"What does Copilot actually cost now?" That question is no longer simple in 2026. Microsoft has introduced new licenses, bundles, and a new billing method. In this article, we lay everything out for you.

The new model: fixed license plus usage

Microsoft divides Copilot into two parts:

  • A fixed license per user. This allows you to use Copilot in Chat and in Word, Excel, PowerPoint, Outlook, and Teams. Copilot selects the model that fits best.
  • Usage-based billing. For heavier workload, you pay per use in Copilot Credits. Think of Copilot Cowork, Copilot Code, Autopilot, and the heaviest AI models.

Microsoft provided an example: daily use costs $30 per user per month. Intensive use with Cowork ranges from $69 to $73 per user per month, with $39 to $43 being usage.

The options at a glance

Microsoft 365 Copilot Chat

Included at no extra cost in your Microsoft 365 subscription. You chat securely with your work account, but Copilot Chat does not access your email, calendar, and documents itself. Read the difference in Copilot Chat vs Microsoft 365 Copilot.

Microsoft 365 Copilot

The full Copilot license, for $30 per user per month (recommended price). Copilot then works with your work data, within your access rights. This license is also necessary for Copilot Cowork.

Microsoft 365 Copilot Business

The variant for organizations up to 300 users. You can purchase it separately or as a bundle with Microsoft 365 Business Standard or Business Premium. Note: from December 1, 2026, usage-based billing is enabled by default for new Copilot Business licenses via CSP.

Agent 365

With Agent 365, you manage all AI agents in your organization: who uses them, what they cost, and the associated risks. It costs $15 per user per month. Running agents is not included; you settle that via Copilot Studio or Microsoft Foundry.

Microsoft 365 E7

As of May 1, 2026, there is Microsoft 365 E7, also known as the Frontier Suite. It includes Microsoft 365 E5, Microsoft 365 Copilot, Microsoft Entra Suite, and Agent 365. The recommended price is $99 per user per month. Buying separately costs more. E7 is particularly interesting for larger organizations already using E5 and wanting to deploy Copilot broadly. Unsure about your base license? Read Business Premium, E3 or E5.

What will change in the coming months?

  • October 16, 2026: existing Copilot offerings in CSP are now called "(add-on)". Price and conditions remain the same.
  • December 1, 2026: new Copilot offerings are available without a Microsoft 365 base subscription, at the same price. The "(add-on)" variants are no longer available for new purchase. Existing subscriptions continue.
  • December 1, 2026: usage-based billing is enabled by default for new Copilot Business licenses via CSP, with a standard limit of 4,000 credits per user per month.
  • December 31, 2026: end of current promotional prices for E7 and the discount for non-profits.

Which license suits you?

  • You want to experiment safely: start with Copilot Chat for everyone.
  • Certain roles have many meetings and write a lot: provide those roles with Microsoft 365 Copilot or Copilot Business.
  • You want tasks carried out by Cowork or agents: expect extra usage in credits and set a budget.
  • You have E5 and many agents: calculate if E7 is more advantageous.

A mixed approach is almost always the smartest. Not everyone needs the same license.

Review again after Ignite

At Microsoft Ignite (November 17 to 20, 2026), we expect news about Copilot, agents, and cost management. We will update this overview if anything changes.

Want to know which mix of licenses is most cost-effective for your organization? 365 Angels would be happy to calculate it with you. Contact us.

Prices in dollars are Microsoft’s recommended prices, excluding VAT. Your partner will inform you of the price in euros.