Compare Microsoft 365 Plans & Features: Choose the Right Office 365 Plan

Summary: Office 365 is a popular suite of productivity applications, cloud storage, and advanced security features. People trust this platform for businesses and for running large organizations. If you are also one of them, choosing the right subscription plan would be confusing for you. Obviously, it is with so many plans like Business Basic, Standard, Premium, and various Enterprise plans. Therefore, to help you out, we will discuss all plans and compare pricing for Office 365 in this write-up.

Are Microsoft 365 and Office 365 Plans the Same?

This is the most common confusion among users. We often understand that Microsoft 365 and Office 365 can be used interchangeably, so they are the same. Well, you’re close, but there’s more to it.

No, Office 365 and Microsoft 365 are not exactly the same. You can understand this by thinking of a bigger package, Microsoft 365, and Office 365 as a component. Office 365 comes with various productivity tools like Word, Excel, and Outlook, and Microsoft bundles it all with Windows updates, security tools, and more.

In short, if O365 is a software, Microsoft 365 is a software with added protection, support, and OS tools, all in one plan. So, now let’s come to the pricing for Office 365 plan.

Microsoft 365 Plans Pricing Overview

Whenever you are going to purchase a subscription or a commodity, what comes first to your mind is “Price”. Therefore, given below is a table to help you better understand Office 365 costing for businesses and enterprises:

Subscription Plan

Cost Per Month

Cost per Year

Microsoft 365 Business Basic

$5.7/User

$57/User

Business Basic With Teams

$7.2/User

$72/User

Microsoft 365 Business Standard

$12.3/User

$123/User

Business Standard With Teams

$15/User

$150/User

Microsoft 365 Business Premium

$23.7/User

237/User

Business Premium With Teams

$26.4/User

$264/User

Microsoft 365 Apps for Business

(Excel, Word, PowerPoint, & Outlook)

$9.9/User

$99/User

Microsoft 365 Apps for Enterprise

$12 x 12/User

Microsoft 365 E3 (no Teams)

$33.75 x 12/User

Microsoft 365 E5 (no Teams)

$54.75 x 12/User

Microsoft 365 F1

$2.25 x 12/User

Microsoft 365 F3

$8 x 12/User

Office 365 E1 (no Teams)

$9.3/User

$9.3/User

Office 365 E3 (no Teams)

$24.9/User

$249/User

Office 365 E5 (no Teams)

$42.9/User

$429/User

Microsoft Teams Enterprise

$6.3/User

$63/User

Microsoft Teams Essentials

$4.80/User

$48/User

Windows 365 Basic

$31/User/Month

Windows 365 Standard

$41/User/Month

Windows 365 Premium

$66/User/Month

Compare Office 365 Plans & Features Pricing

This table will make Microsoft 365 plans understanding more simplified for you. Here are the pointers to mark:

Microsoft 365 Business Plans

  • These are made for small businesses.
  • You get apps like Word, Excel, PowerPoint, and Outlook.
  • Some plans also include Microsoft Teams for chatting and meetings.

Microsoft 365 Apps Plans

  • These give you only the main Office apps (Word, Excel, etc.).
  • You don’t get extra services like Teams, email, or device management.

Enterprise Plans (E3 & E5)

  • These are for large companies or organizations.
  • Offers more features, stronger security, and more data control.
  • You pay per user each year.

F Plans (Frontline Workers)

  • These are cheaper plans meant for workers like retail staff or factory employees.
  • They give only basic access, mostly Teams and email.

Microsoft Teams Plans

  • Teams (the chat and meeting app) also comes as a separate plan.
  • You can subscribe to just Teams if that’s all you need.

Windows 365 Plan

  • This lets you use a Windows desktop in the cloud.
  • It’s like logging into your Windows computer from anywhere.
  • You pay monthly, per user.

Microsoft 365 Business Plans Comparison (for Small Businesses)

The Microsoft Office 365 business plan was formerly known as Office 365 Business. However, these are now part of Microsoft 365 Business. If your company has fewer than or equal to 300 employees, this is the plan you need to purchase.

