How much does Microsoft 365 Copilot cost?
As of 2026-07, the Microsoft 365 Copilot business add-on costs $18 per user/month (annual, promotional through Sept 30, 2026; standard $21) or $25.20 month-to-month, and requires a qualifying Microsoft 365 plan. For individuals, Copilot AI features come with Microsoft 365 Personal ($9.99/mo) up to Premium ($19.99/mo). Basic Copilot is free.
Why — the first-principles explanation
Copilot pricing looks confusing because Microsoft sells it as an add-on, not a standalone product. An add-on is an extra fee stacked on top of a subscription you already pay for. Running an LLM for millions of users costs Microsoft real money per query in computing power, so they charge a recurring per-seat fee to cover it, rather than a one-time purchase.
For businesses, the Microsoft 365 Copilot add-on is roughly $18 per user per month on an annual commitment (a promotional rate through September 30, 2026; the standard price is $21), or $25.20 per user per month billed monthly. Crucially, this sits on top of a qualifying Microsoft 365 base license, so the true all-in cost per employee is higher than the add-on number alone.
For individuals, Microsoft folds Copilot AI features into its consumer plans rather than charging separately. Microsoft 365 Personal is $9.99/month, Family is $12.99/month, and Premium is $19.99/month, with higher tiers unlocking more AI usage and image generation. The old standalone Copilot Pro at $20/month has been retired, with existing subscribers supported until August 1, 2026; Microsoft 365 Premium is its replacement.
The reason for tiered pricing is simple economics: heavier AI use costs Microsoft more, so plans that promise "extensive" usage cost more than plans with basic limits. The free Copilot app covers casual use at no charge.
An example that makes it click
Think of Copilot like a premium coffee-machine subscription at your office. You already pay rent for the office (your Microsoft 365 base plan). Adding the fancy espresso machine costs an extra $18 per desk each month on top of the rent. If you only want one at home, you buy a home bundle: a $9.99 basic package, a $12.99 family package, or a $19.99 deluxe package that pours unlimited shots.
And if you just want a plain cup now and then, the lobby has a free machine (the free Copilot app). You never have to pay a cent unless you want the faster, higher-limit espresso.
Key facts
- As of 2026-07, Microsoft 365 Copilot business add-on is $18/user/month on annual billing (promotional through Sept 30, 2026; standard $21).
- Month-to-month business billing is $25.20 per user per month.
- The business add-on requires a separate qualifying Microsoft 365 base license.
- Consumer plans: Microsoft 365 Personal $9.99/mo, Family $12.99/mo, Premium $19.99/mo, all including Copilot AI features.
- The standalone Copilot Pro ($20/mo) is retired; existing subscribers are supported until August 1, 2026.
- A free version of Microsoft Copilot is available with no subscription.
Microsoft's assistant across Windows, Edge, and Microsoft 365.
Affiliate link — we may earn a commission at no cost to you.▶ The 60-second explainer (script)
How much does Microsoft 365 Copilot cost? As of July 2026, it depends on whether you're a business or an individual. For businesses, Copilot is an add-on: about 18 dollars per user per month on an annual plan, a promo rate through September, with the standard price at 21 dollars. Billed monthly, it's 25 dollars and 20 cents. But remember, that stacks on top of a Microsoft 365 license you already pay for. For individuals, Copilot's AI features are baked into consumer plans: Personal is 9.99 a month, Family is 12.99, and Premium is 19.99 with the highest usage limits. The old standalone Copilot Pro at 20 dollars is being retired, replaced by Microsoft 365 Premium. And if you just want casual help, there's a completely free Copilot app. So: free for casual use, around 10 to 20 dollars a month for individuals, and 18 to 25 dollars per user for businesses on top of their base plan.
What authoritative sources say
People also ask
Is there a free version of Copilot?
Yes. The Microsoft Copilot app and website are free to use with no subscription, though usage limits are lower than paid plans.
Do I need a Microsoft 365 license to add business Copilot?
Yes. The Microsoft 365 Copilot business add-on requires a qualifying Microsoft 365 base plan, so the total cost is higher than the add-on alone.
What happened to Copilot Pro?
Microsoft retired the standalone Copilot Pro plan. Existing subscribers are supported until August 1, 2026; Microsoft 365 Premium ($19.99/mo) is the replacement.
Why is business Copilot more expensive than the individual plan?
Business Copilot connects to your organization's data with enterprise security and compliance, and is priced per user on top of a base license.