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Microsoft Teams costs Free to $22 per user/month as of May 2026. Pricing depends on your chosen tier, 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
Last verified: | Sources: 10 pricing pages and reviews
+70% above list price
Know Before You Buy — Try Microsoft Teams Free

Microsoft Teams true cost runs 70% above the listed $0-$22/user/month price as of May 2026. For a 25-person team, expect ~$3,060 in year-one costs vs the $1,800 base license. Key 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. Verified from 10 sources by CostBench.

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
Estimated Year 1 Total ~$3,060
That's roughly 1.7× the advertised license price. The median Microsoft Teams contract is $399/yr across 344 Vendr purchases.
Now You Know the Real Cost — Try Microsoft Teams Free