How do I calculate Microsoft 365 licensing cost?

Multiply seats by the plan's monthly list price, then by 12 for an annual estimate. This calculator does that and supports a mix of SKUs.

Which Microsoft 365 license do I need?

Choose Business Basic for web apps and email, Standard for desktop Office plus email, and Premium when you need Intune and Defender for Business. Over 300 users, look at E3 or E5.

How many Microsoft 365 licenses do I need?

One license per person who signs in, including shared mailboxes only when you assign a paid mailbox plan. Shared mailboxes without a sign-in can stay unlicensed within Microsoft's limits.

How do I compare Microsoft 365 plans?

Compare email, desktop apps, Teams, and device security first, then price. The recommend mode in this tool follows that order.

How can I estimate Microsoft 365 cost per user?

Divide the monthly total by licensed seats. The result here is a US list average; your partner quote may differ.

What is Microsoft 365 License Calculator?

A free online estimator for Microsoft 365 Business, Exchange Online, and E3/E5 list costs.

How does the Microsoft 365 License Calculator work?

It maps the features you select to a plan, or multiplies the seat mix you enter by July 2026 US list prices.

How do I use the Microsoft 365 License Calculator?

Enter users, tick the features you need, or type quantities per SKU, then read the monthly and annual totals.

Is this Microsoft 365 License Calculator free to use?

Yes. It is free with no sign-up.

Can I use the Microsoft 365 License Calculator on mobile?

Yes. Mobile browsers are supported.

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Microsoft 365

Microsoft 365 License Calculator

Estimate Microsoft 365 cost per user, compare Business and Enterprise plans, and mix seats the way a tenant administrator actually buys them.

Runs in your browser — your data stays on your device

Free tool

Number of users

Business email (Exchange Online)Desktop Word, Excel, Outlook, PowerPointMicrosoft TeamsDevice management / Defender for Business (Intune)

US list prices with Teams, billed yearly, from Microsoft's 1 July 2026 update. Confirm on Microsoft.com before you buy.

Recommended plan: Microsoft 365 Business Standard
Why this plan: You need desktop Office apps and business email. Business Standard is the usual SMB fit.
Monthly total (list): $350.00
Annual total (list): $4,200.00
Average per licensed user / month: $14.00

License mix

Plan	Seats	Monthly	Annual
Microsoft 365 Business Standard	25	$350.00	$4,200.00

Figures use US list prices with Teams, billed yearly, from Microsoft's 1 July 2026 commercial update. Partners, promotions, and your region change the invoice.

Microsoft 365 licensing is where small businesses overspend. A shop that only needs web Outlook buys Business Standard. A shop that needs Intune stays on Basic and then wonders why devices are unmanaged. This free Microsoft 365 license calculator uses the US list prices that took effect on 1 July 2026, recommends a plan from the features you tick, and lets tenant administrators mix Business Basic, Standard, Premium, Exchange Online, and E3/E5 seats. Treat the totals as a planning figure, then confirm the invoice with Microsoft or your partner.

How to use the Microsoft 365 License Calculator

1
Enter the number of users and tick email, desktop apps, Teams, and device management.
2
Read the recommended plan, monthly total, and annual total at US list price.
3
Switch to Mix of licenses if some staff need Premium and others only need Exchange Online.

Why we calculate seats before we click Buy

Microsoft 365 Business plans stop at 300 users. Desktop apps and Exchange are not the same SKU. Apps for business has no mailbox. Exchange Online Plan 1 has no Word desktop. Business Premium is the SMB plan that includes Intune and Defender for Business, which is why we default security-conscious tenants there. Getting that matrix wrong costs more than a calculator click. We walk the same decision in Microsoft 365 administration lessons.

Microsoft 365 license calculator with examples

Twenty-five users who need desktop Office and email land on Business Standard at $14 per user per month, $350 per month list. Turn on device management and the recommendation becomes Business Premium at $22, $550 per month. That is the conversation we have with every small-business tenant administrator before they renew.

Guides and next steps

Privacy note

The calculator runs in your browser. We do not store your seat counts.

Frequently asked questions

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