Microsoft Teams Pricing: What It Really Costs in 2026

Microsoft Teams pricing starts at $0, while paid standalone plans start at $4 per user/month. Microsoft 365 plans with Teams range from $7 per user/month for Business Basic to $99 per user/month for Microsoft 365 E7, paid yearly. Microsoft Teams pricing looks straightforward until you try to work out what your company will actually pay.

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Microsoft Teams can be free. Microsoft Teams Essentials costs $4 per user/month, billed yearly. Microsoft 365 Business Basic with Teams costs $7 per user/month, billed yearly. But Teams is also bundled into larger Microsoft 365 subscriptions, sold separately for enterprise customers, and extended through add-ons such as Teams Phone, Teams Premium, and Microsoft 365 Copilot.

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That means the cheapest plan is not necessarily the cheapest setup.

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This guide breaks down Microsoft Teams plans and pricing in 2026, including the real per-user cost of getting Teams inside Microsoft 365, what Copilot can add to the bill, and the add-ons that can turn a relatively inexpensive Teams license into a much larger expense.

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TL;DR:

• Microsoft Teams Free costs $0, while Microsoft Teams Essentials starts at $4 per user/month, billed yearly, and it helps you get rid of the Microsoft Teams time limit.
• Microsoft 365 Business Basic with Teams costs $7 per user/month, billed yearly, and adds business email, web and mobile Office apps, and 1 TB of cloud storage per user.
• Comparing the with-Teams and no-Teams versions shows what you're effectively paying for Teams. With Business Basic, the difference is $1.60 per user/month, billed yearly.
• Microsoft 365 Business Standard with Copilot and Teams costs $23.50 per user/month, billed yearly, compared with $20.30 per user/month, billed yearly, without Teams.
• Teams Phone, Teams Premium, Microsoft 365 Copilot, and calling plans can significantly increase the final price.
• Enterprise licensing works differently. Microsoft Teams Enterprise costs $8.55 per user/month, billed yearly, as a separate license.

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Microsoft Teams pricing at a glance

Here are the main Microsoft Teams pricing options available in the US in 2026.

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Microsoft's business and enterprise prices above use annual subscriptions or commitments. Pricing can vary by country, taxes, purchasing channel, and subscription terms.

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Enterprise availability also needs some context. Microsoft changed how it sells Teams and Microsoft 365 enterprise suites, so organizations may encounter both with-Teams and no-Teams options depending on their licensing situation. Microsoft Teams Enterprise is available separately at $8.55 per user/month, billed yearly.

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Check out our guides on Google Meet pricing and Zoom pricing as well.

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How much does Microsoft Teams really cost inside Microsoft 365?

One of the most useful ways to understand Teams pricing is to compare Microsoft 365 subscriptions with their equivalent no-Teams versions.

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Business Basic: Teams effectively adds $1.60 per user/month

Microsoft 365 Business Basic costs:

• $7 per user/month with Teams, billed yearly
• $5.40 per user/month without Teams, billed yearly

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That makes the difference $1.60 per user/month, billed yearly, or $19.20 per user/year.

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For 100 employees, including Teams therefore adds $1,920 per year compared with buying Business Basic without Teams.

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The Business Basic plan includes web and mobile versions of Word, Excel, PowerPoint, and Outlook, a custom business email address, 1 TB of cloud storage per user, Microsoft Bookings, Planner, Forms, and other productivity apps.

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What it does not include is the full desktop Office apps. If employees need installed desktop versions rather than primarily web and mobile apps, you need to move higher up the Microsoft 365 stack.

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Business Standard with Copilot: Teams adds $3.20 per user/month

Microsoft 365 Business Standard with Copilot costs:

• $23.50 per user/month with Teams, billed yearly
• $20.30 per user/month without Teams, billed yearly

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The difference is $3.20 per user/month, billed yearly, or $38.40 per user/year.

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For a 100-person company, that's $3,840 per year attributable to choosing the version with Teams.

