Microsoft Teams Pricing 2026
Complete pricing guide with plans, hidden costs, and cost analysis
Microsoft Teams has a free plan. Paid plans start at $4/user/month (Microsoft Teams Essentials) and go up to $22/user/month.
Microsoft Teams costs Free to $22 per user/month as of March 2026, with 6 plans available including a free tier. Plans: Microsoft Teams (Free) (free), Microsoft Teams Essentials at $4/user/month, Microsoft 365 Business Basic at $6/user/month, Microsoft 365 Business Standard at $12.5/user/month, and Microsoft 365 Business Premium at $22/user/month. Enterprise pricing is available on request. 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: Yes
Microsoft Teams offers 6 pricing tiers: Microsoft Teams (Free), Microsoft Teams Essentials, Microsoft 365 Business Basic, Microsoft 365 Business Standard, Microsoft 365 Business Premium, Microsoft Teams Enterprise (E3/E5). A free plan is available. Paid plans include Microsoft Teams Essentials at $4/user/month, Microsoft 365 Business Basic at $6/user/month, Microsoft 365 Business Standard at $12.5/user/month. The Microsoft Teams Essentials plan is small and medium-sized businesses needing affordable meetings.
Compared to other communication software, Microsoft Teams is positioned at the budget-friendly price point.
- Median contract: $150/yr from 0 purchases 0
- 9 documented hidden costs beyond list price
How much does Microsoft Teams cost?
Microsoft Teams Pricing Overview
Microsoft Teams has 6 pricing plans, including a free tier. Paid plans range from $0 to $22/user/month. The Microsoft Teams (Free) plan is free and is best for individuals and small groups getting started. The Microsoft Teams Essentials plan costs $4/user/month, best for small and medium-sized businesses needing affordable meetings. The Microsoft 365 Business Basic plan costs $6/user/month, best for businesses needing email and lightweight office apps. The Microsoft 365 Business Standard plan costs $12.50/user/month, best for businesses needing full desktop office apps and webinars. The Microsoft 365 Business Premium plan costs $22/user/month, best for businesses needing advanced security and compliance. The Microsoft Teams Enterprise (E3/E5) plan requires contacting sales for a custom quote and is designed for large enterprises with advanced security and compliance needs.
The median Microsoft Teams customer pays $150/year.
There are at least 9 documented hidden costs beyond Microsoft Teams's list price, including implementation, training, and add-on fees.
This pricing was last verified in February 22, 2026 from 9 independent sources.
Microsoft Teams pricing ranges from free to $22 per user per month as of March 2026. The free plan supports up to 100 participants. Teams Essentials costs $4/user/month, Microsoft 365 Business Basic $6/user/month, Business Standard $12.50/user/month, and Business Premium $22/user/month. Enterprise E3/E5 plans have custom pricing. Verified from 9 pricing sources by Costbench, the software pricing database tracking 1,000+ products.
Microsoft Teams is one of the fastest-growing business communication platforms, with over 320 million monthly active users. As the collaboration hub within the Microsoft 365 ecosystem, Teams combines persistent chat, video meetings, file storage, and deep integrations with Office apps into a unified workspace. Organizations from small businesses to global enterprises use Teams to centralize communication and reduce app sprawl.
Microsoft Teams pricing in 2026 ranges from free to $12.50/user/month depending on your needs. The Free tier supports up to 100 meeting participants with 60-minute limits and 5GB storage. Teams Essentials at $4/user/month removes time limits, adds 300 participants, and increases storage to 10GB. Microsoft 365 Business Basic at $6/user/month bundles Teams with web Office apps and 1TB OneDrive storage. Business Standard at $12.50/user/month adds desktop Office apps and webinar hosting.
For organizations already paying for Microsoft 365, Teams is included at no additional cost - making it effectively free. This guide breaks down all Teams pricing options, compares standalone Teams Essentials versus Microsoft 365 bundles, and reveals hidden costs like Teams Phone ($8-15/user/month), Teams Premium ($10/user/month for AI features), and Teams Rooms licenses.
How Microsoft Teams Pricing Compares
Compare Microsoft Teams pricing against top alternatives in Communication.