Characteristics of Different Microsoft 365 Business

Microsoft 365 Business Basic

Microsoft 365 Business Standard

Microsoft 365 Business Premium

  • 1 TB OneDrive Storage
  • SharePoint
  • Microsoft Teams
  • Microsoft Planner
  • Yammer
  • Custom email addresses
  • Supports up to 300 users
  • Spam & malware protection
  • 24×7 Web & Phone Support
  • 1 TB OneDrive Storage
  • FastTrack deployment support
  • Desktop versions of Office (Outlook, Word, Excel, PowerPoint, OneNote)
  • Web versions of Office (Outlook, Word, Excel, PowerPoint)
  • 24×7 Web & Phone Support
  • FastTrack deployment support
  • 24×7 Web & Phone Support
  • Desktop versions of Office (Outlook, Word, Excel, PowerPoint, OneNote)
  • Web versions of Office (Outlook, Word, Excel, PowerPoint) – 1 TB OneDrive Storage
  • 50 GB Mailbox with custom domain
  • Skype for Business
  • SharePoint
  • Full Office desktop apps
  • Microsoft Bookings
  • Microsoft Planner
  • FastTrack Deployment Support
  • 24×7 Web & Phone Support

Explore what the plan offers and how each plan is different, so that you can pick the right one for your team!

Microsoft 365 Business

Basic

Standard

Premium

Word

Web/Mobile Versions

Excel

Web/Mobile Versions

PowerPoint

Web/Mobile Versions

Outlook

Web/Mobile Versions

Teams

OneDrive

SharePoint

Exchange

Clipchamp

Microsoft Loop

Microsoft Entra ID

Intune

Microsoft Defender for Business

Azure Information Protection

 

Compare Microsoft 365 Enterprise Plans (for Large Businesses)

If you are running a company with approximately 300 employees, Microsoft 365 Business is a great fit. However, for a large organization, this won’t be suitable. Therefore, the Office 365 Enterprise Plan is worth investing in. It offers three license types: Office 365 E5, E3, or E1 with different features.

Note: Due to some legal rules, Microsoft no longer includes the Teams app in its enterprise plans by default. However, you can still get Microsoft Teams separately if your team needs it.

Office 365 Enterprise E1

Office 365 Enterprise E3

Office 365 Enterprise E5

  • 50 GB Mailbox storage
  • Skype for Business (IM, meetings, presence)
  • OneDrive for Business
  • SharePoint, Yammer, video sharing
  • 1 TB file storage
  • eDiscovery search
  • Includes all E1 features
  • Office desktop apps
  • Legal compliance & email archiving
  • Data loss prevention & message encryption
  • Azure Rights Management
  • Unlimited OneDrive storage
  • Hosted voicemail support
  • eDiscovery export & case management
  • Includes all E3 features
  • Advanced security: Safe links, safe attachments
  • Enterprise voice features (Cloud PBX)
  • PSTN conferencing
  • Cloud call management
  • Power BI Pro & MyAnalytics
  • Advanced eDiscovery & governance
  • Customer Lockbox & threat protection

 

Office 365 Enterprise Plans: E1 vs E3 vs E5- A Clear Comparison

Are you now confused between the three licenses of the Office 365 Enterprise plans? Well, the decision often boils down to balancing your business needs, security requirements, and budget. So, here’s a simplified breakdown of the three main plans: E1, E3, and E5.

Office 365 E1 – The Basic Yet Capable Plan

If you’re just stepping into the Microsoft cloud ecosystem, E1 is a great starting point. It covers all the essentials like professional email (50 GB mailbox), OneDrive for Business (1 TB storage), SharePoint, Yammer, and Teams for collaboration.

This plan doesn’t offer desktop versions of Office apps, but you do get full access to their web-based versions. It’s ideal for businesses on a budget or teams that work mostly online.

Office 365 E3 – The Balanced Middle Ground

The E3 plan strikes a perfect balance between productivity and security. In addition to everything in E1, it includes desktop versions of Office apps for up to 5 devices per user. It also ramps up security with features like Data Loss Prevention (DLP), message encryption, email archiving, and legal compliance tools. If your organization handles sensitive data but doesn’t need voice calling features, E3 offers great value.

Office 365 E5 – The Complete Powerhouse

E5 is the most advanced plan, built for organizations that demand top-tier security, compliance, and analytics. It includes all features of E3 and adds advanced threat protection (ATP), Microsoft Defender tools, Power BI Pro, and MyAnalytics. It also adds enterprise voice capabilities like Cloud PBX and PSTN conferencing. If your business handles critical or regulated data and requires top-notch insights and call management, E5 is the best choice.

What’s Common in Office 365 E1, E3, and E5 Plans?

For proper comparison, it’s important to look at differences as well as similarities. Therefore, here is what these plans have in common:

  • All three plans, E1, E3, and E5, are subscription-based. So, you can pay monthly or yearly.
  • You won’t get Microsoft Teams included by default. Now, you have to purchase it separately.
  • The AI-powered Co-Pilot feature can be added to any of these plans.
  • Irrespective of the plan you opt for, Admins get access to the Admin Center to manage users’ activity and settings.
  • Basic tools like email, OneDrive, and web/mobile Office apps are the same across all three.

