Microsoft Copilot Pricing & Tiers Explained (2026)
← six things now wear the 'Copilot' name — here's which is which (and what replaced Copilot Pro)
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The short version: “Copilot” isn’t one product with one price — it’s a family. Free Copilot costs nothing. For personal Office AI, Microsoft 365 Premium is the consumer plan (it replaced the retired Copilot Pro in late 2025). Microsoft 365 Copilot ($30/user/month) is the work version that can see your organisation’s data. Copilot Studio and Copilot Credits are pay-as-you-go for building and running agents. The tier you need is really a question of whose data Copilot should see.
💡 A note on the numbers below: US list prices, indicative only. Enterprise pricing shifts with your agreement, region, and any negotiated discount, so the official pricing page is the source of truth.
Which one do you need? (the 20-second version)
- You just want to chat with AI → Free Copilot. Don’t pay anything.
- You pay for your own Office and want AI inside Word/Excel/PowerPoint/Outlook → Microsoft 365 Premium (the consumer plan that replaced Copilot Pro)
- You want Copilot to work across your company’s emails, files and meetings → Microsoft 365 Copilot (your IT admin deploys it)
- Your org wants AI chat + a few agents without licensing everyone → Copilot Chat + usage billing (pay-as-you-go)
- You’re building a custom agent or bot → Copilot Studio
The most expensive mistake here is buying a personal Copilot plan for work. A consumer plan (Microsoft 365 Premium, or legacy Copilot Pro) can’t see your work data, and many organisations forbid using a personal AI subscription with company files. If it’s for work, you want Microsoft 365 Copilot. The deeper personal-vs-work breakdown is in the Copilot Pro vs Microsoft 365 Copilot guide.
The whole Copilot family, on one page
| Tier | Who it’s for | Price (indicative, US) | Can it see your work data? | Best for |
|---|---|---|---|---|
| Free Copilot | Anyone | Free | No (personal chat) | Casual chat, web answers, drafting |
| Microsoft 365 Copilot Chat | Organisations | Included with eligible M365 plans | Enterprise-protected chat only | Secure AI chat without a per-seat licence |
| Microsoft 365 Premium | Individuals | ~$19.99/month | No org Graph (personal; work-file use if your employer allows) | AI in your personal Office apps + up to 6 TB |
| Microsoft 365 Pro | Individuals (power users) | See pricing page | No org Graph (personal) | The highest consumer AI limits |
| Microsoft 365 Copilot | Organisations | ~$30/user/mo, annual (indicative; + base M365) | Yes — your Graph | Work, grounded on your own data |
| Copilot Studio | Agent builders | Pay-as-you-go (Copilot Credits) | Depends on the agent | Building custom agents |
| Copilot Credits | (the meter, not a plan) | Consumption-based | — | Paying for agent & advanced AI actions |
| Copilot Pro (retired) | — | No longer sold | — | Existing subscribers — check your account |
All-in note: Copilot Pro was retired in late 2025 — Microsoft 365 Premium (~$19.99/month) is its consumer replacement and bundles Copilot in the Office apps with up to 6 TB of storage (1 TB per person, up to 6 people; the advanced Copilot AI is for the subscription owner only). Microsoft 365 Pro sits above Premium for individual power users who want the highest consumer AI limits. Microsoft 365 Copilot’s ~$30 is an indicative add-on that sits on top of a qualifying base plan (Business Basic/Standard/Premium, Microsoft 365 E3/E5, Office 365 E1/E3/E5, F-plans and more); Microsoft 365 E7 includes it.
Each tier, in plain English
Free Copilot
The web and app chat (what used to be called Bing Chat). Costs nothing, no subscription, works with any account. Great for general questions, drafting, and image generation within daily limits. It does not plug into your desktop Office apps or automatically search your files, though it can analyse a file you explicitly upload to the chat.
Microsoft 365 Copilot Chat (the work tier, no per-seat fee)
If your organisation has an eligible Microsoft 365 subscription, your people get an enterprise-data-protected chat experience at no additional cost — prompts and responses aren’t used to train models, and it stays inside your tenant’s protection. Admins can then switch on pay-as-you-go agents (billed in Copilot Credits) without licensing every user.
