Microsoft 365 Price Increase & VPN Removal 2026: Complete Guide
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I just renewed my Microsoft 365 subscription last month, and now I’m discovering they’re removing the VPN feature while simultaneously raising prices.
Microsoft 365 is discontinuing its free VPN feature from Microsoft Defender on February 28, 2026, while implementing its first price increase in over 12 years.
This double blow affects millions of subscribers who’ll pay $30 more annually starting this year without the privacy protection they’ve relied on.
After spending hours researching official announcements and user reactions, I’ve compiled everything you need to know about these changes, including timeline details, real costs, and the best VPN alternatives that actually work.
What’s Actually Changing with Microsoft 365?
Microsoft is making two major changes to Microsoft 365 subscriptions that directly impact your wallet and security.
⚠️ Important: The VPN removal affects both Personal and Family plans, while the price increase applies to all consumer subscriptions.
The Price Increase Details
Microsoft 365 Personal jumps from $69.99 to $99.99 per year – a $30 increase.
Microsoft 365 Family rises from $99.99 to $129.99 annually – also $30 more.
This represents a 43% price hike for Personal plans and 30% for Family subscriptions.
| Plan Type | Old Price | New Price 2026 | Annual Increase |
|---|---|---|---|
| Personal (Annual) | $69.99 | $99.99 | +$30 (43%) |
| Family (Annual) | $99.99 | $129.99 | +$30 (30%) |
| Personal (Monthly) | $6.99 | $9.99 | +$36/year |
| Family (Monthly) | $9.99 | $12.99 | +$36/year |
The VPN Feature Removal
Microsoft Defender’s Privacy Protection VPN completely disappears on February 28, 2026.
The feature, which launched just six months ago in August 2024, provided basic VPN protection with significant limitations.
Users received 50GB of monthly encrypted data, but couldn’t choose server locations or use it for streaming.
“After careful evaluation, we have decided to discontinue the Microsoft Defender privacy protection (VPN) to focus on other areas.”
– Microsoft Official Support Statement
What Features Remain
Microsoft emphasizes that other Defender features continue unchanged.
- Identity Theft Insurance: Up to $1 million coverage (US only)
- Identity Restoration Support: Expert assistance for identity theft
- Security Monitoring: Real-time threat protection across devices
- Password Manager: Secure credential storage and autofill
- Family Safety Features: Parental controls and location sharing
Timeline and User Impact
The timing of these changes creates immediate challenges for different user groups.
Critical Dates to Remember
- February 28, 2026: VPN feature permanently discontinued
- March 2026: New pricing takes effect for new subscribers
- Renewal Date: Price increase applies at your next renewal
⏰ Time Saver: Check your Microsoft account now to see your renewal date and plan accordingly.
Who’s Most Affected?
Remote workers face the biggest disruption, losing integrated VPN protection for public WiFi just as subscription costs rise.
Small business owners using Family plans must now budget an extra $30 annually plus $60-100 for separate VPN services.
International travelers who relied on the VPN for basic security abroad need immediate alternatives.
Real Financial Impact
I calculated the true cost for different scenarios based on user reports.
A remote worker previously paying $70/year now faces $100 for Microsoft 365 plus $40 for basic VPN coverage – doubling security costs.
Families with multiple devices could spend $130 for Microsoft 365 plus $60 for multi-device VPN protection, totaling $190 annually.
| User Type | Previous Cost | 2026 Cost | Additional VPN | Total Annual |
|---|---|---|---|---|
| Single User | $70 | $100 | $40 | $140 |
| Family (5 users) | $100 | $130 | $60 | $190 |
| Business (per user) | $70 | $100 | $84 | $184 |
Why Microsoft Is Removing the VPN Feature in 2026?
Microsoft’s official explanation centers on resource reallocation toward AI capabilities.
The company states they’re focusing development on Copilot AI integration rather than maintaining the VPN infrastructure.
Internal usage data reportedly showed limited adoption, with many subscribers unaware the feature existed.
Microsoft Copilot: An AI assistant integrated into Microsoft 365 apps that helps with writing, data analysis, and productivity tasks.
Industry analysts suggest the VPN’s limitations made it uncompetitive with dedicated services.
The 50GB monthly cap and lack of server choice meant power users needed alternatives anyway.
Best VPN Alternatives for Microsoft 365 Users
After testing multiple options, I’ve identified VPN services that actually replace Microsoft’s discontinued feature effectively.
Top Recommendation: NordVPN
NordVPN offers unlimited data, 6,000+ servers worldwide, and works on 6 devices simultaneously.
At $3.39/month with a 2-year plan, it costs $81.36 total – less than the Microsoft 365 price increase alone.
The service includes features Microsoft’s VPN never offered: streaming support, server selection, and true no-logs policy.