Now, you must be wondering what the difference is. So, the difference is in price, app availability, and security. Explore further.

Easy Price Comparison of Office 365 E1, E3, and E5 Plans

Here’s how much each plan costs if you buy directly from Microsoft:

Costing

Office 365 E1

Office 365 E3

Office 365 E5

Monthly Price/User

$9.30

$24.90

$42.90

Yearly Price/User

$93.00

$249.00

$429.00

Source: Microsoft (Official Website)

Note: These prices are in US dollars and may vary by country or local taxes.

A Few Things to Know Before You Buy

  • Annual vs. Monthly Billing

If you choose an annual subscription, you can still pay monthly at a lower rate. But if you choose a monthly subscription, you’ll pay extra per user—around $1.65 more for E1, $4.25 more for E3, and $7.25 more for E5.

  • Free Trial First

You can start with a 1-month free trial. After that, it automatically switches to the yearly plan unless you cancel or change it.

  • Prices Can Differ

The actual price might be slightly different depending on where you live or if you’re buying through a vendor.

  • Price Isn’t Everything

Don’t just look at the cost. The real value comes from the features and apps included in each plan. We’ll show a clear table next to help you compare what’s inside each one.

Which Apps Do You Get with Office 365 E1, E3, and E5 Plans?

Examine the table to see which apps are available in each plan:

Available Apps

Office 365 E1

Office 365 E3

Office 365 E5

Word

✔ (Web/Mobile Only)

Excel

✔ (Web/Mobile Only)

PowerPoint

✔ (Web/Mobile Only)

Outlook

OneDrive

Access

✔ (Desktop only)

✔ (Desktop only)

Publisher

✔ (Desktop only)

✔ (Desktop only)

Exchange

Sharepoint

Viva Engage

Viva Insights

Microsoft Bookings

OneNote

Delve

Stream

Sway

Forms

Power Apps

Power Automate

Microsoft Planner

Microsoft To Do

Power BI Pro

Summary-

  • Office 365 E5 includes everything in E3, and additionally, Power BI Pro, which offers advanced data analytics.
  • Office 365 E3 gives full desktop versions of all main Office apps and good coverage across tools.
  • Office 365 E1 has web and mobile versions only for core apps like Word, Excel, and PowerPoint. It lacks full desktop access, which limits offline work.

Next, let’s explore how these plans differ in security and compliance features.

Office 365 E1 vs E3 vs E5: Security Features Comparison

When choosing the right Office 365 plan, security plays a key role. Microsoft ensures that all its business plans come with strong built-in protections. But as you move from E1 to E5, the level of security features grows significantly, making a real difference for organizations that need tighter control and advanced compliance tools.

Common Security Features in All Plans (E1, E3, E5)

Every plan comes with some core security features to protect user data and organizational access:

  • Multi-factor Authentication (MFA)
  • Anti-malware Protection
  • Standard Audit Logging
  • Manual Retention Labels
  • Content Search

These essentials are good for general use, helping small businesses secure their basic communication and data storage needs.

 

Advanced Protections Offered in E3 and E5

Office 365 E3 and E5 offer more advanced options that go beyond just the basics:

  • Premium features in Microsoft Editor
  • Larger mailbox capacity (100 GB + auto-expanding archive)
  • Inactive mailbox support
  • SharePoint and OneDrive with higher storage limits
  • Advanced DLP (Data Loss Prevention) for email and file protection
  • Sensitivity labels for better document control
  • Standard eDiscovery tools and litigation hold
  • Retention policies and centralized app management
  • Support for Group Policy and shared computer activation

These features are ideal for mid-sized businesses or those in regulated industries needing more control over their data.

 

Security Features Exclusive to Office 365 E5

Office 365 E5 brings enterprise-grade protection and compliance tools for large or security-conscious organizations:

  • Premium Audit and Advanced eDiscovery
  • DLP for Teams chat
  • Automatic sensitivity labeling using AI
  • Advanced Message Encryption & Customer Key
  • Microsoft Defender for Office 365 (Plan 2)
  • Communication Compliance & Information Barriers
  • Records Management & Privileged Access Management
  • Customer Lockbox for strict data access control

These tools ensure full visibility, advanced threat protection, and compliance with stricter data governance policies.

 

Office 365 vs Microsoft 365 Enterprise Plan: What’s the Difference?

