Microsoft. Pricing model: Credits, Per seat. Value metric: Copilot Credits consumed per agent action type; Per user per month add-on to Microsoft 365.
At a glance
| Company | Microsoft |
|---|---|
| What it does | Microsoft 365 Copilot |
| Pricing model | Credits, Per seat |
| Value metric | Copilot Credits consumed per agent action type; Per user per month add-on to Microsoft 365 |
| Free tier | Copilot Chat included at no extra cost with eligible Microsoft 365 plans; agents in Copilot Chat consume Copilot Credits.; Internal agent use by Microsoft 365 Copilot-licensed users does not consume credits (fair use). |
| Pricing page | www.microsoft.com/en-us/microsoft-365/copilot/pricing |
Plans and prices
Prices as published on Microsoft's pricing page, checked 27 October 2026. They change often; check the live page before you rely on them.
Microsoft 365 Copilot
| Plan | Price | Billing | What you get |
|---|---|---|---|
| Microsoft 365 Copilot Business (SMB, up to 300 users) | $21 list; $18 promo | per user per month, annual | Full Copilot for SMBs; promo extended through 31 Dec 2026; $25.20 monthly billing |
| Business Standard + Copilot bundle | $23.50 annual / $28.20 monthly | per user per month | Bundle SKU |
| Business Premium + Copilot bundle | $32 annual / $38.40 monthly | per user per month | Bundle SKU |
| Microsoft 365 Copilot (Enterprise) | $30 | per user per month, annual | Enterprise add-on |
| Microsoft 365 E7 | $99 | per user per month | Office 365 E5, EMS E5, Windows E5, Copilot, Agent 365, Entra Suite (about 15% below components at $117) |
Usage component. Licensed users' internal agent interactions do not consume Copilot Credits (fair use); external-facing agents need Copilot Studio credits.
How credits/tokens work. Seat licence covers Copilot in apps; metered agent usage is billed in Copilot Credits (see Copilot Studio record).
Copilot Studio (Copilot Credits)
| Plan | Price | Billing | What you get |
|---|---|---|---|
| Credit pack | $200 per month for 25,000 Copilot Credits (~$0.008/credit) | monthly, pooled across tenant | Prepaid capacity |
| Pay-as-you-go | $0.01 per credit | billed monthly via Azure | No commitment |
Usage component. Classic answer 1 credit; generative answer 2; agent action 5; tenant Graph grounding 10; agent flow 13 per 100 actions; AI tools basic 1 / standard 15 / premium 100 per 10 responses; content processing 8 per page.
How credits/tokens work. Packs are pooled tenant-wide and reset monthly; PAYG covers overflow. Rates differ by action complexity rather than by token count.
What changed in 2025–2026
1 Dec 2025: Copilot Business launched at $21 for SMBs with a 15% promo ($18) to 31 Mar 2026, later extended to 31 Dec 2026. May 2026: Microsoft 365 E7 at $99 bundles Copilot and Agent 365. 1 Jul 2026: Business Basic + Copilot Business bundle at $21 after 25% promo.
Sep 2025: billing moved from 'messages' to 'Copilot Credits' with the same per-action logic.
What you can steal
Pricing
Microsoft is defending the per-seat model by bundling AI into its biggest suite and discounting for SMBs rather than metering. Bundling works when you own the workflow; most smaller vendors don't, which is why they meter.
Pricing
An action-based rate card (1, 2, 5, 10 credits) is easier for buyers to forecast than raw tokens. Publish the rate card so customers can model costs before they commit.
Sources
- www.microsoft.com/en-us/microsoft-365/copilot/pricing
- samexpert.com/microsoft-product-terms-may-2026/
- connect.tdsynnex.be/blog/media-library/microsoft-365-copilot-business-launch/
- microsoftpartners.microsoft.com/abs/blog?title=New+Microsoft+365+Business+with+Copilot+SKU
- www.cloudzero.com/blog/copilot-studio-pricing/
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Robert is the author of The Subscription Playbook and Feed a Starving Crowd and a Director at BPAG Accountants in Sydney. More about Robert.