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Business Standard is more comprehensive than the Business Basic plan because it gives users full desktop Office apps alongside web and mobile versions. That includes Word, Excel, PowerPoint, Outlook, and other Microsoft Office apps, while Microsoft Access is available on PC.

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It also includes Microsoft Loop, Clipchamp, Bookings, Planner, Forms, custom business email, 1 TB of cloud storage per user, and the ability to host webinars.

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The plan also brings Microsoft 365 Copilot into apps such as Word, Excel, PowerPoint, Outlook, and Microsoft Teams.

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Enterprise: Teams works out to $8.55 per user/month

The enterprise calculation is particularly easy to see from Microsoft's prices.

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Microsoft 365 E3 costs:

• $39 per user/month with Teams, billed yearly
• $30.45 per user/month without Teams, billed yearly

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The difference is $8.55 per user/month, billed yearly.

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Microsoft 365 E5 costs:

• $60 per user/month with Teams, billed yearly
• $51.45 per user/month without Teams, billed yearly

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Again, the difference is $8.55 per user/month, billed yearly.

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Microsoft 365 E7 costs:

• $99 per user/month with Teams, billed yearly
• $90.45 per user/month without Teams, billed yearly

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Once more, a difference of $8.55 per user/month, billed yearly.

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Microsoft's enterprise pricing is internally consistent in a way that's worth calling out: the $8.55 gap between with-Teams and no-Teams E3 ($39 vs. $30.45) is identical to the gap between with-Teams and no-Teams E5 ($60 vs. $51.45) and E7 ($99 vs. $90.45), and all three match the standalone Microsoft Teams Enterprise price of $8.55 per user/month exactly.

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In other words, Microsoft isn't discounting Teams differently depending on which suite it's bundled into. Whether you buy Teams inside E3, E5, or E7, or as its own Teams Enterprise license, you're paying the same $8.55 per user/month for it. That's useful to know when comparing suites.

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What do you get with Microsoft Teams Free?

Microsoft Teams Free is designed primarily for personal use rather than as a complete business collaboration platform.

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The free version includes:

• group calls for up to 60 minutes
• up to 100 participants
• unlimited chat
• 5 GB of cloud file storage
• collaborative tasks and polling
• data encryption for meetings, chats, calls, and files

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For occasional video calls, the Microsoft Teams free plan can be enough.

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The bigger issue is that free Teams is not a substitute for Microsoft's business plans. You do not get the same business administration, custom business email, storage allocation, or Microsoft 365 business services.

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Once Teams becomes one of your company's primary online collaboration tools, the paid plans become much more relevant.

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Is Microsoft Teams Essentials worth $4 per user/month?

Microsoft Teams Essentials is the simplest paid Microsoft Teams pricing plan for businesses that mainly want Teams rather than the broader Microsoft 365 suite.

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Teams Essentials includes:

• chat, calling, and video conferencing
• voice and video calls
• file sharing
• tasks and polling
• team meeting recordings
• transcripts and live captions in English
• 10 GB of cloud storage per user
• data encryption for meetings, calls, chats, and files
• phone and web support

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Teams Essentials makes the most sense for small teams that already have email, file storage, and productivity apps elsewhere.

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The comparison changes once you need those services too.

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Microsoft 365 Business Basic with Teams costs $7 per user/month, billed yearly. That's $3 more per user/month on an annual subscription than Teams Essentials, but it adds custom business email, 1 TB of storage per user, SharePoint, OneDrive, and web and mobile versions of Word, Excel, PowerPoint, and Outlook.

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For many small businesses, that additional cost is easier to justify than building a stack of separate collaboration tools around Teams Essentials.

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What do Microsoft 365 business plans add to Teams?

The main reason to choose a Microsoft 365 business plan over standalone Teams is everything you get around your meetings. Since the pricing differences are covered above, here's the quicker feature comparison.

