Microsoft 365 Licensing Comparison Tool

Compare every Microsoft 365 plan,

feature by feature

Microsoft licensing

Microsoft 365 plan comparison

Ten commercial plans, side by side, at current US list pricing. Pick the plans you're weighing, enter your seat count, and the table shows what you get and what it costs.

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Answer all three and we'll narrow the table for you.

Plans

Included Not included Available as a paid add-on
  1. 1. Prices are US list (MSRP), per user per month, effective July 1, 2026, cross-checked against the August 2026 NCE price list. Use the toggle to switch between an annual commitment paid upfront and the same commitment billed monthly, which carries a 5% premium. Existing subscriptions keep their old rate until the first renewal after July 1, 2026. Nonprofit, education and government (GCC/GCC High) pricing differs.
  2. 2. Business Basic, Standard and Premium mailboxes are 50 GB plus the 50 GB added in 2026. Office 365 E1 remains 50 GB.
  3. 3. Most suites are also sold in a "no Teams" variant at a lower price. Those SKUs carry the same feature set minus Teams.
  4. 4. Copilot Chat work-data grounding and Chat Analytics are rolling out across 2026. Check the Message Center for your tenant's timing.
  5. 5. Microsoft Sentinel is billed on Azure ingestion, not per user, so it sits outside these plans on every tier.

Pricing verified August 2026. Microsoft changes SKUs and prices several times a year — confirm current figures before you sign.

Think you're on the wrong plan?

Most organizations are paying for capability they already own somewhere else, or leaving security features switched off in a license they've already bought. Corsica's licensing review looks at your tenant, your third-party tools and your renewal date, and tells you which of the three it is.

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FAQs

What is the difference between Microsoft 365 E3, E5, F3, and Business Premium, and which do my users actually need?

License

Best For

Office Apps

Email

Intune

Security

Compliance

User Limit

Business Premium

Standard Users in orgs that have less than 300 people.

Full desktop apps

100 GB mailbox + archive

Defender for Business

Microsoft 365 DLP only

300 users

Microsoft 365 E3

Standard Users in orgs that have more than 300 users

Full desktop apps

100 GB mailbox + archive

Conditional Access only

None

Unlimited

Microsoft 365 E5

Standard Users in orgs that have more than 300 users that also need full Defender and Purview feature coverage

Full desktop apps

100 GB mailbox + archive

Advanced security

Advanced compliance

Unlimited

Microsoft 365 F3

Frontline workers, shared-device users

Web/mobile focused

Limited mailbox

Limited Intune

Basic

Minimal

Unlimited

Sidebar Details:

  • Microsoft 365 Business Premium and Microsoft 365 E3 can be upgraded with Defender Suite, or Purview Suite upgrades to provided security, and compliance features.
  • Microsoft 365 E3 + Defender Suite is less expensive than Microsoft 365 E5
  • Microsoft 365 E3 + Defender Suite + Purview Suite is more expensive than Microsoft 365 E5 and includes fewer features.
  • In general, all organizations should leverage Microsoft 365 Business Premium as their standard license until they grow beyond 300 users.

The IT leadership of an organization is responsible for that alignment. The CSP is just a part of the execution process. Here at Corsica Technologies, we provide Microsoft 365 license optimization services. Our vCIOs provide basic services in this line for customers that don’t have the appropriate executive; but operationally, the accountability regarding alignment remains with the customer.

How do I find Microsoft 365 licenses assigned to people who have left?

You can leverage the Microsoft 365 Admin panel to export a full user list with licensing attached. This will quickly surface users who have their sign-in blocked but still have licenses applied. To achieve this, HR staff need to communicate with IT resources to validate that the enabled accounts are aligned with current HR role assignments and hiring status. Items that are not aligned need remediation.

Why does my count of Microsoft 365 accounts not match my headcount?

This is usually due to a drift over time between HR and IT. That said, there are special cases in which non-user-facing accounts need licenses too. One example is accounts associated with network scanners that require encrypted scan to email functionality.

Am I billed on Microsoft 365 licenses assigned or licenses consumed?

Licenses assigned and licenses consumed are the same thing in Microsoft 365. There’s no such thing as assigning a license and not consuming it.

That said, there is a difference between licenses purchased and licenses assigned or consumed. Microsoft 365 licenses are billed based on what is purchased. Each subscription is technically its own contract with its own quantity, commitment term, billing frequency, and renewal date.

If I downgrade Microsoft 365 E5 to F3, what security features do I lose, and can add-ons replace them?

