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Email · 7 min read · Updated 25 September 2026

Business email costs compared: hosting, Microsoft 365 and Google

Written by Serverlinx research team · Reviewed by Jason Washington on

Drafted with AI assistance from our research notes; checked by Jason Washington. How we use AI

A professional email address is one of the cheapest ways to look established. But the price per person soon adds up. Here's what each option really costs per mailbox, what changes when you pay monthly, and how to make sure your emails actually arrive.

In short: Email included with your hosting is usually the cheapest. Microsoft 365 Business Basic and Google Workspace Business Starter are the entry plans, published at around £5–£6, $7 or €6–€7 per user per month on an annual commitment, before VAT or tax. Paying month to month costs more. Whatever you choose, set up SPF, DKIM and DMARC so your emails don't land in spam.

Your three options for business email

OptionGood forWhat you getWatch out for
Email with your hostingSole traders and small teams who just need emailMailboxes at your domain, webmail, and IMAP for phones and appsMailbox size limits, sending limits, few collaboration tools
Microsoft 365Teams that live in Outlook, Word and ExcelOutlook email, calendars, OneDrive storage; desktop apps on higher plans [1]Plans now come in versions with and without Teams, and with Copilot
Google WorkspaceTeams that prefer Gmail and working in the browserGmail at your domain, Calendar, Drive, Meet [2]Storage is pooled per plan; higher plans cost much more

All three give you an address like you@yourbusiness.com. The difference is what comes with it, and the price per person.

Business email prices per user, as published on 2026-09-25

These are the standard prices on Microsoft's and Google's own pricing pages, on a one-year commitment, per user per month, excluding VAT or sales tax [1][2][3][4][5]. They aren't our prices, and they can change, so check before you buy.

Price per user per month, ex VAT / tax, annual commitment. As published on 2026-09-25.
PlanUKUSEU (Ireland)
Microsoft 365 Business Basic£5.40$7.00€6.07
Microsoft 365 Business Standard£10.80$14.00Not checked since Microsoft's July 2026 price change
Google Workspace Business Starter£5.90$7.00€6.80
Google Workspace Business Standard£11.80$14.00€13.60
Google Workspace Business Plus£18.40$22.00€21.10
Email with your hostingOften included in the planOften included in the planOften included in the plan

Reading the table

Microsoft's pages also list versions "with Copilot" and "no Teams" at different prices; the table shows the standard plans. Google sometimes runs introductory discounts for new customers; we show the price you pay once they end. Prices exclude VAT, which is added at checkout in the UK and EU.

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Annual vs monthly commitment: what it costs you

Both Microsoft and Google charge less if you commit for a year. The trade-off is flexibility.

  • Microsoft 365 offers three ways to pay: a monthly commitment paid monthly (cancel any time), an annual commitment paid monthly, or an annual commitment paid upfront [3]. For example, Business Standard in the UK was listed at £10.80 per user per month on an annual subscription, or £12.96 on a monthly subscription [5].
  • Google Workspace says you save 16% with a one-year commitment [2]. Its Flexible plan lets you add or remove users at any time and cancel without penalty; in the US, Business Starter on the Flexible plan is $8.40 per user per month [6], against $7.00 on the annual plan [2].

Which should you pick?

If your team size is steady, the annual commitment saves money. If you're growing, hiring seasonally or trying a provider out, pay monthly at first and switch to annual once you're settled.

What would your team pay?

Multiply the per-user price by the number of people who need their own mailbox. Using the UK entry-level prices above (annual commitment, ex VAT):

Team sizeMicrosoft 365 Business BasicGoogle Workspace Business Starter
1 person£5.40 a month£5.90 a month
5 people£27.00 a month£29.50 a month
20 people£108.00 a month£118.00 a month

Shared addresses such as info@ or sales@ don't always need a paid mailbox. Aliases, forwarders or shared mailboxes can often cover them, which keeps the user count down.

Which is right for your business?