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Microsoft 365 Business Basic

At $7 per user/month, billed yearly, Business Basic with Teams adds:

• Business email: Custom email addresses with Exchange
• Office apps: Web and mobile versions of Word, Excel, PowerPoint, and Outlook
• Storage: 1 TB of cloud storage per user with OneDrive and SharePoint
• Business tools: Microsoft Bookings, Planner, Forms, and other apps
• AI: AI chat with web grounding, writing assistance, data analysis, and access to agents
• Security and support: Spam and malware filtering plus phone and web support

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The trade-off: You don't get the full desktop Office apps.

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Business Basic without Teams costs $5.40 per user/month, billed yearly.

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Microsoft 365 Business Standard with Copilot

At $23.50 per user/month, billed yearly, Business Standard with Copilot and Teams adds everything you'd expect from a broader productivity suite:

• Desktop apps: Desktop, web, and mobile versions of Word, Excel, PowerPoint, and Outlook
• Storage and email: 1 TB of cloud storage per user and custom business email
• Extra apps: Microsoft Loop, Clipchamp, Bookings, Planner, and Forms
• Meetings: Microsoft Teams plus the ability to host webinars
• Copilot: Work-grounded Microsoft 365 Copilot across Teams and other Microsoft 365 apps
• AI tools: Reasoning AI for research and data analysis, plus access to create and use agents
• Support: Phone and web support

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The no-Teams version costs $20.30 per user/month, billed yearly.

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The key difference: Business Basic is primarily a web and mobile package. Business Standard with Copilot adds full desktop Office apps and integrated AI, making it a much broader productivity subscription rather than simply an upgraded Teams plan.

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Teams can host the meeting. MeetGeek takes it further

Microsoft's own AI features can already handle parts of the post-meeting workflow, including recaps, notes, and tasks. The reason to consider a dedicated meeting intelligence platform is less about replacing those features and more about what you want to do with meeting knowledge afterward.

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MeetGeek includes a Microsoft Teams integration that automatically records, transcribes, and summarizes conversations while giving teams a dedicated place to manage meeting intelligence.

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With MeetGeek, you can:

• Search across meetings: Turn conversations into a searchable knowledge base and ask questions across past calls.
• Analyze conversations: Track topics, sentiment, participation, talk-to-listen ratios, and other meeting insights.
• Standardize meeting outputs: Use templates and customizable summaries for sales calls, interviews, team meetings, and other recurring conversations.
• Automate follow-up: Send meeting insights, action items, and other outputs into tools such as HubSpot, Slack, Notion, Asana, and ClickUp.
• Work across meeting platforms: Keep knowledge from Microsoft Teams, Zoom, Google Meet, uploaded recordings, and in-person conversations in one place.

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If your organization already works almost entirely within Microsoft 365, Microsoft's native AI features may cover what you need. MeetGeek becomes particularly useful when you want a dedicated meeting intelligence layer, searchable knowledge across all your meetings, or automated workflows that extend beyond the Microsoft ecosystem.

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How much does Microsoft 365 Copilot add to Teams pricing?

This is one area where Microsoft Teams pricing can rise quickly.

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There is a difference between the AI functionality available within Microsoft 365 plans and the full Microsoft 365 Copilot add-on sold to enterprise customers.

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For eligible enterprise subscriptions, Microsoft 365 Copilot costs $30 per user/month, billed yearly.

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Consider an organization assembling E3, Teams, and Copilot separately:

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For 1,000 employees, that combination costs $69,000 per month on annual commitments, or $828,000 per year.

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That's also why Copilot licensing deserves to be evaluated separately from the core Teams license. In this example, the AI add-on at $30 per user/month, billed yearly, costs more than three times as much as the $8.55 per user/month, billed yearly, Teams Enterprise license itself.

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Microsoft 365 Business Standard with Copilot takes a different approach by bundling Copilot with the broader subscription. The version with Teams costs $23.50 per user/month, billed yearly, while the no-Teams version costs $20.30 per user/month, billed yearly.

