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 plans include desktop Office apps (Word, Excel, PowerPoint) which add genuine value if your team uses them heavily. 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 offer a discount if you pay annually rather than monthly — typically around 15–20% less.
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 (30 GB pooled storage per user), basic admin controls | Micro-businesses and solo operators |
| Business Standard | Everything above + more storage, larger video calls, recording, noise cancellation | Most small businesses — this is the sweet spot |
| Business Plus | Everything above + eDiscovery, audit logs, enhanced security | Businesses with compliance needs |
| Enterprise | Unlimited storage, advanced security, dedicated support | Larger organizations |
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.com/microsoft-365/business for current pricing:
| Tier | What it includes | Best for |
|---|---|---|
| Microsoft 365 Business Basic | Business email, browser-based Office apps, Teams, OneDrive (1 TB per user) | Teams that do not need desktop apps |
| Microsoft 365 Business Standard | Everything above + full desktop Office apps (Word, Excel, Outlook, etc.) | Most small businesses that want full desktop apps |
| Microsoft 365 Business Premium | Everything above + advanced security and device management | Businesses with stricter security requirements |
| Microsoft 365 Apps for Business | Desktop Office apps + 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
- Annual billing saves money
- Storage is pooled across your organization (not per user on most plans)
- No desktop apps — everything is in the browser
- Straightforward tier names and features
Microsoft 365
- Charged per user per month
- Annual billing saves money
- Each user gets their own storage (typically 1 TB on OneDrive)
- Desktop apps (Word, Excel, PowerPoint, Outlook) included on Standard and above
- 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 include a way to create shared mailboxes (like support@ or hello@) that multiple people can access without an extra paid seat. Microsoft 365 calls these shared mailboxes; Google handles them through groups and delegated access. 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, and Outlook. If your team relies on these apps, that is genuine extra value.
- Storage: Both are generous at mid tiers. Check the current storage amounts at the official pricing pages.
- Add-ons: Both platforms have optional paid add-ons (extra storage, advanced security, archiving). 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 Workspace and Microsoft 365 offer heavily discounted or free plans for registered non-profits and educational institutions. If your organization qualifies, the decision may be easy — check with your project lead about eligibility.
Common questions
Related guides
- Feature comparison, side by side
- Which is better for small teams?
- Google Workspace plans explained
- Microsoft 365 plans explained
- Google Workspace billing explained
- Microsoft 365 billing explained
Need a hand?
Learn more
Google Workspace vs Microsoft 365: feature comparison, side by side
Every major feature of Google Workspace and Microsoft 365 compared in one place, so you can make a clear-eyed decision.
Which is better for small teams — Google Workspace or Microsoft 365?
A focused guide to help teams of 1–15 people decide between Google Workspace and Microsoft 365, with a clear recommendation for most situations.