Microsoft Teams is one of the tools that people think of when they talk about video conferencing. Since its launch in 2017, it has become a cornerstone for communication and collaboration in today’s hybrid and remote-first work culture. Whether you are managing a global enterprise or a small remote team, Microsoft Teams has all the features to suit your needs.
However, before you start implementing Teams for your organization, it’s important to understand how Microsoft Teams pricing and features fit different needs and budgets.
To help you make an informed decision, this guide provides a complete overview of the platform’s available plans, features, and how they stack up against alternatives like Zoom, Google Workspace, and Cisco Webex.
Key Takeaways: Is Microsoft Teams Expensive?
- Microsoft Teams is competitively priced, as paid plans start from $4/user/month while the most expensive plan costs $22/month.
- Microsoft Teams has a generous free plan with 5GB of storage and supports group calls that last up to 60 minutes and with 100 participants.
- All Microsoft business plans support Microsoft 365 Copilot as an add-on. This AI-powered assistant integrated into Microsoft 365 apps to help users write, summarize, analyze, and automate tasks using natural language.
What’s Microsoft Teams?
Microsoft Teams is a collaboration and communication tool developed by Microsoft. It is designed to bring together chat, meetings, file sharing, and calling into one seamless experience. The platform is accessible on desktop, mobile, and web browsers, making it easy to collaborate in office and on the go.
Moreover, as part of the Microsoft 365 suite, it natively integrates with Word, Excel, SharePoint, Outlook, and PowerPoint. This enables team members to co-author documents, share files, and manage projects without leaving the platform.
The platform is also built for customizability as it integrates with third-party services like Trello and Asana. With this option, users can connect the platform with their existing tech stack.
Microsoft Teams was originally designed for businesses. However, over time, it has also become popular for educational and personal use. In fact, it now offers tailored experiences for families through the Microsoft 365 Family, classrooms through the Microsoft 365 for Education, and non-profits via the Microsoft 365 for Nonprofits.
Microsoft Teams Pricing: Costs, Features & Best Value Plans
Microsoft Teams has a price structure designed to serve different users, from casual users, professionals, small businesses to enterprises. Below, I break down these options to help you find the best fit for your specific use case.
Microsoft Teams Home Plans
The Microsoft 365 Personal and Microsoft 365 Family subscriptions are designed for individuals and families. These plans provide basic access to Microsoft Teams for everyday organization, light collaboration, and casual meetings.
The Microsoft Teams (free) suits individuals looking for quick access to chats, meetings, and file sharing at no cost. The Microsoft 365 Personal Plan, priced at $9.99/month, supports one user and comes with premium versions of Word, Excel, and PowerPoint. It’s also inclusive of security options and 1TB of storage.
Meanwhile, the Microsoft 365 Family Plan, which costs $12.99 /month, offers everything on the Microsoft 365 Personal Plan plus 6TB of cloud storage (1TB per person).
| Plan | Microsoft Teams Free | Microsoft 365 Personal | Microsoft 365 Family |
| Monthly | $0 | $9.99 | $12.99 |
| Yearly | $0 | $99.99 | $192.99 |
| Free Trial | No | Yes. 30 days | Yes. 30 days |
| Features | Chat, 60-min meetings, file sharing, 5GB storage | 1TB OneDrive, Word, Excel, Copilot integration | Same as Personal, but supports up to 6 users with shared benefits |
Microsoft Teams Business Plans
There are four Microsoft’s business-focused pricing plans. The Microsoft Teams Essentials Plan, which costs $4.00/user/month when paid yearly, is the cheapest plan. It offers real-time collaboration with file sharing, tasks, polling, and 10GB of cloud storage per user.
Meanwhile, the Microsoft 365 Business Basic Plan, priced at $6.00/user/month when paid yearly gives identity, access, and user management for up to 300 employees, custom business email among other features.
The Microsoft 365 Business Standard Plan, which is available for $12.50/user/month allows users to host webinars with attendee registration, and reporting, desktop versions of Word, Excel, PowerPoint, and Outlook, among other features.
Lastly, the Microsoft 365 Business Premium Plan, priced at $22.00 user/month when paid yearly gives advanced security, cyberthreat protection, access, and data control.
For all plans, Microsoft 365 Copilot is available as an add-on.
| Plan | Microsoft Teams Essentials | Microsoft 365 Business Basic | Microsoft 365 Business Standard | Microsoft 365 Business Premium |
| Monthly | $4 | $6 | $12.50 | $22 |
| Yearly | $36 | $72 | $150 | $264 |
| Free Trial | No | Yes. 30 days | Yes. 30 days | No |
| Features | 30 hours duration for group meetings, 300 users, Unlimited chat messages and search in Teams, 10GB file storage | 30 hours duration for group meetings, 300 users, Unlimited chat messages and search in Teams, 10GB file storage, 1 TB per organization plus 10 GB per license | 30 hours duration for group meetings, 300 users, Unlimited chat messages and search in Teams, 10GB file storage, 1 TB per organization plus 10 GB per license | Advanced security, cyber threat protection, access and data control |
How Does Microsoft Teams Compare to Its Alternatives?
