On this page · 11 sections
- What the July 2026 update changed
- 2027 price list: business and enterprise tiers
- Security and compliance: what each tier includes
- The 300-user cap and how mixing works
- Business Premium plus add-ons versus E3 versus E5
- Decision table: when to step up
- Worked example: a 260-person US company planning for 340
- Step-up checklist
- What to watch before 31 January 2027
- How eCorpIT can help
- References
Summary. Microsoft's update of 1 July 2026 left Microsoft 365 Business Premium at $22.00 a user a month and raised E3 from $36.00 to $39.00 and E5 from $57.00 to $60.00 (US list, annual terms). Existing customers pay the new prices from their first renewal after 1 July 2026. The update added Defender for Office 365 Plan 1, Intune Plan 2, Remote Help and Advanced Analytics to E3, and Security Copilot, Endpoint Privilege Management, Cloud PKI and Enterprise App Management to E5. Business plans stop at 300 users per tenant in total. Below that line, Business Premium plus the $15 Defender and Purview Suites add-on costs $37 a user, includes Entra ID P2, and Microsoft says it matches E5's threat protection and data security. It still lacks Windows Enterprise, Teams Phone, Power BI Pro, Security Copilot, 1,000-person meetings and the new Intune extras. Our view: stay on Business Premium well under 300 seats, budget for E3 a renewal before you cross 300, and choose E5 when most staff need insider risk, premium eDiscovery or communication compliance. E7, at $99.00, adds Copilot, Agent 365 and the Entra Suite to E5.
About this article. It is for IT and finance leads at US organisations pricing a Microsoft 365 renewal in 2027. On 13 November 2026 we checked every price, plan name, user cap and inclusion against Microsoft's licensing news page and FAQ, its plan and pricing pages, and Microsoft Learn. Microsoft's shop pages refuse automated requests, so we read archived copies dated 29 October to 6 November 2026. All figures are list prices before tax; Microsoft says prices vary by agreement, country and currency, so confirm with your partner. No vendor paid for inclusion, and this is not financial or licensing advice. Researched with AI assistance and reviewed by our editorial team.
For other angles, see our Microsoft 365 vs Google Workspace pricing comparison and our Copilot, Gemini, ChatGPT and Claude per-seat comparison.
What the July 2026 update changed
Microsoft announced the update on 4 December 2025, and its licensing news page, dated 16 February 2026, sets out the price tables. New prices apply from 1 July 2026 to new customers, and to existing customers (including multi-year agreements) from their next renewal after that date, on annual and monthly billing. Standalone Teams and Copilot SKUs were not included. Percentages below are ours, to one decimal; Microsoft's table rounds to whole numbers.
| Suite (US, per user per month, annual) | Before 1 July 2026 | From 1 July 2026 | Change |
|---|---|---|---|
| Microsoft 365 Business Premium | $22.00 | $22.00 | None |
| Microsoft 365 Business Premium (no Teams) | $18.79 | $18.79 | None |
| Microsoft 365 E3 | $36.00 | $39.00 | +$3.00 (8.3%) |
| Microsoft 365 E3 (no Teams) | $27.45 | $30.45 | +$3.00 (10.9%) |
| Microsoft 365 E5 | $57.00 | $60.00 | +$3.00 (5.3%) |
| Microsoft 365 E5 (no Teams) | $48.45 | $51.45 | +$3.00 (6.2%) |
| Entra ID P1 (standalone) | $6.00 | $7.00 | +$1.00 (16.7%) |
| Entra ID P2 (standalone) | $9.00 | $10.00 | +$1.00 (11.1%) |
Features rolled out from mid-2026 after at least 30 days' notice to each tenant; Microsoft said the Defender and Intune additions would be complete by 1 August 2026.
What each tier gained.
- Business Premium: 50 GB more mailbox storage, Copilot Chat enhancements (inbox and calendar awareness, and Word, Excel and PowerPoint agents) and Copilot Chat Analytics.
- E3: Defender for Office 365 Plan 1, Intune Plan 2, Intune Remote Help and Intune Advanced Analytics, plus the Copilot Chat additions.
- E5: everything E3 gained, plus Security Copilot, Intune Endpoint Privilege Management, Microsoft Cloud PKI and Intune Enterprise Application Management.
The top tier. Microsoft 365 E7 lists at $99.00 ($90.45 without Teams) and includes E5, Microsoft 365 Copilot, Agent 365 and the Microsoft Entra Suite. Its price did not change in July, and the E5 additions apply to it too. Bought separately, Copilot is a $30.00 add-on, Agent 365 costs $15.00 and the Entra Suite $12.00, so E5 plus all three comes to $117.00, or $18.00 more than E7.
