Microsoft 365 Copilot & Agents Pricing Guide
Internal Reference + Client-Facing Resource Last updated: March 2026 | Based on Microsoft Level Up CSP Training (FY26 H2)
Note: Pricing and promotions change. Always verify current pricing at aka.ms/LevelUpCSPTraining or through your Microsoft partner portal before quoting clients.
1. Core Copilot SKUs
Section titled “1. Core Copilot SKUs”Copilot Chat — Free
Section titled “Copilot Chat — Free”The entry point. Included with every Microsoft 365 tenant at no additional cost.
| Capability | Included |
|---|---|
| Web-grounded chat (powered by GPT-4o) | Yes |
| Copilot Pages (collaborative AI content) | Yes |
| File upload | Yes (limits apply) |
| Code Interpreter | Yes (limits apply) |
| Image generation | Yes (limits apply) |
| Create agents via Copilot Studio | Yes |
| Discover and pin agents | Yes |
| Use agents grounded on web data | Yes |
| IT management controls | Yes |
| Enterprise Data Protection (EDP) | Yes |
| Agents (pay-as-you-go consumption) | Yes — billed separately |
Key talking point: Copilot Chat is the door-opener. Every M365 customer already has it. The conversation starts with “are you using this yet?” not “do you want to buy something?”
Microsoft 365 Copilot — $30/user/month
Section titled “Microsoft 365 Copilot — $30/user/month”The full AI assistant for work. Everything in Copilot Chat, plus:
| Capability | Included |
|---|---|
| Everything in Copilot Chat | Yes |
| Personal assistant across M365 apps | Yes |
| Copilot in Teams (meetings + recap) | Yes |
| Copilot in Outlook (inbox prioritization, drafting, summaries) | Yes |
| Copilot in Word (document creation, summaries, commands) | Yes |
| Copilot in Excel (Python, formula creation, commands) | Yes |
| Copilot in PowerPoint (Narrative Builder, designer, drafting) | Yes |
| Copilot Actions | In preview |
| Pre-built M365 agents (Interpreter, Facilitator, Project Manager, Employee Self-Service) | In preview |
| Use agents grounded on shared tenant Graph data + 3rd party connectors | Yes |
| Use agents with autonomous actions | Yes |
| SharePoint Advanced Management | Included |
| Copilot Analytics (usage + adoption reporting) | Yes |
| Advanced analytics to measure ROI | Yes |
| Agent management controls | Yes |
| Agent usage — zero-rated (no consumption charges) | Yes |
Key talking point: M365 Copilot licensed users get agent usage included at no additional consumption cost. Heavy Copilot Chat users consuming 2,000+ pay-as-you-go messages/month (~$20 value) should be upgraded to a full license — it’s more cost-effective and unlocks the full personal assistant experience.
Microsoft 365 Copilot Business — $21/user/month (NEW)
Section titled “Microsoft 365 Copilot Business — $21/user/month (NEW)”The SMB offering, launched December 1, 2025. Same Copilot capabilities at a lower price point for small and medium businesses (up to 300 seats).
| Detail | Value |
|---|---|
| Price | $21/user/month |
| Seat limit | Up to 300 seats |
| Prerequisite | Requires a qualifying Microsoft 365 plan |
| Capabilities | All M365 Copilot capabilities at launch |
Key talking point: This is a completely new SMB motion. Customers who previously couldn’t justify $30/seat now have a $21 option. Position during renewal conversations.
2. Bundle Pricing (SMB)
Section titled “2. Bundle Pricing (SMB)”Launched December 1, 2025. Combines Microsoft 365 Business plans with Copilot Business in a single SKU — one purchase, one motion.
| Bundle | Price/user/month |
|---|---|
| Microsoft 365 Business Basic + Copilot Business | $27 |
| Microsoft 365 Business Standard + Copilot Business | $33.50 |
| Microsoft 365 Business Premium + Copilot Business | $43 |
Key talking point: For customers on M365 Business Standard ($12.50/user), adding Copilot Business via the bundle is only $21 more. For renewals, this is a natural upsell — “for a small uptake, they can now add Copilot for Business.”
3. Promotions
Section titled “3. Promotions”Current promotional window: December 1, 2025 — March 31, 2026
Microsoft is offering promotional pricing on both standalone Copilot Business and bundled SKUs. This creates a strong Q3 motion for CSP partners to drive upsell during renewal conversations.