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For those who have a Microsoft 365 license without included Copilot, like Microsoft 365 Business Basic at $7 per user/month, they can get a separate add-on, Microsoft 365 Copilot Business, at $21 per user/month, billed yearly. 

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Is Teams Premium the same as Microsoft 365 Copilot?

Short answer: no.

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Teams Premium and Microsoft 365 Copilot solve different problems.

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Teams Premium is a Teams add-on that costs $10/user/month, billed yearly, and is designed to extend the meeting and collaboration experience with additional intelligent, personalized, and protected meeting capabilities.

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Microsoft 365 Copilot is broader. It is an AI assistant designed to work across Microsoft 365 productivity apps and organizational work content rather than only enhancing Teams.

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Both can therefore affect the real cost of a Microsoft environment, but they should not be treated as interchangeable products.

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Before buying either, decide what you're actually trying to improve:

• Advanced Teams meeting capabilities → consider Teams Premium
• AI across Microsoft 365 → consider Microsoft 365 Copilot

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That makes for a much more useful purchasing decision than simply buying all the features available.

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How much does Microsoft Teams Phone cost?

A normal Teams license lets users make voice and video calls through Microsoft Teams. That does not automatically mean Microsoft Teams Phone is included.

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Microsoft Teams Phone adds a cloud-based phone system and options for connecting Teams to the public telephone network.

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Microsoft Teams Phone Standard

Microsoft Teams Phone Standard costs $10 per user/month, billed yearly.

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It includes:

• a cloud-based phone system
• voice and video calling over PSTN or an internet connection
• support for Teams Calling Plans, Operator Connect, and Direct Routing
• Teams Phone Mobile support with participating operators
• call transfer across supported devices
• a 99.999% uptime SLA

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A separate license for Microsoft Teams is required.

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That last point matters. Paying $10 per user/month, billed yearly, for Teams Phone Standard does not give you Teams itself.

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Teams Phone with pay-as-you-go calling

Teams Phone with pay-as-you-go calling in the US costs $13 per user/month, billed yearly.

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It includes Teams Phone Standard plus a phone number and metered outbound calling from Microsoft.

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A separate Teams license is required.

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Teams Phone with Calling Plan

Teams Phone with Calling Plan in the US costs $17 per user/month, billed yearly.

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It includes Teams Phone Standard plus a domestic calling plan.

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For the US, UK, and Canada, Microsoft includes a phone number and 3,000 outbound domestic calling minutes. For the rest of the supported countries, the allowance is 1,200 outbound domestic calling minutes.

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A separate Teams license is required.

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Teams Phone with domestic and international calling

The domestic and international option costs $34 per user/month, billed yearly.

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For the US, UK, and Canada, the plan provides a phone number with 3,000 outbound domestic or 600 outbound international calling minutes. Elsewhere, Microsoft lists 1,200 outbound domestic or 600 outbound international minutes.

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Again, a separate Teams license is required.

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Is Microsoft Teams Phone included in Microsoft 365?

It depends on the plan, and this is an important potential hidden cost.

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Microsoft 365 Business Basic and Business Standard with Teams give you Teams calling and meeting functionality. That is not the same thing as getting Microsoft Teams Phone.

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Teams Phone Standard generally requires its own license at $10 per user/month, billed yearly.

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Microsoft 365 E5 with Teams is different. At $60 per user/month, billed yearly, the plan includes a cloud-based phone system for making calls outside your organization with Microsoft Teams Phone.

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That does not mean every external calling cost disappears. Your organization still needs the appropriate PSTN connectivity or calling arrangement.

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When you see "Microsoft Teams Phone included", check whether it means:

1. Ordinary Teams voice and video calls,
2. The Teams Phone cloud phone system, or
3. Teams Phone plus an actual calling plan.

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Those are different things with different costs.

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How much does Microsoft Teams Rooms cost?

Microsoft also licenses Teams for physical meeting rooms rather than individual users.

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Microsoft Teams Rooms Basic

Microsoft Teams Rooms Basic is free.

