WhichM365Independent Microsoft 365 decision guide

Microsoft 365 E3

The enterprise baseline plan. The installed Office apps, Windows Enterprise, enterprise device management, and baseline security and compliance, with no 300-user cap.

Short answer: E3 is built for scale: installed Office apps, Windows 11 Enterprise, enterprise management, and baseline security and compliance, with no user cap, at about $36 per user per month. It does not include advanced threat protection or the full compliance suite; those are E5. New enterprise customers buy the no-Teams SKU and add Teams separately.

What's included

What E3 does not include: advanced threat protection (Defender Plan 2, Defender for Office 365 Plan 2), the full Purview compliance suite, Entra ID P2, Power BI Pro, and Teams Phone. Those live in E5.

Price

E3 lists at about $36 per user per month on an annual commitment. New enterprise customers buy the no-Teams E3 SKU plus Teams Enterprise at about $5.25 separately.

List prices are estimates in USD on an annual commitment and change over time. Confirm current pricing with your Microsoft partner.

Who it's for

Organizations at or past 300 users, or growing fast toward it, that need Windows Enterprise and enterprise-scale management. If you are under 300 users and mostly want strong security, compare Business Premium first; it may protect you better for less.

When to move up

Move to E5 when you need advanced security and compliance, analytics, or Teams Phone, rather than adding those pieces to E3 one at a time. E7 bundles E5 with Copilot, the Entra Suite, and Agent 365.

Get a recommendation for your situationAnswer four questions. Real prices and when to move up.

Common questions

Does E3 include Copilot?

No. Microsoft 365 Copilot is a separate paid add-on of about $30 per user per month. It is not included in E3. E7 is the bundle that includes Copilot.

Does E3 include Teams?

New enterprise plans are sold without Teams. You add Teams Enterprise separately for about $5.25 per user per month. Older bundled E3 subscriptions kept Teams included.

How much is Microsoft 365 E3?

About $36 per user per month on an annual commitment. Confirm current pricing with your Microsoft partner.

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