  • Just need email, on a budget? Email with your hosting is usually the best value. See email with your hosting.
  • Your team uses Word, Excel and Outlook? Microsoft 365. Business Basic is web and mobile apps only; desktop apps start at Business Standard [1]. See Microsoft 365.
  • You prefer Gmail and working in the browser? Google Workspace. See Google Workspace.
  • Growing fast? Pick a provider that makes it easy to add people, and check the price of the next plan up.

SPF, DKIM and DMARC: make sure your emails arrive

Whichever option you choose, three DNS records decide whether other mail servers trust your emails. Microsoft describes them as building blocks that work together, and says anything less than all of them gives weaker protection against spoofing [7].

RecordWhat it doesStandard
SPFLists the servers allowed to send email for your domainRFC 7208 [8]
DKIMAdds a digital signature, so receivers can check the email wasn't forged or changedRFC 6376 [9]
DMARCTells receivers what to do if SPF or DKIM fails, and sends you reportsRFC 9989 [10]

Big mailbox providers now check them. Google requires everyone sending to Gmail to set up SPF or DKIM, and anyone sending more than 5,000 messages a day to use SPF, DKIM and DMARC [11]. The UK's National Cyber Security Centre sets out all three as core anti-spoofing controls for organisations [12].

  1. SPFPublish one SPF record listing your email provider (and any other service that sends as you, such as a newsletter tool).
  2. DKIMTurn on DKIM signing in your email provider's admin area and add the DNS record it gives you.
  3. DMARCStart with a monitoring-only policy (p=none), read the reports, then tighten it to quarantine or reject.

Hidden costs to watch for

  • Tax. Published prices usually exclude VAT or sales tax.
  • Extra storage and archiving, if mailboxes outgrow the plan.
  • Add-ons such as AI assistants, phone systems or advanced security, which can cost more than the email itself.
  • Price changes at renewal. Put your renewal date in Renewal Radar and check the price before it rolls over.
  • Moving later. Switching providers takes work, so it pays to choose well now. Our guide to moving your email explains how.

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Questions people ask

What is the cheapest way to get business email?

Usually the email that comes with your web hosting, as many plans include mailboxes at no extra cost. Microsoft 365 Business Basic and Google Workspace Business Starter are the cheapest standalone plans from those two providers.

Is Microsoft 365 or Google Workspace cheaper?

At entry level they're close. On the prices published on 2026-09-25, Microsoft 365 Business Basic was slightly cheaper in the UK and EU and the same in the US. Compare the plan that has the features you need, not just the cheapest one.

Do these prices include VAT?

No. The prices in this guide exclude VAT or sales tax, as shown on the providers' pricing pages. Tax is added at checkout.

Is it cheaper to pay annually or monthly?

Annually. Microsoft and Google both charge less on a one-year commitment, but monthly plans let you remove users or cancel without waiting for the year to end.

Do I need SPF, DKIM and DMARC for a small business?

Yes. They help stop others pretending to be you and help your emails reach inboxes. Google requires SPF or DKIM from all senders, and all three for bulk senders.

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Related

How this guide was checked: every fact is checked against the sources below before it's published. Editorial policy · Methodology

Written by Serverlinx research team · Reviewed by Jason Washington on

Sources

  1. Microsoft: Microsoft 365 business plans and pricing (UK), checked 2026-09-25
  2. Google Workspace: Pricing, checked 2026-09-25
  3. Microsoft: Microsoft 365 business plans and pricing (US), checked 2026-09-25
  4. Microsoft: Microsoft 365 business plans and pricing (Ireland), checked 2026-09-25
  5. Microsoft: Microsoft 365 Business Standard (UK), checked 2026-09-25
  6. Google Workspace Admin Help: The Flexible Plan
  7. Microsoft Learn: How email authentication works in Microsoft 365
  8. IETF RFC 7208: Sender Policy Framework (SPF)
  9. IETF RFC 6376: DomainKeys Identified Mail (DKIM) Signatures
  10. IETF RFC 9989: Domain-based Message Authentication, Reporting, and Conformance (DMARC)
  11. Google Workspace Admin Help: Email sender guidelines
  12. NCSC: Email security and anti-spoofing