Price checkPer seat
Microsoft Teams (free)FreeFree version of TeamsFreeMicrosoft Teams Essentials$4/user/mo
See all 6 plans

All Microsoft Teams Plans & Pricing

Some prices not re-verified — only plans marked “checked” were confirmed on the vendor’s pricing page

Plan Monthly Annual Best For
Free version of Teams checked Nov 4, 2026 Not specified
View all features by plan (compare side-by-side)

Microsoft Teams (free)

  • Group calls and meetings up to 60 minutes
  • Up to 100 participants per meeting
  • 5 GB cloud storage per user
  • Available for small business and non-profit use

Free version of Teams

Microsoft Teams Essentials

  • Chat, call, and video conferencing
  • Real-time collaboration with file sharing, tasks, and polling
  • 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

  • Core identity and access management for up to 300 users
  • Web and mobile versions of Word, Excel, PowerPoint, and Outlook
  • Custom business email
  • Chat, call, and meet with Microsoft Teams
  • 1 TB of cloud storage per user
  • AI chat experience with web grounding and writing assistance
  • Automatic spam and malware filtering
  • Anytime phone and web support

Microsoft 365 Business Standard with Copilot

  • Work-grounded Copilot in Word, Excel, PowerPoint, Outlook, and Teams
  • Reasoning AI for research and data analysis
  • Desktop, web, and mobile versions of Word, Excel, PowerPoint, and Outlook
  • Custom business email
  • Chat, call, meet, and host webinars with Microsoft Teams
  • 1 TB of cloud storage per user
  • Secure AI built for work with access to create and use agents
  • Anytime phone and web support

Microsoft Teams Enterprise (E3/E5)

  • Unlimited users
  • Advanced compliance and eDiscovery
  • Enterprise voice and calling features
  • Advanced analytics and reporting
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What does Microsoft Teams actually cost you?

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Tier
Billing
Your projected cost$175per month · $7/seat × 25seats
Year 1 license$2.1K12 months at this rate
At a glance

List price by tier (annualized, per seat)

Per-seat list price across Microsoft Teams's plans, annualized. Custom-priced tiers show a hatched bar.

Microsoft Teams Essentials$48/yr
Microsoft 365 Business Basic$84/yr
Microsoft 365 Business Standard with Copilot$282/yr
Microsoft Teams Enterprise (E3/E5)Custom
Real-world benchmark

Buyers actually pay a median of $399/yr for Microsoft Teams contracts (Vendr deal flow, n=344). That's a contract total — the more seats, the more leverage to negotiate down.

Quick Answer
Last verified:
Medium confidence

Microsoft Teams has a free plan; paid plans start at $4/user/mo. Enterprise pricing is quote-based. Plans: Microsoft Teams (free) (free), Free version of Teams (free), Microsoft Teams Essentials at $4/user/month (billed annually), Microsoft 365 Business Basic at $7/user/month, and Microsoft 365 Business Standard with Copilot at $23.50/user/month. Custom pricing is available on request. The median contract is $399/year based on 344 community cost mentions.

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

  • Free tier: Yes

Microsoft Teams offers 6 pricing tiers: Microsoft Teams (free), Free version of Teams, Microsoft Teams Essentials, Microsoft 365 Business Basic, Microsoft 365 Business Standard with Copilot, Microsoft Teams Enterprise (E3/E5). A free plan is available. Paid plans include Microsoft Teams Essentials at $4/user/month (billed annually), Microsoft 365 Business Basic at $7/user/month, Microsoft 365 Business Standard with Copilot at $23.50/user/month.

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

  • Median contract: $399/yr from 344 purchases Thin data
  • 4 documented hidden costs beyond list price
  • Contracts auto-renew
Last verified: | Sources: 2 pricing pages and reviews

How much does Microsoft Teams cost?