Microsoft Teams is not the only video conferencing and collaboration tool out there. Thus, it is natural to compare it with other tools before making a commitment. We have written a full comparison in our Microsoft Teams alternatives article, but here’s a focused breakdown against the three most popular competitors based on differences in features, pricing, and target users.
Microsoft Teams vs Google Meet
Google Workspace is known for its simplicity and fast access through Google Calendar and Gmail. It is ideal if you are already using Google Docs, Sheets, and Drive, as you can start a quick meeting when using any of these apps. However, Google Meet is primarily a web conferencing service and does not come with a task management system.
In contrast, Microsoft Teams has a full collaboration suite, especially for teams already using Excel, Word, and SharePoint. You can also manage projects through Microsoft Planner, and track tasks via Microsoft To-Do, without leaving the Teams interface. However, to achieve a fully collaborative experience on Google Drive, you have to keep switching between apps like Google Docs, Sheets, and Slides.
As for pricing, Google Meet and Microsoft Teams offer free plans that include video meetings with up to 100 people. However, Google’s business plans start at $7/user/month for the Business Starter, while Team’s Microsoft Teams Essentials is at $4 user/month.
Microsoft Teams vs Zoom
Zoom is known for its high-quality video for webinars and meetings. Its extensive webinar hosting tools, breakout rooms, and live transcription features make it easy to plan and manage meetings. However, even though it allows threaded chats and file sharing, its collaboration features can’t match what Microsoft Teams offers.
Zoom and Microsoft Teams both offer free plans with video meetings for up to 100 participants. However, Zoom limits group calls to 40 minutes, while Teams allows up to 60 minutes. Additionally, Zoom’s paid plans start at $13.33/user/month for the Pro plan, whereas Microsoft Teams’ Essentials is more affordable at $4/user/month.
The breakout rooms and webinar tools make Zoom ideal for remote trainers, educational institutions, and companies that interview large batches. Microsoft Teams, on the other hand, suits everyday users and daily business collaboration. Teams is ideal for teams that want to keep the conversation going beyond meetings.
Microsoft Teams vs Cisco Webex
Cisco Webex is known for its enterprise-grade security and end-to-end encryption. It offers team messaging and whiteboarding. However, its collaboration workflows and interface can be complex when compared to Microsoft Teams.
Webex and Microsoft Teams both offer free plans with meetings for up to 100 participants. However, Webex limits meetings to 40 minutes, while Teams allows 60 minutes for group calls. Webex’s paid plans start at $12/user/month with up to 24 hours per meeting duration and 10GB of cloud storage.
Microsoft Teams Essentials starts at just $4/user/month, offering up to 30 hours per meeting and 10GB of cloud storage.
Webex suits large enterprises and industries like finance and healthcare where data security and compliance are of the essence. Enterprises that want to exercise granular admin control will also find it useful. Microsoft Teams, on the other hand, suits small businesses and large enterprises looking for an easy-to-use platform and an extensive collaboration tool.
In Conclusion: Pick A Suitable Plan for Your Business
If you are a casual user or home user, the Microsoft Teams Free or Microsoft 365 Personal tier will be enough. The latter, which is a paid plan, will allow you to hold group meetings for up to 30 hours and 300 participants and enjoy live captions.
Microsoft Teams Essentials is a good choice if you are a small business. Microsoft 365 Business Standard is best for medium to large businesses. It is good for webinars as it can register and report on attendees, manage who can access what, and manage who can use the system. All business plans support Microsoft 365 Copilot add-on.
Ultimately, the best Microsoft Teams pricing plan depends on your team size, collaboration needs, and whether you’re already using the Microsoft ecosystem.
Microsoft Teams Pricing: FAQs
Do I need to pay for Microsoft to use Teams?
No. Microsoft Teams has a free plan that gives you 60-minute meetings, 5GB of cloud storage, and unlimited chats. However, paid plans open up longer meeting durations, more storage space, integrations, and enhanced collaboration.
Is Microsoft Teams free with Office 365?
Yes. Most Microsoft 365 subscriptions (formerly Office 365) include Microsoft Teams. Plans like Business Basic, Standard, and Enterprise all come bundled with Teams.
Is Zoom or Teams cheaper?
Microsoft Teams is cheaper. While both offer free plans, Teams’ paid plans start at just $4/user/month, compared to Zoom’s $13.33/user/month
