Quick Answer
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Microsoft Teams pricing varies by team size and features, ranging from $0 to $12.5 per user/month in 2026. Your actual cost depends on the tier you choose, contract length, and negotiated discounts.

Use the interactive pricing calculator to estimate your exact cost based on team size and requirements.

  • Free tier: Yes
  • Billing: Monthly and annual (save 15-20%)
  • Hidden costs: Add ~35% for implementation, support, and training

Microsoft Teams offers 4 pricing tiers: Free, Microsoft Teams Essentials, Microsoft 365 Business Basic, Microsoft 365 Business Standard. Standard paid plans include Free at $0/user/month, Microsoft Teams Essentials at $4/user/month, Microsoft 365 Business Basic at $6/user/month. The Microsoft Teams Essentials plan is small and medium-sized businesses.

Compared to other communication software, Microsoft Teams is positioned at the budget-friendly price point.

Last verified: February 2026 | Sources: 6 pricing pages and reviews

Microsoft Teams is one of the fastest-growing business communication platforms, with over 320 million monthly active users. As the collaboration hub within the Microsoft 365 ecosystem, Teams combines persistent chat, video meetings, file storage, and deep integrations with Office apps into a unified workspace. Organizations from small businesses to global enterprises use Teams to centralize communication and reduce app sprawl.

Microsoft Teams pricing in 2026 ranges from free to $12.50/user/month depending on your needs. The Free tier supports up to 100 meeting participants with 60-minute limits and 5GB storage. Teams Essentials at $4/user/month removes time limits, adds 300 participants, and increases storage to 10GB. Microsoft 365 Business Basic at $6/user/month bundles Teams with web Office apps and 1TB OneDrive storage. Business Standard at $12.50/user/month adds desktop Office apps and webinar hosting.

For organizations already paying for Microsoft 365, Teams is included at no additional cost - making it effectively free. This guide breaks down all Teams pricing options, compares standalone Teams Essentials versus Microsoft 365 bundles, and reveals hidden costs like Teams Phone ($8-15/user/month), Teams Premium ($10/user/month for AI features), and Teams Rooms licenses.

All Microsoft Teams Plans & Pricing

Plan Monthly Annual Best For
Free Free Free 0 Individual users getting started
Microsoft Teams Essentials storage: 10 GB $4 /user/month $48 /user/month Small and medium-sized businesses
Microsoft 365 Business Basic users: 300storage: 1 TB $6 /user/month $72 /user/month Small businesses needing productivity apps
Microsoft 365 Business Standard $12.5 /user/month $150 /user/month Growing businesses with advanced productivity needs
View all features by plan

Free

  • Chat, call, and video conferencing
  • Basic collaboration features

Microsoft Teams Essentials

  • 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 365 Business Basic

  • Everything in Team Essentials
  • Identity and access management for up to 300 users
  • Web and mobile versions of Word, Excel, PowerPoint, and Outlook apps
  • Custom business email
  • 1 TB of cloud storage per user
  • 10+ additional apps
  • AI chat experience with web grounding
  • Automatic spam and malware filtering

Microsoft 365 Business Standard

  • Everything in Business Basic
  • Desktop versions of Office apps
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Hidden Costs to Budget For

Watch for 9 hidden costs
  • Microsoft 365 ecosystem lock-in: Teams works best with other Microsoft products (SharePoint, OneDrive, Outlook) - switching costs increase over time as you integrate more services
  • Teams Phone System (voice calling) costs an additional $8-15/user/month on top of base plans - essential for replacing traditional phone systems
  • Domestic Calling Plan adds $12-15/user/month; International Calling Plan adds $24/user/month for PSTN connectivity
  • Teams Premium add-on costs $10/user/month for advanced meeting features like intelligent recap, custom branded meetings, and webinar customization
  • Microsoft 365 Copilot adds $30/user/month for AI-powered assistance across Teams and Office apps
  • Audio Conferencing for dial-in numbers adds $4/user/month if not using Teams Phone
  • Teams Rooms licenses cost $40/room/month for conference room hardware integration
  • Third-party app integrations: While Teams has many free integrations, premium connectors and custom app development can add significant costs
  • Data storage beyond 1TB: Additional OneDrive storage costs extra if you exceed the 1TB limit on Business plans
Tip

Ask your Microsoft Teams sales rep about these costs upfront. Getting them in writing before signing can save you from surprise charges later.