Microsoft Teams has a free plan; paid plans start at $4/user/mo. Enterprise pricing is quote-based. Plans include Microsoft Teams (free) (free), Free version of Teams (free), Microsoft Teams Essentials at $4/user/month (billed annually), Microsoft 365 Business Basic at $7/user/month, Microsoft 365 Business Standard with Copilot at $23.50/user/month, Microsoft Teams Enterprise (E3/E5) (custom pricing).

Microsoft Teams Pricing Overview

Microsoft Teams has a free plan; paid plans start at $4/user/mo. Enterprise pricing is quote-based. The Microsoft Teams (free) plan is free and is best for getting started at no cost. The Free version of Teams plan is free. The Microsoft Teams Essentials plan costs $4/user/month (billed annually), best for small and medium-sized businesses that need affordable professional meetings. The Microsoft 365 Business Basic plan costs $7/user/month, best for businesses that need teams plus business email and web office apps. The Microsoft 365 Business Standard with Copilot plan costs $23.50/user/month, best for teams that need full desktop office apps plus ai-powered productivity with microsoft 365 copilot. The Microsoft Teams Enterprise (E3/E5) plan requires contacting sales for a custom quote and is designed for large enterprises with complex compliance, voice, and security requirements.

Microsoft Teams contracts auto-renew, with a Annual (required for advertised per-user prices) minimum commitment.

The median Microsoft Teams customer pays $399/year based on 344 community cost mentions.

There are at least 4 documented hidden costs beyond Microsoft Teams's list price, including implementation, training, and add-on fees.

This pricing was last verified in August 30, 2026 from 2 independent sources.

Try Microsoft Teams Free

Microsoft Teams paid plans start at $4 per user per month. Microsoft Teams (free) costs $0. The standalone Teams Essentials plan is $4/user/month (annual billing, monthly equivalent). Microsoft 365 bundles that include Teams start at $7/user/month (Business Basic) and reach $23.5/user/month (Business Standard with Copilot). Microsoft Teams Enterprise (E3/E5) pricing is custom-quoted.

Microsoft Teams is the collaboration hub within the Microsoft 365 ecosystem, combining persistent chat, video meetings, file storage, and integrations with Office apps in one workspace. A free plan is also available with limited meeting duration and storage, though it is not a paid tier.

For organizations already subscribed to Microsoft 365, Teams is included at no additional cost. The main pricing decision is between the standalone Teams Essentials plan and the Microsoft 365 Business bundles, which add business email, Office apps, and significantly more storage at a modest price step.

How Microsoft Teams Pricing Compares

Compare Microsoft Teams pricing against top alternatives in Communication.

Slack $0-15/user/mo Compare → Zoom $0-25.99/user/mo Compare → Discord $0-4.99/user/mo Compare →

Compare Microsoft Teams vs Alternatives

Before committing to Microsoft Teams, compare pricing with these 3 alternatives in the same category.

VSSlack
Free

Teams wanting superior third-party integrations and UX

Full comparison
VSZoom
Free

Teams prioritizing video meeting quality

Full comparison
VSDiscord
Free

Tech teams wanting free, persistent voice channels

Full comparison

All Microsoft Teams alternatives & migration guides

What Companies Actually Pay for Microsoft Teams

The median Microsoft Teams buyer pays $399/year based on 344 community cost mentions.

What companies actually pay $399/yr Median across 344 community cost mentions Thin data
Review scores
TrustRadius 8.5out of 10 (5)
Trustpilot 1out of 5 (25)
Third-party review aggregates, as of Jul 2026
Top pricing complaints
Extremely poor customer support with no path to human assistanceFrequent account access and authentication issuesForced AI (Copilot) features pushed into productsRefund policy inflexibility even for genuine errors
Source: Community cost mentions (Reddit, Hacker News) — aggregated from 344 distinct user reports. Indicative only — not contract-grade data.

Microsoft Teams Cost by Company Size

Example costs for teams of different sizes. Each figure is labelled with the period it covers.