Microsoft 365 Premium — the consumer Copilot plan (~$19.99/month)
This is the personal plan for AI inside your own Word, Excel, PowerPoint and Outlook, plus high consumer Copilot usage limits and up to 6 TB of storage. It’s for your files. It can work with a work file you have open when your employer allows multiple-account access, but it can’t search across your organisation’s Graph the way the work product does. If you want the highest consumer limits, Microsoft 365 Pro sits one step above Premium.
What happened to Copilot Pro? Microsoft stopped selling the standalone $20/month Copilot Pro in late 2025 and rolled its features into Microsoft 365 Premium. If you already subscribe to Copilot Pro, check your Microsoft account for your subscription status and migration options. Microsoft 365 Premium (or a Personal/Family plan, which now include Copilot for the subscription owner) is how you get Copilot in your Office apps going forward. Don’t confuse retired Copilot Pro with the current Microsoft 365 Pro consumer tier.
Microsoft 365 Copilot — $30/user/month
The work version. Your IT admin deploys it as an add-on to a qualifying base plan (Business Basic/Standard/Premium, Microsoft 365 E3/E5, Office 365 E1/E3/E5, F-plans and more). The difference that justifies the price: it’s grounded on your organisation’s data through Microsoft Graph — your emails, documents, meetings and Teams chats — so its answers are about your work, not the open web. → Related: What the licensed work version unlocks · How Microsoft 365 Copilot works, layer by layer
Copilot Studio — pay-as-you-go
Where you build custom agents — the ones that take actions, call APIs, and run workflows. Pricing is consumption-based — pay-as-you-go or prepaid Copilot Credits — with some employee-facing agent usage zero-rated for Microsoft 365 Copilot customers (within fair-use limits). → Is Copilot Studio Free? Pricing & Credits Explained — the dedicated pricing guide. For the build-tool comparison, see Agent Builder vs Copilot Studio vs Foundry.
Copilot Credits — the meter, not a plan
Since 1 September 2025, Copilot Credits are the metered currency Microsoft uses for advanced AI and agent actions (they replaced the older per-message billing). Rather than a flat per-user fee, certain actions draw down credits an admin has enabled — the pay-as-you-go backbone behind Copilot Chat agents and Copilot Studio. → What Are Copilot Credits? Rates & Costs Explained — the dedicated credits guide. Not sure if your Microsoft 365 Copilot licence already covers it? → Does Microsoft 365 Copilot include Copilot Credits?
The hidden costs nobody mentions
- Copilot Pro is gone — don’t go looking for it. The standalone $20/month plan was retired in late 2025; Microsoft 365 Premium (~$19.99/month) is the consumer replacement, and it bundles up to 6 TB of storage so it’s closer to all-in.
- Microsoft 365 Copilot isn’t really $30. It’s an add-on that sits on top of a qualifying base plan — if you don’t already have one, that’s an extra cost before the $30.
- Agents can be metered separately. Copilot Studio and pay-as-you-go agents draw Copilot Credits — useful, but a line item to watch. The Copilot Credits guide breaks down the rates.
- Annual commitment. Microsoft 365 Copilot is typically billed annually — budget for the year, not the month.
Where to go next
- Proving Copilot ROI — The Field Guide — you know the price; now prove the value. The three pillars, the formulas, and the ROI Calculator.
- Copilot Pro vs Microsoft 365 Copilot — Which Do You Need? — the deep head-to-head (the most common buying mistake)
- Microsoft 365 Copilot (Licensed) — what the work version unlocks
- Microsoft 365 Copilot Chat — the free tier, explained
- How Microsoft 365 Copilot works, layer by layer — why the work version costs more
- Is Copilot Pro Discontinued? Microsoft 365 Premium Explained — what replaced Copilot Pro
- Is Copilot Studio Free? Pricing & Credits Explained — what a Copilot Studio build costs
- What Are Copilot Credits? Rates & Costs Explained — the agent-work meter, explained