Copilot license cost: Microsoft Copilot licensing types, levels and prices, compared.
We sell a competing product, so read the numbers with that in mind, then go check them. Every price below was read off a Microsoft pricing page, a Microsoft Learn article or the August 2026 Copilot Studio Licensing Guide PDF on August 23, 2026. Nothing here is modelled, estimated or lifted from a roundup.
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In short
Last updated August 2026
A Microsoft Copilot license costs $30 per user per month on an annual term for the enterprise add-on, or $18 per user per month for Microsoft 365 Copilot Business, the small and midsize version. Copilot Chat sits underneath both at no additional cost on an eligible Microsoft 365 subscription, and Copilot Studio sits above them on a different meter entirely: the user license is $0 but a tenant capacity pack is $200 a month for 25,000 Copilot Credits. So the honest answer to what a Copilot license costs is that there are three price points, not one, and which of them applies to you is decided by whether you want Copilot inside Word and Excel, Copilot answering in a chat box, or Copilot running an agent you built. One detail almost no roundup carries: in August 2026 Microsoft renamed Microsoft 365 Copilot to Microsoft Copilot, so the license you are pricing may appear under either name in your admin center.
- Microsoft Copilot add-on
- $30 per user per month, annual
- Microsoft Copilot Business
- $18 per user per month, annual
- Copilot Studio user license
- $0, needs a $200 tenant pack
The license ladder
The Copilot license levels you can actually buy, and the price on each one
Microsoft sells Copilot under at least four names at four price points, and two of them are called Copilot with no further qualifier. This is the ladder, cheapest first, with the prerequisite each rung needs.
Copilot Chat, included, no additional cost
Automatically available to organizations on an eligible Microsoft 365 subscription. Microsoft splits it in two: web-based chat shows results from the internet and is included at no extra cost, while work-based chat shows results the signed-in Entra account can reach and, on Microsoft's own licensing article, is available with a Microsoft Copilot license. Agents you build and run inside Copilot Chat are metered in Copilot Credits regardless. Treat Copilot Chat as free for web grounding and priced for work grounding.
Microsoft 365 Copilot Business, $18 per user per month
The small and midsize add-on, quoted on Microsoft's business pricing page at $18.00 user/month paid yearly, shown there as reduced from $21.00, or $25.20 on a month-to-month term. Its prerequisites are the business plans: Microsoft 365 Business Basic, Business Standard, Business Premium or Apps for Business. If you run a company of 40 people on Business Premium, this is the rung you are actually pricing, not the $30 one.
Microsoft 365 Business Standard or Premium with Copilot, $23.50 or $32 per user per month
Rather than buying the add-on separately, Microsoft sells bundles with Copilot already in them: Business Standard with Copilot at $23.50 user/month paid yearly and Business Premium with Copilot at $32.00. Run the arithmetic before you assume the bundle is a discount, because the bundle price is roughly the base plan plus the add-on, and the comparison you want is against what you are already paying for the base plan today.
Microsoft Copilot, $30 per user per month
The enterprise add-on, quoted at $30.00 user/month paid yearly on Microsoft's enterprise pricing page, on an annual auto-renewing subscription. It is the rung that unlocks Copilot inside the Office apps, work grounding, Work IQ and Microsoft's prebuilt agents. Microsoft directs enterprise buyers to contact a representative to add it to an existing subscription rather than buying it in the cart.
Microsoft 365 E7, $99 per user per month, Copilot included
On Microsoft's enterprise plan comparison, E3 is $39, E5 is $60 and E7 is $99 per user per month paid yearly, and E7 carries Copilot in the base offering rather than as a separate charge. The comparison worth doing is E5 at $60 plus the $30 add-on, which is $90, against E7 at $99: the $9 gap is what E7 charges for everything else it adds.
Copilot Studio, $0 for the user license and $200 a month for the tenant
Copilot Studio is not a seat product and does not belong on the same axis as the rungs above. Microsoft lists the Copilot Studio User License at $0 for each user who builds and manages agents, then states in its August 2026 licensing guide that a capacity pack is $200 per credit pack per month, billed annually, for 25,000 Copilot Credits, purchased per tenant. The seat is genuinely free. The tenant subscription behind it is not.
