Microsoft 365 Backup Pricing for Small Business: What Should You Expect to Pay?
Microsoft 365 backup pricing can look simple until you compare per-user subscriptions with storage-based consumption pricing. For a small business, the best value depends on team size, protected data volume, workload coverage and how much control you need over recovery.
Microsoft 365 backup pricing at a glance
Microsoft 365 backup products use very different pricing models. Some providers charge per Microsoft 365 user, while Microsoft's native backup service charges according to the amount of protected data. That difference matters because a small team with a large SharePoint or OneDrive footprint can have a very different cost profile from a larger team that stores relatively little data.
| Backup option | Current published pricing approach | What determines your bill |
|---|---|---|
| IDrive Microsoft Office 365 Backup | $20 per seat per year with unlimited backup storage | Number of protected Microsoft 365 users |
| Microsoft 365 Backup | $0.15 per GB per month | Amount of protected Exchange, OneDrive and SharePoint data |
| Veeam Data Cloud for Microsoft 365 | Per-user subscription billed annually | Number of protected users and selected plan |
| Acronis | Plan, workload and service-provider dependent | Selected protection package and purchasing channel |
This guide focuses on what small businesses should expect to pay rather than ranking backup vendors. If you want a full product comparison, see our Best Microsoft 365 Backup for Small Business guide.
How Microsoft 365 backup pricing models work
There are two pricing models a small business is most likely to encounter: per-user pricing and consumption-based pricing.
With per-user pricing, you multiply the number of protected Microsoft 365 users by the provider's seat price. This is easy to budget because the annual cost usually changes when your employee count changes, not when users create more files or email.
With consumption pricing, the bill depends on how much protected data the tenant contains. Microsoft 365 Backup currently charges $0.15 per GB per month for protected content. The service measures protected Exchange, OneDrive and SharePoint content rather than simply multiplying a license price by the number of employees.
This is why comparing backup products solely by user count can be misleading. Two businesses with ten employees may pay very different amounts under a storage-based model if one has 100 GB of protected Microsoft 365 data and the other has 1 TB.
Microsoft 365 Backup cost examples
Microsoft's native Microsoft 365 Backup service currently uses a list price of $0.15 per GB per month of protected content. Restores are included without a separate restore charge. Because pricing follows protected data volume, the easiest way to estimate cost is to multiply your protected gigabytes by $0.15 and then multiply the monthly result by 12 for an annual planning estimate.
| Protected data | Estimated monthly cost | Estimated annual cost |
|---|---|---|
| 50 GB | $7.50 | $90 |
| 100 GB | $15 | $180 |
| 250 GB | $37.50 | $450 |
| 500 GB | $75 | $900 |
| 1 TB (1,000 GB) | $150 | $1,800 |
These are planning examples based on Microsoft's current list price, not quotes. Your actual bill depends on the amount of content under backup protection and can change as the protected tenant grows.
IDrive Microsoft Office 365 Backup cost examples
IDrive currently publishes Microsoft Office 365 Backup at $20 per seat per year with unlimited backup storage. Because the pricing is tied to seats rather than protected gigabytes, budgeting is straightforward when the number of Microsoft 365 users is known.
| Protected users | Estimated annual cost | Equivalent monthly average |
|---|---|---|
| 5 users | $100 | $8.33 |
| 10 users | $200 | $16.67 |
| 25 users | $500 | $41.67 |
| 50 users | $1,000 | $83.33 |
IDrive also advertises monthly Microsoft Office 365 Backup plans starting at $2 per seat. For annual budgeting, however, the published $20-per-seat yearly rate makes the comparison especially simple.
Microsoft Entra ID Backup is priced separately by IDrive at $10 per seat per year. Businesses that want to protect identity objects such as users, groups, devices, applications and roles should treat that as a separate budget item rather than assuming it is included in the Microsoft Office 365 backup seat price.
Check current IDrive Microsoft 365 backup pricing
Veeam Microsoft 365 backup pricing
Veeam Data Cloud for Microsoft 365 also uses per-user pricing, but small businesses should pay close attention to the user-count tiers. Veeam currently lists its Foundation plan at $3.50 per user per month for 10 to 50 users, $3.15 for 51 to 250 users and $2.63 for 251 or more users, billed annually. The service includes unlimited backup storage and 24/7 production support.
| Veeam Foundation example | Published rate | Estimated annual cost |
|---|---|---|
| 10 users | $3.50/user/month | $420/year |
| 25 users | $3.50/user/month | $1,050/year |
| 50 users | $3.50/user/month | $2,100/year |
| 100 users | $3.15/user/month | $3,780/year |
Veeam also lists Advanced at $3.33 per Microsoft 365 user per month and Premium at $7 per user per month, billed annually. Advanced adds Microsoft Entra ID data resilience, while Premium adds higher-end disaster-recovery capabilities. Businesses should verify current eligibility, regional pricing and plan requirements before budgeting from the published figures.