Small Team (10 users) - Teams Essentials $480 per year

$480/year ($4/user/month × 10 users × 12 months)

10-person team using Microsoft Teams Essentials for chat and video meetings only, no Office apps

Small Business (25 users) - Microsoft 365 Business Basic $2,100 per year

$2,100/year ($7/user/month × 25 users × 12 months)

25-person team using Microsoft 365 Business Basic with Teams, Exchange email, and web Office apps

Current tier data

How Microsoft Teams Pricing Compares

Software Starting Price Top Price
Microsoft Teams Free $23.50/user/month
Confluence + Team Collab Free $11.16/user/month
Brosix $6/month $100/month
Discord $2.99/month $9.99/month
Glip (RingCentral Video) $25/month $39/month
Google Meet Custom Custom

Detailed pricing comparisons:

Browse all Communication pricing →

4 Microsoft Teams Hidden Costs Beyond the List Price

Beyond the listed price, Microsoft Teams has at least 4 documented hidden costs that can significantly increase total cost of ownership.

Watch for 4 hidden costs
  • Microsoft 365 Add-On Requirements $3-$15/user/month
    high 1 source
    Trustpilot “Teams is pretty good and some of the functions are great but its just too difficult dealing with them.”
  • Azure Price Escalation 10-30% of license costs
    high 1 source
    Reddit “Last year Microsoft raised prices of azure and other software by 10%. And this year they changed many pricing tiers in azure in such a way that effective upgrade would cost 30%.”
  • Poor Customer Support 5-10% of license costs
    medium 3 sources
    Trustpilot “Worst customer service ever period the end. Can't reach anyone and the automated service just says it can't help give you the website and hangs up. Go to the website and it tells you to call the customer service number.”
    Trustpilot “there is no help and customer service is dead and if you make a mistake trying to get help you have to wait 24h before you can try again”
    Trustpilot “Horrible customer service. I had to call three times just to calculate my account.”
  • Account Access Recovery Friction 5-15% of license costs
    medium 2 sources
    Trustpilot “Its been the 2nd time this year I cant access my business emails for several weeks. Such a shame. I just cant rely on this company.”
    Trustpilot “Account recovery process is a joke. All details given multiple times but no response despite saying I would hear back in 24 hours.”
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 →

Intelligence sourced from 3 independent sources
Trustpilot Consumer reviews Reddit User discussions TrustRadius Enterprise reviews
Key claims include inline source attribution. Data verified against multiple independent sources. 14 source citations total.

Microsoft Teams Contract Terms

Microsoft Teams contracts auto-renew. Changes require advance notice. These terms are sourced from verified buyer experiences.

Contract Terms
Auto-Renewal Yes
Minimum Commitment Annual (required for advertised per-user prices)
Mid-Term Downgrade Not allowed
Payment Terms Annual upfront for advertised monthly rates
Price Escalation Users report 10-30% annual price increases through tier restructuring and list price increases on Azure and Microsoft 365 products
Based on 1 verified source

How to Negotiate Microsoft Teams Pricing

Microsoft Teams contracts are negotiable. These 5 tactics are sourced from real buyer experiences and procurement specialists.

Negotiation Playbook 5 tactics
Teams is Free with M365 — Don't Pay for It Standalone high success

Microsoft Teams is included in all Microsoft 365 Business plans (from $6/user/month). If your organization needs email (Exchange), Office apps, or SharePoint, the M365 bundle includes Teams at no incremental cost. Never pay for Teams standalone if you can bundle.

Microsoft 365 pricing page
Negotiate Teams Phone Add-On Aggressively medium success

Microsoft Teams Phone (calling plan) is a frequent upsell. Compare it against RingCentral, Zoom Phone, and 8x8 pricing before committing. Telco competition keeps Teams Phone pricing negotiable, and Enterprise Agreement customers often secure discounts off list.

Teams Phone competitor pricing comparison
Leverage Competitor Bids medium success

Obtain competing quotes from Google Workspace or Zoom for Business before negotiating with Microsoft. Microsoft sales teams respond to competitive pressure, especially for larger seat counts.