All Microsoft Teams Plans & Pricing
| Plan | Monthly | Annual | Best For |
|---|---|---|---|
| Microsoft Teams (Free) meetingDuration: 60meetingParticipants: 100 | Free | Free | Individuals and small groups getting started |
| Microsoft Teams Essentials storagePerUser: 10 GB | $4 /user/month | $48 /user/year | Small and medium-sized businesses needing affordable meetings |
| Microsoft 365 Business Basic maxUsers: 300storagePerUser: 1 TB | $6 /user/month | $72 /user/year | Businesses needing email and lightweight Office apps |
| Microsoft 365 Business Standard | $12.5 /user/month | $150 /user/year | Businesses needing full desktop Office apps and webinars |
| Microsoft 365 Business Premium | $22 /user/month | $264 /user/year | Businesses needing advanced security and compliance |
| Microsoft Teams Enterprise (E3/E5) | Contact Sales | Contact Sales | Large enterprises with advanced security and compliance needs |
View all features by plan
Microsoft Teams (Free)
- Chat, call, and video conferencing
- File sharing and collaboration
- 5 GB cloud storage per user
- Data encryption
- 60-minute meetings with up to 100 participants
Microsoft Teams Essentials
- Chat, call, and video conferencing
- Real-time collaboration with file sharing, tasks, and polling
- Team meeting recordings with transcripts and live captions (English)
- 10 GB cloud storage per user
- Data encryption for meetings, chats, calls, and files
- Anytime phone and web support
Microsoft 365 Business Basic
- Everything in Teams Essentials
- Web and mobile versions of Word, Excel, PowerPoint, Outlook
- Custom business email (you@yourbusiness.com)
- 1 TB cloud storage per user
- 10+ additional business apps (Bookings, Planner, Forms)
- AI chat experience with web grounding, writing assistance, and data analysis
- Automatic spam and malware filtering
- Identity and access management for up to 300 users
Microsoft 365 Business Standard
- Everything in Business Basic
- Desktop, web, and mobile versions of Word, Excel, PowerPoint, Outlook
- Webinars with attendee registration and reporting
- Collaborative workspaces with Microsoft Loop
- Video editing and design tools with Microsoft Clipchamp
Microsoft 365 Business Premium
- Everything in Business Standard
- Advanced security and device management
- Cyber threat protection
- Information protection and compliance
Microsoft Teams Enterprise (E3/E5)
- Everything in Business Premium
- Unlimited users
- Advanced compliance and eDiscovery
- Enterprise voice and calling
- Advanced analytics
Compare Microsoft Teams vs Alternatives
Before committing to Microsoft Teams, compare pricing with these 3 alternatives in the same category.
What Companies Actually Pay for Microsoft Teams
The median Microsoft Teams buyer pays $150/year based on 0 verified purchase transactions.
Microsoft Teams Year 1 Total Cost by Company Size
Real deployment costs including licenses, implementation, training, and admin — not just the sticker price.
10 users on Teams Essentials with standalone Teams features
50 users on Microsoft 365 Business Basic with Teams, email, and cloud storage
100 users on Business Basic plus Teams Phone with Domestic Calling Plan
How Microsoft Teams Pricing Compares
| Software | Starting Price | Top Price |
|---|---|---|
| Microsoft Teams | Free | $22/user/month |
| Discord | Free | $9.99/user/month |
| Google Meet | $7.2/user/month | $21.6/user/month |
| Loom | Free | $20/user/month |
| RingCentral | $20/user/month | $35/user/month |
| Slack | Free | $18/user/month |
Detailed pricing comparisons:
Microsoft Teams Pricing FAQ
01 Is Microsoft Teams free?
Yes, Microsoft Teams offers a genuinely free tier with unlimited chat, video meetings up to 60 minutes with 100 participants, 5GB storage per user, and screen sharing. The free version lacks longer meetings, recording, and business email, but works well for small teams with basic needs.
02 How much does Microsoft Teams cost per user?
Microsoft Teams Essentials (standalone) costs $4/user/month. Teams bundled with Microsoft 365 costs $6/user/month (Business Basic) or $12.50/user/month (Business Standard with desktop Office apps). If you already have Microsoft 365, Teams is included at no extra cost.
03 What is Microsoft Teams pricing in 2026?
Microsoft Teams pricing in 2026: Free plan ($0), Teams Essentials ($4/user/month), Microsoft 365 Business Basic with Teams ($6/user/month), and Business Standard ($12.50/user/month). Enterprise plans range from $12-57/user/month with advanced security and compliance.