Why this page
Microsoft renamed the product in August 2026, and most of the internet is still pricing the old name.
The name changed, and the license did not
Appendix D of the Microsoft Copilot Studio Licensing Guide dated August 2026 records the change in one line: Microsoft 365 Copilot rebranded as Microsoft Copilot, effective August 2026. Microsoft's own licensing article on Learn, updated on August 18, 2026, is already titled License Options for Microsoft Copilot and names the two add-on SKUs as Microsoft Copilot and Microsoft Copilot Business. If you are comparing a quote against an article written before August, you are comparing two names for the same thing.
Every figure here was read off a Microsoft page or PDF this week
The seat prices come from Microsoft's business and enterprise pricing pages, the Copilot Studio figures from the August 2026 Copilot Studio Licensing Guide PDF and the billing rates article on Learn, all checked on August 23, 2026. Where a number is ours rather than Microsoft's, such as the E5-plus-add-on comparison, the arithmetic is shown so you can redo it. We sell a competing product, so check the sources rather than trusting the summary.
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Compare
Every Copilot license and what it costs, side by side
Seat prices read from Microsoft's business and enterprise pricing pages on August 23, 2026. Copilot Studio figures from the Microsoft Copilot Studio Licensing Guide, August 2026, and the billing rates article on Learn, updated August 3, 2026. The right-hand column is the prerequisite, because on this product the prerequisite is usually the real cost.
| License | Published price | Billing term | What you must already have |
|---|---|---|---|
| Copilot Chat (web grounding) | No additional cost | Included | An eligible Microsoft 365 subscription |
| Microsoft 365 Copilot Business | $18.00 user/month | Paid yearly | Business Basic, Standard, Premium or Apps for Business |
| Microsoft 365 Copilot Business | $25.20 user/month | Month to month | The same business plans |
| Microsoft Copilot (enterprise add-on) | $30.00 user/month | Paid yearly | E3, E5, F1, F3, Office 365 E1/E3/E5 and more |
| Microsoft 365 Business Standard with Copilot | $23.50 user/month | Paid yearly | Nothing, it is a bundle |
| Microsoft 365 Business Premium with Copilot | $32.00 user/month | Paid yearly | Nothing, it is a bundle |
| Microsoft 365 E3 | $39.00 user/month | Paid yearly | Copilot is a separate $30 add-on |
| Microsoft 365 E5 | $60.00 user/month | Paid yearly | Copilot is a separate $30 add-on |
| Microsoft 365 E7 | $99.00 user/month | Paid yearly | Copilot included in the base offering |
| Copilot Studio User License | $0 per maker | Per user | A tenant prepaid Copilot Credit pack subscription |
| Copilot Studio Author role | $0 per maker | Per user | Pay-as-you-go or a pre-purchase plan instead of a pack |
| Copilot Studio capacity pack | $200 per pack/month | Billed annually | Bought per tenant, 25,000 credits a month |
| Copilot Studio pay-as-you-go | $0.01 per credit | Billed in arrears | An Azure subscription and a billing policy |
| Professional Direct Support | $9 user/month | Billed annually | Enough licenses to cover every Power Platform seat, max 250 |
| Dataverse Database add-on | $40 per GB/month | Billed annually | Beyond the 15 GB default per tenant |
Microsoft renamed Microsoft 365 Copilot to Microsoft Copilot in August 2026, so the same license appears under both names depending on when the page you are reading was written. Prices are Microsoft's US list prices and exclude any volume or agreement discount your reseller applies.
The tools
The four ways to pay for Copilot Studio capacity, with the price on each
The seat is free; the capacity is not. Microsoft's August 2026 licensing guide lists four purchasing constructs, and they are not interchangeable. Two of them are called P3 and they are different products.
Capacity pack (Copilot Studio license)
$200 / pack / monthA tenant subscription bought in the Microsoft 365 admin center, billed annually, giving 25,000 Copilot Credits a month pooled across the tenant and allocated to environments in the Power Platform admin center. This is also the only route to the $0 Copilot Studio User License, which Microsoft gates behind a tenant prepaid pack subscription.