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It is available at no charge for up to 25 rooms, but each room requires a certified Teams device.

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The plan includes:

• one-touch meeting join
• wireless content sharing
• a shared digital canvas for collaboration

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Microsoft Teams Rooms Pro

Microsoft Teams Rooms Pro costs $40 per room/month, billed yearly.

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It adds:

• AI-powered audio and video optimized for hybrid meetings
• advanced room layouts
• inclusive video features
• enterprise-grade management
• remote configuration
• device analytics
• access controls
• IT service management integrations
• automated updates
• automated problem detection and resolution

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Unlike most Microsoft Teams plans, the $40 monthly price is per room rather than per user, and it is billed yearly.

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What are the hidden costs of Microsoft Teams?

Microsoft Teams can be inexpensive if all you need is chat, file sharing, and meetings.

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The hidden costs appear when Teams becomes part of your company's broader communications and productivity infrastructure.

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1. Microsoft 365 licensing

Teams Essentials costs $4 per user/month, billed yearly, but companies often also need business email, file storage, Word, Excel, PowerPoint, SharePoint, Microsoft Loop, Microsoft Bookings, and other Office apps.

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At that point, buying a Microsoft 365 subscription may make more sense than paying for Teams and other collaboration software separately.

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2. Copilot licenses

For eligible enterprise customers, Microsoft 365 Copilot costs $30 per user/month, billed yearly. For those with Business licenses, the add-on is $21 per user/month.

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At scale, the AI assistant can therefore cost considerably more than the underlying Teams license.

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The question is not simply whether Copilot is useful; using Copilot for meetings can be very efficient, but which employees actually need a paid Copilot license?

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3. Teams Phone

A Teams license does not automatically replace your business phone system.

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Teams Phone Standard costs $10 per user/month, billed yearly, while Microsoft's US domestic Calling Plan option costs $17 per user/month, billed yearly.

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Calling requirements can therefore substantially change your real per-user cost.

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4. Teams Premium

Advanced Teams functionality may require the Teams Premium add-on, not a replacement for the underlying Teams license.

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The cost of it is $10/user/month, billed yearly.

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5. Meeting room hardware

Teams Rooms Basic may be free, but the certified Teams device it requires is not.

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Larger organizations may also need conference cameras, displays, microphones, headsets, and other meeting room equipment.

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6. Storage and retention

Cloud storage is generous on many Microsoft 365 plans, but meeting recordings, SharePoint sites, OneDrive files, retention requirements, and compliance policies can increase storage requirements as an organization grows.

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7. Administration and security

More sophisticated Microsoft environments also require more administration.

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Plans with advanced security, Microsoft Defender, data security, identity management, and device management can make sense for organizations with greater security requirements, but Teams then becomes part of a much larger IT purchasing decision.

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What does Microsoft Teams cost for 10, 100, or 1,000 users?

Small per-user differences become much more important as your team grows.

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Here are several examples based on plans billed yearly.

‍*Microsoft's Business plans support up to 300 users.

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This is why a $1, $3, or $10 difference in the advertised user/month price matters more than it initially appears.

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For a ten-person business, optimizing every license may save only a few hundred dollars each year. At 1,000 employees, unnecessary add-ons can easily create six-figure annual costs.

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Which Microsoft Teams plan should you choose?

There is no single best Microsoft Teams plan. The right option depends on what else you need around Teams.

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Choose Microsoft Teams Free if you primarily need casual chat and short video calls and can live with the 60-minute group meeting limit.

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Choose Teams Essentials at $4 per user/month, billed yearly if you're a small business that already has email, cloud storage, and productivity apps and mainly wants paid Teams meetings and collaboration.

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Choose Microsoft 365 Business Basic with Teams at $7 per user/month, billed yearly if you need Teams plus business-class email, substantial file storage, OneDrive, SharePoint, and web and mobile versions of the core Microsoft apps.

