Quick Answer
Last verified:

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: No free tier available
  • Billing: Monthly and annual (save 15-20%)
  • Hidden costs: Add ~35% for implementation, support, and training
Last verified: February 2026 | Sources: 6 pricing pages and reviews
+40-60% above list price

Hidden Costs Breakdown

1

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

2

Teams Phone System (voice calling) costs an additional $8-15/user/month on top of base plans - essential for replacing traditional phone systems

3

Domestic Calling Plan adds $12-15/user/month; International Calling Plan adds $24/user/month for PSTN connectivity

4

Teams Premium add-on costs $10/user/month for advanced meeting features like intelligent recap, custom branded meetings, and webinar customization

5

Microsoft 365 Copilot adds $30/user/month for AI-powered assistance across Teams and Office apps

6

Audio Conferencing for dial-in numbers adds $4/user/month if not using Teams Phone

7

Teams Rooms licenses cost $40/room/month for conference room hardware integration

8

Third-party app integrations: While Teams has many free integrations, premium connectors and custom app development can add significant costs

9

Data storage beyond 1TB: Additional OneDrive storage costs extra if you exceed the 1TB limit on Business plans

Example: True Cost for 25 Users

License (25 × $6 × 12) $1,800/yr
Implementation (one-time) +$15,000–$50,000
Premium Support (20%) +$360/yr
Training (25 × $500) +$12,500
Admin (part-time) +$15,000–$25,000/yr
Year 1 Total $27,700–$62,880
That's 1.8–2.5× the advertised license price.

Frequently Asked Questions

01 What hidden costs should I budget for with Microsoft Teams?

Beyond the license fee, budget for implementation ($5K-$100K+), training ($500-$2K per user), premium support (15-20% of license), and admin costs. Most companies see 40-60% higher total cost than the listed price.

02 Does Microsoft Teams charge for implementation?

Microsoft Teams doesn't include implementation in the license cost. Implementation is typically done by partners and costs range from $5,000 for basic setup to $100,000+ for enterprise deployments with customization.

03 How much does Microsoft Teams support cost?

Basic support is included, but premium support (faster response times, 24/7 availability) typically adds 15-20% to your annual contract. This can be thousands of dollars per year for larger deployments.

04 Are there storage costs with Microsoft Teams?

Most Microsoft Teams plans include limited storage. Once you exceed the included amount, you'll pay overage fees which can range from $50-$500+ per month depending on data volume.

05 What add-ons cost extra with Microsoft Teams?

Many features marketed as part of Microsoft Teams are actually add-ons: advanced reporting, API access, integrations, and specialized modules. Each can add $10-$100+ per user per month.

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