Microsoft Copilot pricing tiers: Microsoft 365 plans, Business vs Enterprise
- Graziano Stefanelli
- Sep 17
- 5 min read
Microsoft Copilot has become a cornerstone of AI-powered productivity across Word, Excel, Outlook, Teams, PowerPoint, and more. As of 2025, Copilot is available through a structured licensing model that spans Business and Enterprise plans, each with its own pricing tiers, entitlement boundaries, and integration capabilities. This article breaks down the full range of Copilot pricing options—add-ons and bundles—for Microsoft 365 users across organizations of every size, including the differences between Business SKUs, Enterprise SKUs, and vertical extensions like Copilot for Sales and Service.
Copilot pricing begins at $20/month for consumers and scales to $84.75/month for enterprise-level deployments.
The entry-level version of Microsoft Copilot, known as Copilot Pro, is targeted at individual users on Microsoft 365 Personal and Family plans. This $20/month add-on unlocks Copilot access inside desktop Office apps, custom GPT creation (forthcoming), and improved message caps. In contrast, business and enterprise tiers bundle Copilot with full access to Microsoft 365 applications, Graph grounding, and scalable collaboration features.
Here is a summary of pricing across the most widely used Microsoft 365 Copilot tiers:
All prices refer to the annual commitment, billed monthly per user. Monthly-only options may incur higher fees.
Business plans bundle Copilot directly, while Enterprise plans require the $30 add-on.
Microsoft’s business-focused Copilot offerings are delivered as bundled plans, where the AI assistant is integrated into the monthly fee of each Microsoft 365 Business subscription. These bundles are available for:
Business Basic – lightweight online productivity tools (web/mobile apps)
Business Standard – includes desktop Office apps and Teams
Business Premium – adds endpoint security and device management
Each Business Copilot plan includes full Copilot access across the productivity suite: Word, Excel, PowerPoint, Outlook, Teams, Loop, and Copilot Chat. Business Premium also includes Microsoft Defender for Business, Microsoft Intune, and simplified eDiscovery tools for security-focused SMEs.
Enterprise-level users follow a different model. Microsoft 365 E3 or E5 (or legacy Office 365 E3/E5) customers must purchase a separate $30/month Copilot license per user. The add-on includes the same Copilot functionality but with access to enterprise-grade controls, enhanced Graph grounding, and Microsoft Purview governance.
Enterprise Copilot includes advanced integrations and Microsoft Graph grounding.
Organizations licensed for Copilot under Microsoft 365 E3/E5 gain access to Copilot for Microsoft 365, which comes with features not available in standard Business bundles. Key entitlements exclusive to the Enterprise add-on include:
Semantic Index for Microsoft Graph – vector-based knowledge retrieval across SharePoint, OneDrive, and Outlook
Full integration with Microsoft Purview – compliance, audit, insider risk management
Custom plug-ins and Graph connectors – extensibility across internal and external systems
Microsoft Loop integration – dynamic workspace AI
Advanced admin settings – via Entra ID and granular service policies
These capabilities make the Enterprise Copilot tier ideal for larger organizations with complex data landscapes, compliance requirements, or multi-department AI workflows.
The 300-seat requirement has been lifted across all plans.
Until early 2024, Microsoft required a 300-seat minimum for organizations to be eligible to purchase Copilot. This restriction was lifted on 15 January 2024, allowing any business—regardless of size—to purchase a single Copilot seat or more.
This change is especially important for SMBs, as they can now:
Subscribe to one or more Business Copilot seats with no minimum
Mix and match between Business Basic, Standard, and Premium bundles
Access Copilot add-ons for existing E3/E5 tenants, even below 300 users
Office 365 users are now eligible without upgrading to Microsoft 365.
One of the most important licensing changes in 2025 was Microsoft’s expansion of Copilot eligibility to include Office 365 E3 and E5 customers. Previously, only Microsoft 365 licenses (which include Windows + security add-ons) were eligible.
Now, customers with Office 365 E3/E5 can purchase the $30 Copilot add-on without migrating to M365, lowering the entry cost for existing tenants. This also enables them to activate:
Copilot in desktop Office apps
Copilot Chat with Graph awareness
Teams meeting recap summaries and document generation
Enhanced integration with Outlook, Loop, and OneDrive
The Semantic Index for Microsoft 365Â is also unlocked when the add-on is attached, extending advanced recall and retrieval functions to these legacy plans.
Differences between Business and Enterprise Copilot experiences.
These differences mean that while Business Copilot delivers a solid experience for small and medium businesses, Enterprise Copilot offers greater control, extensibility, and data access for organizations operating across departments, countries, or sensitive sectors.
Optional upgrades: Copilot for Sales and Service.
Microsoft has launched vertical Copilot SKUs designed for customer-facing roles:
Copilot for Sales – integrates with Dynamics 365 Sales, CRM data, and LinkedIn
Copilot for Service – integrates with D365 Customer Service, knowledge bases, and support workflows
These add-ons cost $50/user/month, though Microsoft provides a $20 discount if the user already holds a Microsoft 365 Copilot license (resulting in a $30 Copilot base + $20 vertical add-on = $50 total). They are only available to Enterprise-level tenants and include functionality such as:
AI-generated email drafts for CRM contacts
Meeting notes synced with opportunity records
Ticket classification and suggested responses
Knowledge base summarization
These tools are intended to embed AI deeper into sales and support workflows without leaving the Microsoft 365 ecosystem.
Free vs Copilot Pro vs Microsoft 365 Copilot.
The free tier offers GPT-4o-powered chat but lacks integration with Office, no grounding in your content, and lower limits. Copilot Pro upgrades individuals with Office access and GPT customization tools, while Microsoft 365 Copilot delivers the full enterprise-grade productivity experience.
Microsoft Copilot pricing structure offers flexibility across roles, org sizes, and tools.
In 2025, Microsoft has positioned Copilot as a modular AI service that scales with organizational needs. Small teams can start with bundled Business plans that include Copilot by default. Mid-sized and large enterprises can integrate the $30 add-on into existing Office 365 or Microsoft 365 E3/E5 plans to unlock semantic search, governance features, and internal extensibility.
The removal of seat minimums, extension of eligibility to legacy plans, and introduction of vertical SKUs show Microsoft’s intent to position Copilot as a pervasive, platform-wide assistant—customizable for any team, across any scale. With pricing options ranging from $20 to $85/month per user, businesses can now align their AI investments with budget, compliance, and productivity priorities.
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