What about Acronis pricing?
Acronis is harder to compare with Microsoft, IDrive or Veeam using a simple public per-user price. Its Microsoft 365 protection is commonly packaged through Acronis Cyber Protect Cloud and service-provider offerings, where pricing can depend on workloads, storage, protection features, partner agreements and the managed service being delivered.
For a small business buying through an MSP, that can still be attractive because Microsoft 365 backup may be bundled with endpoint protection, email security, remote monitoring, archiving or other IT services. But it also means the sticker price is less useful for direct comparison.
When evaluating an Acronis-based quote, ask the provider to separate the Microsoft 365 backup cost from any managed-service or security bundle so you can compare the actual protection cost with other options.
Per-user pricing vs. storage-based pricing
The most useful comparison is not simply which provider has the lowest advertised number. It is whether your business is better suited to a per-user model or a protected-data model.
| Pricing model | Usually easier to budget when... | Main risk |
|---|---|---|
| Per-user | User count is stable and Microsoft 365 storage grows over time | Every additional protected user increases cost |
| Storage-based | Protected data volume is low relative to employee count | Costs rise as Exchange, OneDrive and SharePoint data grows |
Using current published pricing, IDrive's $20-per-user annual price is equivalent to about $1.67 per user per month. Microsoft's $0.15-per-GB monthly pricing reaches the same annual cost as one $20 IDrive seat at roughly 11.1 GB of protected data per user.
That does not mean 11.1 GB is a universal break-even point. Microsoft bills according to actual protected Exchange, OneDrive and SharePoint content across the tenant, while IDrive bills by protected seat. But it is a useful planning benchmark when comparing the two models.
| Example business | IDrive annual cost | Microsoft 365 Backup annual cost at break-even data volume |
|---|---|---|
| 5 users | $100 | About $100 at roughly 55.6 GB protected |
| 10 users | $200 | About $200 at roughly 111.1 GB protected |
| 25 users | $500 | About $500 at roughly 277.8 GB protected |
| 50 users | $1,000 | About $1,000 at roughly 555.6 GB protected |
Below those protected-data amounts, Microsoft's consumption model can be less expensive on pure backup charges. Above them, IDrive's published per-seat model can become easier to budget because storage growth does not change the seat price. Feature coverage, recovery behavior and administrative requirements still matter, so cost should not be the only selection criterion.
Hidden costs small businesses should consider
The advertised backup price is only part of the budget. Small businesses should also consider how the service measures protected data, whether identity protection costs extra, how quickly storage grows and whether an administrator or MSP will be needed to manage recovery.
Deleted and versioned data can affect Microsoft pricing
Microsoft 365 Backup does not calculate consumption from live files alone. Protected usage can also include deleted and versioned content retained for recovery, including data in the SharePoint and OneDrive second-stage recycle bin and deleted or versioned mailbox items. Exchange online archives can also contribute to protected usage.
This means deleting files does not necessarily reduce the bill immediately. Protected deleted or versioned content can continue to count until the applicable backup recovery window expires.
Identity backup may be a separate cost
Backing up Exchange, OneDrive, SharePoint and Teams data is not the same thing as protecting Microsoft Entra ID. IDrive currently prices Entra ID Backup separately at $10 per seat per year. Veeam includes Entra ID protection in its Advanced and Premium plans rather than its Microsoft 365 Foundation plan.
Data growth changes consumption-based estimates
A Microsoft 365 Backup estimate based on today's storage usage can increase as mailboxes, OneDrive accounts and SharePoint sites grow. A business budgeting for a full year should allow for growth instead of multiplying today's storage figure by 12 and assuming it will remain unchanged.
Administration and managed-service costs matter
A backup product still needs policies, monitoring, restore testing and someone responsible for recovery when something goes wrong. A higher-priced managed service can sometimes be worthwhile if it includes administration that the business would otherwise have to provide internally.
Which pricing model is cheaper for a small business?
