If you’re worried about the changes taking place to Microsoft Teams pricing this year, you’re not alone. For some time now, Microsoft Teams has stood as one of the top solutions for collaboration, communication, and productivity in the new age of work.
The constantly evolving platform enables everything from file and screen sharing to video and audio conferencing, chat, and more. Previously, it was automatically bundled with a range of Microsoft Office tools on most plans. However, after initially unbundling Teams and Office for customers in Europe, Microsoft has since decided to roll out new plans worldwide.
Although you can still access some solutions together, the pricing for your services may change somewhat this year. Here’s everything you need to know about Microsoft Teams pricing in 2024.
Microsoft Teams Pricing: What’s Changing This Year
In 2023, following an EU antitrust investigation, Microsoft announced it would be selling its collaboration app, Microsoft Teams, separately from Office products in Europe. Now, the tech giant is updating its Microsoft Teams pricing structure worldwide.
Starting April 1st, 2024, customers have the option to continue using the plans they had previously chosen for both Teams and Office or switch to a new plan.
Notably, there is still a range of plans available for Microsoft Teams. Microsoft offers three plans for individual users, including the free plan (which still allows you to use Microsoft Teams with fewer features). There are also many plans for Frontline workers, enterprise and business users, and companies that want to bundle Microsoft Teams with Microsoft Teams Phone.
Let’s dive into the Microsoft Teams pricing structure as it stands today.
Microsoft Teams Pricing: Personal Plans
The personal plans for Microsoft Teams have not undergone many changes this year (so far). If you choose one of the “Home” plans, intended for individual users, you’ll have three options.
These include:
- Microsoft Teams (free): $0.00 per month. The free plan includes group calling for up to 60 minutes on Teams for 100 participants. You also get collaborative planning, tasks, and polling, 5GB of storage, and basic data encryption for chats, calls, files, and meetings. Notably, this plan doesn’t include any Office apps, although you can get a free version of Microsoft Office for the web to use alongside your Teams plan.
- Microsoft 365 Personal: $6.99 per month. This plan includes everything in the free version of Microsoft Teams, group calling for 300 participants (up to 30 hours). You also get Word, Excel, and PowerPoint for the web, PC, Mac and Mobile, 1TB of cloud storage, ad-free email, calendar and contacts, and ongoing technical support. Plus, there are live captions for meetings, and advanced grammar, spelling, and design tools available.
- Microsoft 365 Family: $9.99 per month. This plan includes everything in the Personal plan, but users can share up to 6 licenses with their family members.
Notably, while anyone can access these plans, you won’t get many of the features you might need to use Microsoft Teams as a business solution. For instance, you’ll miss out on breakout rooms, webinars, whiteboarding tools, multi-factor authentication, etc. You also can’t use Microsoft 365 Copilot (for an extra fee) alongside the personal plans.
Microsoft Teams Business and Enterprise Plans
There are quite a few different ways to access Microsoft Teams (with or without Office apps) as a Business or enterprise user. Here are the main prices you’ll need to be aware of in 2024.
Changes in Microsoft Teams Pricing for Enterprises
As of now, Microsoft 365 E3/E5 and Office 365 E1/E3/E5 will no longer be available with Teams to new subscribers worldwide. If you already have one of these suites, you can continue to use your existing licenses, and add seats, renew and upgrade your plan as usual.
If you don’t already have one of those plans, you’ll need to purchase two SKUs for team members. This means buying Microsoft 365 or Office 365 without Teams and then purchasing a Microsoft Teams Enterprise license (starting at $5.25) for each employee.
Prices include:
- Office 365 E1 (without Teams): $7.75
- Office 365 E3 (without Teams): $20.75
- Office 365 E5 (without Teams): $35.75
- Microsoft 365 E3 (without Teams): $33.75
- Microsoft 365 E5 (without Teams): $54.75
- Microsoft Teams Enterprise: $5.25
Changes to Microsoft Teams Pricing for Frontline Suites
Microsoft announced that the current Frontline plans for Microsoft Teams will coexist with the new pricing structure. This means customers can choose between Microsoft 365 F1/F3 and Office 365 F3 with Teams included.
With Teams included, you’ll pay:
- $2.25 for Microsoft 365 F1
- $4.00 for Office 365 F3
- $8.00 for Microsoft 365 F3
Without Microsoft Teams, the prices are $1.75 for Microsoft 365 F1, $3.50 for Office 365 F3, or $7.50 for Microsoft 365 F3.
Changes to Microsoft Teams Pricing for Business Suites
Similar to the updates for the Frontline pricing options, the new pricing structure for Microsoft Teams’ Business suites will co-exist alongside the old plans. This means you can choose between options like Microsoft 365 Business Basic, Standard, and Premium, with or without Teams.
