Microsoft
Plans
Source: pricing-page · Verified May 9, 2026
Sources
Insights
Computed from plan data, changelog events, and field coverage.
Changelog 7 events
Nadella confirmed hybrid model: "per-user business will become per-user and usage business." Copilot Credits expanding across portfolio.
Additional M365 July 2026 SKU increases: F1 $2.25->$3 (+33%), F3 $8->$10 (+25%), Apps for Enterprise $12->$14 (+17%), Apps for Business $8.25->$10 (+21%), Windows E3 $6.63->$7.63 (+15%), EMS E3 $10.60->$12 (+13%), EMS E5 $16.40->$18 (+10%), Entra P1 $6->$7 (+16%), Entra P2 $9->$10 (+11%)
New standalone suites: Purview Suite $12/user/mo and Defender Suite $12/user/mo
Security Copilot bundled into M365 E5 (previously separate consumption add-on). Copilot Chat enhancements added to all M365/O365 plans. Defender for Office Plan 1 added to E3. URL time-of-click protection added to E1/Business Basic/Standard.
M365 price increases effective July 1, 2026: Business Basic $6→$7 (+17%), Business Standard $12.50→$14 (+12%), E3 $36→$39 (+8%), Office 365 E3 $23→$26 (+13%), E5 $57→$60 (+5%). New security features bundled (Defender for Office 365 Plan 1, Intune additions).
Introduced Copilot Credits as consumption mechanism for AI agent workloads
Announced M365 suite price increases effective July 1, 2026
Related Companies
Notes
Microsoft 365 Copilot is the AI layer across Office/Teams/Dynamics. Hybrid model: per-seat Copilot licenses ($18-30/user/mo) plus consumption-based Copilot Credits ($0.01/credit) for agent workloads via Copilot Studio.
Plans
Copilot Chat ($0) — Free with M365. Web-grounded AI only, no Work IQ, limited agent access billed at metered rates.
Copilot Business ($18/user/mo promo, ~$21 after July 2026) — Full Copilot in Word, Excel, PowerPoint, Teams, Outlook. Bundled with M365 Business Standard/Premium.
Copilot Enterprise ($30/user/mo add-on) — Requires M365 E3/E5. Full Copilot with enterprise data grounding, Graph integration, admin controls.
Copilot Studio — Agent builder. PAYG at $0.01/Copilot Credit or capacity packs at $200/mo for 25,000 credits. Up to 20% discount with pre-purchase commitment.
Dynamics 365 AI
1,000 Copilot Credits bundled per seat/month in Premium SKUs. Overage at $0.01/message via Azure. ~60% of customer service customers now purchase usage-based credits.
Notes
Nadella (Q3 2026 earnings): "The basic transformation of any per-user business of ours — whether it is productivity, coding, or security — will become a per-user and usage business." CFO Amy Hood: "It will still have that per-seat license logic, but it will also have a meter, just like you see in Azure."
This is the most explicit incumbent statement that per-seat is evolving into hybrid. See github for GitHub Copilot's separate usage-based shift.