There is no single winner for every small business. The least expensive option changes with user count, protected storage and the capabilities the organization needs.
| Situation | Pricing model that may fit best | Why |
|---|---|---|
| Small team with relatively little Microsoft 365 data | Storage-based | Low protected data volume can keep consumption charges low |
| Small team with heavy OneDrive or SharePoint usage | Per-user | Storage growth does not continually increase a fixed seat price |
| Business that wants predictable annual budgeting | Per-user | Cost is easier to forecast from employee count |
| Business strongly invested in Microsoft's native administration stack | Microsoft consumption model | Native Microsoft 365 Backup may simplify platform alignment |
| Business requiring Entra ID protection and advanced resilience | Feature-based per-user plan | A broader plan may provide better value than comparing backup storage alone |
For many very small businesses, the comparison between Microsoft and IDrive comes down to a simple question: Do you have more than roughly 11 GB of protected Microsoft 365 data per user? At current list pricing, that is approximately where the pure backup charge reaches the $20-per-user annual IDrive price. Real purchasing decisions should also account for workload coverage, recovery options and administration.
For a broader feature comparison, read Microsoft 365 Backup vs. Third-Party Backup.
How to estimate your Microsoft 365 backup budget
A small business can build a useful first-year estimate with four numbers:
- Count the users you need to protect. This gives you the basis for products billed per seat.
- Measure current Exchange, OneDrive and SharePoint storage. Microsoft 365 usage reports provide a starting point for live data.
- Allow for archives, recycle-bin data and growth. Microsoft's billable protected data can be higher than the live-storage number visible in basic usage reports.
- Compare the annual totals. Calculate per-user products from seat count and consumption products from protected gigabytes, then add any identity-protection or managed-service costs.
Microsoft also publishes a Microsoft 365 Backup pricing calculator for organizations that want a more detailed consumption estimate. Microsoft notes that calculator results are estimates and that actual usage can change with data growth and churn.
Bottom line
Microsoft 365 backup can cost very little for a small tenant, or become a meaningful recurring expense as protected data grows. The key is understanding what drives the bill.
Microsoft 365 Backup is attractive when you want Microsoft's native recovery service and your protected storage volume makes consumption pricing sensible. IDrive is easier to forecast because its published Microsoft Office 365 Backup price is based on protected seats rather than storage volume. Veeam costs more at typical small-business user counts but adds broader resilience options and higher-tier Entra ID protection. Acronis is better evaluated as part of an MSP or broader cyber-protection quote rather than by a single public seat price.
If you are still deciding which product fits your environment, see Best Microsoft 365 Backup for Small Business. If you are unsure why separate backup is worth considering at all, read Does Microsoft 365 Back Up Your Data?.
FAQ
How much does Microsoft 365 Backup cost?
Microsoft currently lists Microsoft 365 Backup at $0.15 per GB per month of protected content. The service is consumption based, so the monthly charge depends on how much protected Exchange, OneDrive and SharePoint data is included in backup protection.
How much does Microsoft 365 backup cost for five users?
There is no fixed Microsoft price for five users because Microsoft 365 Backup bills by protected data volume rather than user count. For example, 50 GB of protected data would be about $7.50 per month, while 100 GB would be about $15 per month at the current list rate. A per-user product such as IDrive would currently be $100 per year for five Microsoft 365 seats at its published annual rate.
Is Microsoft 365 Backup included with Microsoft 365 Business Premium?
No. Microsoft 365 Backup is a separate pay-as-you-go service rather than an included Microsoft 365 Business Premium benefit. Microsoft 365 plans include native retention and recovery capabilities, but the dedicated Microsoft 365 Backup service has its own consumption-based charge.
Is third-party Microsoft 365 backup cheaper than Microsoft 365 Backup?
Sometimes. A third-party per-user service can be cheaper for organizations with a high amount of protected data per employee, while Microsoft's storage-based pricing can be less expensive for tenants with relatively little protected data. The better value also depends on retention, identity protection, recovery features and administrative requirements.
Sources and current pricing information
Pricing in this guide was checked against current vendor documentation on September 14, 2026. Vendor pricing and packaging can change.
- Microsoft Learn: Microsoft 365 Backup pricing model
- Microsoft Learn: Microsoft 365 Backup overview
- IDrive: Microsoft Office 365 Backup
- Veeam Data Cloud pricing and purchasing options — pricing verified from Veeam's published information on September 14, 2026; direct link omitted because the page may return access errors for some visitors.
Related Tech Fit Guide resources: OneDrive vs. SharePoint for Small Business, Small Business Backup Strategy, and Best Backup Solutions for Small Business.