How Much Is Microsoft Teams in 2025? Cost Comparison Guide
Since its launch in 2017, Microsoft Teams has established itself as one of the front-runners in the world of team collaboration and audio/video conferencing. With diverse functions ranging from business and personal use to education, its versatility sets it apart from its main competitors. Many large businesses and academic institutions in the UK have adopted
Microsoft Teams, fuelling the need for employees, clients, and students to purchase a Microsoft Teams plan.
This begs the question: “How much is Microsoft Teams?”
While the most basic Microsoft Teams plan is free, you need to pay to use the more advanced plans that offer additional features.
In this guide, we'll walk you through the various Microsoft Teams plans available, their prices, and their unique features and perks.
Microsoft Teams Plans
As of January 2025, Microsoft Teams offers two broad categories of plans—Home and Business Plans. The Home Plans include packages designed for personal needs. On the other hand, the Business Plans are optimised for businesses and professional settings, including academic institutions.
Microsoft Home Plans
If you're looking to use Microsoft Teams for personal projects, to connect and share content with friends, and to chat with family members, the Microsoft Home Plans are your best bet.
There are three packages within the Home Plans, including:
- Microsoft Teams (free)
- Microsoft 365 Personal
- Microsoft 365 Family
Microsoft Business Plans
The Microsoft Business Plans offer unique features and perks for large-scale team collaboration and businesses, making them the ideal option for your business needs.
There are four packages offered in the Business Plans, including:
- Microsoft Teams Essential
- Microsoft 365 Business Basic
- Microsoft 365 Business Standard
- Microsoft 365 Business Premium
Microsoft Teams Pricing and Features
Microsoft Teams offers a free package within the Home Plans—the Microsoft Teams (free)—which houses basic team collaboration elements. However, as of 2025, there's no completely free Business plan. While you may be eligible to try some Business plans for free for one month, you'll be charged subsequently after the free trial expires.
As a general rule of thumb, packages with more advanced features attract higher costs.
Here's a more comprehensive view of the pricing structure and features:
Microsoft Teams (free)
Price: Free
Package type: Home
Key features: The perks of Microsoft Teams (free) include group calling for up to 60 minutes and 100 participants, unlimited chat with friends and family, and 5 GB of cloud storage. Users also have free access to collaborative planning with tasks and polling and data encryption for meetings, files, calls, and chats.
Pros:
- No payment required
- Up to 60 minutes of group calling
- Up to 100 participants in group calls
- Unlimited chat
- Data encryption
- Works on Windows, macOS, iOS, and Android
Cons:
- Only one user
- Limited storage capacity
- Basic features
- No advanced security for emails and files
- Ongoing technical support may be unavailable
Microsoft 365 Personal
Price: £8.49/month ($9.99/month) or £84.99/year ($99.99/year)
Package type: Home
Key features: Key benefits of Microsoft 365 Personal are group calling for up to 30 hours and 300 participants, 1 TB of cloud storage, and unlimited chat with friends and family. Other features include collaborative planning with tasks and polling, as well as creative tools for writing, design, and graphics. Additionally, the platform offers ongoing technical support for duration of subscription; live captions for meetings in English; and advanced grammar, spelling, and editing support. Data encryption and advanced security features are also available to protect your files, calls, and email.
Pros:
- Large storage capacity (1 TB)
- Access to other Microsoft desktop apps
- Up to 30 hours of group calling
- Up to 300 participants in group calls
- Data encryption and advanced security
- Advanced writing and design tools
- Ad-free and well-sorted email, contacts, and calendar
- Ongoing technical support
- Works on Windows, macOS, iOS, and Android
- Access to the latest updates and new features
Cons:
- Only one user
- Not suitable for business
- No team meeting recording tool
- No special AI assistant tool
Microsoft 365 Family
Price: £10.49/month ($12.99/month) or £104.99/year ($129.99/year)
Package Type: Home
Key features: Microsoft 365 Family stands out by allowing up to six users to share a plan. Other perks include group calling for up to 30 hours and 300 participants, 6 TB of cloud storage (1 TB per user), and ongoing technical support for the duration of subscription. Like Microsoft 365 person, it also offers collaborative planning with tasks and polling; creative tools for writing, design, and graphics; advanced grammar, spelling, and editing support; and live captions for meetings in English. The platform also provides data encryption and advanced security for email and data protection.
