Microsoft 365 Pricing Changes Are Coming in 2026. Here’s What You Should Know.
Microsoft has announced upcoming Microsoft 365 pricing updates, effective July 1, 2026.
For existing customers, the new pricing will apply at your next renewal on or after that date, not immediately. That gives you a valuable window to step back, take stock, and make smart decisions before renewal time sneaks up on you.
Below is a clear breakdown of what’s changing, why it matters, and how to get ahead of it.
What’s Changing?
Microsoft is adjusting pricing across several widely used Microsoft 365 plans. Here’s a quick snapshot:
| License | Current Price | New Price (July 1, 2026) |
| Microsoft 365 Business Basic | $6.00 | $7.00 |
| Microsoft 365 Business Standard | $12.50 | $14.00 |
| Microsoft 365 E3 | $36.00 | $39.00 |
| Microsoft 365 E5 | $57.00 | $60.00 |
| Microsoft 365 F1 | $2.25 | $3.00 |
| Microsoft 365 F3 | $8.00 | $10.00 |
Microsoft says these increases reflect continued investment in:
- AI-powered capabilities
- Advanced security enhancements
- Expanded device and endpoint management
You can read Microsoft’s full announcement here:
👉 Advancing Microsoft 365: New capabilities and pricing update
What This Means for Your Organization
No one loves a price increase. That said, moments like this are actually a great excuse to pause and reassess.
Over time, we often see organizations where:
- Users are licensed for tools they no longer need
- Job roles have evolved, but licenses stayed the same
- Premium SKUs are lightly used or not used at all
- Renewal terms and billing options were never fully optimized
A pricing change is the perfect time to ask a simple question:
Does our Microsoft 365 licensing still match how we actually work?
If the answer is “maybe” or “not sure,” you’re not alone.
How Kelley Create Can Help
This is where Kelley Create comes in. We help organizations cut through the complexity of Microsoft 365 licensing so it actually works for their business and their budget.
Our team can help you:
- Review your current Microsoft 365 licenses
- Right-size SKUs based on real user roles and usage
- Identify cost-saving opportunities without sacrificing capability
- Evaluate renewal timing, terms, and billing strategies
- Plan ahead so renewals are predictable, not painful
In short, we help you make sure you are paying for what you need and getting value from what you already own.
Let’s Make a Plan
Microsoft 365 is a core productivity and security platform, not just another subscription. A little planning now can prevent unnecessary spend and unlock tools your organization may already be licensed for.
If you want help navigating these changes or preparing for your next renewal, we can help.
👉 Contact us to start a Microsoft 365 licensing review and move into July 2026 with clarity and confidence.
