Pricing Increases for Microsoft and Office 365: Everything You Need to Know
The Microsoft price increases, effective 2022, will include the first substantive cost update to Office 365 since its launch a decade ago.
Several upcoming Microsoft price increases will be taking place in 2022. Microsoft plans like Microsoft 365 Business (Basic and Premium), Office 365 (E1, E3, and E5), and more will be affected.
Organizations that have become accustomed to the aforementioned products should expect invoices to increase around March of next year. Our guide below details all of the known Microsoft price changes happening in 2022.
This updated pricing reflects the increased value we have delivered to our customers over the past ten years.
Jared Spataro, Corporate VP for Microsoft 365
What is the new Microsoft 365 Price Increase?
Microsoft recently announced several updates to their commercial pricing for Microsoft 365. The pricing changes are set to go into effect on March 1, 2022, and will update the list pricing for:
| Microsoft Plan | Price Increase (Per User) |
| Microsoft 365 Business Basic | $5 to $6 |
| Microsoft 365 Business Premium | $20 to $22 |
| Office 365 E1 | $8 to $10 |
| Office 365 E3 | $20 to $23 |
| Office 365 E5 | $35 to $38 |
| Microsoft 365 E3 | $32 to $36 |
These increases will apply globally with local market adjustments for specific regions.
The good news is that the price increases will only affect commercial and business users, with no changes to pricing for education or consumers subscriptions.
When does the Microsoft 365 price increase take into effect?
As mentioned earlier in the article, Microsoft plans to boost the price for its business software subscriptions, including its core Office 365 suite, starting on March 1, 2022.
Additional Microsoft Price Increases
On September 1, 2021, Microsoft implemented price increases to their Windows Server offering:
- Windows Server: 10% price increase for Windows Server Standard, Win Server CAL, and Win Server RDS
Microsoft will be increasing the price of Office LTSC at the time of general availability, which is expected to be somewhere around October. The price increase will affect:
- Office: 10% price increase for Office Professional Plus and Office Standard
*THESE PRICE INCREASES ARE NOT SPECIFIC. INCREASES ARE CONSISTENT ACROSS ALL LICENSING TYPES, INCLUDING SPLA.