- Best for:
- Predictable monthly volume, and any team that wants the free maker seats.
- Strength:
- The cheapest published rate at $0.008 a credit, and it carries the free user license with it.
- Weakness:
- Unused credits do not roll over, and enforcement disables custom agents at 125 percent of prepaid capacity.
Pay-as-you-go Copilot Credit meter
$0.01 / creditAn Azure-billed meter attached to an environment through a billing policy, counting the credits your agents and flows actually consume and billing in arrears at the end of the month. Microsoft states it carries no interruptions due to overages. Credit consumption is not counted against this meter until your credit packs are exhausted, so it stacks cleanly underneath packs as an overflow.
- Best for:
- Unpredictable or seasonal volume, and as a safety net under a pack.
- Strength:
- Nothing to forecast, nothing to over-buy, and no service denial when you overshoot.
- Weakness:
- 25 percent more per credit than a pack, and it does not unlock the free user license.
Copilot Credit Pre-Purchase Plan (P3)
5% to 20% off, one yearA one-year pay-upfront pool of Copilot Credits bought in the Azure portal and drawn down automatically. Microsoft publishes nine tiers: 300,000 credits at 5 percent, then 1.5M at 6, 3M at 7, 15M at 8, 30M at 10, 75M at 12, 150M at 14, 225M at 17 and 300M at 20 percent. Unused credits expire at the end of the annual term.
- Best for:
- A single annual budget line covering credits across several Microsoft AI products.
- Strength:
- One commitment covers Copilot Studio, Copilot Cowork, Work IQ APIs and the AI features in Dynamics 365 and Power Platform.
- Weakness:
- You must commit around $2.4M a year to reach the $0.008 rate a $200 pack gives anyone off the shelf.
Microsoft Agent Pre-Purchase Plan (P3)
5% to 15% off, one yearThe second and much less discussed P3, added in February 2026, covering agentic services across both Copilot Studio and Microsoft Foundry. You buy Agent Commit Units, and Microsoft defines one ACU as $1 of usage, equivalent to 100 Copilot Credits. Three tiers: 20,000 ACUs at 5 percent, 100,000 at 10 percent, 500,000 at 15 percent.
- Best for:
- Organizations running Copilot Studio and Microsoft Foundry side by side.
- Strength:
- Discounts arrive far earlier: 10 percent at $100,000 of usage, where the credit ladder wants roughly $300,000.
- Weakness:
- Capped at 15 percent, ACUs do not roll over, and it is billed per environment via a billing plan.
How much does a Copilot license cost per user?
The number you want is $30 per user per month on an annual term, and it is right for exactly one situation: a company on an enterprise Microsoft 365 plan buying the Microsoft Copilot add-on. If you are on a business plan, the answer is $18 per user per month for Microsoft 365 Copilot Business, a rung that a surprising number of comparison articles skip entirely. On a month-to-month term that same business license is $25.20, so the annual commitment saves 28.6 percent, which is a larger spread than most Microsoft products carry.
Multiply before you decide. Forty users on the business add-on at $18 is $720 a month, or $8,640 a year. The same forty on the enterprise add-on at $30 is $1,200 a month and $14,400 a year. That $5,760 difference is not a feature question first, it is a prerequisite question: the business SKU only attaches to Business Basic, Business Standard, Business Premium or Apps for Business, so the plan you are already on decides which price you are allowed to pay.
There is one comparison in the enterprise range worth running properly. Microsoft 365 E5 is $60 and the Copilot add-on is $30, so a licensed E5 user with Copilot costs $90 a month. Microsoft 365 E7 is $99 and includes Copilot in the base offering. That is a $9 premium for everything else E7 adds over E5, which is a very different conversation from the one most teams have, which is whether Copilot is worth $30 on top of what they already pay.
What are the Microsoft Copilot license types and levels?
There are four levels and they are not a straight line, which is the single biggest source of confusion in this whole cluster. Copilot Chat is the floor and costs nothing extra on an eligible Microsoft 365 subscription. Microsoft 365 Copilot Business at $18 and Microsoft Copilot at $30 are the same product for different customer sizes, not two feature tiers. Copilot Studio is not a level at all: it is the build-your-own-agent platform, priced by consumption rather than by seat, and you can hold a $30 Copilot license and still owe Copilot Credits.