2027 price list: business and enterprise tiers
All prices are US list, per user per month, paid yearly on an annual commitment.
| Plan | With Teams | Without Teams | User limit | Copilot |
|---|---|---|---|---|
| Business Basic | $7.00 | $5.40 | 300 across business plans | Copilot Chat |
| Business Standard | $14.00 | $10.79 | 300 across business plans | Copilot Chat |
| Business Premium | $22.00 | $18.79 | 300 across business plans | Copilot Chat |
| Business Premium with Copilot | $32.00 | $28.80 | 300 across business plans | Copilot Business included |
| Microsoft 365 E3 | $39.00 | $30.45 | No limit | $30 add-on |
| Microsoft 365 E5 | $60.00 | $51.45 | No limit | $30 add-on |
| Microsoft 365 E7 | $99.00 | $90.45 | No limit | Included |
Two budgeting details. First, the Teams premium is the same on both enterprise suites: E3 without Teams ($30.45) plus Teams Enterprise ($8.55) comes to $39.00, and E5 without Teams ($51.45) plus Teams Enterprise comes to $60.00. Second, existing customers on an eligible business plan can add Copilot Business, for up to 300 users, at $21.00 a user, or $18.00 for the first year on annual offers taken between 1 July and 31 December 2026; Microsoft can change or withdraw the offer. A seat bought in January 2027 starts at $21.00.
Security and compliance: what each tier includes
The table summarises Microsoft's enterprise comparison table and its business plan pages, as archived between 29 October and 6 November 2026. Not included means the plan's comparison does not list the feature.
| Capability | Business Premium ($22) | E3 ($39) | E5 ($60) |
|---|---|---|---|
| Entra ID | P1 | P1 | P2 |
| Intune | Plan 1 | Plan 1, plus Plan 2, Remote Help and Advanced Analytics | E3 set, plus Endpoint Privilege Management, Enterprise App Management and Cloud PKI |
| Endpoint protection | Defender for Business | Defender for Endpoint Plan 1 | Defender for Endpoint Plan 2 |
| Email protection | Defender for Office 365 Plan 1 | Defender for Office 365 Plan 1 (added 2026) | Defender for Office 365 Plan 2 |
| Defender for Identity | Not included | Not included | Included |
| Defender for Cloud Apps | Not included | Discovery only | Full |
| Purview Information Protection | Plan 1 | Plan 1 | Plan 2 |
| Purview data loss prevention | Email and files | Email and files | Full |
| Insider Risk Management | Not included | Not included | Included |
| Purview Audit | Standard | Standard | Premium |
| eDiscovery Premium | Not included | Not included | Included |
| Communication Compliance | Not included | Not included | Included |
| Security Copilot | Not included | Not included | Included, default capacity |
| Windows | Windows 11 Pro upgrade | Windows 11 Enterprise E3 | Windows 11 Enterprise E5 |
| Teams meetings | Up to 300 people | Up to 1,000 people | Up to 1,000 people |
| Teams Phone | Add-on | Add-on | Included |
| Power BI Pro | Not included | Not included | Included |
Teams Phone Standard lists at $10.00 a user as an add-on; Audio Conferencing is a no-cost add-on below E5.
Identity: Entra ID P1 versus P2
Microsoft's Entra pricing page says P1 comes with Business Premium and E3, and P2 with E5. P1 covers single sign-on, multifactor authentication, Conditional Access, passwordless and phishing-resistant sign-in, and employee self-service. P2 adds Entra ID Protection, risk-based Conditional Access, adaptive risk remediation, premium risk detections, basic access reviews and some Privileged Identity Management features; full PIM needs Entra ID Governance or the Entra Suite. Standalone, P2 costs $10.00, so an E3 firm can give 40 administrators and executives risk-based access for $4,800 a year (40 × $10 × 12) rather than moving everyone to E5. Business Premium customers get P2 through the Defender Suite add-on below. For Entra against Okta and Google, see our identity platform comparison.
Devices: what the July 2026 Intune changes are worth
Business Premium and E3 both include Intune Plan 1, which costs $8.00 standalone. Microsoft's Intune pricing page lists the extras at these standalone prices.
| Intune capability | Standalone price | Now in |
|---|---|---|
| Intune Plan 2 (specialty and shared devices, Tunnel for mobile apps, firmware updates) | $4.00 | E3 and E5 |
| Remote Help | $3.50 | E3 and E5 |
| Advanced Analytics | $5.00 | E3 and E5 |
| Endpoint Privilege Management | $3.00 | E5 |
| Enterprise Application Management | $2.00 | E5 |
| Microsoft Cloud PKI | $2.00 | E5 |
| Intune Suite (Plan 2 and all five add-ons) | $10.00 | Standalone bundle |
Bought one at a time, E3's three additions list at $12.50 ($4.00 + $3.50 + $5.00) and E5's six at $19.50. Nobody needs to pay that. Microsoft Learn says the Intune Suite includes Plan 2, and the pricing FAQ says the Plan 2 device features come only with Plan 2 or the full Suite. So a Business Premium customer can add every July 2026 Intune extra for $10.00, taking the seat to $32.00, still $7.00 below E3.