Full hidden costs breakdown →

Frequently Asked Questions

01 Is Microsoft Teams free?

Yes, Microsoft Teams offers a genuinely free tier with unlimited chat, video meetings up to 60 minutes with 100 participants, 5GB storage per user, and screen sharing. The free version lacks longer meetings, recording, and business email, but works well for small teams with basic needs.

02 How much does Microsoft Teams cost per user?

Microsoft Teams Essentials (standalone) costs $4/user/month. Teams bundled with Microsoft 365 costs $6/user/month (Business Basic) or $12.50/user/month (Business Standard with desktop Office apps). If you already have Microsoft 365, Teams is included at no extra cost.

03 What is Microsoft Teams pricing in 2026?

Microsoft Teams pricing in 2026: Free plan ($0), Teams Essentials ($4/user/month), Microsoft 365 Business Basic with Teams ($6/user/month), and Business Standard ($12.50/user/month). Enterprise plans range from $12-57/user/month with advanced security and compliance.

04 How much is Microsoft Teams Essentials?

Microsoft Teams Essentials costs $4/user/month when paid annually. It includes 30-hour meetings with up to 300 participants, 10GB cloud storage per user, collaborative annotations, Microsoft Whiteboard, and phone/web support. It's standalone Teams without Office 365 apps.

05 What's the difference between Teams Essentials and Microsoft 365 Business Basic?

Teams Essentials ($4/user/month) provides standalone Teams with 30-hour meetings, 300 participants, and 10GB storage. Microsoft 365 Business Basic ($6/user/month) includes the same Teams features plus web Office apps, 1TB OneDrive storage, and business email via Exchange. The $2 difference adds significant value.

06 Is Microsoft Teams included with Microsoft 365?

Yes, Microsoft Teams is included in all Microsoft 365 Business and Enterprise plans at no additional cost. If you're already paying for Microsoft 365 Business Basic ($6/user/month) or higher, you have full Teams access included. This makes Teams effectively free for existing Microsoft 365 customers.

07 How does Microsoft Teams compare to Zoom on price?

Microsoft Teams is significantly cheaper. Teams Essentials costs $4/user/month vs Zoom Pro at $13.33/user/month. Teams with Microsoft 365 Business Basic ($6/user/month) also includes email and Office apps. If you use Microsoft 365, Teams adds zero incremental cost.

08 What is Teams Phone System and how much does it cost?

Teams Phone System enables PSTN calling (regular phone calls) through Teams. The Phone System add-on costs $8-15/user/month. You also need a Calling Plan: Domestic calling adds $12-15/user/month, International adds $24/user/month. Total voice solution: $20-40/user/month on top of your Teams plan.

09 Does Microsoft Teams offer a free trial?

Yes, Microsoft offers a 1-month free trial of Microsoft 365 Business plans which include Teams. You can also use the free Teams tier indefinitely. Teams Essentials offers a trial period as well. No credit card required for the free tier.

10 What is Teams Premium and is it worth it?

Teams Premium ($10/user/month add-on) includes intelligent meeting recap with AI-generated notes and action items, custom branded meetings, advanced webinar features, enhanced meeting protection, and advanced virtual appointments. Worth it for customer-facing teams and those running many meetings.

11 What discounts does Microsoft Teams offer?

Microsoft offers annual commitment discounts, volume licensing discounts for 300+ users through Enterprise Agreements, nonprofit discounts (up to 75% off or free for eligible organizations), and education pricing (often free for students and educators).

12 Can I use Microsoft Teams without Microsoft 365?

Yes, Teams Essentials ($4/user/month) is a standalone Teams product without Microsoft 365. You get Teams meetings, chat, and collaboration without Office apps or Exchange email. The free Teams tier also works independently. However, best value comes from Microsoft 365 bundles.

13 What are Microsoft Teams meeting limits?

Free Teams: 60-minute meetings, 100 participants. Teams Essentials and all paid plans: 30-hour meetings, 300 participants. Meeting recordings available on paid plans with appropriate storage. Large meetings up to 1,000 participants and webinars up to 10,000 attendees available on Enterprise.

14 Does Microsoft Teams work with Slack?

Microsoft Teams and Slack are competitors and don't integrate directly. However, both work with many third-party apps. If your organization uses both, you'll need to manage them separately. Many organizations choose one platform to standardize communications.