Microsoft Teams pricing plans
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Microsoft Teams Pricing: Plans & Cost Calculator 2026

Seven paid per-user tiers span $4 to $60 a month, all billed yearly, sitting on top of a free plan. Teams is cheap on its own; the bill is really for whichever Microsoft 365 bundle wraps around it.

Microsoft Teams interface screenshot

Microsoft Teams plans and pricing

High· Verified July 17, 2026

Microsoft Teams plans

Interactive calculator

Billing surface

Pick a plan, set your seat count and switch billing to see the running total. The full breakdown lives in the calculator below.

$4Microsoft Teams Essentials · billed annually
Free

Microsoft Teams (free)

You get 100 participants, 60-min meetings, 5GB storage

Free
Unlimited chat and messaging
Group calling up to 60 minutes and 100 participants
One-to-one calls
Screen sharing
Collaborative planning with tasks and polling
File sharing via web-based Office apps
Data encryption for meetings, chats, calls, and files
Get started
Plan

Microsoft Teams Enterprise license

$8.55/user/mo
Chat, call, and video conferencing
Real-time collaboration with file sharing, tasks, and polling
Team meeting recordings with transcripts and live captions (English)
10 GB of cloud storage per user
Data encryption for meetings, chats, calls, and files
Anytime phone and web support
Microsoft Teams Enterprise license

Microsoft 365 for business

Plan

Microsoft 365 Business Standard

Business Basic plus desktop Office apps and webinars

$14/user/mo
$16.8 /user/mosave 17%
Everything in Business Basic
Desktop, web, and mobile Word, Excel, PowerPoint, Outlook
Webinar hosting with attendee registration and reporting
Microsoft Loop and Microsoft Clipchamp video editing
AI-powered chat
1 TB cloud storage per user
Microsoft 365 Business Standard
Plan

Microsoft 365 Business Premium

Apps plus enterprise-grade security for small businesses

$22/user/mo
$26.4 /user/mosave 17%
Everything in Business Standard
Policy-based identity and access management
Device security and management
Advanced threat protection against phishing, malware, and cyber attacks
Discovery, classification, and protection of sensitive data
Microsoft 365 Business Premium
Plan

Microsoft 365 Business Basic

Teams plus web/mobile Office apps and custom business email

$7/user/mo
Core identity and access management for up to 300 users
Web and mobile versions of Word, Excel, PowerPoint, and Outlook
Custom business email ([email protected])
Chat, call, and meet with Microsoft Teams
1 TB of cloud storage per user
10+ additional apps (Microsoft Bookings, Planner, Forms)
AI chat experience with web grounding, writing assistance, and access to agents
Automatic spam and malware filtering
Anytime phone and web support
Microsoft 365 Business Basic

Microsoft 365 Enterprise

Plan

Microsoft 365 E3

$39/user/mo
Advanced identity and access management
Desktop, web, and mobile Office apps
Chat, call, meet, and host webinars with Microsoft Teams
1 to 5+ TB of cloud storage per user
Windows Enterprise device management
Shadow IT discovery, antivirus, antimalware, phishing and ransomware protection
Endpoint compliance and management
Microsoft 365 Copilot Chat
Anytime phone and web support
Choose Microsoft 365 E3
Plan

Microsoft 365 E5

$60/user/mo
Everything in E3
Teams Phone cloud phone system
Power BI Pro business analytics
Windows 365 Cloud PC management with Intune
Extended detection and response (XDR), hybrid identity protection (ITDR)
Malicious OAuth app protection
Data security and compliance for higher data risk
Microsoft 365 Copilot Chat
Anytime phone and web support
Choose Microsoft 365 E5

Microsoft 365 for home

Plan

Microsoft 365 Personal

$99.99//year
For 1 person, up to five devices simultaneously
1 TB (1000 GB) secure cloud storage
Word, Excel, PowerPoint, Outlook, OneNote desktop apps with Microsoft Copilot
Higher usage limits than free for select Copilot features
Microsoft Defender advanced security and OneDrive ransomware protection
Microsoft Teams with Copilot
Also available at $9.99/month
Microsoft 365 Personal
Plan

Microsoft 365 Family

$129.99//year
Everything in Personal, for 1 to 6 people (AI for subscription owner only)
Each person can use on up to 5 devices simultaneously
Up to 6 TB secure cloud storage (1 TB per person)
Also available at $12.99/month
Microsoft 365 Family
Plan