Copilot Chat deserves a closer read than it usually gets, because Microsoft describes it in two halves. Web-based chat shows results from the internet and is automatically included at no extra cost. Work-based chat shows results the signed-in Microsoft Entra account can access, and Microsoft's License Options for Microsoft Copilot article states it is available with a Microsoft Copilot license. Microsoft's marketing pages describe Copilot Chat more simply as included, so if grounding on your own tenant data is the thing you are buying, verify it against your own tenant rather than against a pricing card. Microsoft publishes a Copilot License Details diagnostic at aka.ms/CopilotLicenseDetails for exactly this check.
The prerequisite list is where the real flexibility hides. Microsoft's licensing article lists the qualifying plans for the $30 add-on, and it runs far below a full suite: alongside E3, E5, E7, F1 and F3 it includes Office 365 E1, Microsoft Teams Essentials, Exchange Kiosk, SharePoint Kiosk, OneDrive Plan 1, Visio Plan 1, Project Online Essentials and Microsoft Clipchamp. A frontline or kiosk worker on a cheap Exchange plan can hold a Copilot license. That is worth knowing before anyone tells you the whole organization has to move to E5 first.
Do you need a Copilot license to use Copilot Studio?
No, and the relationship runs the other way round from what most people assume. The Copilot Studio User License, the one every maker needs to build and manage agents, is listed at $0. What Microsoft gates is not the seat but the tenant: its August 2026 licensing guide states that the free user license comes with the Copilot Studio subscription, and recommends acquiring the tenant license and the user licenses in a single transaction. In practice the entry price to Copilot Studio is one $200 capacity pack a month, and the seats on top of it are genuinely free.
If you would rather not buy a pack, there is a second route that this site has not seen written up anywhere else clearly. When Copilot Studio usage is paid through pay-as-you-go or through either pre-purchase plan, Microsoft does not use the user license at all. It uses a Copilot Studio Author role, also priced at $0, assigned through a security group configured in the Power Platform admin center under the Copilot Author setting. Same outcome, different mechanism, no $200 floor. That distinction is the difference between a $2,400 first-year commitment and a metered bill that starts at whatever you actually use.
Where a Microsoft Copilot license does change your Copilot Studio bill is at runtime, and the effect is large. Microsoft's billing rates table carries a third column headed with whether the feature is used by a licensed user, and every metered row in it reads no charge. The condition, spelled out in the footnote and repeated in the licensing guide, is that the scenario is employee facing, published on Microsoft channels, and running under the authenticated licensed user's identity, subject to fair usage limits Microsoft can revise. The full decision tree for that is on do you need a Copilot Studio license.
The four exclusions that sit inside the free runtime
The zero-rating is real, and it is also narrower than the words no charge suggest. Four carve-outs are documented, and each one bills at full rate. Computer-Using Agents are not included in the Microsoft Copilot user subscription license and bill at the agent action rate of 5 credits. Agent flows are only included when the run is triggered by the When an agent calls the flow trigger, so anything scheduled or externally triggered consumes credits normally. Generative answers still incur charges unless the agent was created in Agent Builder in Microsoft 365 and the response does not use tenant graph grounding.
The fourth is the newest and the easiest to miss. The change log in Microsoft's August 2026 licensing guide records, under July 2026, that Work IQ API usage by Copilot Studio agents is not included in the Microsoft 365 Copilot user subscription license, and the entitlement table repeats it as a footnote. Work IQ is one of the headline reasons to pay for the $30 license in the first place, so an agent that calls those APIs is paying twice: once for the seat, once for the credits.
There is also a harness dimension that only appeared in August 2026 and is not yet reflected in most write-ups. Copilot Studio now has three harnesses: GitHub Copilot, Standard and Copilot Chat. Read the entitlement table carefully and the Standard and Copilot Chat harnesses show fair usage limits in Microsoft channels for a licensed user, while the GitHub Copilot harness reads requires Copilot Credits in both columns. Choosing the agentic build experience therefore forfeits the licensed-user inclusion, which is a licensing consequence of what looks like a purely technical choice.
