The increase has been in effect since 1 July 2026. Five steps to limit what it costs, in the order that matters.
The Microsoft 365 price increase is already in effect and reaches each subscription at its next renewal. You cannot change the list price, but you can change the quantity, the plan mix, the term and the partner. Start with the renewal dates and reduce seats before each renewal, because a quantity can only be cut within seven days of a renewal.
The order matters: the clean-up has the earlier deadline, and a term or partner decision only makes sense once the quantity is settled.
The increase reached each subscription at its next renewal after 1 July 2026, so an estate is usually split: some subscriptions already renewed at the new rate, others still run at the old one until their own date. Export all subscriptions from the admin centre or ask your partner for the list, and sort by renewal date.
Under the New Commerce Experience a seat count can only be reduced within seven days of a purchase, a renewal or a mid-term addition. After that it is fixed for the term. Remove unassigned and unused licences before the renewal date, because every seat you keep now costs the higher rate.
The increase was not uniform. On list, Microsoft 365 E3 rose 8%, E5 5%, and the Frontline plans F1 and F3 33% and 25% respectively, while Business Premium did not change (0%). A mix that made sense last year may not now: check which users hold E3 or E5 but use only Frontline-level features, and whether a small company is better served by Business Premium. The numbers per SKU are on the price update page.
A monthly term keeps the quantity flexible but usually costs more than an annual term. Monthly billing on an annual term is a different thing and usually carries a smaller surcharge. A three-year term can lock a rate for longer, at the cost of flexibility, and availability and conditions depend on the SKU and your partner. Do this after the quantity is settled, never before.
Under CSP the partner sets the margin on top of Microsoft's price, so the same SKU can cost different amounts at different partners. Ask for a quote on the cleaned-up quantity and compare it. An agreement review is also the moment to ask how the partner supports the seven-day window.
The SKU-level numbers are not repeated here. They are on the price update page, and the wider framework is in the Microsoft 365 cost optimisation guide.
Evidence per user and per service plan, before your next renewal.