Google Workspace vs Microsoft 365: pricing compared

A plain-English breakdown of what Google Workspace and Microsoft 365 cost, what each tier includes, and which plan most small businesses actually need.

Price is one of the first questions business owners ask when comparing these two platforms. Both are subscription services billed per user per month. The exact amounts change over time, so this guide focuses on the structure and what you get at each level — always check the official pricing pages for current figures.

Quick summary

Google Workspace and Microsoft 365 are priced similarly. For most small businesses, the entry-level or mid-tier plan on either platform covers everything you need. Google's plans are slightly simpler to understand. Microsoft's Business Standard and Business Premium plans include the desktop Office apps (Word, Excel, PowerPoint, Outlook), which add genuine value if your team uses them heavily; the entry-level Business Basic plan does not. Neither platform is dramatically cheaper than the other.

How both platforms charge

Both Google Workspace and Microsoft 365 charge per user, per month. You choose a plan tier and pay that amount multiplied by the number of people in your team.

For example, if your plan costs $15 per user per month and you have 5 team members, your bill is $75 per month.

Both also ask you to pick a commitment when you subscribe: month to month, or a one-year term. The one-year term usually has a lower price per user. Committing for a year does not have to mean paying for the year up front — on both platforms you can hold a one-year term and still be billed monthly. The size of the discount changes, so check the pricing pages for current figures.

Google Workspace plan tiers

Google offers several tiers. The names and prices change periodically, so verify current figures at workspace.google.com/pricing. Here is the general structure:

Tier	What it includes	Best for
Business Starter	Business email, Meet, Chat, Drive with 30 GB of pooled storage per user, security and management controls	Micro-businesses and solo operators
Business Standard	Everything above, plus 2 TB of pooled storage per user and meetings for up to 150 people with recording and noise cancellation	Most small businesses — this is the sweet spot
Business Plus	Everything above, plus 5 TB of pooled storage per user, meetings for up to 500 people, eDiscovery, and Google Vault to retain, archive and search data	Businesses with compliance needs
Enterprise	5 TB of pooled storage per user with more available on request, advanced controls such as data loss prevention, and enhanced support. Priced by talking to Google's sales team	Organizations above 300 people, or with advanced security needs

The three Business plans can be bought for a maximum of 300 users. Enterprise has no minimum or maximum.

Our recommendation Business Standard is the right tier for most of our clients. It covers all the day-to-day tools your team needs, with enough storage and meeting features to grow into.

Microsoft 365 plan tiers

Microsoft's business plans also come in tiers. Check Microsoft 365 pricing for business for current pricing:

Tier	What it includes	Best for
Microsoft 365 Business Basic	Business email, the web versions of Word, Excel and PowerPoint, Teams, OneDrive (1 TB per user). No desktop installs on this plan	Teams that do not need desktop apps
Microsoft 365 Business Standard	Everything above, plus the full desktop Office apps (Word, Excel, PowerPoint, Outlook), with five installs per person on PC or Mac	Most small businesses that want full desktop apps
Microsoft 365 Business Premium	Everything above, plus extra security and device management	Businesses with stricter security requirements
Microsoft 365 Apps for business	Desktop Office apps and OneDrive, but no business email	Teams that already have email elsewhere

Our recommendation Microsoft 365 Business Standard is the right tier for most of our clients on Microsoft 365. It includes the full desktop Office suite, which is the main reason most businesses choose Microsoft over Google.

Side-by-side price structure

Google Workspace

Charged per user per month
A one-year commitment lowers the price per user
Storage is pooled across your organization (not per user on most editions)
Docs, Sheets and Slides run in the browser — there are no desktop versions to install, though Drive for desktop can sync your files to your computer
Straightforward tier names and features

Microsoft 365

Charged per user per month
A one-year commitment usually lowers the price per user — check the pricing page for the current difference
Each user gets their own OneDrive storage (1 TB per user on the Business plans)
SharePoint team storage is pooled for the whole organization instead
Desktop apps (Word, Excel, PowerPoint, Outlook) on Business Standard and above, and on Apps for business — not on Business Basic
More plan options, which can feel complex at first

What counts as a "user"?

Every person who needs their own login and email address counts as a user. This typically means every full-time team member.

You do not usually need a paid seat for:

Clients or customers who receive your emails
Contractors who access shared files via a link
People you add as "guests" for specific Google Meet calls or Teams meetings

Watch for shared mailboxes

Both platforms give you a way to run an address like support@ or hello@ that several people share. Microsoft calls it a shared mailbox: the mailbox itself does not need its own license, but everyone who opens it needs their own licensed mailbox, and the plan has to include email (Apps for business does not). Google does the same job with a Google Group — a group owner can turn it into a Collaborative Inbox so the team can assign messages to each other and track replies — or with Gmail delegation. Make sure you understand how these work before counting licenses; it can save money.

Which costs less overall?

At comparable tiers, the monthly cost per user is similar. The difference often comes down to:

Desktop apps: Microsoft 365 Business Standard includes full Word, Excel, PowerPoint and Outlook. If your team relies on these apps, that is genuine extra value.
Storage: Both are generous at mid tiers — Google Business Standard pools 2 TB per user, and Microsoft's Business plans give each user 1 TB of OneDrive. Check the current amounts at the official pricing pages.
Add-ons: Both platforms sell extra storage as a paid add-on (Google Workspace Additional Storage; Office 365 Extra File Storage), and both sell optional security and compliance extras. Factor these in if you know you will need them.

The hidden cost of switching

If you are already on one platform and considering moving, factor in the time and disruption of migrating email, files, and contacts. Switching costs are real. They are manageable, but they exist. Read our switching guide before making a decision based on price alone.

Non-profit and education discounts

Both Google and Microsoft run special programs for registered non-profits, and both have separate editions for schools. Microsoft grants eligible non-profits up to 300 Microsoft 365 Business Basic licenses, plus discounts of up to 75% on many other Microsoft 365 offers, including Business Standard and Business Premium. (The old Business Premium grant has been discontinued.) Google has Google Workspace for Nonprofits. Eligibility is set by the vendor, so confirm it before you budget around it — check with your project lead about eligibility.

Common questions

Is there a free version of either platform?

Both have free personal tiers (free Gmail and free personal Microsoft accounts), but these are not suitable for business use. They use your personal email address, lack the admin controls you need, and do not include the business tools. See our guide on why not to use free email for business.

Can I mix plan tiers across my team?

Yes, on both platforms. A common setup is most team members on a standard tier and one or two administrators on a higher tier for extra controls. Talk to us if you want help planning your license setup.

What happens if I need to add or remove a user mid-month?

Adding one is easy on both platforms: you can buy extra licenses at any time and your bill goes up. Removing one is where the commitment you chose matters, so don't assume you will get money back.

Google, Flexible Plan: you can add and remove users at any time, and removing one reduces your monthly cost.
Google, Annual/Fixed-Term Plan: you can add licenses at any time, but you can only reduce them when the contract renews. Until then you pay for every license you committed to, even if nobody is using it.
Microsoft 365: you can buy licenses at any time, but you can only remove them during a limited window after you buy or renew — on some billing accounts that window is seven days. And if every license you hold is assigned to someone, you have to unassign one before you can remove it.

If you expect your headcount to move up and down, choose the commitment that lets you shrink. Ask us if you are not sure which plan you are on.

Do prices include taxes?

The published prices are typically before taxes. Business tax obligations vary by country and region. Check the billing section of your account for the total you will be charged.

Need a hand?

If you're stuck, email support@chykalophia.com and we'll help. Include your website address and a screenshot if you can.