Microsoft 365 Annual Price by Plan
The Microsoft 365 annual price is not printed on Microsoft's pricing page, which quotes per user a month and notes that the rate requires annual payment. Multiplying gives the figure a budget actually needs. Business Basic works out at $84.00 per user a year and Business Premium with Copilot at $384.00.
Short answer Microsoft 365 costs $84.00 to $384.00 per user a year, derived from the published monthly rates of $7.00 to $32.00 on annual payment.
Opens the vendor's own page. Figures here were read from it on 9 August 2026.
The annual figure for each plan
Twelve times the published monthly rate, which is what annual payment of that rate comes to. Monthly rates read from Microsoft's business plan comparison on 9 August 2026.
- Business Basic, $7.00 a month, is $84.00 per user a year
- Apps for business, $10.00 a month, is $120.00 per user a year
- Business Standard without Teams, $20.30 a month, is $243.60 per user a year
- Business Standard with Copilot, $23.50 a month, is $282.00 per user a year
- Business Premium with Copilot, $32.00 a month, is $384.00 per user a year
What a real team pays
Per-user figures hide the scale of the commitment. The same five plans, at ten users for twelve months.
- Business Basic, ten users - $840.00 a year
- Apps for business, ten users - $1,200.00 a year
- Business Standard with Copilot, ten users - $2,820.00 a year
- Business Premium with Copilot, ten users - $3,840.00 a year
- The step from Basic to Standard is $3,000.00 a year for ten people, and it is the step most businesses end up taking, because Basic has no desktop Office.
Two ways to cut the annual figure
Both are published, and neither is advertised on the plan comparison in a way you would notice.
- Business Standard without Teams is $20.30 per user a month, or $243.60 a year. Against Standard with Copilot at $282.00 that saves $38.40 per user a year, and for ten users $384.00. It is a variant offered following Microsoft's EU competition commitments.
- Apps for business at $120.00 a year covers desktop Word, Excel and PowerPoint with no hosted email. If your mail already sits elsewhere, that is $162.00 a year per user below Business Standard with Copilot.
- Neither is a discount on the plan you wanted. Both are a different plan, and the saving is the feature you are giving up.
Why the monthly rate is not the alternative
- The rates above are the annual-payment rates. Microsoft also sells these plans on monthly payment at a higher rate, so twelve monthly invoices come to more than the annual figure.
- The commitment is the price of the discount. Paying yearly locks the seat count for the term, which matters if your headcount moves during the year.
- There is no free tier at any seat count. The trial on the Business plans is one month.
Related questions
- Does Microsoft publish an annual price for Microsoft 365?
- Not directly. The business plan comparison quotes a per-user monthly rate and states that it requires an annual commitment, so the annual figure has to be derived. The figures on this page are twelve times the published monthly rate.
- Is paying annually cheaper than paying monthly for Microsoft 365?
- Yes. The advertised rates of $7.00 to $32.00 per user a month are the annual-payment rates; Microsoft charges more per month for the same plans without the annual commitment.
- What is the cheapest Microsoft 365 plan per year?
- Business Basic, at $84.00 per user a year. It includes business email, 1 TB of OneDrive and Teams, but its Word and Excel are web and mobile only, with no desktop applications.
Or read the full breakdown: Microsoft 365 pricing, every plan with the charges on top.
Other Microsoft 365 pricing questions
Sources & verification
Facts on this page were read from the sources below on the dates shown. Where a vendor does not publish a figure, we record it as not disclosed rather than estimating it.
- Microsoft 365 business plans and pricing - checked 9 August 2026
Spotted something out of date? Email [email protected] and we will re-check it. Corrections are logged on the page.