The short answer
- £16.90 per user a month (£202.80 a year) on an annual commitment paid yearly; about 5% more on a monthly commitment; $22 in the US. Prices exclude VAT.
- It includes everything in Business Standard (desktop Office apps, email, Teams, SharePoint, 1 TB OneDrive) plus Intune, Entra ID P1 with Conditional Access, Defender for Business, Defender for Office 365 P1, data loss prevention, sensitivity labels, Windows Autopilot and Windows Business upgrade rights.
- 50 users cost £10,140 a year; 100 users £20,280; the maximum 300 users £60,840.
- The biggest savings come from not putting everyone on it: Business Basic for email-only users, Frontline F3 for shift staff, the version without Teams if you don't use it, and an annual rather than monthly commitment.
- Annual commitment
- £16.90 per user a month (£202.80 a year)
- Monthly commitment
- about £17.75 per user a month
- US price
- $22.00 per user a month
- Cap
- 300 users per organisation
- Prices
- UK list, ex VAT (13 Oct 2026)
The price
Microsoft's UK list price for Microsoft 365 Business Premium is £16.90 per user a month on an annual commitment, which is £202.80 per user a year. Paying on a monthly commitment, where you can change seat numbers each month, costs about 5% more, roughly £17.75 a month. The US price is $22. All figures exclude VAT. Prices through a Cloud Solution Provider reseller can be a little below list, and charities and schools pay different prices through their own programmes.
The price was checked on 13 October 2026. Microsoft reviews its prices periodically, so confirm with your partner before you commit.
What the price includes
Business Premium is the top of the Microsoft 365 Business range, which is for organisations with up to 300 users. It includes the desktop, web and mobile versions of Word, Excel, PowerPoint, Outlook and OneNote; an Exchange Online mailbox with Exchange Online Archiving (1.5 TB of archive); Teams with meetings, webinars and chat; SharePoint and 1 TB of OneDrive per user; Bookings, Forms, Planner, Loop and Clipchamp; Power Apps and Power Automate; and Copilot Chat.
On top of that it has the management and security layer that the cheaper Business plans lack: Intune device management with Windows Autopilot, Entra ID P1 with Conditional Access and multi-factor authentication, Defender for Business for endpoint detection and response, Defender for Office 365 Plan 1 for phishing and malicious links, data loss prevention, sensitivity labels, retention policies and eDiscovery (standard), plus the right to upgrade Windows Pro to Windows Business. Business Premium vs Business Standard goes through that layer in detail.
What it costs at typical sizes
The table shows the annual cost at list price for everyone on Business Premium, and what the same company pays if the people who only need email and Teams sit on Business Basic (£5.40) instead.
| Users | All on Business Premium (a year) | 70% Premium, 30% Basic (a year) |
|---|---|---|
| 10 | £2,028 | £1,614 |
| 25 | £5,070 | £4,035 |
| 50 | £10,140 | £8,070 |
| 100 | £20,280 | £16,140 |
| 200 | £40,560 | £32,280 |
| 300 | £60,840 | £48,420 |
The mixed column is illustrative; the real split depends on who has a company device and handles sensitive data. For a company with shop-floor or field staff, Frontline F3 at £7.70 (or F1 at £2.30) is usually the right third tier.
Five ways to pay less
License by role, not by default. The single largest saving in most Business Premium tenants is the people who have it and only use email on their phone. Move them to Business Basic and the licence cost for that group falls by two-thirds.
Use Frontline plans for deskless staff. Retail, warehouse, care, driving and manufacturing staff who share devices qualify for Microsoft 365 F1 or F3, which include Intune and Entra ID P1 but not the desktop apps.
Buy the version without Teams if you don't use it. If Teams is unused, or you hold it through another route, the "no Teams" SKU is cheaper for the same features otherwise.
Commit annually. The monthly-commitment price is about 5% higher for the flexibility to change seats each month. Most organisations can forecast a year ahead well enough to take the annual price for their core staff and keep a small monthly pool for contractors and seasonal peaks.
Stop paying twice for security. Business Premium includes endpoint protection, MFA with Conditional Access, device management and email filtering. Organisations often keep paying a separate antivirus, MFA or email-security vendor for things the plan already does. Cancelling the overlap is money straight back.
Is Business Premium the right plan at all?
For most UK organisations under 300 users, yes, for anyone with a managed device. The cases where it isn't are at the edges: a company that has passed 300 users in one group needs Microsoft 365 E3 for the people above the cap; a firm that only needs the apps on unmanaged devices can use Business Standard; and an organisation that needs Teams Phone, Power BI Pro or the premium compliance tools will be looking at E5 or add-ons.
The comparison tool puts the three Business plans side by side, and a free licensing assessment will tell you which mix fits your people and what it would save at renewal.
Frequently asked questions
Is the Business Premium price per user or per organisation?
Per user, per month, with a licence assigned to each person who signs in. Shared mailboxes, meeting rooms and resource mailboxes don't need a Business Premium licence. A licence can be reassigned when someone leaves, so you only pay for the number of people you have, not the number you have ever had.
Does the price include VAT?
No. Microsoft's UK list prices and the figures on this page exclude VAT, which is added at the standard rate on the invoice. A VAT-registered business reclaims it as normal.
What is the difference between annual and monthly commitment?
On an annual commitment you agree to twelve months and can pay yearly or monthly; the per-user price is £16.90. On a monthly commitment you can cancel or reduce seats each month, for a price about 5% higher. Check the cancellation window with your reseller before an annual renewal, because once it has passed the seat count is fixed for the year.
Is there a cheaper version without Teams?
Yes. In the UK and EU, Business Premium is sold with and without Teams, and the version without Teams is cheaper. If you already have Teams through another licence, or you use a different meetings tool, ask your reseller for the "no Teams" SKU. The £16.90 price on this page is the version with Teams.
Is Microsoft 365 Copilot included in Business Premium?
Copilot Chat and the basic Copilot features in the apps are included. The full Microsoft 365 Copilot licence, which works across your own files, email and meetings, is a separate paid add-on per user on top of Business Premium.
Does a charity get Business Premium cheaper?
Yes. Eligible UK charities can get Business Premium through Microsoft's non-profit programme at a discounted price, and some plans are granted free up to a limit. The eligibility rules and the current discounted prices are on Microsoft's non-profit pages, and a licensing partner can confirm whether you qualify.