Deadline: June 30, 2026. Lock in the $18/user/mo promotional rate before July 1 when prices rise to $21.
Microsoft Copilot Price Increases July 2026
The promotional $18/user/month Copilot Business rate ends June 30, 2026. From July 1: standard rate $21/user/month. Plus broader M365 price hikes affecting 7 SKUs.
What's Changing on July 1, 2026
Seven Microsoft 365 SKUs are increasing 5–33% from July 2026. Affected plans include some Business and Enterprise base licences.
No price increases announced. GitHub Copilot pricing is stable through 2026.
Annual Cost Impact by Company Size
| Seats | Monthly cost now ($18) | Monthly cost from July ($21) | Monthly increase | Annual increase |
|---|---|---|---|---|
| 10 users | $180 | $210 | +$30/mo | +$360/yr |
| 25 users | $450 | $525 | +$75/mo | +$900/yr |
| 50 users | $900 | $1,050 | +$150/mo | +$1,800/yr |
| 100 users | $1,800 | $2,100 | +$300/mo | +$3,600/yr |
| 250 users | $4,500 | $5,250 | +$750/mo | +$9,000/yr |
Copilot add-on only. Add base licence cost increases if your M365 plan is also affected by July changes.
What You Can Do Before July 1, 2026
1. Lock in annual billing before June 30
If you switch to annual billing before June 30, 2026 and your agreement locks in the promotional rate, you can extend $18/user/month until your annual term renews. Check with your Microsoft account manager. This works for organisations that haven't yet committed to annual billing.
2. Audit your Copilot seat count
With prices increasing, it's worth reviewing actual Copilot usage. Many organisations have licences for users who infrequently use Copilot features. Removing inactive seats before the price rise reduces the impact. Check usage analytics in the Microsoft 365 admin centre.
3. Evaluate whether full Copilot is needed vs Copilot Chat (free)
Copilot Chat is included free for eligible M365 subscribers and provides general AI assistance without the integration into personal documents and emails. For users who rarely ask Copilot to access their specific data, the free tier may be sufficient — freeing up paid licences for heavier users.
4. Compare Google Workspace AI alternatives
Google Workspace Business Plus with Gemini AI features included is priced at $18/user/month — currently the same price as Copilot's promotional rate. Post-July, Copilot will cost $3 more. For organisations not deeply embedded in Microsoft tooling, this is a genuine evaluation moment.
GitHub Copilot Pricing: Stable for 2026
GitHub Copilot has not announced any price increases for 2026. All five tiers remain at their published prices. For development teams evaluating both Copilot products, the pricing divergence is notable: Microsoft 365 Copilot is increasing, while GitHub Copilot pricing is stable. Teams buying both products will see their total Microsoft AI spend rise purely from M365 Copilot.