Microsoft 365 plans and pricing
A practical map of the Microsoft 365 plan landscape — Business vs Enterprise, what's included, and how to pick.
Microsoft 365 is sold in several plan families, and the names look more confusing than they really are. Once you know the split, picking a plan is mostly a matter of headcount and which security features you need.
The plan families
- Microsoft 365 Business — for organisations with up to 300 users. Most small and mid-size companies fit here. The plans are Business Basic, Business Standard, and Business Premium, plus a standalone "Apps for Business" SKU for the Office apps only.
- Microsoft 365 Enterprise — no seat cap, with deeper security, compliance, and analytics tooling. The main plans are E3 and E5, with a cheaper F1/F3 tier for frontline workers and a standalone "Apps for Enterprise" SKU.
- Microsoft 365 Education — discounted plans for schools (A1, A3, A5), modelled on the Enterprise tiers.
- Microsoft 365 Family / Personal — consumer plans, not relevant for business use.
What changes between tiers
Within each family, plans step up in three predictable directions:
- Desktop apps: entry-level plans give you web and mobile Office only; mid-tier and higher add the installable Word, Excel, PowerPoint, and Outlook apps for Windows and Mac.
- Device management: higher tiers add Microsoft Intune for managing laptops, phones, and the apps on them.
- Security and compliance: top tiers (Business Premium, E5) add Microsoft Defender for endpoints and identities, data loss prevention, sensitivity labels, and audit features.
How to choose
Start with headcount. Under 300 users? Look at Business Standard for most teams, or Business Premium if you want device management and richer security. Over 300 users, or you need advanced compliance and analytics? Look at E3 or E5.
If you only need email and web Office, the entry-level Basic tier is usually enough — but most companies end up wanting the desktop apps and full Teams meetings, which means Business Standard or higher. Prices change frequently and vary by region, so check Microsoft's current price list before committing, and ask about non-profit, education, or annual-commitment discounts if they apply.