E3 customers already paying for the Suite should check usage: E3 now covers Remote Help, Advanced Analytics and Plan 2 but not Endpoint Privilege Management, Enterprise App Management or Cloud PKI, which cost $7.00 together as add-ons. For Mac-heavy fleets, our Intune, Jamf and Iru comparison covers the alternatives.
Threat protection: Defender for Business versus Defender XDR
Business Premium includes Defender for Business (also sold standalone at $3.00) and Defender for Office 365 Plan 1. E3 includes Defender for Endpoint Plan 1 and, since the July update, Defender for Office 365 Plan 1. E5 adds the rest of the stack: Defender for Endpoint Plan 2, Defender for Office 365 Plan 2, Defender for Identity, full Defender for Cloud Apps and Defender for IoT.
Business Premium customers can close most of that gap with an add-on. The Defender Suite for Business Premium costs $10.00 a user a month, paid yearly; Microsoft's FAQ lists Entra ID P2, Defender XDR, Defender for Endpoint Plan 2, Defender for Office 365 Plan 2, Defender for Identity, Defender for Cloud Apps and Defender for IoT for enterprise devices. The Defender and Purview Suites bundle costs $15.00 and adds automatic classification and sensitivity labelling, unified data loss prevention across email, chat, cloud apps and endpoints, insider-risk detection, advanced eDiscovery and audit, and retention and records management. Microsoft describes the bundle's features as equal to E5's threat protection and data security. Both add-ons have a maximum of 300 seats and require Business Premium. For Defender against CrowdStrike and SentinelOne, see our endpoint security comparison.
Data and compliance: Purview
Business Premium and E3 both include Purview Information Protection Plan 1, data loss prevention for email and files, and standard audit. E5 adds Information Protection Plan 2, full data loss prevention, Insider Risk Management, Communication Compliance, and premium audit and eDiscovery. Litigation holds, regulator requests or workforce-wide insider-threat programmes often decide the step to E5. Microsoft's July 2026 price list also shows the Defender Suite and Purview Suite as standalone components at $12.00 each.
The 300-user cap and how mixing works
Microsoft's business FAQ says business plans are designed for up to 300 users, counted across the whole business family: a tenant with 250 Business Premium seats can add only 50 more business seats of any kind. Microsoft reserves the right to enforce that tenant limit and points organisations above 300 users to enterprise plans.
- Growth planning. A 260-person firm growing 15% a year reaches 299 staff in twelve months (260 × 1.15). Licensing decisions at a 2027 renewal should assume the move.
- Add-ons hit the same ceiling. The Defender Suite and the Defender and Purview Suites each have a maximum of 300 seats, and Copilot Business is sold for up to 300 users, so the Business Premium plus $15 route ends at the same line.
- Mixed estates need written confirmation. Microsoft's FAQ covers mixing within the business family, not alongside enterprise plans, so get your partner or account team to confirm any mix in writing.
Microsoft also says volume discounts are available to Enterprise Agreement customers, typically from about 250 licences.
Business Premium plus add-ons versus E3 versus E5
| Configuration | Per user per month | What you gain over the row above |
|---|---|---|
| Business Premium | $22.00 | Baseline: Entra ID P1, Intune Plan 1, Defender for Business, Purview Plan 1 |
| Business Premium + Defender Suite | $32.00 | Entra ID P2 and E5-class threat protection across endpoints, identity, email and cloud apps |
| Business Premium + Defender and Purview Suites | $37.00 | E5-class data security: auto-labelling, unified data loss prevention, insider risk, advanced eDiscovery |
| Microsoft 365 E3 | $39.00 | No cap, Windows Enterprise E3, Intune Plan 2, Remote Help, Advanced Analytics, 1,000-person meetings; loses the E5-class add-ons |
| Microsoft 365 E5 | $60.00 | Entra ID P2, full Defender XDR and Purview premium, Security Copilot, Teams Phone, Power BI Pro, Windows Enterprise E5 |
| Microsoft 365 E7 | $99.00 | E5 plus Microsoft 365 Copilot, Agent 365 and the Entra Suite |
The surprise is the step from row three to row four: E3 costs $2 more than Business Premium with both suites but is a sideways move on security, gaining device management and the end of the cap while losing the E5-class Defender and Purview features.
