Microsoft Lowers Price on Copilot License: What You Need to Know

Have you been curious about Microsoft 365 Copilot but thought the $30 monthly price was too steep?

Microsoft heard your concerns and is offering a lower price for small and medium-sized businesses (SMBs).

This month, Microsoft began offering Microsoft 365 Copilot Business for $21 per user, per month.

How does it differ from the standard Microsoft 365 Copilot? Let’s break down everything you need to know about the new Copilot subscription.

What is Microsoft 365 Copilot for Business?

Confusing product names aside, Microsoft 365 Copilot Business and Microsoft 365 Copilot are the exact same product. The only difference is:

• Microsoft 365 Copilot Business: Up to 300 licenses can be purchased.
• Microsoft 365 Copilot: Unlimited licenses can be purchased.

Translation: If you have less than 300 users, you get the same Copilot experience at a lower price.

Why is Microsoft doing this?

SMBs represent a large share of the workforce, but they’re wary of spending money on new tools before understanding the cost-benefit. Microsoft knows this, so it said, “If you’re under 300 seats, we’ll give you the same product for less money. Just get on the platform.”

Can I Purchase Copilot Business as a Standalone Product?

No.

You still need a Microsoft 365 Business Basic, Standard or Premium license to use Copilot Business.

Microsoft is offering new Microsoft 365 bundles with Copilot:

• Business Basic + Copilot Business: $27/user/month paid annually
• Business Standard + Copilot Business: $33.50
• Business Premium + Copilot Business: $43

Can I Change My Copilot License to the New Price?

Not midterm.

You must fulfill your current annual commitment before moving to the new price. However, you can buy additional Copilot Business licenses at any time.

Are There Any Promotions Available?

Yes.

For both new and current customers, Microsoft is running is offering a bundle promotion from Dec. 1, 2025, until March 31, 2026. Note: At least 10 bundle licenses must be purchased to get the promotional price.

• Copilot Business: $18/user/month paid annually (15% off)
• Business Standard + Copilot Business: $22 (35% off)
• Business Premium + Copilot Business: $32 (25% off)

This promotional price only applies to the first year. A monthly billing option is available with a 5% increase.

Why SMBs Shouldn’t Overthink This

While cheaper than before, $21 per user, per month still is a sizeable investment. So, we understand why some SMBs still are hesitant to dive in.

However, consider that:

• The price will go up eventually (Microsoft just did this with Microsoft 365).
• AI workflows are becoming as standard as email.
• Early adopters build a year of familiarity.
• The promo year is the cheapest Copilot will ever be.

As Microsoft adds features to Copilot, the price will keep rising. We recommend getting in when Copilot is at its cheapest. After a year, reevaluate and determine if it’s right for your organization.

Transform Your Workflow with Copilot

If you’ve been on the fence about Copilot because of the price, now’s the time to get in. Copilot can change the way you work. Don’t waste your valuable time on mundane and repetitive tasks.

If you’re ready to take your productivity to the next level, contact us to schedule a consultation.

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