Microsoft 365 vs. Google Workspace for Small Business: 2026 Pricing Compared

As of 2026, Microsoft 365 and Google Workspace cost the same at the entry and mid tiers on annual billing: $7 and $14 per user per month. Microsoft raised Business Basic and Standard on July 1, 2026, while Google's list prices held. Pick based on storage, apps and AI add-ons rather than the base price.

This comparison is for owners and managers of small teams choosing, or renewing, an office suite. It sets the two pricing ladders side by side, flags what changed this year, and shows what a 10-person team would pay. Little iApps compares published plan details and prices so you can narrow the field before you start a trial.

What Did Microsoft Change in July 2026?

Microsoft raised commercial prices worldwide on July 1, 2026. TechInformed reported that Business Basic rose 16.7 percent to $7 per user per month and Business Standard rose 12 percent to $14. The frontline plans moved more in percentage terms, with F1 going from $2.25 to $3 and F3 from $8 to $10.

Microsoft's stated reason was more than 1,100 features added in recent years, including AI tools, security and management features. Reseller reports say Business Premium stayed at $22 per user per month, and that mailboxes grew from 50 GB to 100 GB. Most of those details come from partner blogs, so check Microsoft's own pricing page before you commit.

Existing customers keep their current pricing through the end of their active term, according to the same reports. That gives a small team time to compare before the new rates arrive on a renewal date.

What Does Google Workspace Cost?

Google Workspace has three business tiers. Dupple's price tracker, last checked in October 2026 against Google's help pages, lists Business Starter at $7, Standard at $14 and Plus at $22 per user per month on an annual commitment. Flexible monthly billing costs about 20 percent more.

Storage and features climb with each tier. Starter gives each user 30 GB of pooled storage and 100 Meet participants. Standard raises storage to 2 TB and adds Meet recording, and Plus gives 5 TB and 500 Meet participants. Gemini is included in all three editions, with the fuller set of Gemini features in Docs and Meet starting at Standard.

One caution: Google's pricing page advertises a new-customer discount running into early 2027, and its footnotes describe the offer in conflicting ways. Confirm the price at checkout instead of assuming the advertised number.

How Do the Two Price Ladders Compare?

The table below puts annual-commitment list prices side by side. Prices exclude tax and may differ by country.

The prices line up almost exactly, which makes the real comparison about what is inside each plan. Microsoft Basic is web and mobile apps only. Standard adds the desktop versions of Word, Excel and PowerPoint. Google's apps are browser-based at every tier.

What Does a 10-Person Team Pay?

Multiply the per-user price by headcount, then by twelve. On annual commitments, ten users at $14 comes to $140 a month, or $1,680 a year, on either suite's Standard tier. Entry tiers at $7 cost $70 a month, or $840 a year.

The gap opens with add-ons. A reseller report lists the Microsoft Copilot Business add-on at $21 per user per month, with a promotional $18 rate through the end of 2026 for organizations of 300 users or fewer. Ten users on Standard plus Copilot would then land near $23.50 per user, or about $2,820 a year, based on the reseller's bundle figure.

Google bundles Gemini into every business edition, which changes the math. If your team wants an AI assistant inside the suite, Google's base price includes more of it. If you want Microsoft's deeper Excel and Word agents, the add-on cost is the number to watch.

Little iApps editors treat price as a tie-breaker, never the starting point. Cost beyond the subscription also matters. Our guide to switching from QuickBooks Online after the 2026 price increase shows how the hours of a migration can outweigh a small monthly saving. The same applies if you move email and files between suites.

Which Suite Fits Which Kind of Team?

No suite wins for everyone, and the right pick usually shows up in a short list of questions. Do your clients send you Office files? Do you need desktop apps offline? Does your team collaborate live in documents? Your answers matter more than any one price.

Microsoft 365 fits teams that depend on Excel, Word and Outlook, or that exchange files with clients who do. Desktop apps handle large spreadsheets and complex documents well. Standard is the tier most small firms need, because Basic lacks installed desktop apps.

Google Workspace fits teams that work in the browser and edit documents together in real time. Setup is simple, and sharing is built in. Starter works for light users, though 30 GB of pooled storage per user can run short for teams that handle large files.

Security matters at both. The National Institute of Standards and Technology (NIST) publishes small business cybersecurity guidance that applies to whichever suite you pick, from multi-factor sign-in to backups. Premium and Plus tiers add stronger device and security controls, which can justify the higher price for firms handling client data.

How Do Email, Meetings and Admin Differ?

Both suites give you business email on your own domain, shared calendars, file storage and video meetings. The experience differs more than the feature lists suggest. Outlook leans on folders and rules, while Gmail leans on search and labels.

Meeting limits vary by tier. Google lists 100 participants on Starter, 150 on Standard and 500 on Plus, with recording saved to Drive from Standard up. Microsoft bundles Teams with its higher plans, and Premium is listed at $22 with Teams or lower without it.

Admin work is small at ten people but grows with headcount. Both consoles handle adding users, resetting passwords and setting sign-in rules. Check who will own that job before you choose, because a suite nobody understands becomes a security gap.

What Hidden Costs Should You Budget For?

The subscription is only part of the bill. Migration is the first extra cost, since moving mail, calendars and files takes hours. Training is the second, because a team used to one interface slows down for weeks on another.

Add-ons come third. Extra storage, backup tools, advanced security packs and AI assistants are often sold separately. A plan that looks cheap can climb by half once you add what your team needs.

Taxes and exchange rates matter for firms outside the US, since list prices exclude them. Reseller discounts also exist, and some resellers include support in their price. Ask for a written quote that matches the list price plus any fees.

How Do You Choose Without Regret?

Start with what you already use. A team with years of Excel macros will pay more in time to leave Microsoft than it saves. A team with no installed software and a shared drive habit will likely be happy on Google.

Next, test the real workflow. Run a two-week trial with three to five people on actual tasks: a client proposal, a shared calendar, a meeting with outside guests. Little iApps recommends noting what blocked people, not only what looked good in a demo.

Finally, check billing terms. Annual commitments save money, but they lock you in. Flexible billing costs more and suits a team that may change size. If you run a seasonal business, the flexible premium may be cheaper than paying for idle seats.

Other costs deserve a line in your budget too. In our piece on what a health spending account costs a Canadian small business, the same principle held: compare total annual cost, not the headline rate. For tools that you might drop in a year, the same logic applies to free versus paid SEO tools.

One last practical point concerns timing. Microsoft customers on existing terms keep today's rates until renewal, so a switch can be scheduled around that date instead of rushed. Google's flexible billing lets you start small and change plans, though at a higher monthly rate. Put the renewal date in your calendar now.

Conclusion

The 2026 price move erased the old gap between the two suites at the entry and mid tiers. Now the choice rests on storage, apps, AI add-ons and how your team already works. Pick two finalists, run a short trial, and read the renewal terms before you sign. Prices change often, so check each vendor's pricing page on the day you buy.