Transitioning from Microsoft 365 E5 to Microsoft 365 F3 is a not a downgrade. Rather, it’s a strategic shift. Microsoft 365 F3 can be upgraded with Microsoft 365 F5 security and compliance upgrades. F Series licensing is for Frontline employees that consume information in the Microsoft 365 estate but don’t create it.

In the case of moving from E5 to E3, there are several important things to know:

  • Defender Suite functionality is removed.
  • Purview Suite functionality is removed.
  • Entra P2 degrades to Entra P1
    • User risk and password risk policies no longer apply.
    • PIM/PAM no longer applies.
  • Defender Suite and Purview Suite are available separately.

Typically, Corsica Technologies recommends pairing Microsoft 365 E3 with Defender Suite by default, as this provides Entra ID P2 and the entire security product stack. Note that this configuration still removes Purview. However, for organizations that don’t need compliance tools, this is an ideal configuration.

Can I get Microsoft 365 E5-level security without paying for E5?

Yes! Microsoft 365 Business Premium now has Defender Suite for Business Premium which is a powerful upgrade for smaller organizations to get this functionality at a lower price point.

Larger organizations can leverage Microsoft 365 E3 + Defender Suite to reduce their per user cost without sacrificing security features. This change removes compliance features only.

What is Exchange Online Kiosk for, and who should be on it instead of a full mailbox?

Exchange Online Kiosk is a special Exchange entitlement that provides a 2GB mailbox. Users that have very little need for email storage can leverage it to reduce costs. The best way to access this type of mailbox is via the Microsoft 365 F series licensing, because those F series SKUs have special Defender Suite and Purview Suite upgrades at reduced price points that pair well to keep prices down. But the use case must be carefully validated.

Should conference rooms and shared devices have their own Microsoft 365 licenses?

Typically, Microsoft 365 doesn’t license devices. Rather, it concerns itself with users. In most cases, there’s no need to create a user for a conference room or shared device. In fact, creation of a user for a shared device or a conference room is typically done in error. However, there are some edge cases where it’s still required.

  • Teams Rooms Basic, comes with certified Teams Rooms devices, and is free.
  • Teams Rooms Pro, is a paid upgrade to Teams Rooms Basic for advance conferencing systems.

Can I move my Microsoft 365 licenses to a new CSP partner mid-term, and will my current vendor charge me to release them?

Microsoft’s CSP program allows for CSP licensing to be transferred between participating CSPs. Any limitation in this capability comes from the policies of the CSPs involved. Here at Corsica Technologies, we don’t charge for this, but other CSPs do. We’ve run into cases where some smaller CSPs in particular don’t know how to perform this process.

What is coterming in Microsoft 365, and can I align renewals that started at different times?

Coterming is the art of managing Microsoft 365 subscriptions so they have a similar or identical renewal date. This greatly improves license management outcomes because it compresses all changes into a single scheduled window.

The ability to select a termination date on subscription creation is relatively new in Microsoft 365, so it’s not uncommon for organizations to have renewal dates all over the calendar. It takes judicious efforts to schedule each subscription at renewal time to align them with others.

Why did my CSP invoice change mid-month for Microsoft billing?

Microsoft 365 billing and Azure billing are handled separately. Microsoft 365 billing is assessed monthly based on the subscription inventory. Note that your Microsoft 365 billing should only change in planned ways.

In contrast, Azure billing is based on live consumption of some resources. This cost fluctuates like a utility bill.

How often should we audit Microsoft 365 licenses, and who owns that?

This is a policy decision, and ultimately, the customer owns it. The CSP doesn’t have the ability on its own to know when an employee has left the company. For example, here at Corsica Technologies, our vCIO team can assist with the roadmapping process to plan Microsoft 365 license consumption. Likewise, our Solution Engineering team can assist with the heavier aspects of determining Microsoft 365 license personas.

Here’s how we approach this at Corsica Technologies:

  • We have standard license personas for many user types.
  • Alignment of license persona to a job description requires heavy customer involvement and detailed understanding of the customer’s estate.
  • Personas should be technically deployed via Microsoft 365 Groups. This way, licensing follows group membership, and CSP and customer leadership can quickly see who has what license set. This also automates license application and removal streamlining operations. Once defined, the CSP’s service desk can manage this if the environment is appropriately contracted.

What’s the process for choosing and implementing the right Microsoft 365 licenses?

Here’s the process that CSPs should use with their customers to choose and implement the right Microsoft 365 licenses.

  • The customer defines their job descriptions.
  • The customer works with their CSP to determine feature alignment.
  • The CSP’s Solutions Engineering team compresses the list of features into consistent license personas.
  • The Service Desk deploys the personas as groups.

After this process plays out, it’s just routine care and feeding, i.e. maintenance of the licenses. This ensures that licenses and groups are assigned appropriately.

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