Microsoft 365 pricing is changing for 2025. Here’s what you need to know.  

Introduction 

With a new financial year on the horizon, it’ll come as no surprise that Microsoft is once again planning to tweak pricing for its Microsoft 365 business licenses.  

If you’re short on time, the quick version is that Microsoft 365 monthly plans with annual commitment will be 5% more expensive than annual plans from April 1^st 2025.  

If you’ve got a couple of minutes to spare, read on for the full story—exactly what’s changing, and Microsoft’s rationale behind the adjustment.   

How is Microsoft 365 pricing changing in April 2025? 

The aim of these changes is to make billing a bit more straightforward specifically for annual subscriptions. At the moment, there are a few different ways you can pay for your Microsoft 365 subscription: 

1. Annual commitment, paid monthly. You can pay your license in monthly instalments, but your contract is for the full year.  
2. Annual commitment, paid annually. You pay for the whole year in a lump sum.  
3. Monthly commitment, paid monthly. This is a month-to-month subscription, meaning you can cancel anytime—but it’s priced 20% higher compared to the annual commitment options.  

To simplify things, from April 1^st 2025, it will cost subscribers 5% more to choose annual commitment, paid monthly (option 1 in the list above). For the lowest cost after April 2025, you’ll want to choose option 2 above: annual commitment, paid annually.   

The following business licenses (among others) will be impacted by this change: 

• Microsoft 365 Business Basic 
• Microsoft 365 Business Standard 
• Microsoft 365 Business Premium 
• Microsoft 365 Apps for business 

Why is Microsoft doing this? 

Outside of the general macro environment (i.e. lots of things are going up in price), Microsoft has pinned the price rises and adjustment of pricing model to “cash flow flexibility” and their ability to “maintain service value”.  

But Microsoft is also trying to increase transparency by standardising their billing structure. Again, depending on how you bought your subscription (i.e. through a third-party provider or even a Cloud Solutions Provider like us), pricing could differ. Now, everything should be the same across the board, so you know you’re paying a fair price.  

How will this affect your organisation? 

You’re probably wondering how this change will (or won’t) affect you, especially if you’re mid-way through your license period.  

Here are the changes broken down to the bare essentials: 

• If you’re paying monthly with annual commitment: The cost of your Microsoft 365 subscriptions will go up by 5% from April 1^st 2025, but only when your subscription renews.  
• If you’re already paying annually: You’re sitting pretty—no price changes for you. 
• If you’re thinking about getting Microsoft 365: Going for the annual lump sum payment option will save you 5% compared to paying monthly. 

Get Support is here to help 

We know these kinds of changes ca n be a bit of a hassle, but we’ve got you covered.   

Switching to annual is easy-peasy: you can switch from monthly to annual billing when your subscription is up for renewal. Just give our team a call or talk to your Get Support Customer Success Manager, and we’ll sort it out for you. 

Even if you’re on an older version of Microsoft 365 (like some of the E3/E5 or Office 365 plans with Teams), you can still switch to annual billing when you renew. 

If you’re not yet on board with Microsoft 365, it’s worth noting that free trials will still start with monthly billing, but from April 2025, you’ll have more control over what happens when your trial ends. Again, our team can help you set up annual billing and even turn off auto-renewal if you wish. 

What should you do next? 

If you’re concerned about your current billing arrangements for Microsoft 365, we’re here to help. We can talk about your options, including making the switch to annual billing. Just call us on 01865 594000 or talk to your Get Support Customer Success Manager.