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Microsoft 365 and Office 365 prices to increase next year — here's who is affected

Laptop with Office 365
Laptop with Office 365 (Image credit: Windows Central)

What you need to know

  • Microsoft announced a set of price increases for Microsoft 365 and Office 365 subscriptions.
  • The price of consumer, education, and Microsoft 365 E5 subscriptions will remain the same.
  • This is the first "substantive pricing update" for Office 365 since its launch in 2011.

Microsoft announced changes to the prices of several Office 365 and Microsoft 365 subscriptions. The increased prices will go into effect on March 1, 2022. The largest increase is for a Microsoft 365 E3 subscription, which will go up by $48 per year per user. The consumer, education, and Microsoft 365 E5 versions of Microsoft 365 will not increase in price.

This is the first "substantive pricing update" for Office 365 since it launched ten years ago, according to Microsoft (opens in new tab). There have been some small price changes over the years, but Microsoft's phrasing is accurate.

Since its initial launch, Office 365 has increased in value while remaining the same price. More recently, since the launch of Microsoft 365 in 2017, 24 apps have been added to Microsoft 365 and Office 365, including Microsoft Teams, Power Apps, Power BI, Power Automate, Stream, Planner, Visio, OneDrive, Yammer, and Whiteboard. Many of those apps come at no additional cost to subscribers. Microsoft also highlights that it's added more than 1,400 new features over the last ten years.

Here are all of the price changes. Note that these prices are per month per user:

  • Microsoft 365 Business Basic (from $5 to $6)
  • Microsoft 365 Business Premium (from $20 to $22)
  • Office 365 E1 (from $8 to $10)
  • Office 365 E3 (from $20 to $23)
  • Office 365 E5 (from $35 to $38)
  • Microsoft 365 E3 (from $32 to $36)

Along with the price increases, Microsoft is adding unlimited dial-in capabilities for Teams meetings across its enterprise, business, frontline, and government suites. This will roll out over the next few months.

Sean Endicott
News Writer and apps editor

Sean Endicott brings nearly a decade of experience covering Microsoft and Windows news to Windows Central. He joined our team in 2017 as an app reviewer and now heads up our day-to-day news coverage. If you have a news tip or an app to review, hit him up at sean.endicott@futurenet.com (opens in new tab).

10 Comments
  • Good to hear the consumer tier is staying the same price. It is such great value.
  • To be fair, they have added tons of stuff to the business subscriptions and hardly anything to the consumer side.
  • What do you expect to be added to the consumer side? I suppose they could give more storage.
  • Its not as if MS has anything they could add, like ebooks, audio, or video streaming.
    Now, if they cought out ATT's share of the merged Warner-Discovery...
    Oops, better not give Nadella ideas. 😄
  • That is the way to do it, get everyone using it and then when they have everything on the service and would cause a lot of problems to remove, increase the prices.
  • Sorry, but any price increase from tech companies is outrageous. Two years of lockdowns when tech companies rake in the money, they should be reducing prices! Greed greed greed.
  • This Capitalism in a nut shell, what else did you expect?
  • No thats not right, ripping people off isn't capitalism.
  • 😶 Capitalism is fundamentally material wealth (primarily profit) driven not social driven.
  • All so Lumberg’s stock can go up, a quarter of a point.