Microsoft 365 price history shows Business Basic rising from $5 to $7 per user per month between April 2020 and July 2026, and Business Standard from $12.50 to $14. Google Workspace followed a similar path. This guide lists each change we could verify, with dates, USD list prices and the reasons each vendor gave.
Last reviewed: October 6, 2026. All prices are US list prices per user per month, annual commitment unless stated.
Key takeaways
- The Microsoft 365 price history starts at $5 for Business Basic in April 2020, $6 from March 1, 2022 and $7 from July 1, 2026.
- Business Standard stayed at $12.50 until July 1, 2026, when it rose to $14.
- Business Premium went from $20 to $22 in March 2022 and did not change in July 2026.
- Google Workspace Business Standard on the flexible plan went from $12 in 2020 to $14.40 in 2023 and $16.80 in 2025.
- Both vendors tie increases to added features, such as Copilot Chat and Gemini.
Microsoft 365 price history from 2020 to 2026
Microsoft renamed its small business plans in April 2020. TechRepublic lists Business Basic at $5, Business Standard at $12.50 and Business Premium at $20 per user per month. We could not open a 2019 price list, so 2020 is our earliest verified point.
The first increase was announced in August 2021 for March 1, 2022. Redmond Magazine reported Business Basic moving from $5 to $6 and Business Premium from $20 to $22. It quotes Microsoft calling this “the first substantive pricing update since we launched Office 365 a decade ago”, citing 24 apps and 1,400 features added. It lists no Business Standard change.
A second change affected billing. Tom’s Guide reported in November 2024 that monthly billing on annual subscriptions would rise 5% from April 1, 2025, which Microsoft described as standardizing monthly billing. Annual upfront pricing was not affected.
The third was announced on December 4, 2025 and took effect July 1, 2026. Microsoft’s post cites added Defender for Office 365 Plan 1 email security, Copilot Chat and endpoint management features. We could not read the price table in that post, so the old and new prices come from UC Today: Basic $6 to $7 and Standard $12.50 to $14. Microsoft’s product pages now show Basic at $7, Standard at $14 and Premium at $22 paid yearly. They also list Copilot bundles, which we left out.
Google Workspace price history beside the Microsoft 365 price history
Google relaunched G Suite as Google Workspace on October 6, 2020 at $6 for Business Starter, $12 for Business Standard and $18 for Business Plus.
Google’s February 16, 2023 announcement raised the flexible plan to $7.20, $14.40 and $21.60 from March 14, 2023, with existing customers moved through April 2024. The annual plan stayed at $6, $12 and $18. Google cited “hundreds of new features”.
Google announced its next change on January 15, 2025 when it put Gemini into Business and Enterprise plans. New customers paid the new prices from January 16, 2025 and existing monthly customers from March 17, 2025. 9to5Google lists the flexible plan at $8.40, $16.80 and $26.40 and the annual plan at $7, $14 and $22, and Google’s admin help page shows the same figures today. Google says a Standard customer with the Gemini add-on paid $32 before and $14 after.
How the two vendors compare
By our own arithmetic, the Microsoft 365 price history shows Business Basic up 40% since 2020 ($5 to $7) and Standard is up 12% ($12.50 to $14). Google Standard on the flexible plan is up 40% ($12 to $16.80) and on the annual plan up 16.7% ($12 to $14). Annual Standard now costs $14 at both vendors.
What this means for a small business
This Microsoft 365 price history shows months of notice, and billing term affects the bill as much as plan.
| Point | What to do |
|---|---|
| Budget for the July 2026 step | Business Basic is up $1 and Business Standard up $1.50 per user per month. For 20 Standard users that is $360 more a year (our own arithmetic) |
| Check your billing term | Business Standard is $14 paid yearly and $16.80 billed monthly at Microsoft. Google’s flexible Standard is $16.80 against $14 annually |
| Compare tiers before renewing | Business Premium did not change in July 2026, so the gap between Standard and Premium narrowed from $9.50 to $8 (our own arithmetic) |
| Keep a dated price record | Note plan, term and date at each renewal so later increases are easy to measure |
Three steps to prepare for the next Microsoft 365 price increase
1. Record what you pay today
List each plan, billing term, seat count and renewal date. Use your own invoice as the baseline, since prices differ by region and reseller.
2. Price the alternatives at the same term
Compare annual to annual. Our Microsoft 365 alternative comparison covers one option, and Google Workspace is another.
3. Decide before the notice window closes
Both vendors announced their latest changes months ahead. Use that time to right-size seats and plans.
Frequently asked questions about Microsoft 365 price history
How much did Microsoft 365 Business Basic cost in 2020?
Business Basic (formerly Office 365 Business Essentials) was $5 per user per month in April 2020, per TechRepublic. It rose to $6 in March 2022 and $7 in July 2026.
When did Microsoft last raise Microsoft 365 business prices?
Microsoft announced on December 4, 2025 changes effective July 1, 2026. Business Basic moved from $6 to $7 and Standard from $12.50 to $14, per UC Today. Premium stayed at $22.
Why does Microsoft say it raises prices?
In 2021 it cited 24 added apps and 1,400 features. In 2025 it cited added security, Copilot Chat and device management features. These are Microsoft’s stated reasons.
How much did Google Workspace Business Standard cost over time?
It was $12 at the October 2020 relaunch. The flexible plan rose to $14.40 in 2023 and $16.80 in 2025, and the annual plan to $14 in 2025.
Do these prices apply outside the US?
Not exactly. Microsoft says changes apply globally with local market adjustments. All figures here are US dollar list prices, and taxes, discounts and reseller pricing can differ.
Sources
- Microsoft, pricing update post (December 4, 2025)
- Microsoft, Business Standard and Premium pages (read October 6, 2026)
- UC Today, July 1 price rise (2026, secondary)
- Redmond Magazine (August 19, 2021, secondary)
- TechRepublic (April 2020, secondary)
- Tom’s Guide (November 14, 2024, secondary)
- Computerworld (October 6, 2020, secondary)
- Google Workspace blog (February 16, 2023)
- Google Workspace blog (January 15, 2025)
- 9to5Google (January 15, 2025, secondary)
- Google Admin Help, Business editions (read October 6, 2026)