- Copilot plans and prices side by side
- Business add-on or enterprise add-on?
- Paying monthly vs paying yearly
- The usage-based charges on top of the seat
- Where Microsoft 365 E7 fits
- Why Microsoft's site says Microsoft Copilot
- How to work out what Copilot will cost you
- Which Copilot plan I'd pick
- Frequently asked questions
Microsoft 365 Copilot costs $18.00 per user per month for the Business add-on paid yearly, or $30.00 per user per month for the enterprise add-on paid yearly, as of October 2026. Both sit on top of a qualifying Microsoft 365 plan, and Microsoft also sells bundles with Copilot built in, from $23.50 for Business Standard with Copilot up to $99.00 for Microsoft 365 E7.
Those are Microsoft's US list prices, and the figure most people quote, $30.00, is only the enterprise one. If your business has 300 people or fewer, you're probably looking at a lower number. Here's every plan side by side, what each one needs underneath it, and the charges that sit outside the seat price.
Copilot plans and prices side by side
| Plan | Per user per month, paid yearly | Per user per month, paid monthly | What to know |
|---|---|---|---|
| Copilot Business add-on | $18.00 (was $21.00) | $25.20 | Needs an eligible Microsoft 365 Business plan; up to 300 users |
| Business Standard with Copilot | $23.50 | $28.20 | The Business Standard apps with Copilot included |
| Business Premium with Copilot | $32.00 | $38.40 | Adds Business Premium's security features |
| Copilot enterprise add-on | $30.00 | Monthly option offered | Needs a qualifying Microsoft 365 plan |
| Microsoft 365 E7 | $99.00 | Annual commitment | Includes Microsoft Copilot and Agent 365 |
All figures are in US dollars, per user per month, as of October 2026, taken from Microsoft's own pricing pages. Prices differ by market, and Microsoft's pages show some plans as not available in certain markets, so check the version for your country before you set a budget.
Business add-on or enterprise add-on?
Microsoft Copilot Business is the add-on built for smaller organisations. Microsoft's licensing page caps it at 300 users per tenant, sells it on an annual commitment, and requires an eligible Microsoft 365 Business plan underneath. The pricing page shows it as originally starting from $21.00 and now starting from $18.00 on yearly billing, so anyone who priced Copilot earlier in the year may be working from an old figure.
The enterprise add-on is $30.00 per user per month paid yearly, on an annual subscription that auto-renews. It also needs a licence for a qualifying Microsoft 365 plan, and Microsoft says it includes Copilot Chat and the Standard harness in Copilot Studio, its tool for building agents. Organisations with more than 300 users, or on enterprise Microsoft 365 plans, go this route.
Paying monthly vs paying yearly
This is where businesses overpay without noticing. The Business add-on is $18.00 per user per month on yearly billing but $25.20 on a monthly subscription. That's two fifths more for the flexibility of a monthly plan.
The bundles follow a gentler pattern. Business Standard with Copilot is $23.50 yearly or $28.20 monthly, and Business Premium with Copilot is $32.00 yearly or $38.40 monthly. On both bundles, monthly billing adds a fifth to the yearly price, while on the standalone add-on it adds two fifths. So if you need month-to-month flexibility for a pilot, the penalty is smaller on a bundle than on the add-on.
The usage-based charges on top of the seat
The seat price isn't the whole bill. Microsoft's business pricing page says its plans carry usage-based billing for select advanced AI features, and it puts the split simply: everyday AI is included in your licence, while advanced AI, the work you hand off, is billed as you use it. Copilot Cowork and Copilot Autopilot are marked as usage-based on every plan.
Agents add another layer. Copilot Chat is included at no extra cost for people signing in with an Entra account on an eligible Microsoft 365 subscription, but agents used in Chat are priced on a metered basis and need an Azure subscription. If you're working out what your team gets without paying for Copilot at all, my guide to Microsoft 365 Copilot Chat goes through it.
Where Microsoft 365 E7 fits
At the top end, Microsoft 365 E7 is $99.00 per user per month paid yearly, with an annual commitment. Microsoft says it includes Microsoft Copilot and Agent 365, its control plane for IT and security leaders to manage AI agents. It's aimed at organisations that want Copilot, agent governance and Microsoft 365 on one licence. For a small business it's far more than you need.
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Why Microsoft's site says Microsoft Copilot
If you're searching Microsoft's site for Microsoft 365 Copilot and keep landing on something called Microsoft Copilot, you're in the right place. Microsoft's licensing page now names the work product Microsoft Copilot, while most people still search for the old name. The plans and prices above are the same under either label. For what the product does day to day, see what Microsoft 365 Copilot is.
How to work out what Copilot will cost you
- Count the people who need Copilot. At 300 or fewer, the Business add-on is open to you; above that, it's enterprise licensing.
- Check which Microsoft 365 plan they're on now, because both add-ons need a qualifying plan underneath.
- Decide whether you're adding Copilot to licences you already have or moving people to a bundle such as Business Standard with Copilot.
- Choose yearly billing if you can commit, since monthly costs more on every plan in the table.
- Keep a separate budget line for usage-based features such as Cowork and Autopilot, and for any agents your team runs in Chat.
- Check the figures for your country before you sign, since Microsoft's prices vary by market.
Which Copilot plan I'd pick
For a business under 300 people, I'd take the Business add-on on yearly billing. At $18.00 per user per month as of October 2026, it's the lowest seat price Microsoft lists, and paying monthly only makes sense for a short pilot. Start with the people who'll use it every day, not the whole company, and look hard at the usage-based features before you switch them on for everyone. Larger organisations should only consider E7 if they also want Agent 365; otherwise the $30.00 enterprise add-on is the simpler buy.
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Frequently asked questions
How much is Microsoft 365 Copilot per month?
As of October 2026, Microsoft lists the Copilot Business add-on at $18.00 per user per month paid yearly and the enterprise add-on at $30.00 per user per month paid yearly. Both need a qualifying Microsoft 365 plan.
Is Microsoft 365 Copilot cheaper for small businesses?
Yes. The Copilot Business add-on, for organisations with up to 300 users on eligible Business plans, is $18.00 per user per month on yearly billing, against $30.00 for the enterprise add-on, as of October 2026.
Can I pay for Microsoft 365 Copilot monthly?
Yes. The Business add-on is $25.20 per user per month on a monthly subscription, compared with $18.00 on yearly billing, as of October 2026.
Does Microsoft 365 Copilot include Copilot Studio?
The enterprise add-on includes Copilot Chat and the Standard harness in Copilot Studio, according to Microsoft's pricing page.
Are there extra charges on top of the Copilot licence?
Yes. Microsoft bills select advanced AI features such as Copilot Cowork and Copilot Autopilot on usage, and agents in Copilot Chat are metered and need an Azure subscription.
