More flexible billing for Microsoft 365 Copilot

In response to feedback from customers and partners for more flexible payment options, Microsoft will introduce a new monthly billing plan for annual subscriptions to Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Service. However, this new monthly billing option for annual subscriptions will be 5% more expensive.

Unification of the billing structure & price update

For all products with monthly billing plans per user for annual subscriptions (i.e. annual commitment with monthly billing), Microsoft is introducing a price update.

IMPORTANT: Price update for Microsoft Teams Phone and Power BI

Microsoft will also adjust the prices for Microsoft Teams Phone Standard, Power BI Pro and Power BI Premium Per User from April 1, 2025. This is the first price increase for both standalone products since Teams Phone was introduced in 2017 and Power BI in 2015, and reflects the collective added value that has been added to Teams Phone and Power BI over the years. These price updates will be implemented for new and existing customers upon renewal as follows:

• Teams Phone Standard licenses will cost $10 per user per month (previously $8 + 20%).
• Power BI Pro licenses will cost $14 per user per month (previously $10 + 40%).
• Power BI Premium Per User licenses will cost $24 per user per month (previously $20 + 20%).

Currently, there are no pricing changes for customers who purchase Power BI Pro and Teams Phone licenses through the Microsoft 365 and Office 365 E5 suites. The price update applies to all business customers. The monthly billing schedule for annual subscriptions will be priced an additional 5% higher and there may be slight price discrepancies due to currency exchange rate fluctuations, local pricing policies, and rounding rules.