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Microsoft Licensing update | M365 Price changes
Published Dec 2025
Microsoft 365 Price & Packaging Changes – Effective July 1, 2026
Microsoft has announced global price adjustments for Microsoft 365 and Office 365 suites, as well as select standalone products. These changes reflect four years of innovation across productivity, security, compliance, and AI, with additional enhancements rolling out in 2026.
What’s Changing?
Starting July 1, 2026, prices will increase across multiple suites and components. Below is a summary of the changes:
Enterprise Suites
| Product | Current Price | New Price | % Increase |
| Office 365 E3 | $23 | $26 | +13% |
| Office 365 E5 | $38 | $41 | +8% |
| Microsoft 365 E3 | $36 | $39 | +8% |
| Microsoft 365 E5 | $57 | $60 | +5% |
Without Teams:
| Product | Current Price | New Price | % Increase |
| Office 365 E3 | $14.45 | $17.45 | +14% |
| Office 365 E5 | $29.45 | $32.45 | +10% |
| Microsoft 365 E3 | $27.45 | $30.45 | +11% |
| Microsoft 365 E5 | $48.45 | $51.45 | +6% |
Frontline Suites
| Product | Current Price | New Price | % Increase |
| Microsoft 365 F1 (with Teams) | $2.25 | $3.00 | +33% |
| Microsoft 365 F1 (no Teams) | $1.75 | $2.50 | +43% |
| Microsoft 365 F3 (with Teams) | $8.00 | $10.00 | +25% |
| Microsoft 365 F3 (no Teams) | $6.93 | $8.93 | +29% |
Business Suites
| Product | Current Price | New Price | % Increase |
| M365 Business Basic (with Teams) | $6.00 | $7.00 | +16% |
| M365 Business Basic (no Teams) | $4.40 | $5.40 | +23% |
| M365 Business Standard (with Teams) | $12.50 | $14.00 | +12% |
| M365 Business Standard (no Teams) | $9.29 | $10.79 | +16% |
| M365 Business Premium | $22.00 | $22.00 | No change |
Standalone Components
| Product | Current Price | New Price | % Increase |
| Windows E3 | $6.63 | $7.63 | +15% |
| Windows E5 | $11.80 | $12.80 | +9% |
| Apps for Business | $12.00 | $10.00 | -16.6% |
| Microsoft 365 Apps | $8.25 | $9.90 | +20% |
| EMS E3 | $10.60 | $12.00 | +13% |
| EMS E5 | $16.40 | $18.00 | +10% |
| Entra P1 | $6.00 | $7.00 | +16% |
| Entra P2 | $9.00 | $10.00 | +11% |
| Windows Enterprise (per device) | $5.84 | $7.63 | +31% |
| Microsoft 365 Apps (per device) | $36.00 | $42.00 | +17% |
Next Steps
To ensure your organisation is prepared for these upcoming changes:
- Review your renewal timelines and identify any subscriptions expiring before July 1, 2026.
- Consider early renewals or multi-year agreements to lock in current pricing and avoid the impact of the increase.
- Contact your aligned Ultima Account Manager to discuss how we can help you navigate and mitigate these increases through strategic planning and tailored licensing solutions or get in touch with our team here.
