Microsoft 365 price increase 2022: six commercial suites went up on March 1
Microsoft raised the list prices of six commercial Microsoft 365 and Office 365 suites on March 1, 2022. It announced the change on August 19, 2021. Business Basic went from $5 to $6 per user a month, and Business Premium from $20 to $22. Microsoft called it the first substantive pricing update since Office 365 launched. Live plan data is on the Microsoft 365 pricing page on SaaS Price Watch. For the 2026 change, see our Microsoft 365 2026 price increase page and the Microsoft 365 renewal guide.
Old and new prices
USD list prices per user a month, from the Microsoft announcement.
| Suite | Old price | New price (March 1, 2022) | Change |
|---|---|---|---|
| Microsoft 365 Business Basic | $5 | $6 | +$1 a month (20%) |
| Microsoft 365 Business Premium | $20 | $22 | +$2 a month (10%) |
| Office 365 E1 | $8 | $10 | +$2 a month (25%) |
| Office 365 E3 | $20 | $23 | +$3 a month (15%) |
| Office 365 E5 | $35 | $38 | +$3 a month (9%) |
| Microsoft 365 E3 | $32 | $36 | +$4 a month (13%) |
Per user over a year, Business Basic went from $60 to $72 and Business Premium from $240 to $264. Office 365 E1 went from $96 to $120, Office 365 E3 from $240 to $276, Office 365 E5 from $420 to $456, and Microsoft 365 E3 from $384 to $432.
For a 25-person company, Business Premium went from $6,000 to $6,600 a year. That is $600 more a year. On Business Basic, the same company went from $1,500 to $1,800 a year, or $300 more.
Business Standard is not on the list in the announcement.
What Microsoft said
The post calls it "the first substantive pricing update since we launched Office 365 a decade ago." On scope, it says: "These increases will apply globally with local market adjustments for certain regions."
It adds that education and consumer prices did not change. The same post announced unlimited dial-in for Teams meetings across enterprise, business, frontline, and government suites.
Who it hits and when
- The six suites in the table moved to the new list prices on March 1, 2022.
- Existing subscriptions: the post gives no separate date. Contract and renewal terms set when a customer pays the new price.
- Business Standard, education, and consumer plans were not part of this change. Consumer plans went up later, in January 2025. See our Microsoft 365 Personal and Family price increase 2025 guide.
- All regions were in scope, with local market adjustments for some regions.
What to do before your renewal
- Check which suite each user has in the Microsoft 365 admin center under Billing, Your products.
- Move users who need email and web apps to Business Basic, and keep Business Premium for users who need the security tools.
- Check your renewal date. The 2026 increase applies at renewals after July 1, 2026.
FAQ
How much did Microsoft 365 go up in 2022? Business Basic went from $5 to $6 per user a month, Business Premium from $20 to $22, Office 365 E3 from $20 to $23, and Microsoft 365 E3 from $32 to $36.
When did the Microsoft 365 price increase take effect? On March 1, 2022. Microsoft announced it on August 19, 2021.
Did Microsoft 365 Business Standard go up in 2022? The announcement does not list Business Standard. Its price went up on July 1, 2026, from $12.50 to $14.
Did Office 365 E5 go up? Yes. Office 365 E5 went from $35 to $38 per user a month.
Has Microsoft 365 gone up again since 2022? Yes. Microsoft raised most commercial suites again on July 1, 2026. Our Microsoft 365 2026 price increase page has the tables.
How we check
We read the Microsoft announcement on October 25, 2026. SaaS Price Watch tracks the Microsoft 365 business pricing page and records changes. Get an alert when Microsoft 365 changes its prices.
Checked 2026-10-25. Prices and policies change. Confirm on the source before you buy.
Sources
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