Decision table: when to step up
| Choose | If |
|---|---|
| Business Premium | You have fewer than about 250 users, need Intune, Conditional Access and Defender for Business, and have no compliance team asking for premium eDiscovery |
| Business Premium + Defender Suite ($10) | You want E5-class detection and response, for example after a phishing or ransomware incident, and will stay under 300 users |
| Business Premium + Defender and Purview Suites ($15) | Auditors or customers ask for sensitivity labels, endpoint data loss prevention and insider-risk detection, and you will stay under 300 users |
| Business Premium + Intune Suite ($10) | You need Remote Help, privilege management or shared-device support but not Windows Enterprise or more than 300 seats |
| Business Premium with Copilot ($32) | Most staff will use Copilot in Word, Excel, Outlook and Teams; the bundle costs $10 more than plain Business Premium |
| Microsoft 365 E3 | You will pass 300 users within your next term or need Windows Enterprise |
| Microsoft 365 E5 | Most staff fall under insider-risk, premium eDiscovery or communication compliance programmes, or you want Teams Phone and Power BI Pro for everyone |
| Microsoft 365 E7 | You plan Copilot for nearly every seat and need Agent 365 to govern AI agents; compare against E5 plus Copilot, Agent 365 and Entra Suite at $117 |
Worked example: a 260-person US company planning for 340
A professional services firm on Business Premium has 260 staff and expects 340 within 18 months. It has had one phishing incident, its largest client wants data loss prevention and sensitivity labels, and 50 staff want Copilot. Figures are annual US list prices before sales tax.
Today, at 260 users.
| Option | Calculation | Annual cost |
|---|---|---|
| Business Premium | 260 × $22 × 12 | $68,640 |
| Business Premium + Defender and Purview Suites | 260 × $37 × 12 | $115,440 |
| Microsoft 365 E3 | 260 × $39 × 12 | $121,680 |
| Microsoft 365 E5 | 260 × $60 × 12 | $187,200 |
Copilot for 50 people costs 50 × $21 × 12 = $12,600 a year at the Copilot Business list price, or 50 × $10 × 12 = $6,000 extra if your partner can move those 50 seats to the $32 Business Premium with Copilot bundle. On E3 or E5, the $30 Copilot add-on costs 50 × $30 × 12 = $18,000.
In 18 months, at 340 users. Business Premium no longer covers the whole firm.
| Option | Calculation | Annual cost |
|---|---|---|
| Microsoft 365 E3 | 340 × $39 × 12 | $159,120 |
| E3 + Entra ID P2 for 40 admins and executives | $159,120 + 40 × $10 × 12 | $163,920 |
| Microsoft 365 E5 | 340 × $60 × 12 | $244,800 |
| E5 + Copilot for 50 | $244,800 + $18,000 | $262,800 |
| Microsoft 365 E7 for all | 340 × $99 × 12 | $403,920 |
Below 300 users, Business Premium with both suites meets the client's request for $115,440, which is $71,760 a year less than E5 ($187,200 - $115,440). Above 300 the realistic choice is E3, and the client's request becomes the reason to price E5 or the $12 Purview Suite. Planning the E3 move a renewal early means migrating Windows, Intune and Purview policies once, not twice.
Step-up checklist
- Inventory what you use. Export current licences and list which Defender, Intune, Purview and Entra features are configured, not just licensed.
- Time the change to renewal. Existing customers keep pre-July 2026 prices until their next renewal, so model the increase from that date.
- Check Windows editions. E3 and E5 bring Windows 11 Enterprise; confirm devices meet Windows 11 requirements and plan the edition change through Intune.
- Rebuild Conditional Access deliberately. Moving from P1 to P2 adds risk-based policies; test them in report-only mode before you enforce them.
- Drop duplicate add-ons. E3 now covers Defender for Office 365 Plan 1, Remote Help, Advanced Analytics and Plan 2; only E5 covers the full Intune Suite set.
- Price Copilot separately. Compare the $32 bundle, the $21 Copilot Business add-on, the $30 enterprise add-on and E7, at the number of people who will use it.
What to watch before 31 January 2027
- 17 to 20 November 2026: Microsoft Ignite in San Francisco; watch for licensing announcements.
- 31 December 2026: last day for the $18 first-year Copilot Business offer.
- Every renewal date: the July 2026 prices apply from your first renewal after 1 July 2026.
How eCorpIT can help
eCorpIT is a Gurugram-based technology organisation, founded in 2021, assessed at CMMI Level 5 and MSME certified, with senior-led engineering teams working across AWS, Microsoft and Google platforms. Our cloud computing services team can audit which Defender, Intune, Purview and Entra features you actually use and model Business Premium, E3, E5 and E7 at your seat count and renewal date. Talk to us at /contact-us/.
Last updated: 13 November 2026.
