Microsoft Price Increases 2025
Last Updated November 2024 by Lacretta Incorvaia
Microsoft Pricing Updates: What You Need to Know
Effective Dates:
- Copilot Monthly Billing Option: December 1, 2024
- Annual Subscriptions Paid Monthly (5% Premium): April 1, 2025
- Teams Phone Pricing Update: April 1, 2025
Key Changes:
🔹
5% Premium for Monthly Payments on Annual Terms
Starting
April 1, 2025, any annual subscription paid monthly will incur a
5% price increase, including at renewal.
➡️ Consider switching to annual upfront billing to avoid the premium.
🔹
Copilot Monthly Billing Option (With 5% Premium)
Beginning
December 1, 2024, Microsoft 365 Copilot products can be billed monthly under an annual term, with a
5% higher rate than annual billing.
🔹
Microsoft Teams Phone Price Increase
Effective
April 1, 2025, pricing for
Teams Phone with Calling Plan (US, UK, CAN) will be
$17 per user/month on annual term subscriptions (new or renewing customers).
Action Items:
- Review current billing arrangements to determine if switching to annual upfront billing makes financial sense.
- Plan for the Copilot and Teams Phone pricing updates in 2025 budgets.
- Reach out if you'd like help evaluating or updating your Microsoft 365 licensing plan.
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