The increase is a fact, but it doesn’t affect you right away
As of July 1, 2026, Microsoft has implemented new pricing worldwide for a large portion of its Microsoft 365 subscriptions. This increase does not mean your bill will go up overnight. Existing subscriptions will retain their current price until the next renewal after July 1.
Important to note: Your billing cycle determines when that renewal takes place. If you have an annual subscription, the new rate will take effect only when your subscription renews. If your subscription expires in the second half of 2026, you still have some time. If you have a monthly subscription, it renews every month, so you’ll start paying the new price almost immediately.
So, your renewal and billing dates determine when you’ll actually see the change. This also gives you plenty of time to review your licenses before that happens.
How will the price change?
The increase varies significantly by package and ranges up to 33 percent. Business Premium is the only package that remains unchanged.
The amounts listed below are the suggested retail prices for the end customer, per user per month, for a commercial annual subscription with monthly billing. If you choose a monthly subscription without an annual contract, the price will be higher. The exact amount for your situation depends on your plan and your terms. We’d be happy to review this with you.
| Subscription | New price* | Increase |
| Business (SME) | ||
| Microsoft 365 Business Basic | €6.37 | +16.7% |
| Microsoft 365 Business Standard | €12.74 | +12% |
| Microsoft 365 Business Premium | €20.01 | 0% |
| Enterprise | ||
| Microsoft 365 E3 | €39.67 | +8.3% |
| Microsoft 365 E5 | €61.04 | +5.3% |
| Office 365 E3 | €27.58 | +13% |
| Frontline with Teams | ||
| Microsoft 365 F1 | €2.73 | +33% |
| Microsoft 365 F3 | €9.09 | +25% |
* Suggested retail price for end customers, per user per month, for a commercial annual subscription with monthly billing. The rate is higher for a monthly subscription without an annual contract.
The Copilot add-on remains around €30 per user per month. In addition, there are current promotional offers for new Copilot licenses, such as Business Premium at €17 per user per month. Contact Xylos to see which promotions may apply to your current subscription.
You also get functionality in return
The higher price is offset by a significant expansion of the packages, particularly in the areas of security and AI, along with additional management capabilities. Microsoft says there will be more than 1,100 new features in 2026. Here are a few specific examples:
- 50 GB of additional mailbox storage for Business Basic, Business Standard, and Business Premium (totaling 100 GB)
- URL checks in Outlook for Business Basic and Business Standard, which check links when you click on them
- Copilot Chat in Word, Excel, PowerPoint, Outlook, and Teams, with help for drafting, summarizing, and analyzing
- Microsoft Defender for Office 365 Plan 1 is included by default in E3
- Security Copilot for Microsoft 365 E5 users
For many organizations, this means more capabilities under the same license. The downside: if you don’t make any changes, you’ll pay more without actively using those new features.
A good time to review your licenses
A price change is the perfect opportunity to assess whether your licensing model still aligns with how you work today. Perhaps you’re paying for packages your team barely uses, or maybe just a few users would benefit from a more comprehensive subscription. The biggest impact is seen in organizations that renew around the summer, use a lot of Business or Frontline licenses, or have little insight into their actual usage.
You don’t have to figure that out on your own. As a Microsoft partner, we at Xylos compare your renewal dates, usage, and the new rates side by side. This allows you to weigh the price against the functionality you actually need and stay in control of your costs leading up to your next renewal.
Want to know more?
Would you like to know what the new rates mean for your subscription? Contact us for a no-obligation license check, or learn more about our Managed Services.