What Copilot licensing costs that no seat price includes
Copilot Credits are the first and largest omission, and they have their own rate card: a classic answer is 1 credit, a generative answer 2, an agent action 5, tenant graph grounding 10, agent flow actions 13 per 100 and content processing 8 a page. At the $0.008 prepaid rate an agent action is 4 cents. The full breakdown, including the hundredfold spread between basic and premium AI tools, is on Copilot Studio pricing, and you can run your own volumes through the Copilot Studio credits calculator without giving us an email address.
Dataverse is the second, and it is the one that surprises finance. Every tenant with at least one Copilot Credit purchasing option gets a one-time default of 15 GB of Dataverse Database, 20 GB of File and 2 GB of Log capacity, and Microsoft is explicit that additional subscriptions do not add to it. Past the default, the database add-on is $40 per GB per month billed annually. The pay-as-you-go equivalent is $48 per GB, so the flexible route costs 20 percent more here, mirroring the 25 percent premium on credits.
Support is the third. Professional Direct Support for Dynamics 365 and Power Platform is $9 per user per month billed annually, and the licensing guide states customers must acquire enough of it to cover every Power Platform and Dynamics 365 license on the agreement, up to a maximum of 250. That is a per-seat multiplier attached to a product most people price per tenant, and it belongs in the model before you sign. The wider pattern of metered bills landing above the forecast is covered on why AI agent bills exceed estimates.
Copilot license or GitHub Copilot license? They are different products
A meaningful share of people searching for a Copilot license want GitHub Copilot, the coding assistant, and the two products share nothing but a name and a coincidence of pricing. GitHub Copilot has its own ladder: Free at $0 with 2,000 completions a month, Pro at $10 per user per month, Pro+ at $39 and Max at $100. Each paid plan carries a monthly allowance of GitHub AI credits, $15 on Pro, $70 on Pro+ and $200 on Max, and GitHub prices one credit at $0.01.
The coincidence worth noting is that $0.01 is also Microsoft's pay-as-you-go Copilot Credit rate, so the two currencies look interchangeable and are not. GitHub AI credits buy premium model requests in a coding tool; Copilot Credits buy agent answers and actions in Copilot Studio. Neither pool draws on the other, and a Microsoft Copilot license does not include GitHub Copilot. If you are pricing developers, price GitHub separately. If credits as a concept are the confusing part, start with what AI credits are.
Note the allowance shape on the GitHub side, because it is a genuinely different pricing philosophy from the Microsoft one: Pro returns $15 of credits for $10, Pro+ returns $70 for $39 and Max returns $200 for $100. The multiple improves as you go up, from 1.5x to 2x. Microsoft moves the other way, charging 25 percent more per credit on the flexible route than on the committed one.
When a flat monthly price is the easier answer
Everything above is a real answer to a real question, and it is also four price points, two P3 plans, a credit meter, a Dataverse meter and a support multiplier. That complexity is not an accident: it is what happens when a vendor prices a platform rather than a product, and if your data, identity and approvals already live in Microsoft 365, the complexity is worth absorbing because nothing else reaches into that stack the same way.
We built the page you are reading, so weigh this accordingly. WorkAgent is $149 a month, flat, for the whole account: no per-seat multiplication, no credit meter, no capacity pack to forecast and no enforcement threshold to stay under. The honest boundary is that it is not a Copilot replacement for a Microsoft-centric IT estate. It is the better buy when the work is research, lead lists, outreach drafts, inbox triage, data entry and recurring reports, and when you want the bill to be the same number in a busy month as in a quiet one.
If you are still deciding between platforms rather than between licenses, the head-to-head is on Agentforce vs Copilot Studio, the Salesforce rate card is on Agentforce pricing, and the purchasing routes for Microsoft credits are set out step by step in how to buy Copilot Credits.
FAQ
Questions buyers ask when they are pricing Copilot licenses
How much does a Copilot license cost?