Microsoft 365 Premium

$199.99//year
Everything in Family, plus extensive usage for select Copilot features
Access to Copilot features currently exclusive to Premium subscribers
Extensive usage for AI image creation in Copilot
Also available at $19.99/month
Microsoft 365 Premium

Teams Phone

Plan

Teams Phone Standard

$10/user/mo
Cloud-based phone system
Make and receive voice and video calls over PSTN or the internet
PSTN via Teams Calling Plans, Operator Connect, or Direct Routing
Combine mobile calling plans with Teams Phone Mobile
Transfer calls between devices
99.999% uptime SLA
Teams Phone Standard
Plan

Teams Phone with Calling Plan (US zone 1)

$17/user/mo
Includes Teams Phone Standard plus a domestic calling plan
US/UK/Canada: 3,000 outbound domestic calling minutes
Rest of world: 1,200 outbound domestic calling minutes
Price includes communication taxes and fees
Teams Phone with Calling Plan (US zone 1)

Teams Rooms

Free

Teams Rooms Basic

Free
One-touch join to instantly join meetings
Wireless sharing to easily share content
Shared digital canvas for real-time collaboration
Get started
Plan

Teams Rooms Pro

$40/room/mo
One-touch join, wireless sharing, shared digital canvas
AI-powered audio and video optimized for hybrid meetings
Inclusive video and room layouts, chat bubble alerts, customizations
Enterprise-grade management and security (access control, remote config, device analytics)
IT service management (ITSM) integration
Automated updates, problem detection, and resolution at scale
Choose Teams Rooms Pro

Add-ons

Free

Microsoft Teams Audio Conferencing

Free
Global audio conference dial-in number to join a call from virtually any device
Dial-out to USA/CAN
Get started
Plan

Teams Premium

$10/user/mo
AI-powered meetings and calls
Personalized experiences to reimagine flexible work
Extra layer of protection for sensitive meetings
Choose Teams Premium
Plan

Copilot for Microsoft 365

$30/user/mo
Microsoft 365 Copilot across enterprise apps
AI assistance in Word, PowerPoint, Teams, and more
Summarize chat threads, write messages, create meeting notes
Answer questions from company data
Copilot for Microsoft 365

Microsoft Teams pricing: the quick answer

Quick answerHigh· Verified July 17, 2026

Microsoft Teams is not sold on its own price line; it ships inside Microsoft 365, so what you pay is the bundle. The free plan handles 100 participants and 60-minute group meetings, then paid access starts at $4 per user a month for Teams Essentials, $7 for Business Basic, $14 for Business Standard, and $22 for Business Premium, all billed yearly as of July 17, 2026. Enterprise runs higher: the standalone Teams Enterprise license is $8.55, Microsoft 365 E3 is $39, and E5 is $60 per user a month on an annual commitment. Add-ons stack on top, with Teams Phone from $10 and Microsoft 365 Copilot at $30 per user a month.

  • Microsoft Teams (free)Free
  • Microsoft 365 Business Standard$16.80/user/mo
  • Microsoft 365 Business Premium$26.40/user/mo
  • Microsoft 365 Personal$99.99/yr
  • Microsoft 365 Family$129.99/yr
  • Microsoft 365 Premium$199.99/yr
  • Microsoft Teams Essentials$4/user/mo, annual
  • Microsoft Teams Enterprise license$8.55/user/mo, annual
  • All 18 plans below
Run your numbers in the cost calculator: pick a plan, set your team size, and compare monthly against annual billing.
Free tier
Yes
Billing model
Freemium
Cheapest paid
$16.80/user/mo
Annual discount
Save ~17%

At $16.80/mo to start, Microsoft Teams sits 1% below the $16.99/mo median across 17 video conferencing tools we track.


Microsoft Teams cost calculator

Microsoft Teams Hidden Costs & Pitfalls

What sits on top of the plan fee

Because Teams rides inside Microsoft 365, the number that matters is what you bolt on. Three add-ons quietly reset the per-seat cost well above the base plan.