04 How much is Microsoft Teams Essentials?
Microsoft Teams Essentials costs $4/user/month when paid annually. It includes 30-hour meetings with up to 300 participants, 10GB cloud storage per user, collaborative annotations, Microsoft Whiteboard, and phone/web support. It's standalone Teams without Office 365 apps.
05 What's the difference between Teams Essentials and Microsoft 365 Business Basic?
Teams Essentials ($4/user/month) provides standalone Teams with 30-hour meetings, 300 participants, and 10GB storage. Microsoft 365 Business Basic ($6/user/month) includes the same Teams features plus web Office apps, 1TB OneDrive storage, and business email via Exchange. The $2 difference adds significant value.
06 Is Microsoft Teams included with Microsoft 365?
Yes, Microsoft Teams is included in all Microsoft 365 Business and Enterprise plans at no additional cost. If you're already paying for Microsoft 365 Business Basic ($6/user/month) or higher, you have full Teams access included. This makes Teams effectively free for existing Microsoft 365 customers.
07 How does Microsoft Teams compare to Zoom on price?
Microsoft Teams is significantly cheaper. Teams Essentials costs $4/user/month vs Zoom Pro at $13.33/user/month. Teams with Microsoft 365 Business Basic ($6/user/month) also includes email and Office apps. If you use Microsoft 365, Teams adds zero incremental cost.
08 What is Teams Phone System and how much does it cost?
Teams Phone System enables PSTN calling (regular phone calls) through Teams. The Phone System add-on costs $8-15/user/month. You also need a Calling Plan: Domestic calling adds $12-15/user/month, International adds $24/user/month. Total voice solution: $20-40/user/month on top of your Teams plan.
09 Does Microsoft Teams offer a free trial?
Yes, Microsoft offers a 1-month free trial of Microsoft 365 Business plans which include Teams. You can also use the free Teams tier indefinitely. Teams Essentials offers a trial period as well. No credit card required for the free tier.
10 What is Teams Premium and is it worth it?
Teams Premium ($10/user/month add-on) includes intelligent meeting recap with AI-generated notes and action items, custom branded meetings, advanced webinar features, enhanced meeting protection, and advanced virtual appointments. Worth it for customer-facing teams and those running many meetings.
11 What discounts does Microsoft Teams offer?
Microsoft offers annual commitment discounts, volume licensing discounts for 300+ users through Enterprise Agreements, nonprofit discounts (up to 75% off or free for eligible organizations), and education pricing (often free for students and educators).
12 Can I use Microsoft Teams without Microsoft 365?
Yes, Teams Essentials ($4/user/month) is a standalone Teams product without Microsoft 365. You get Teams meetings, chat, and collaboration without Office apps or Exchange email. The free Teams tier also works independently. However, best value comes from Microsoft 365 bundles.
13 What are Microsoft Teams meeting limits?
Free Teams: 60-minute meetings, 100 participants. Teams Essentials and all paid plans: 30-hour meetings, 300 participants. Meeting recordings available on paid plans with appropriate storage. Large meetings up to 1,000 participants and webinars up to 10,000 attendees available on Enterprise.
14 Does Microsoft Teams work with Slack?
Microsoft Teams and Slack are competitors and don't integrate directly. However, both work with many third-party apps. If your organization uses both, you'll need to manage them separately. Many organizations choose one platform to standardize communications.
15 What are the main pricing tiers for Microsoft Teams?
Microsoft Teams offers several pricing tiers: Microsoft Teams (Free) at $0/month, Microsoft Teams Essentials at $4/month, Microsoft 365 Business Basic at $6/month, Microsoft 365 Business Standard at $12.50/month, and Microsoft 365 Business Premium at $22/month. Enterprise plans (E3/E5) require custom pricing.
16 Does Microsoft Teams work well with external organizations?
Yes, external connections are easy to set up according to user reviews. However, some users note it can be challenging if contacts are not part of the Microsoft environment, requiring convincing and creating friction for external communications.
17 What are common issues users face with Microsoft Teams?
Users report several common issues: search functionality can be inaccurate, random logouts occur, online status is not always accurate, lag when leaving meetings, and the calendar function needs improvement compared to full Outlook feature parity.
Is this pricing incorrect? — we verify and update within 24 hours.