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Choose Microsoft 365 Business Standard with Copilot and Teams at $23.50 per user/month, billed yearly if employees also need full desktop Office apps and integrated Microsoft 365 Copilot.

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Consider Microsoft 365 Business Premium with Teams at $32 per user/month billed yearly or without Teams at $28.80 per user/month billed yearly if advanced security, Microsoft Defender, data protection, and device management are important. 

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Consider Microsoft Teams Enterprise at $8.55 per user/month, billed yearly, alongside E3, E5, or E7, if you're operating at enterprise scale and need Microsoft's broader security, compliance, identity, analytics, or management stack.

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Then add Teams Phone, Teams Premium, or Microsoft 365 Copilot only where there is a clear use case.

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Not every employee needs every add-on, and controlling who gets those licenses can matter more to the final bill than choosing between two core Microsoft Teams plans.

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Make more of the Teams meetings you're already paying for

The best Microsoft Teams pricing plan is ultimately the one that covers the collaboration, productivity, security, and calling features your organization actually uses.

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But paying for more Teams features does not automatically make the conversations happening inside Teams more useful.

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MeetGeek works alongside Microsoft Teams to automatically record, transcribe, summarize, and organize meetings, capture decisions and action items, and turn conversations into searchable knowledge. It can also help move meeting outcomes into the tools your team uses for follow-up work.

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If you're already paying for Microsoft Teams and want to get more value from the conversations happening there, try MeetGeek for free.

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Key takeaways

• Microsoft Teams pricing makes more sense when you treat it as a licensing stack rather than a single subscription. Microsoft 365, Teams, Copilot, Phone, Premium, Rooms, and calling services can all contribute to the final bill.
• Comparing with-Teams and no-Teams business plans reveals what you're effectively paying for Teams. For Business Basic, the difference is $1.60 per user/month, billed yearly.

• Add-ons can cost considerably more than the core Teams license. Microsoft 365 Copilot alone costs $30 per user/month, billed yearly, for eligible enterprise plans.
• Teams Premium, Teams Phone, and Microsoft 365 Copilot solve different problems. Buying them selectively can keep Microsoft Teams costs under control as your organization grows.

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Frequently asked questions

How much is Microsoft Teams per month?

Microsoft Teams Free costs $0. Microsoft Teams Essentials costs $4 per user/month, billed yearly, while Microsoft Teams Enterprise costs $8.55 per user/month, billed yearly. Teams is also included in or available alongside several Microsoft 365 subscription plans.

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What is the cheapest Microsoft Teams plan for a business?

Microsoft Teams Essentials is the cheapest standalone paid business option in the pricing reviewed here at $4 per user/month, billed yearly. Microsoft 365 Business Basic with Teams costs $7 per user/month, billed yearly, and adds business email, 1 TB of cloud storage per user, OneDrive, SharePoint, and web and mobile Office apps.

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Can I buy Microsoft Teams without Microsoft 365?

Yes. Microsoft sells standalone Teams licenses, including Microsoft Teams Essentials at $4 per user/month, billed yearly, and Microsoft Teams Enterprise at $8.55 per user/month, billed yearly. Add-ons such as Teams Phone still require an eligible Teams license.

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How much does Microsoft Teams Phone cost?

Microsoft Teams Phone Standard costs $10 per user/month, billed yearly. In the US, Teams Phone with pay-as-you-go calling costs $13 per user/month, billed yearly, while Teams Phone with a domestic Calling Plan costs $17 per user/month, billed yearly. Domestic and international calling costs $34 per user/month, billed yearly. A separate Microsoft Teams license is required.

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Does Microsoft Teams include Copilot?

It depends on the subscription. Microsoft 365 Business Standard with Copilot and Teams costs $23.50 per user/month, billed yearly and includes work-grounded Copilot across apps such as Word, Excel, PowerPoint, Outlook, and Microsoft Teams. For eligible enterprise subscriptions, Microsoft 365 Copilot is available as a $30 per user/month add-on, billed yearly.

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