Options include:
Microsoft Teams Essentials
Available for $4 per month per user (paid annually), Microsoft Teams Essentials is a standalone plan for Microsoft Teams, which doesn’t include any Office apps. You’ll essentially get the same experience as you would from the free personal version of Teams, plus some extras.
For instance, users can access:
- 10GB of storage per user
- Group meetings for up to 300 participants for up to 30 hours
- Access to various third-party apps
- Live meeting captions (in English)
- Team meeting recordings and transcriptions
- Microsoft Whiteboard
- Collaborative annotations on Teams
- Basic Security Settings
Microsoft 365 Business Basic
Microsoft 365 Business Basic costs $6 per user per month with Microsoft Teams or $4.75 per month without Teams. It includes all of the features of the “Essentials” plan, plus web and mobile versions of Outlook, PowerPoint, Excel, and Word. You also get additional apps for business needs, such as Microsoft Planner, Bookings, and Forms.
Additionally, the Business Basic plan includes:
- Access, identity, and user management for 300 employees
- 1TB of cloud storage for each employee
- Custom business email addresses
- Automatic spam and malware filtering
- Phone and web support from Microsoft
Microsoft 365 Business Standard
Microsoft 365 Business Standard costs $12.50 per month with Teams included or $10.25 per month per user without Teams. This plan includes all of the features of Business Basic, plus desktop versions of Word, Excel, Outlook, and PowerPoint. You also get:
- Microsoft Loop collaborative spaces
- Webinars with attendee reporting and registration
- Video editing with Clipchamp
- The option to add Copilot for Microsoft 365 ($30 per user, per month)
Microsoft 365 Business Premium
The Premium version of Microsoft’s plans for business users is $22 per month, per user, with Microsoft Teams included, or $19.75 without Teams. This plan includes all of the features of Business Standard, plus:
- Advanced identity and access management
- Cyberthreat protection tools
- Information safeguarding via Microsoft Purview
- Endpoint device protection
- Entra ID, Microsoft Defender, and InTune.
Users can also choose to add Copilot for Microsoft 365 to this plan.
Microsoft Teams Pricing with Phone Bundles
The Microsoft Teams Phone Bundles combine the Microsoft Teams Essentials plan with Microsoft Teams calling features and online versions of Microsoft’s Office apps. There are currently four plans to choose from, including:
- Essentials with Phone: $8 per month, per user: This plan requires an Operator Connect calling plan and gives you access to a cloud-based phone system, unlimited inbound calling, call queues, recording, transcription, transfer, and auto attendant. Plus, you get unlimited meetings and messaging, file sharing, tasks and polling, 10GB of storage per user, and Microsoft Word, Excel, and PowerPoint (online only).
- Essentials with Teams Pay as you Go Phone: $10 per month with all of the features of Microsoft Teams Essentials with Phone, without the need for Operator Connect. Instead, you get a phone number with metered calling minutes from Microsoft for outbound calls.
- Essentials and Domestic Teams Phone Calling: $16 per month, per user, with all the features of the previous plan, plus a phone number with outbound domestic calling minutes from Microsoft.
- Essentials and International Teams Phone Calling: $32 per month, per user, with all the features of the Domestic calling plan, plus a phone number with international calling minutes powered by Microsoft.
Additional Pricing Considerations
On top of all the Microsoft Teams pricing options mentioned above, there are some additional add-ons you might want to access alongside your plans. Such as:
- Microsoft Teams Premium: $10 per month, per user: This add-on for Microsoft Teams gives you access to more AI tools, personalization options for meetings, AI-generated tasks, content reviews, personalized Teams experiences, and advanced data protection.
- Copilot for Microsoft Teams: To access Copilot alongside Microsoft Teams, you’ll need the Microsoft 365 Copilot plan. This costs $30 per month per user. This gives you Microsoft’s AI assistant, built into Microsoft Teams chat and calling capabilities.
- Microsoft Places: Microsoft Places, which uses AI to find the best time for your next meeting, will become part of Microsoft Teams Premium in the months ahead. You can access it for $10 per user per month.
Understanding Microsoft Teams Pricing in 2024
Microsoft Teams pricing can be difficult to understand right now. Microsoft’s decision to unbundle Teams and its Office apps means companies will have various ways to access various Microsoft tools in the months ahead.
The good news is that you already have a Microsoft plan; you won’t necessarily need to change your subscription. However, if you’re starting from scratch, it’s worth doing some research to decide how exactly you want to bundle different Microsoft Teams plans, office tools, and AI assistants.
