Productivity
Microsoft Teams: pricing, features and alternatives
Chat, meetings and calling, sold alone or inside Microsoft 365
What is Microsoft Teams?
Microsoft Teams combines team chat, video meetings, calling and file sharing. Businesses can buy Teams Essentials on its own, or get Teams as part of a Microsoft 365 business plan with Outlook, Word, Excel and OneDrive. Phone calling to regular numbers is a separate Teams Phone licence.
Good for
- Businesses already using Microsoft 365 and Outlook
- Small teams that want chat and meetings in one inexpensive plan
- Companies replacing a desk phone system with cloud calling
Key features
- Team chat with file sharing, tasks and polls
- Video meetings with recordings, transcripts and live captions
- Teams Phone add-on for calls to regular phone numbers
- Included in Microsoft 365 business plans with Office apps and OneDrive
Limitations to know about
- The prices shown are for annual subscriptions paid yearly
- Calling to regular phone numbers needs a separate Teams Phone licence and calling plan
- Some AI features on Business Standard are billed by usage
Microsoft Teams pricing
Microsoft Teams offers a free trials offered on the business plans (trial terms on Microsoft's page). Teams Essentials, Microsoft 365 Business Basic, Microsoft 365 Business Standard with Copilot and Teams Phone Standard cost $4 to $23.50 per user a month billed annually.
| Plan | Price | What you get |
|---|---|---|
| Teams Essentials | $4.00 user/month, paid yearly | Chat, calls and video meetings, file sharing, tasks and polls, recordings with transcripts |
| Microsoft 365 Business Basic | $7.00 user/month, paid yearly | Teams plus web and mobile Microsoft 365 apps, for up to 300 users |
| Microsoft 365 Business Standard with Copilot | $23.50 user/month, paid yearly | Teams plus desktop Microsoft 365 apps with Copilot; usage-based billing for some AI features |
| Teams Phone Standard | $10.00 user/month, paid yearly (add-on) | Cloud phone system; needs a separate Teams licence, calling plans from $13/user/month |
What a team pays: For a team of five on Teams Essentials: $20 a month billed annually ($240 a year).
Microsoft Teams alternatives
Slack
Team messaging built around channels, with huddles, canvases and workflow automation
Google Chat
Direct messages and spaces inside Google Workspace, with Meet and Gemini built in
Zoom Workplace
Video meetings with team chat, mail, calendar, docs and an AI companion in one app
Google Meet
Google's browser-based video meetings, free with a Google account and included in Google Workspace
Discord
Group chat with text, voice and video, built around gaming and community servers
Mattermost
Self-hosted team messaging and workflow platform for security-sensitive organizations
Guides that use Microsoft Teams
Frequently asked questions
How much does Microsoft Teams cost?
Teams Essentials, Microsoft 365 Business Basic, Microsoft 365 Business Standard with Copilot and Teams Phone Standard cost $4 to $23.50 per user a month billed annually. On Teams Essentials: paid yearly; annual subscription that auto-renews. Prices as published on Microsoft Teams's pricing page on 7 November 2026.
What is Microsoft Teams used for?
Microsoft Teams combines team chat, video meetings, calling and file sharing. People use it for businesses already using Microsoft 365 and Outlook, small teams that want chat and meetings in one inexpensive plan and companies replacing a desk phone system with cloud calling.
What are the alternatives to Microsoft Teams?
Tools that do a similar job include Slack, Google Chat, Zoom Workplace, Google Meet and Discord. Each has its own page here with its plans, limits and prices.
Who makes Microsoft Teams?
Microsoft Teams is made by Microsoft.
Sources
Every fact on this page comes from Microsoft's own pages, read on the dates shown.
- microsoft.com/en-us/microsoft-teams/compare-microsoft-teams-business-options (pricing, plans, Teams Phone prices, plan features, billing terms) read 7 November 2026
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