Price checkPer seat
Microsoft Teams Essentials$4/user/moMicrosoft 365 Business Basic$7/user/moMicrosoft 365 Business Standard$14/user/mo
See all 5 plans

All Microsoft Teams Plans & Pricing

Plan Monthly Annual Best For
View all features by plan (compare side-by-side)

Microsoft Teams Essentials

  • Chat, calls, and video meetings
  • Meetings up to 30 hours with 300 participants
  • 10 GB cloud storage per user
  • Meeting recordings with transcripts
  • Real-time collaboration with file sharing and polling

Microsoft 365 Business Basic

  • Full Microsoft Teams included
  • Web and mobile versions of Word, Excel, PowerPoint, and Outlook
  • Custom business email via Exchange
  • 1 TB OneDrive storage per user
  • Up to 300 users

Microsoft 365 Business Standard

  • Everything in Business Basic
  • Desktop versions of Word, Excel, PowerPoint, and Outlook
  • Webinar hosting with attendee registration and reporting
  • Microsoft Loop collaborative workspaces
  • Video editing tools via Microsoft Clipchamp

Microsoft 365 Business Premium

  • Everything in Business Standard
  • Advanced threat protection and device management
  • Information protection and compliance tools
  • Conditional access and identity security

Microsoft Teams Enterprise (E3/E5)

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

Drag the slider. Pick a tier. Your projected spend updates as you go.

Tier
Billing
Your projected cost$100per month · $4/seat × 25seats
Year 1 license$1.2K12 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$168/yr
Microsoft 365 Business Premium$264/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 costs $4 to $22 per user/month as of July 2026, with 5 plans available. Plans: Microsoft Teams Essentials at $4/user/month, Microsoft 365 Business Basic at $7/user/month, Microsoft 365 Business Standard at $14/user/month, and Microsoft 365 Business Premium at $22/user/month. Enterprise pricing is available on request. The median contract is $399/year based on 344 verified purchases.

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

  • Free tier: No free tier available

Microsoft Teams offers 5 pricing tiers: Microsoft Teams Essentials, Microsoft 365 Business Basic, Microsoft 365 Business Standard, Microsoft 365 Business Premium, Microsoft Teams Enterprise (E3/E5). Paid plans include Microsoft Teams Essentials at $4/user/month, Microsoft 365 Business Basic at $7/user/month, Microsoft 365 Business Standard at $14/user/month. The Microsoft 365 Business Basic plan is businesses that need teams plus business email and web office apps.

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: 1 pricing pages and reviews

How much does Microsoft Teams cost?

Microsoft Teams pricing starts at $4/user/month across 5 plans, with enterprise pricing available on request. Plans include Microsoft Teams Essentials at $4/user/month, Microsoft 365 Business Basic at $7/user/month, Microsoft 365 Business Standard at $14/user/month, Microsoft 365 Business Premium at $22/user/month, Microsoft Teams Enterprise (E3/E5) (custom pricing).

Microsoft Teams Pricing Overview

Microsoft Teams has 5 pricing plans ranging from $4 to $22/user/month. The Microsoft Teams Essentials plan costs $4/user/month, best for small businesses that need teams meetings without a full microsoft 365 subscription. 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 plan costs $14/user/month, best for teams that need full desktop office apps alongside collaboration and webinar tools. The Microsoft 365 Business Premium plan costs $22/user/month, best for organizations that need advanced security, compliance, and device management. 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 verified purchases.

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 June 9, 2026 from 1 independent source.

Try Microsoft Teams Free

Microsoft Teams paid plans cost $4–$22 per user per month as of 2026. The standalone Teams Essentials plan starts at $4/user/month. Microsoft 365 bundles that include Teams start at $7/user/month (Business Basic), $14/user/month (Business Standard), and $22/user/month (Business Premium). Enterprise E3/E5 plans are quoted by sales.

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 verified purchase transactions.

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 Year 1 Total Cost by Company Size

Real deployment costs including licenses, implementation, training, and admin — not just the sticker price.

Small Team (10 users) - Teams Essentials $480 Year 1 total
$4/user/month × 10 users × 12 months
Total $480

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 Year 1 total
$7/user/month × 25 users × 12 months
Total $2,100

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

Mid-Market Team (50 users) - Microsoft 365 Business Standard $8,400 Year 1 total
$14/user/month × 50 users × 12 months
Total $8,400

50-person team with full desktop Office apps, Teams, Exchange, and 1TB OneDrive storage per user

Enterprise (100 users) - Microsoft 365 Business Premium $26,400 Year 1 total
$22/user/month × 100 users × 12 months
Total $26,400

100-person organization with advanced security, compliance features, Azure AD Premium, and Intune device management

Current tier data

How Microsoft Teams Pricing Compares

Software Starting Price Top Price
Microsoft Teams $4/user/month $22/user/month
Discord Free $9.99/user/month
Google Meet Free $22/user/month
Loom Free $20/user/month
RingCentral $30/user/month $45/user/month
Slack Free $15/user/month

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. 15 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 6 tactics are sourced from real buyer experiences and procurement specialists.

Negotiation Playbook 6 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
Bundle with Microsoft EA for Maximum Discount high success

Microsoft Enterprise Agreement customers typically get Teams + M365 E3 at $22-28/user/month (vs $36 list), including 15-20% EA discount. Teams Essentials standalone at $4/user/month is only worth purchasing if you specifically don't want the full M365 suite.

Microsoft Enterprise Agreement pricing
Negotiate Teams Phone Add-On Aggressively medium success

Microsoft Teams Phone (calling plan) at $8-15/user/month is a frequent upsell. Compare it against RingCentral, Zoom Phone, and 8x8 pricing before committing — telco competition keeps Teams Phone pricing highly negotiable, with EA customers often getting 30-40% 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 3 snapshots going back to 2026Q1.

  1. Microsoft Teams tier restructure

    Changed from 6 to 5 pricing tiers

  2. Microsoft Teams Microsoft 365 Business Basic increase

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

    +16.7%

  3. Microsoft Teams Microsoft 365 Business Standard increase

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

    +12%

Price increased 6% over 0.3 years

View Microsoft Teams's full price history →

Microsoft Teams Pricing FAQ

01 How much does Microsoft Teams cost?

Microsoft Teams paid plans range from $4 to $22 per user per month. Teams Essentials (standalone) is $4/user/month. Microsoft 365 Business Basic, which bundles Teams with business email and web Office apps, is $7/user/month. Business Standard with desktop Office apps is $14/user/month, and Business Premium with advanced security is $22/user/month.

02 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.

03 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.

04 What is included in Microsoft 365 Business Basic?

Microsoft 365 Business Basic costs $7/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.

05 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.

06 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.

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

Microsoft 365 Business Basic at $7/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.

08 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.

09 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.