A Microsoft Copilot license costs $30 per user per month paid yearly as the enterprise add-on, or $18 per user per month for Microsoft 365 Copilot Business on a business plan. Month to month, the business license is $25.20. Copilot Chat is included at no additional cost on an eligible Microsoft 365 subscription, and Copilot Studio is priced separately by consumption.
What are the Copilot license types?
Microsoft sells Copilot Chat, included at no additional cost; Microsoft 365 Copilot Business at $18 per user per month for business plans; Microsoft Copilot at $30 per user per month for enterprise plans; and Copilot Studio, which uses a $0 user license plus tenant capacity in Copilot Credits. Microsoft 365 E7 includes Copilot in its base price.
What are the Copilot license levels?
Four, and they are not a simple ladder. Copilot Chat is the free floor. Microsoft 365 Copilot Business and Microsoft Copilot are the same paid product sized for business and enterprise customers, at $18 and $30 per user per month. Copilot Studio sits alongside rather than above them, priced by consumption rather than by seat.
Is Microsoft 365 Copilot the same as Microsoft Copilot?
Yes. Appendix D of the Microsoft Copilot Studio Licensing Guide dated August 2026 records that Microsoft 365 Copilot was rebranded as Microsoft Copilot in August 2026, and Microsoft's licensing article on Learn now uses the new name. The license, the $30 price and the prerequisites did not change with the name.
Do you need a Copilot license to use Copilot Studio?
No. The Copilot Studio User License is $0, but Microsoft issues it with the Copilot Studio subscription, so in practice you need a tenant capacity pack at $200 a month first. On pay-as-you-go or a pre-purchase plan, makers use the Copilot Studio Author role instead, also $0, assigned through a security group in the Power Platform admin center.
What Microsoft 365 plans qualify for a Copilot license?
For the $30 add-on: Microsoft 365 E7, E5, E3, F1 and F3, Office 365 E5, E3, E1 and F3, plus Teams, Exchange, SharePoint, OneDrive, Planner, Project, Visio and Clipchamp plans. For the $18 business add-on: Microsoft 365 Business Basic, Business Standard, Business Premium and Apps for Business. Government and education plans have their own lists.
Is Copilot Chat free?
Web-based Copilot Chat is included at no additional cost with an eligible Microsoft 365 subscription. Work-based chat, which grounds answers in what your Microsoft Entra account can access, is listed on Microsoft's licensing article as available with a Microsoft Copilot license. Agents you run in Copilot Chat consume Copilot Credits either way.
How much is a Copilot license per year?
At the $30 monthly rate on an annual term, a Microsoft Copilot license is $360 per user per year. Microsoft 365 Copilot Business at $18 is $216 per user per year. For 40 users that is $14,400 against $8,640, a $5,760 annual difference decided mainly by which Microsoft 365 plan you already hold.
What is the difference between Microsoft Copilot and Microsoft Copilot Business?
Price and prerequisite rather than a feature tier. Microsoft Copilot is $30 per user per month and attaches to enterprise, frontline and Office 365 plans. Microsoft Copilot Business is $18 and attaches to Microsoft 365 Business Basic, Standard, Premium and Apps for Business. Which one you can buy is decided by your existing subscription.
How much does Copilot Studio cost?
A capacity pack is $200 per month for 25,000 Copilot Credits, billed annually and pooled at the tenant, which works out at $0.008 a credit. Pay-as-you-go is $0.01 a credit billed in arrears through an Azure subscription. There is no flat platform fee, so beyond the entry pack your cost moves with credits rather than seats.
What happens if you exceed your Copilot Studio capacity?
Microsoft allows a grace period and publishes its size: enforcement is triggered when a tenant reaches 125 percent of prepaid capacity, and custom agents are then disabled. In-flight conversations finish, later invocations are rejected, and users see either a billing issue message or a usage limit message. Pay-as-you-go environments are not affected.
Does a Copilot license include GitHub Copilot?
No. GitHub Copilot is a separate product with its own plans: Free at $0, Pro at $10, Pro+ at $39 and Max at $100 per user per month. It meters GitHub AI credits, priced at $0.01 each, which are not interchangeable with Copilot Credits. A Microsoft Copilot license grants no GitHub Copilot entitlement.
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