How Much Does Microsoft Teams Cost?

Last Updated: Feb 6, 2024 by

Microsoft Teams has become a popular choice for businesses looking to improve communication and collaboration among their teams. But with so many different pricing options and plans, it can be confusing to determine how much Microsoft Teams actually costs.

In this article, we’ll break down the different pricing options for Microsoft Teams and help you determine which plan is right for your business.

Microsoft Teams Pricing Plans

Microsoft Teams offers three different pricing plans: Free, Office 365 Business Essentials, and Office 365 Business Premium. Let’s take a closer look at each plan and what it includes.

Free Plan

As the name suggests, the Free plan for Microsoft Teams is completely free to use. This plan is ideal for small businesses or teams who are just starting out and don’t need all the features and capabilities of the paid plans.

The Free plan includes the following features:

  • Unlimited chat messages and search
  • Built-in audio and video calling for individuals and groups
  • 10 GB of team file storage and 2 GB of personal file storage per user
  • Integration with other Microsoft apps such as Word, Excel, and PowerPoint
  • Guest access for external users
  • Screen sharing and recording
  • 250 participants per meeting

While the Free plan offers a good range of features, it does have some limitations. For example, it does not include access to the Microsoft Teams desktop app, and it only offers 1-on-1 video calls. Additionally, the file storage limit may be too low for larger teams or businesses with a lot of files.

Office 365 Business Essentials

The Office 365 Business Essentials plan is the first paid plan for Microsoft Teams. It is priced at $5 per user per month and includes all the features of the Free plan, plus some additional capabilities.

Some of the additional features included in this plan are:

  • Access to the Microsoft Teams desktop app
  • Scheduled meetings and audio conferencing
  • 1 TB of OneDrive storage per user
  • Email hosting with a 50 GB mailbox
  • Custom email domain
  • Online versions of Microsoft Office apps (Word, Excel, PowerPoint)
  • 300 participants per meeting

The Office 365 Business Essentials plan is a good option for businesses that need more storage and advanced meeting capabilities, but don’t require the full suite of Microsoft Office apps.

Office 365 Business Premium

The Office 365 Business Premium plan is the most comprehensive and expensive plan for Microsoft Teams. It is priced at $12.50 per user per month and includes all the features of the Free and Business Essentials plans, plus some additional features.

Some of the additional features included in this plan are:

  • Desktop versions of Microsoft Office apps (Word, Excel, PowerPoint)
  • Advanced security and compliance features
  • Advanced analytics and reporting
  • 1 TB of OneDrive storage per user
  • Email hosting with a 100 GB mailbox
  • Custom email domain
  • 500 participants per meeting

The Office 365 Business Premium plan is ideal for larger businesses or teams that need access to the full suite of Microsoft Office apps and advanced security and compliance features.

How Microsoft Charges for Teams

Microsoft charges for Teams on a per-user basis, meaning that you will pay for each user that has access to the platform. This is true for all three pricing plans.

Additionally, Microsoft offers discounts for annual subscriptions, so if you pay for a full year upfront, you can save some money on your Teams subscription.

Other Factors to Consider

When determining the cost of Microsoft Teams for your business, there are a few other factors to consider.

Add-Ons

Microsoft offers a variety of add-ons for Teams that can enhance your experience and add additional capabilities. These add-ons include:

  • Audio Conferencing: This add-on allows participants to join meetings by phone, rather than through the Teams app. It is priced at $4 per user per month.
  • Phone System: This add-on allows you to make and receive phone calls through Teams. It is priced at $8 per user per month.
  • Advanced Communications: This add-on includes both the Audio Conferencing and Phone System add-ons, as well as additional features such as call queues and auto attendants. It is priced at $12 per user per month.

Number of Users

As mentioned earlier, Microsoft charges for Teams on a per-user basis. This means that the more users you have, the more you will pay for your Teams subscription. It’s important to consider the size of your team or business when choosing a pricing plan.

Integration with Other Microsoft Apps

If your business already uses other Microsoft apps, such as Word, Excel, or PowerPoint, you may be able to save money by choosing a plan that includes these apps. This can eliminate the need for separate subscriptions and reduce your overall costs.

Which Plan Is Right for My Business?

The right plan for your business will depend on your specific needs and budget. Here are some factors to consider when choosing a plan:

Size of Your Team or Business

If you have a small team or business, the Free plan may be sufficient for your needs. However, if you have a larger team or business, you may need to upgrade to one of the paid plans to access more features and capabilities.

Need for Microsoft Office Apps

If your team or business relies heavily on Microsoft Office apps, such as Word, Excel, or PowerPoint, you may want to choose a plan that includes these apps. This can save you money on separate subscriptions and provide a more seamless experience for your team.

Need for Advanced Security and Compliance Features

If your business deals with sensitive information or has strict compliance requirements, you may want to consider the Business Premium plan. This plan includes advanced security and compliance features that can help protect your data and ensure you are meeting all necessary regulations.

Conclusion

Microsoft Teams offers a range of pricing plans to suit the needs and budgets of different businesses. The Free plan is a good option for small teams or businesses just starting out, while the Business Essentials and Business Premium plans offer more features and capabilities for larger teams or businesses.

When determining the cost of Microsoft Teams for your business, it’s important to consider factors such as the size of your team, your need for Microsoft Office apps, and any add-ons or advanced features you may require. By carefully considering these factors, you can choose the right plan for your business and get the most out of Microsoft Teams.

Gulrukh Ch

About the Author: Gulrukh Ch

Gulrukh Chaudhary, an accomplished digital marketer and technology writer with a passion for exploring the frontiers of innovation. Armed with a Master's degree in Information Technology, Gulrukh seamlessly blends her technical prowess with her creative flair, resulting in captivating insights into the world of emerging technologies. Discover more about her on her LinkedIn profile.