Our verdict: pick the commitment you can live with
For a team of one to five people that mainly needs reliable mail at its own domain, both entry plans do the core job and cost about the same per seat. The real difference is the contract. Google's pricing page states 'All plans billed monthly', with Business Starter at $7 per user per month [1]. Microsoft's Business Basic page lists $7.00 per user per month 'paid yearly' on an 'Annual subscription - auto renews', or $8.40 per user per month on a monthly subscription [2].
We would lean toward Google Workspace when headcount may change in the next year, and toward Microsoft 365 when the team already lives in Outlook, Word and Excel files and is confident about the seat count for twelve months.
Entry plans side by side
Prices are US dollars, per user per month, before tax, as shown on each official page on October 13, 2026. Both vendors advertise offers for some new customers; Google's footnote says its introductory price applies only to the first 20 users for 12 months [1]. Use the list price for budgeting.
| Plan | Listed price | Commitment shown | Storage shown | User cap |
|---|---|---|---|---|
| Google Business Starter | $7 per user/month [1] | All plans billed monthly; annual option says save 16% [1] | 30 GB pooled per user [1] | 300 [1] |
| Google Business Standard | $14 per user/month [1] | Same as above [1] | 2 TB pooled per user [1] | 300 [1] |
| Microsoft 365 Business Basic | $7.00 paid yearly, or $8.40 monthly subscription [2] | Annual subscription, auto renews, for the $7.00 price [2] | 1 TB cloud storage per user [2] | Up to 300 users [2] |
| Microsoft 365 Business Basic (no Teams) | $5.40 paid yearly, or $6.48 monthly subscription [2] | Annual subscription, auto renews, for the $5.40 price [2] | 1 TB cloud storage per user [2] | Up to 300 users [2] |
| Microsoft 365 Business Standard | $14.00 paid yearly [2] | Annual subscription, auto renews [2] | 1 TB cloud storage per user [2] | Up to 300 users [2] |
Who each plan fits, and who should skip
Google Business Starter fits a small team that works in the browser, shares files in Drive and wants the freedom to remove a seat when a contractor leaves. Skip it if the team needs to send personalized bulk messages from Gmail: Google lists custom layouts and mail merge under Business Standard, not Starter [1].
Microsoft 365 Business Basic fits a team that already uses Outlook and Office file formats and wants 1 TB of cloud storage per user [2]. Skip Basic if someone needs the installed desktop apps; Microsoft describes Basic as web and mobile versions, and Business Standard as desktop, web and mobile [2].
Worked example: a hypothetical three-person studio
Hypothetical numbers: a three-person studio expects to add a fourth person in month four and drop back to three in month nine. On Google Business Starter at $7 per seat billed monthly, months one to three cost $21 each, months four to eight $28 each, and months nine to twelve $21 each, for $287 in the year before tax and before any discount [1].
On Microsoft Business Basic at the paid-yearly price, three seats are $21 per month, $252 for the year, and the fourth seat adds $7.00 per month on the same annual terms [2]. Whether that fourth seat can be removed in month nine depends on Microsoft's subscription terms, which the plan page does not spell out; check the cancellation terms at checkout. On the $8.40 monthly subscription the same three seats cost $25.20 per month [2].
Checklist before you buy
- Count real mailboxes. Shared addresses such as info@ or billing@ may not each need a paid seat; check each vendor's alias and group options before buying extra users.
- Decide the commitment first: monthly flexibility or a yearly contract with a lower Microsoft price [2].
- Confirm storage needs. Google's Starter storage is 30 GB pooled per user [1]; Microsoft lists 1 TB of cloud storage per user [2].
- Note the renewal price. Google's introductory price ends after 12 months and applies to the first 20 users only [1].
- Plan the DNS change: both services require MX and verification records at your domain. Do not delete existing mail records until the new mailbox receives a test message.
- Set a calendar reminder 30 days before any annual renewal.
Pitfalls
Comparing a discounted first-year price with another vendor's list price is the most common mistake. Compare list against list, then treat any promotion as a bonus. A second pitfall is buying the Microsoft annual price for a team that may shrink. A third is assuming Starter includes mail merge; Google places that feature in Business Standard [1].
Our decision rule
If the team uses Office desktop apps daily, compare Microsoft 365 Business Standard with Google Business Standard; both list $14 per user per month on their respective terms [1] [2]. Otherwise, choose Google Business Starter when you value monthly flexibility, and Microsoft 365 Business Basic on annual billing when the seat count is stable and the team prefers Outlook. If nobody needs Office files, also look at a free mailbox for one domain before paying for either.
Questions before you decide
Which is cheaper for three people, Google Workspace or Microsoft 365?
At list prices on October 13, 2026, three Business Starter users cost $21 per month on Google's monthly billing, and three Business Basic users cost $21 per month on Microsoft's paid-yearly annual subscription, or $25.20 per month on Microsoft's monthly subscription. Taxes and any introductory discounts are not included.
Does Microsoft 365 Business Basic include desktop Office apps?
Microsoft's page describes Business Basic as web and mobile versions of Word, Excel, PowerPoint and Outlook. Business Standard, listed at $14.00 per user per month paid yearly, adds desktop versions.
Is there an annual discount on Google Workspace?
The pricing page shows an Annual option labeled 'Save 16% with 1 year commitment', while the plan cards state 'All plans billed monthly'. The exact annual amount was not shown in the page text we reviewed, so confirm it at checkout before committing.
Sources & verification
Product details and prices can change. Check the linked provider before buying.
- Google Workspace: Compare flexible pricing plan options Accessed 13 Oct 2026
- Microsoft 365 Business Basic (plan and pricing page) Accessed 13 Oct 2026
Sources link directly to providers. Product buttons may use separately labeled affiliate links. Read our disclosure.