Check your partner portal or the CSP Level Up Sales Bootcamp (BRK303 from Ignite 2025) for specific promotional discount amounts and terms.
4. Agent Consumption Billing (Pay-as-You-Go)
Section titled “4. Agent Consumption Billing (Pay-as-You-Go)”For Copilot Chat users (not licensed for full M365 Copilot), agent usage is billed on consumption.
| Detail | Value |
|---|---|
| Rate | $0.01 per message |
| Billing method | Through linked Azure subscription |
| Upfront purchase | None required |
| M365 Copilot licensed users | Zero-rated (agent usage included) |
| Billing scope (M365 Admin Center) | Copilot Chat, SharePoint Agents, M365 Copilot services |
| Billing scope (Power Platform Admin Center) | Custom agents built in Copilot Studio deployed outside M365 surfaces, Dynamics 365 1P agents |
When to Recommend a Full License vs. Pay-as-You-Go
Section titled “When to Recommend a Full License vs. Pay-as-You-Go”| Scenario | Recommendation |
|---|---|
| User sends < 500 agent messages/month (< $5) | Stay on PAYG |
| User sends 500–2,000 messages/month ($5–$20) | Evaluate based on need for personal assistant features |
| User sends 2,000+ messages/month (~$20+) | Upgrade to M365 Copilot license — more cost-effective + unlocks full suite |
The M365 Admin Center will surface alerts when users exceed 2,000 billed messages in the past 30 days, with a link to export the user list so admins can assign Copilot licenses.
5. Agent Cost Controls
Section titled “5. Agent Cost Controls”Three pillars of cost management, available across M365 Admin Center and Power Platform Admin Center:
Track Costs
Section titled “Track Costs”- Licensing & metering: Understand which model applies (free chat, PAYG, licensed)
- Consumption monitoring: Near real-time visibility in M365 Admin Center
- Message consumption reports: Per-user, per-agent, per user-agent pair breakdowns
- High consumption alerts: Automatic alerts for users exceeding thresholds
- Timely insights: Usage data available within an hour of agent interaction
Manage Costs
Section titled “Manage Costs”- Departmental billing policies: Scope billing to Entra ID groups, linked to specific Azure subscriptions
- Cross-charging: Enable departmental chargebacks based on actual usage
- Budget limits at billing policy level: Set caps to prevent overruns (coming soon)
- Overage enforcement: Control what happens when budgets are exceeded
- Agent-level billing policy controls: Granular per-agent governance (in development)
Estimate Costs
Section titled “Estimate Costs”- Agent Consumption Estimator: Forecasting tool for projected agent costs
- Consumption forecasting: Project future usage based on current trends
- Azure Cost Management: Filter and view billing details by meter and Azure resource for PAYG agents
- Downloadable reports: Export from Billing plan page in Power Platform Admin Center — breakdown by environment, app/agent, and user
Billing Policy Setup (M365 Admin Center)
Section titled “Billing Policy Setup (M365 Admin Center)”- Navigate to Copilot > Billing & Usage
- Select “Add a Billing Policy”
- Name the policy, choose Azure subscription and resource group
- Select the Entra ID group this policy applies to
- Define billing terms and frequency
- Create the policy
- Under Pay-as-you-go services tab, assign policy to Microsoft 365 Copilot Chat
- Monitor budget consumption percentage and actual costs under the Budget tab
Upcoming Cost Control Features
Section titled “Upcoming Cost Control Features”| Feature | Status |
|---|---|
| Budget limits at billing policy level | Coming soon |
| Copilot Credit Consumption Capacity Packs (prepaid message packs) | Upcoming |
| Agent-level billing policy controls | In development |
| Agent usage reporting for Copilot Chat users | Planned CY2025-H1 |
6. Additional Licensing Considerations
Section titled “6. Additional Licensing Considerations”SharePoint Advanced Management
Section titled “SharePoint Advanced Management”- Included with M365 Copilot license
- $3/user/month standalone for customers without Copilot
- Covers: restricted access control, site lifecycle management, data access governance
Microsoft Purview Add-ons
Section titled “Microsoft Purview Add-ons”- Extended SharePoint Permissions and Default Sensitivity Label for SharePoint Document Libraries require separate Purview licensing
- Standard Purview features (audit, retention, eDiscovery, basic DLP) are included with M365 E3/E5
Copilot Studio Licensing
Section titled “Copilot Studio Licensing”- Included with M365 Copilot: Build and publish agents
- Copilot Chat (PAYG): Create agents, billed per message on consumption
- Bring Your Own Model (BYOM): Via Azure AI Foundry — metered at the corresponding Azure AI Foundry Model meter rate (Public Preview)
Copilot Control System (Agent 365)
Section titled “Copilot Control System (Agent 365)”| Feature | Copilot Chat (Free) | M365 Copilot ($30) |
|---|---|---|
| Enterprise Data Protection | Yes | Yes |
| IT management controls | Yes | Yes |
| Agent management | Yes | Yes |
| Agent access & usage through metering | Yes | — (zero-rated) |
| SharePoint Advanced Management | — | Yes |
| Copilot Analytics | Basic | Full |
| Advanced ROI analytics | — | Yes |
| Agent usage reporting | Planned | Yes |
7. Pricing Conversation Framework
Section titled “7. Pricing Conversation Framework”For SMB Customers (< 300 seats)
Section titled “For SMB Customers (< 300 seats)”Opening: “You already have Copilot Chat for free — is your team using it?”