General enterprise procurement practice
Negotiate at Microsoft Fiscal Year-End medium success

Microsoft's fiscal year ends June 30. Sales teams have the most discount authority in Q4 (April-June) when they are working to close annual quotas.

General enterprise software procurement practice
Start with Lower Tier to Negotiate low success

Begin contract discussions at Microsoft Teams Essentials ($4/user/month) to establish a relationship, then negotiate upgrade pricing to Microsoft 365 Business plans with volume commitments, often yielding better blended rates than starting at a higher tier.

General enterprise procurement practice
High success Medium Low / difficult

Full negotiation guide →

Microsoft Teams Price History

Pricing changes CostBench has tracked for Microsoft Teams, verified across 4 snapshots going back to 2026Q1.

  1. Microsoft Teams price increase

    Highest tier increased from $22 to $24/month

    +6.82%

  2. Microsoft Teams tier restructure

    Changed from 5 to 4 pricing tiers

  3. Microsoft Teams tier restructure

    Changed from 6 to 5 pricing tiers

  4. Microsoft Teams Microsoft 365 Business Basic increase

    Microsoft 365 Business Basic tier increased from $6 to $7/month

    +16.7%

  5. Microsoft Teams Microsoft 365 Business Standard increase

    Microsoft 365 Business Standard tier increased from $13 to $14/month

    +12%

Price increased 8% over 0.5 years

View Microsoft Teams's full price history →

Microsoft Teams Pricing FAQ

01 Is Microsoft Teams free?

Microsoft offers a free version of Teams with chat, video meetings capped at 60 minutes, up to 100 meeting participants, and 5 GB of storage per user. It does not include meeting recordings, business email, or Office apps. Paid plans start at $4/user/month for Teams Essentials.

02 What is the cheapest paid Microsoft Teams plan?

The cheapest paid Teams plan is Microsoft Teams Essentials at $4/user/month. It includes 30-hour meetings with up to 300 participants, 10 GB cloud storage per user, meeting recordings with transcripts, and real-time collaboration features. It does not include Office apps or business email.

03 What is included in Microsoft 365 Business Basic?

Microsoft 365 Business Basic costs $8.4/user/month and includes the full Microsoft Teams experience, web and mobile versions of Word, Excel, PowerPoint, and Outlook, custom business email via Exchange, and 1 TB of OneDrive storage per user. It supports up to 300 users.

04 How does Microsoft Teams pricing compare to Zoom?

Microsoft Teams Essentials at $4/user/month is notably cheaper than Zoom Pro, which starts at a higher price per user. Additionally, if your organization uses Microsoft 365 Business Basic ($7/user/month), Teams is included alongside business email and Office apps at no incremental cost over the base subscription.

05 Are there enterprise Microsoft Teams plans?

Yes. Microsoft offers enterprise Teams plans (E3/E5) with custom pricing quoted by sales. These include unlimited users, advanced compliance and eDiscovery tools, enterprise voice and calling features, and advanced analytics. Contact Microsoft sales for enterprise pricing.

06 What does Microsoft 365 Business Basic add over Teams Essentials?

Microsoft 365 Business Basic at $8.4/user/month adds Exchange email (with a custom domain), web and mobile versions of Office apps, 1TB OneDrive storage per user, and SharePoint access — all features missing from Teams Essentials.

07 Which plan includes desktop Office apps like Word and Excel?

You need at least Microsoft 365 Business Standard at $14/user/month to get installable desktop versions of Word, Excel, PowerPoint, Outlook, and other Office apps. Business Basic only includes the web versions.

08 Does Microsoft raise Teams prices regularly?

Microsoft has a documented pattern of annual price increases. Users report Microsoft raised prices 10% one year, then restructured tiers in a way that effectively increased costs by 30% the following year by deprecating existing price points and forcing upgrades to higher-cost tiers.

Is this pricing incorrect? — we'll verify and update it.