Microsoft Teams Pricing (April 2026)
How much does Microsoft Teams cost?
Microsoft Teams offers a free plan with paid tiers starting at Free/mo.
All Plans
Business Basic
- Teams + Office web apps
- Business email
- 1TB storage
Business Standard
- Desktop Office apps
- Webinar hosting
- Attendee registration
Microsoft Teams Pricing Breakdown
Microsoft Teams offers a flexible pricing model designed to accommodate organizations of all sizes, ranging from free personal plans to comprehensive enterprise solutions. The platform's pricing strategy is primarily built around Microsoft 365 subscriptions, with several distinct tiers that provide escalating levels of functionality and integration.
The free Microsoft Teams plan serves as an excellent entry point for individuals and small teams, offering basic communication features with limitations on meeting duration and participant count. For just $4 per user monthly, the Teams Essentials plan unlocks more robust capabilities, including 30-hour meetings, 300 participant limits, and 10GB of cloud storage per user.
For businesses seeking more comprehensive solutions, Microsoft 365 Business Basic at $6 per user monthly provides web and mobile versions of Office apps, 1TB of cloud storage, and enhanced collaboration tools. The Business Standard plan, priced at $12.50 per user monthly, adds desktop versions of Office applications and additional features like webinar hosting.
Enterprise organizations can leverage more advanced plans like Microsoft 365 E3 ($33.75 per user) and E5 ($54.75 per user), which include sophisticated security, compliance, and analytics features. These higher-tier plans are particularly valuable for large organizations requiring extensive communication and collaboration infrastructure.
Hidden costs potential users should consider include the optional Teams Phone add-on ($10 per user monthly) for external calling capabilities and Microsoft Copilot AI, which can add significant expense at $30 per user monthly. While these add-ons provide powerful functionality, they can quickly escalate total cost of ownership for larger teams.
Feature Breakdown by Plan
| Feature | Free | Essentials | Business Basic | Business Standard |
|---|---|---|---|---|
| Unlimited chat | ✓ | ✗ | ✗ | ✗ |
| 100 participants | ✓ | ✗ | ✗ | ✗ |
| 60-min meetings | ✓ | ✗ | ✗ | ✗ |
| 30-hour meetings | ✗ | ✓ | ✗ | ✗ |
| 300 participants | ✗ | ✓ | ✗ | ✗ |
| 10GB storage | ✗ | ✓ | ✗ | ✗ |
| Teams + Office web apps | ✗ | ✗ | ✓ | ✗ |
| Business email | ✗ | ✗ | ✓ | ✗ |
| 1TB storage | ✗ | ✗ | ✓ | ✗ |
| Desktop Office apps | ✗ | ✗ | ✗ | ✓ |
| Webinar hosting | ✗ | ✗ | ✗ | ✓ |
| Attendee registration | ✗ | ✗ | ✗ | ✓ |
Team Cost Calculator
Estimated monthly costs based on team size (price per user × team members):
| Team Size | Essentials | Business Basic | Business Standard |
|---|---|---|---|
| 5 users | $20/mo | $30/mo | $62.50/mo |
| 10 users | $40/mo | $60/mo | $125/mo |
| 25 users | $100/mo | $150/mo | $312.50/mo |
| 50 users | $200/mo | $300/mo | $625/mo |
Is Microsoft Teams Worth It?
The free plan lets you test core functionality before committing.
Paid plans range from $4/mo (Essentials) to $12.50/mo (Business Standard). Most users pick the Business Basic plan.
Best for: Microsoft shops, Enterprise, Large organizations. Keep in mind: can be slow.
Microsoft Teams Pros & Cons
- Microsoft 365 integration
- Great video features
- Enterprise security
- Affordable
- Large meetings
- Can be slow
- Complex interface
- Notification issues
- Less intuitive than Slack