) Outlook, Word, Excel, PowerPoint, OneDrive, Publisher, Access Outlook, Word, Excel, PowerPoint, OneDrive, Publisher, Access, Teams, SharePoint, Exchange Outlook, Word, Excel, PowerPoint, OneDrive, Publisher, Access, Teams, SharePoint, Exchange, Intune
Exchange Online Yes No Yes Yes
Business-class email 50 GB mailbox Email not included 50 GB mailbox 50 GB mailbox
OneDrive for Business 1 TB per user 1 TB per user 1 TB per user 1 TB per user
Office Online Included Included Included Included
Microsoft Teams Included No Included Included
SharePoint/Team websites Included No Included Included
Sway Included Included Included Included
Planner Included No Included Included
Free technical support via phone or chat Included Included Included Included
Automatic updates including new software versions and features Included Included Included Included
Guaranteed 99.9% availability Yes Yes Yes Yes
Management of PCs and mobile devices No No No Included
Microsoft 365 Business
The Office you know, only better
  • Up to 50 GB Exchange email account
  • Outlook Web App and collaboration tools
  • Expert support & setup service

Microsoft 365 for large enterprises

With the plans Apps for Enterprise, Enterprise E1, Enterprise E3, and Enterprise E5, Microsoft targets large enterprises with more than 300 employees.

Microsoft 365 Apps for Enterprise Microsoft 365 Enterprise E1 Microsoft 365 Enterprise E3 Microsoft 365 Enterprise E5
Price per user per month with annual subscription £11.70 £6.00 £18.60 £32.10
Maximum number of users Unlimited Unlimited Unlimited Unlimited
Installable Office applications Outlook, Word, Excel, PowerPoint, OneNote, Publisher, Access None (online use only) Outlook, Word, Excel, PowerPoint, OneNote, Publisher, Access Outlook, Word, Excel, PowerPoint, OneNote, Publisher, Access
Exchange Online No Yes Yes Yes
Business-level email Email not included 50 GB mailbox 100 GB mailbox 100 GB mailbox
OneDrive for Business 1 TB per user 1 TB per user 1—5 TB per user 1—5 TB per user
Apps for up to 5 smartphones and tablets Included No Included Included
Office Online Included Included Included Included
Live conferences with up to 1,000 participants No Included Included Included
Compliance solutions No No Included Included
Information protection No No Included Included
Advanced eDiscovery No No Included Included
Power BI and Delve analytics No No No Included
Microsoft Defender No No No Included
Active Directory integration Yes Yes Yes Yes
Free technical support by phone or chat Included Included Included Included
Automatic updates including new software versions and features Included Included Included Included
Guaranteed availability of 99.9% Yes Yes Yes Yes

Microsoft 365 for students and educators

The Microsoft 365 A1, Microsoft 365 A3, and Microsoft 365 A5 plans are designed for students enrolled in universities, technical schools, colleges, and vocational schools, as well as educators. A subscription to these mentioned Microsoft 365 solutions requires proof of eligibility.

Microsoft 365 A1 Microsoft 365 A3 Microsoft 365 A5
Price Free Upon request Upon request
Maximum number of users Unlimited Unlimited Unlimited
Installable Office applications None (online use only) Word, Excel, PowerPoint, Outlook, Publisher, OneNote, Publisher, Access, Teams Word, Excel, PowerPoint, Outlook, Publisher, OneNote, Publisher, Access, Teams
Number of supported computers No local installation 5 PCs or Macs 5 PCs or Macs
Number of supported tablets/smartphones No local installation 5 each 5 each
Office Online Included Included Included
OneDrive Cloud Storage 1 TB 1 TB per user 1 TB per user
Business-class email 50 GB mailbox 50 GB mailbox 50 GB mailbox
Online meetings Included Included Included
Taking exams Included Included Included
Power BI and Delve analytics Add-on Add-on Included
Automatic updates including new software versions and features Included Included Included
Free technical support via phone or chat Included Included Included
Guaranteed availability of 99.9% No Yes Yes

Microsoft 365 for non-profits (Business)

The Microsoft 365 Business Basic, Business Standard, and Business Premium plans for non-profits are aimed at small non-profit organisations with up to 300 employees. Organisations wishing to use one of the non-profit packages must prove they meet the eligibility criteria for non-profits.

Microsoft 365 Business Basic Microsoft 365 Business Standard Microsoft 365 Business Premium
Price per user per month in annual subscription Grant £2.30 £4.20
Maximum number of users 300 300 300
Installable Office applications None (online use only) Word, Excel, PowerPoint, Outlook, Publisher, OneNote, Access Word, Excel, PowerPoint, Outlook, Publisher, OneNote, Access
Number of supported computers No local installation 5 PCs or Macs 5 PCs or Macs
Number of supported tablets/smartphones 5 each 5 each 5 each
Business-class email 50 GB mailbox 50 GB mailbox 50 GB mailbox
OneDrive for Business 1 TB per user 1 TB per user 1 TB per user
Office Online Included Included Included
Active Directory Integration Yes Yes Yes
Free technical support via phone or chat Included Included Included
Automatic updates including new software versions and features Included Included Included
Guaranteed availability of 99.9% Yes Yes Yes

Microsoft 365 for non-profits (Enterprise)

The Microsoft 365 plans E3 and E5 are also designed for large non-profit organisations with more than 300 employees.

Microsoft 365 E3 Microsoft 365 E5
Price per user per month with an annual subscription £7.70 £19.60
Maximum number of users Unlimited Unlimited
Installable Office applications Word, Excel, PowerPoint, Outlook, Publisher, OneNote, Access Word, Excel, PowerPoint, Outlook, Publisher, OneNote, Access
Number of supported computers 5 PCs or Macs 5 PCs or Macs
Number of supported tablets/smartphones 5 each 5 each
Business-class email 100 GB mailbox 100 GB mailbox
OneDrive for Business 1 TB per user 1 TB per user
Office Online Included Included
Self-service business intelligence Included Included
Compliance solutions Included Included
Information protection Included Included
Advanced eDiscovery No Included
Power BI and Delve analytics No Included
Active Directory integration Yes Yes
Free technical support by phone or chat Included Included
Automatic updates including new software versions and features Included Included
Guaranteed availability of 99.9% Yes Yes

Microsoft 365 from IONOS, specifically for SMBs

Specifically designed for small and medium-sized businesses with up to 15 employees, IONOS offers Microsoft 365 Business in two different packages.

Feature Microsoft 365 Business Basic from IONOS Microsoft 365 Business Standard from IONOS
Cost for 1 person per month 1 month £1, then £7.00 1 month £1, then £13.50
Maximum number of users 20 20
Installable Office applications None (online use only) Outlook, Word, Excel, PowerPoint, OneNote, Publisher, Access on up to 5 PCs/Macs
Exchange Online Yes Yes
SharePoint Online No Yes
Office Online Included Included
Business-class email 50 GB mailbox for emails, calendar, and contacts 50 GB mailbox for emails, calendar, and contacts
OneDrive for Business 1 TB per user 1 TB per user
Setup service Included Included
Microsoft Teams Included Included
Automatic updates including new software versions and features Included Included
Free customer support for all service inquiries (24/7) Included Included
Guaranteed availability of 99.9% Yes Yes
Microsoft 365 Business
The Office you know, only better
  • Up to 50 GB Exchange email account
  • Outlook Web App and collaboration tools
  • Expert support & setup service
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