Teams Phone for real calling
Teams handles meetings, but placing external calls needs Teams Phone Standard at $10/user/mo on top of an existing Teams or M365 license, and even then a Calling Plan for PSTN minutes is separate. Ten seats that need phones is $100/mo added to whatever base plan they already carry, so calling roughly triples a $4 Essentials seat.
$10/user/mo
Copilot AI is a premium bolt-on
The AI assistant that summarizes threads and drafts meeting notes is Copilot for Microsoft 365 at $30/user/mo, and it requires a qualifying Business or Enterprise plan underneath. Adding it to a $12.50 Business Standard seat lands each user near $42.50/mo, so a 20-person rollout adds $600 monthly for AI alone.
$30/user/mo
Essentials skips the Office apps
The $4 Essentials tier is Teams-only: no Word, Excel, or the identity controls most teams assume come with Microsoft. Getting those means Business Basic at $7/user/mo or Business Standard at $12.50/user/mo for desktop apps, so budget the tier you actually need rather than the cheapest sticker.
$6 to $12.50/user/mo
The renewal jump, credit expiry and every discount worth having are in the Microsoft Teams true cost guide, with an email generator for negotiating team and enterprise rates.
Microsoft Teams Cost Analysis

Microsoft Teams pricing, read against its live plans and category

Positioning

$16.80/moentry price
in line with the category median
low $8.40median $16.99 · n=17high $500

Microsoft Teams keeps its entry pricing low. Teams Essentials is $4/user/mo and Business Basic is $7/user/mo, both billed yearly, which undercuts most standalone meeting tools. The free tier still covers 60-minute group calls for up to 100 people. Business Standard at $14/user/mo adds desktop Office apps and webinars, and Business Premium at $22/user/mo adds security and device management. For a team already inside Microsoft 365 the math is easy. For a buyer who only wants video calls, the suite wrapped around Teams is more than they need.

Cost drivers

  • 1Teams Phone Standard is a separate $10/user/mo add-on, and a domestic calling plan on top runs $17/user/mo.
  • 2Full voice features push you toward E5 at $60/user/mo or the phone add-ons rather than the base plans.
  • 3Business Premium costs more month to month than billed yearly, $26.40 versus $22 per user.
  • 4Microsoft 365 Copilot is another $30/user/mo on enterprise plans, or $18 promotional on business plans.

Watch-outs

Voice is where the bill grows. A full phone system means either an E5 license at $60/user/mo or stacking the Teams Phone and calling-plan add-ons, and buyers regularly flag that as the part that surprises them. Prices have also drifted up: Business Standard moved from $12.50 to $14 and Business Basic from $6 to $7 per user a month.

Strengths

Teams Essentials at $4/user/mo (annual) is a cheap way to get meetings, recordings, and 10 GB of storage, and there is a free plan under it.

  • Free plan for small groups
  • Paid meetings start at $4 per user a month
  • Strong user ratings (4.3/5 on G2)

What users say

even if the switch to Microsoft Teams causes 1 hour of productivity...

Reddit (negative)

Looks like M365 and Teams are splitting...

Reddit (neutral)

Editor’s take

Teams Essentials and Business Basic fit budget-minded small teams, Business Standard suits anyone who needs desktop Office apps, and the enterprise E3 and E5 plans carry the security and voice stack. If you only want video calls without the Microsoft 365 lock-in, a single-purpose tool like Zoom at $12.49/mo is worth a look.

Oleh KemOleh KemFounder & Lead Analyst
ComparEdge EditorialUpdated: July 17, 2026

Microsoft Teams price history


Price & Data Intelligence SyncLast verified: July 17, 2026 · CE-VIDEO-2026W29-6B8C4F · ✓ Pricing updated
Up to date

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Frequently asked questions


Sources & verification

Verified by ComparEdgeMethod: Vendor docs, official pages, and selected independent sources
SourceWhat was checkedLast checked
Microsoft 365 enterprise plans and pricingWhere the current Microsoft 365 E3 ($39) and E5 ($60) per-user prices were verified, since the Teams comparison page carries only the standalone Teams SKUs.July 16, 2026
Official Pricing PageSource of verified tiersJuly 17, 2026
Official WebsiteOfficial vendor website
G2G2 verified user reviews · 4.3/5 · 17,942 reviews
CapterraCapterra verified user reviews · 4.5/5
TrustRadiusTrustRadius verified reviews
PeerSpotPeerSpot enterprise peer reviews

Every fact on this Microsoft Teams pricing page is tied to a named source and a verification date. Freshness-sensitive figures trace to the sources above; verify against the vendor before relying on them.

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