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Microsoft 365 Copilot is generally an add-on for small businesses: you need an eligible Microsoft 365 subscription and a separate Copilot Business license for each user who needs paid, work-grounded Copilot features. Eligible subscribers can use web-grounded Copilot Chat at no extra cost, but that is not the same entitlement as a paid Copilot license. Microsoft also sells bundles that include a base plan and Copilot.
What a small business needs to buy
Think of the purchase as two parts: a base subscription for the user and, if that user needs paid Copilot features, a Copilot Business license. Microsoft currently lists Business Basic, Business Standard, Business Premium and Microsoft 365 Apps for business among the eligible base plans for Microsoft 365 Copilot Business. Its prerequisite list also includes Teams Essentials; that does not mean every combination of tenant, plan and app has the same features.
You do not necessarily need to license every employee. Identify the people who need Copilot to work with organizational data or Copilot experiences in Microsoft 365 apps, then compare the add-on cost for those users with an applicable bundle or plan upgrade.
Copilot Chat included with eligible plans versus paid Copilot
| Option | What it provides | What to know |
|---|---|---|
| Copilot Chat with an eligible Microsoft 365 subscription | Web-grounded chat at no additional cost | It is not the paid Copilot license and does not provide the same work-grounded entitlement. |
| Microsoft 365 Copilot Business license | Work-grounded chat and Copilot experiences in Microsoft 365 apps | Requires an eligible base subscription and appropriate user and service setup. |
Microsoft’s business-plan feature information highlights Copilot in Word, Excel, PowerPoint, Outlook and Teams, along with Work IQ-powered chat, research and data-analysis reasoning features, prebuilt agents such as Researcher, Analyst and Facilitator, and usage and adoption analytics. Availability varies by market and customer licensing, and a license by itself does not guarantee every feature is ready in every app.
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Microsoft 365 Copilot prices in the US
The following are prices displayed on Microsoft’s US business pages checked October 4, 2026. They are not global quotes; taxes, sales channel, market, billing commitment and promotion eligibility can affect the amount charged. Check the live regional page before buying.
| Purchase option | Displayed US price | Commitment and scope |
|---|---|---|
| Microsoft 365 Copilot Business add-on | $25.20 per user/month | Monthly commitment; add-on price, not the cost of the base Microsoft 365 plan. |
| Microsoft 365 Copilot Business annual promotion | Starting at $18 per user/month | Annual commitment; Microsoft’s page said the promotion ran July 1–December 31, 2026, was for eligible existing business customers, and applied to the first year. Confirm current terms and eligibility. |
| Microsoft 365 Business Standard with Copilot, no Teams | $20.30 per user/month | Paid yearly; displayed bundle price includes a base plan. |
| Microsoft 365 Business Premium with Copilot, no Teams | $28.80 per user/month | Paid yearly; displayed bundle price includes a base plan. |
The add-on and bundle figures are not like-for-like: the add-on is separate from the base plan, while the listed Standard and Premium bundles include a base plan and exclude Teams. To compare your options, use your actual existing base-plan bill plus the add-on, then compare that total with the eligible bundle price. Microsoft can change prices and offers; taxes and other regional or channel differences may apply.
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Account, mailbox and app prerequisites
- Work or school identity: Microsoft says users need a work or school Microsoft Entra ID account.
- Mailbox-grounded features: An Exchange Online mailbox is required for experiences that use mailbox data.
- Supported apps and configuration: App-specific features can depend on supported Microsoft 365 apps and services, user configuration and tenant settings.
- Market and licensing: Feature availability may vary by market and customer licensing.
How to choose and assign licenses
- Identify users: List the employees who need paid work-grounded Copilot features; do not assume all employees need a Copilot license.
- Check the base plan: Confirm each intended user has a subscription on Microsoft’s current Copilot Business prerequisite list.
- Compare total cost: Add the Copilot Business price to the user’s existing base-plan cost and compare that total with a bundle. Verify whether a displayed bundle includes Teams.
- Verify the live offer: Confirm currency, billing commitment, promotion dates, eligibility, and whether the amount is an add-on or a bundled plan price on Microsoft’s current regional page.
- Check user eligibility: Use Microsoft’s Copilot License Details diagnostic for a user-specific check. Confirm Entra identity and, where relevant, Exchange Online availability.
- Assign the license: Use the Microsoft 365 admin center to assign the Copilot license to the intended users.
If a Copilot feature is missing after assignment, check that the app is supported, the required service is available, tenant settings and connected-experiences or privacy controls permit it, and the feature is available in your market. A missing feature does not by itself prove the license is absent.
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Microsoft says there is no trial available for the paid Microsoft 365 Copilot license. Eligible users can use Copilot Chat at no additional cost, but that is the web-grounded chat entitlement rather than the paid work-grounded license.
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