M365 Cost Calc

Microsoft 365 E5 vs E3

US list price per user per month, annual commitment (checked 2026-10-14)
PlanWith TeamsNo TeamsSource
E3$39.00$30.45source
E5$60.00$51.45source
E7$99.00$90.45source

The gap is $21.00/user/month ($252.00/user/year) with or without Teams.

What E5 adds over E3

The add-on trap

Not at list price. E3 ($39.00) plus Defender Suite ($12.00) plus Purview Suite ($12.00) is $63.00, more than E5 at $60.00. Sources: Defender Suite, Purview Suite.

Run the numbers for your seat count