Bridge: “Your heaviest users are probably spending $15–20/month on pay-as-you-go agent messages already. For $21/user, they get the full Copilot experience with zero consumption charges.”
Bundle play: “You’re up for M365 Business Standard renewal at $12.50. For $33.50 total, your team gets Copilot Business included — and right now there’s a promotional rate running through March 31.”
For Mid-Market / Enterprise Customers
Section titled “For Mid-Market / Enterprise Customers”Opening: “With 1.3 billion AI agents projected by 2028, the question isn’t whether to adopt — it’s how to do it securely.”
Security angle: “M365 Copilot includes the full Copilot Control System — agent directory, policy controls, and Purview integration. Without it, you’re running AI without governance.”
Agent ROI: “A single customer service agent built in Copilot Studio can handle thousands of interactions at $0.01/message. Compare that to staffing costs.”
Cost control reassurance: “You get departmental billing, consumption alerts, and budget caps. No surprises.”
Handling Objections
Section titled “Handling Objections”| Objection | Response |
|---|---|
| ”It’s too expensive” | Start with free Copilot Chat. Demonstrate value. Upsell when users hit the consumption threshold. SMB bundles start at $27 total. |
| ”We’re not ready for AI” | Copilot Chat requires zero setup. Enable it, let people explore, measure adoption. Readiness comes from usage, not planning. |
| ”What about data security?” | Walk through the architecture: data stays in M365 boundary, Azure OpenAI is Microsoft-maintained, prompts don’t train models, Purview governs everything. |
| ”How do we control costs?” | Departmental billing, budget limits, consumption alerts, and the estimator tool. M365 Copilot users have zero agent consumption charges. |
| ”We just want agents, not the full suite” | Copilot Chat + PAYG agents is free to start. But once agent usage scales, an M365 Copilot license is more cost-effective and adds the personal assistant layer. |
8. Key Resources
Section titled “8. Key Resources”| Resource | Link |
|---|---|
| Level Up CSP Training Hub | aka.ms/LevelUpCSPTraining |
| Sales Bootcamp (pricing + GTM detail) | aka.ms/LevelUpCSPBootcamp |
| In-Person Sales Content | aka.ms/LevelUpCopilotSalesTraining |
| CSP Calendar | aka.ms/LevelUpCSPCalendar |
| Sales Badge Assessment | aka.ms/MicrosoftTitan (Code: JXTR-QPDA) |
| AI@Work CSP Insider Newsletter | aka.ms/AIatworkCSP |
Quick Reference Card
Section titled “Quick Reference Card”| SKU | Price | Best For |
|---|---|---|
| Copilot Chat | Free | Everyone — door opener, adoption starter |
| Copilot Business | $21/user/mo | SMB (< 300 seats) — full Copilot at SMB price |
| M365 Copilot | $30/user/mo | Enterprise — full suite + analytics + governance |
| M365 Basic + Copilot Business | $27/user/mo | SMB bundle — cheapest all-in option |
| M365 Standard + Copilot Business | $33.50/user/mo | SMB bundle — most popular |
| M365 Premium + Copilot Business | $43/user/mo | SMB bundle — security-conscious |
| Agent messages (PAYG) | $0.01/msg | Light agent usage on Copilot Chat |
| SharePoint Advanced Mgmt | $3/user/mo | Standalone (free with Copilot) |