When comparing Office 365 Enterprise and Microsoft 365 Enterprise, you will find that price is one of the biggest differences. Office 365 usually comes at a lower cost and also offers an extra entry-level plan called E1, which isn’t available with Microsoft 365. However, you cannot add Co-pilot to the Office 365 E1 plan. So, for AI features, consider the Microsoft 365 Enterprise.

Let’s take a look at the common apps that both Office 365 E5 and Microsoft 365 E5 have:

  • Word
  • Excel
  • PowerPoint
  • OneDrive
  • OneNote
  • Outlook
  • Microsoft Stream
  • Microsoft Bookings
  • Microsoft Forms
  • Sway
  • Microsoft Planner
  • Microsoft To Do
  • Power Apps
  • Power Automate (often bundled with Power Apps)

Apps Only in Office 365 Enterprise

Apps Only in Microsoft 365 Enterprise

  • Microsoft Access (PC only)
  • Microsoft Publisher (PC only)
  • Exchange (email server management)
  • Delve (for connecting and discovering content within your team)
  • Windows OS (included as part of the subscription)
  • Microsoft Lists (helps track and manage work across teams)
  • Clipchamp (a built-in video editor)
  • Microsoft Loop (collaboration tool for real-time teamwork)
  • Visio (used for diagramming and flowcharts)
  • Power BI Pro (advanced data analytics and reporting)

Hence, you can opt for Office 365 Enterprise for businesses looking for core productivity apps at lower prices. Whereas Microsoft 365 Enterprise includes more advanced tools and services. It covers Windows OS, collaboration tools, and analytics apps. Thus, making it a perfect subscription for large organizations with broader needs.

How Microsoft 365 Enterprise and Business Plans Differ?

Let’s extract a gist of how Microsoft 365 Enterprise and Business Plans differ. The main difference can be seen in scalability and price.

  • Broadly, the Microsoft 365 Business Plan is perfect for companies working with around 300 employees. Otherwise, for larger user strength, better opt for the Enterprise Plan.
  • Coming to pricing, even the basic Enterprise plan costs nearly $10, which is much more than the premium Business plan.
  • On the other hand, Business provides you with a choice to purchase Microsoft Teams. However, for Enterprise plans, it is mandatory to buy separately.
  • In terms of features, Enterprise plans offer more apps and services compared to Business plans, making them suitable for larger, more demanding environments.
  • Additionally, the Enterprise F series is a budget-friendly plan for frontline workers. It also includes premium Teams, ideal for communication-focused roles.

Additional Tips

Switching subscription plans is okay, but what about migrating the entire data to the new setup? That’s where you can depend on the Aryson Office 365 Backup and Restore Tool. This software ensures a smooth transition to a new Office 365 account, allowing mapping of mailboxes and their data. Moreover, it minimizes downtime and can handle a huge volume of data at once.

Apart from upgrading subscriptions within Microsoft 365, many also consider moving from other platforms to the Microsoft cloud. Well, no matter where you are migrating from, we have the appropriate tools to simplify your migration process:

Conclusion

This blog has discussed all the details you should know about Microsoft 365 Business and Enterprise Plans. Moreover, we discussed a clear comparison between Office 365 plans, E1, E3, and E5. Hopefully, understanding these differences and similarities of price, feature, and security will help you make better decisions. Better compare the size, budget, and requirements of your company before purchasing one. We hope you get the best value and productivity from your Microsoft subscription!

FAQ-

Q. What is included in Microsoft 365 Basic?

Ans- Microsoft 365 Basic includes:
1. 100 GB of cloud storage
2. Ad-free Outlook email
3. Access to Microsoft 365 and Windows 11 support experts.

Q2. How do I cancel my Microsoft 365 subscription?

Ans- To cancel your subscription, simply Sign In to your Microsoft account > navigate to the Services & subscriptions page > Microsoft 365 subscription > and select ‘Cancel’.

Q3. Which is cheaper: a Microsoft 365 monthly or annual subscription?

Ans- Generally, the annual subscription (Yearly Pay) is more cost-effective. You typically get a discounted rate when paying annually. Thus, it is more affordable in the long run.

Q4. What happens when my Microsoft 365 subscription expires?

Ans- As soon as the Microsoft 365 subscription expires, your Office applications enter a read-only mode. This means you can only see documents but can’t edit them. To regain all functionalities, plan to renew the subscription.

5/5 - (2 votes)

About The Author:

Rohan Wiese is a Technical Writer at Aryson Technologies. He is an expert Email Forensic, Cloud Computing, and a passionate nerd with over 10 years of experience in technical content writing. He writes about Cloud Migration, Database Recovery, Email Backup, Windows, Mac, and Tech.

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