CANCEL COSTS

Microsoft 365 cost in 2026: what you should actually be paying

Microsoft 365 sits in the Productivity Suite category. Most SMB accounts overpay by 40% to 70% on this one tool alone. Here's the realistic price, the common overspend traps, and the cheaper alternatives we recommend at Cancel Costs.

Typical mid-market spend
A$18/mo
After optimisation
A$0/mo
Typical annual saving
A$216

The Microsoft 365 overspend pattern

Microsoft 365 Business Standard at A$18/seat/mo doubles quickly when teams add Teams Phone (A$9/seat) and Defender add-ons (A$6/seat). A 20-person team can go from A$360 to A$660/mo without noticing. Most SMBs only need Business Basic at A$7/seat for the web apps and email.

login.microsoftonline.com, sharepoint.com embeds, office365.com auth flows, msal.min.js

3 cheaper alternatives to Microsoft 365

AlternativeMonthly (A$)Why it works
Google Workspace StarterA$14Cheaper, better real-time collaboration, same storage
Zoho WorkplaceA$4Full office suite plus mail for a quarter of the price
LibreOffice + free emailA$0For teams that mostly need local document editing

How to negotiate with Microsoft 365

Microsoft runs structured commercial discount programs for SMBs via CSP partners. Push your Microsoft partner for a 15% to 20% discount by committing to annual. Alternatively, drop to Business Basic and only upgrade seats that need desktop Office.

Audit your full SaaS stack in 60 seconds

Our free Instant Audit detects Microsoft 365 plus 70+ other paid tools on your site, estimates your monthly spend, and shows you what you can cut. Email gates an AI Deep Scan that surfaces tools the regex misses.

Run free audit →

Related guides