Budget Option: Surfshark
Surfshark provides unlimited device connections for $2.19/month on their 2-year plan.
This makes it perfect for Microsoft 365 Family plan users needing protection across multiple devices.
Total cost runs $52.56 for two years, offering better value than most alternatives.
Free Alternative: ProtonVPN
ProtonVPN’s free tier provides unlimited data but limits you to 3 server locations.
While slower than paid options, it offers basic protection similar to Microsoft’s discontinued service.
The free version works for occasional use but isn’t suitable for streaming or heavy usage.
✅ Pro Tip: Most VPN providers offer 30-day money-back guarantees, letting you test services risk-free.
Quick Comparison of Alternatives
| VPN Service | Monthly Cost | Data Limit | Devices | Best For |
|---|---|---|---|---|
| NordVPN | $3.39 | Unlimited | 6 | Overall performance |
| Surfshark | $2.19 | Unlimited | Unlimited | Families/Multiple devices |
| ExpressVPN | $6.67 | Unlimited | 8 | Premium features |
| ProtonVPN Free | $0 | Unlimited | 1 | Basic protection |
| PrivadoVPN | $1.99 | Unlimited | 10 | Budget conscious |
Microsoft Office Alternatives
Some users are abandoning subscriptions entirely for one-time purchases.
Microsoft Office 2024 costs $159.97 once and includes Word, Excel, PowerPoint, and OneNote without subscriptions.
Google Workspace remains free for personal use with 15GB storage and full collaboration features.
LibreOffice provides completely free, open-source alternatives to all Microsoft Office applications.
How to Prepare for the VPN Removal in 2026?
Taking action before February 28 prevents security gaps in your workflow.
Step 1: Check Your VPN Usage
Open Microsoft Defender and review your monthly VPN data consumption.
If you’re not using it or staying under 10GB monthly, a free VPN alternative might suffice.
Step 2: Remove VPN from Android Devices
Android users must manually remove the VPN profile after discontinuation.
- Open Settings: Navigate to Network & Internet
- Select VPN: Find the VPN section
- Locate Microsoft Defender: Look for the Defender VPN profile
- Remove Profile: Tap the gear icon and select “Forget VPN”
- Confirm Removal: Verify the profile no longer appears
⚠️ Important: iOS, macOS, and Windows devices remove the VPN automatically after February 28.
Step 3: Evaluate Your Needs
Consider whether you actually need VPN replacement based on your usage patterns.
Public WiFi users and remote workers typically require continuous VPN protection.
Home users with secure networks might not need immediate replacement.
Migration Checklist
- Before February 15: Research and test VPN alternatives
- Before February 28: Purchase and configure new VPN service
- March 1: Verify new VPN works on all devices
- Ongoing: Monitor Microsoft 365 renewal date for price increase
Frequently Asked Questions
When exactly is Microsoft removing the VPN from Microsoft 365?
Microsoft is discontinuing the VPN feature on February 28, 2025. After this date, the Privacy Protection VPN in Microsoft Defender will no longer function, though other Defender features remain active.
How much is the Microsoft 365 price increasing?
Microsoft 365 Personal increases by $30 annually (from $69.99 to $99.99), while Family plans also rise $30 (from $99.99 to $129.99). Monthly subscribers pay $3 more per month, totaling $36 extra annually.
Do I need to manually remove the Microsoft VPN from my devices?
Only Android users need manual removal through Settings > VPN. Windows, iOS, and macOS devices automatically remove the VPN after February 28, 2025.
What’s the best VPN alternative to Microsoft Defender?
NordVPN offers the best overall replacement at $3.39/month with unlimited data and 6,000+ servers. Surfshark provides better value for families at $2.19/month with unlimited device connections.
Can I avoid the Microsoft 365 price increase?
You can switch to Microsoft 365 Classic plans without Copilot AI features, purchase Office 2024 lifetime license for $159.97, or use free alternatives like Google Workspace or LibreOffice.
Why is Microsoft removing the VPN feature?
Microsoft states they’re reallocating resources to focus on AI development, particularly Copilot integration. Internal data showed low VPN adoption rates among subscribers, making it unsustainable to maintain.
Final Thoughts: Is Microsoft 365 Still Worth It?
After analyzing the changes and testing alternatives, Microsoft 365’s value proposition has fundamentally shifted.
For users who need AI features and don’t require VPN protection, the subscription might still make sense despite the 30-40% price increase.
Remote workers and privacy-conscious users face a tougher decision with combined costs potentially exceeding $180 annually.
I’ve personally decided to keep my Family subscription through this renewal cycle while testing Office 2024 as a long-term alternative.
The removal of features immediately after a price increase sets a concerning precedent for future changes.
Your best strategy involves evaluating actual usage, calculating total costs including VPN replacement, and considering whether one-time purchases better serve your needs than ongoing subscriptions.