E3 vs E5 — What's the Difference? — Free Mind Map
Visual comparison of Microsoft 365 E3 and E5 — identity, security, compliance, analytics, voice, and cost. When to upgrade. Free mind map.
What does E5 actually give me over E3 — and is it worth the price jump?
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Frequently Asked Questions
Is E5 worth the extra $20+ per user per month?
Depends on what you'd otherwise buy as add-ons. If you need Defender for Endpoint P2, Defender for Identity, eDiscovery Premium, and Power BI Pro, E5 is usually cheaper than buying them individually. For organisations that don't need all of those, E3 plus targeted add-ons can be cheaper.
Can I mix E3 and E5 across my users?
Yes. Common pattern: E5 for security, compliance, and exec users; E3 for general workforce. Some E5 features (like Defender for Endpoint P2) need the licence on every device user — check feature licensing rules before mixing.
Does E5 include M365 Copilot?
No. M365 Copilot is a separate $30/user/month add-on. Eligible bases include M365 E3/E5/F1/F3, Office 365 E1/E3/E5, Business Standard/Premium, and M365 A3/A5 (faculty only). E5 users get more security/compliance signals that Copilot can ground on, but the Copilot price is the same regardless of base.
What about Teams in E3 vs E5?
Teams is included in both. E5 adds Teams Phone Standard (PSTN calling capabilities) as part of the SKU. Audio Conferencing is no longer E5-exclusive — Microsoft made it a free add-on for all paid M365/Office 365 commercial plans in 2024. E3 customers can buy Teams Phone Standard as a separate add-on if needed.