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Written By Rohan Wiese
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Updated on May 1st, 2025
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.
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.
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 |
This table will make Microsoft 365 plans understanding more simplified for you. Here are the pointers to mark:
Microsoft 365 Business Plans
Microsoft 365 Apps Plans
Enterprise Plans (E3 & E5)
F Plans (Frontline Workers)
Microsoft Teams Plans
Windows 365 Plan
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 |
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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 |
❌ |
❌ |
✅ |
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 |
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|
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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.
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.
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.
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.
For proper comparison, it’s important to look at differences as well as similarities. Therefore, here is what these plans have in common:
Now, you must be wondering what the difference is. So, the difference is in price, app availability, and security. Explore further.
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
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.
You can start with a 1-month free trial. After that, it automatically switches to the yearly plan unless you cancel or change it.
The actual price might be slightly different depending on where you live or if you’re buying through a vendor.
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.
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-
Next, let’s explore how these plans differ in security and compliance features.
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:
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:
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:
These tools ensure full visibility, advanced threat protection, and compliance with stricter data governance policies.
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:
Apps Only in Office 365 Enterprise |
Apps Only in Microsoft 365 Enterprise |
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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.
Let’s extract a gist of how Microsoft 365 Enterprise and Business Plans differ. The main difference can be seen in scalability and price.
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:
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!
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.
Ans- To cancel your subscription, simply Sign In to your Microsoft account > navigate to the Services & subscriptions page > Microsoft 365 subscription > and select ‘Cancel’.
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.
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.
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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