---
slug: mailstead-vs-microsoft-365
section: compare
title: Mailstead vs Microsoft 365 — when self-hosted webmail makes sense
description: Exchange Online Plan 1, Business Basic, and a self-hosted webmail app are different purchases. Here is how they split.
h1: Mailstead vs Microsoft 365
intent: Separate Microsoft email-only pricing from a Microsoft 365 business bundle.
published: "2026-10-14"
updated: "2026-10-14"
sourceChecked: "2026-10-14"
author: mabounassif
---

“Microsoft 365” on a quote can mean hosted Exchange only, or a bundle of apps, Teams, and security. Those are different prices. This page uses two US English list prices checked on 14 October 2026, and it does not average them.

Mailstead is the thing you compare when the requirement is a web inbox on your domain and you will operate the app. It is a poor comparison when the requirement is Outlook on the desktop, Word, or device management.

## Two Microsoft products

| Product | What the page says you are buying | Price shown | Commitment on that page |
| --- | --- | --- | --- |
| Exchange Online (Plan 1) | Hosted email | $4.00 per user per month | Paid yearly. Annual subscription, auto-renews |
| Microsoft 365 Business Basic | Web and mobile apps, professional email, cloud file storage, online meetings, and AI chat | $6.00 per user per month | Paid yearly |
| Business Premium with Copilot | Apps, device security, and Copilot | $32.00 per user per month | Paid yearly, annual subscription, auto-renews |

Sources, checked 2026-10-14: [Exchange Online](https://www.microsoft.com/en-us/microsoft-365/exchange/exchange-online), [Business Basic](https://www.microsoft.com/en-us/microsoft-365/business/microsoft-365-business-basic), and [business plans](https://www.microsoft.com/en-us/microsoft-365/business/microsoft-365-plans-and-pricing). Microsoft’s licensing FAQ says business plans can be monthly or annual, and that annual commitment is discounted. The month-to-month dollar amount was not on the pages captured, so this article does not invent it. Business plans are described as supporting up to 300 users.

Exchange storage quotas and Outlook connectivity details were not re-copied from a service description in this pass. Where that page was not opened, the cell stays blank rather than borrowed from memory.

## Against Mailstead

| Question | Mailstead | Exchange Online Plan 1 | Business Basic |
| --- | --- | --- | --- |
| Who runs the mailbox service? | You run the app. Resend transports mail | Microsoft | Microsoft |
| Software licence | $0, MIT | Included in the user price | Included in the user price |
| Extra apps | None | This page treats it as email hosting | Web apps, Teams, files, meetings |
| IMAP into Mailstead | No | Not claimed here | Not claimed here |
| 25 users, yearly list, before tax | Depends on hosting and message volume. See the [scenario table](/pricing/#scenario) | $100 per month at $4 | $150 per month at $6 |

Twenty-five Business Premium with Copilot seats at the yearly list would be $800 per month. That number is a different product. Do not use it as the cost of “email.”

A quiet Mailstead deployment can sit on Railway Hobby at $5 per month plus Resend Free if sent and received mail stay within 3,000 per month and 100 per day ([Resend pricing](https://resend.com/pricing)). Fifty people at a few dozen messages a day will not. The [calculator](/pricing/#calculator) is the place to change volume. It will not tell you that Mailstead includes Teams.

## When Microsoft is the right bill

Pick Exchange Online Plan 1 when you want Microsoft to host mail and you do not want the app bundle, and you can live with a yearly commitment at the price above. Pick Business Basic when the team wants the web apps and meetings that come with it. Pick a Premium or Copilot plan only after you have priced that plan, not Plan 1.

Pick Mailstead when a browser inbox is enough, IMAP is not required, and someone will deploy the container, verify DNS, and keep backups. The operations guide’s export is metadata, not a full mailbox archive.

## Sources

- Microsoft, [Exchange Online (Plan 1)](https://www.microsoft.com/en-us/microsoft-365/exchange/exchange-online), $4 user/month paid yearly, checked 2026-10-14.
- Microsoft, [Business Basic](https://www.microsoft.com/en-us/microsoft-365/business/microsoft-365-business-basic), $6 user/month paid yearly, checked 2026-10-14.
- Microsoft, [plans and pricing](https://www.microsoft.com/en-us/microsoft-365/business/microsoft-365-plans-and-pricing), Business Premium with Copilot at $32, checked 2026-10-14.
- Microsoft, [licensing FAQ](https://www.microsoft.com/licensing/faqs/5), monthly versus annual commitment described without a month-to-month Business Basic price, checked 2026-10-14.