Pros:
- Multiple users (up to six)
- Large storage capacity (1×6 TB)
- Access to other Microsoft desktop apps
- Long hours and large number of participants in group calls.
- Data encryption and advanced security
- Ad-free and well-sorted email, contacts, and calendar
- Ongoing technical support
- Advanced writing and design tools
- Works on Windows, macOS, iOS, and Android
- Access to the latest updates and new features
Cons:
- Not suitable for business
- No team meeting recording tool
- No special AI assistant tool
Microsoft Teams Essential
Price: £3.30/month ($4.00/month) per user
Package type: Business
Key features: Microsoft Teams Essential offers each user 10 GB of cloud storage; real time collaboration with tasks, file sharing, and polling; as well as team meeting recordings with transcripts and live captions in English. The plan also provides each user with phone and web support, and standard security, including data encryption for chats, files, and calls. Additionally, users can install Microsoft 365 Copilot—an AI assistant tool—as an add-on. It also has a meeting capacity of 30 hours and 300 participants.
Pros:
- Suitable for business
- Decent security
- Unlimited chat messages and search
- Real-time collaboration
- AI assistant tool
- Long and spacious meeting capacity
- Team meeting recordings
- Guess access
- Over 250 integrated apps and services
Cons:
- Live caption is only available in English
- No breakout room
- No desktop versions of Word, Excel, Outlook, Access, PowerPoint, and Publisher
- No 99.9% uptime guarantee
- Limited file attachment size in chat (2 GB maximum per user)
- Limited file storage capacity in chat (10 GB)
- No enforced multifactor authentication
Microsoft 365 Business Basic
Price: £4.90/month ($6.00/month) per user
Package type: Business
Key features: Microsoft 365 Business Basic offers all the features of Microsoft Teams Essential, plus identity, access, and user management for up to 300 employees; custom business email, and 10 additional business apps (including Microsoft Forms, Bookings, Stream, and Planner). The package also comes with 1 TB of cloud storage, as well as web and mobile versions of Word, Excel, Outlook, and PowerPoint. In addition to the standard security features, it possesses automatic spam and malware filtering. 24/7 phone and web support is also available.
Pros:
- Great for business
- Tenable security
- Extensive storage capacity
- Breakout rooms available
- Live captions in over 30 languages
- AI assistant tool available
- Substantial file attachment size in chat (1 TB per user)
- Exchange email hosting
- Easier customer scheduling
- Financially backed 99.9% uptime guarantee
- Offers usage reporting and analytics
- Configurable user settings and policies
Cons:
- No special video editing and design tool
- No Microsoft Loop for collaborative project organisation
- Desktop versions of Outlook, Access, Excel, Word, and Publisher are unavailable
- No Outlook and Skype contact import
Microsoft 365 Business Standard
Price: £10.30/month ($12.50/month) per user
Package type: Business
Key features: Microsoft 365 Business Standard features all the perks of Microsoft 365 Business Basic, such as desktop versions of Outlook, PowerPoint, Excel, and Word; collaborative workspaces on Microsoft Loop; and Clipchamp video editing and design tools. It also offers webinars with attendee registration and reporting.
Pros:
- Excellent for business
- Desktop versions of essential Microsoft apps
- Collaborative workspaces for project organisation via Microsoft Loop
- Advanced video editing and design tools
- Top-tier webinars
- Excellent security
- Multiple AI assistant tools (Microsoft 365 Copilot and Editor)
- Substantial storage capacity and file attachment provision
- Live caption in over 30 languages
- Substantial file attachment size in chat (1 TB per user)
- Breakout rooms
- Configurable user settings and policies
- Offers usage reporting and analytics
- Financially backed 99.9% uptime guarantee
Cons:
- No Outlook and Skype contact import
Microsoft 365 Business Premium
Price: £18.10/month ($22.00/month) per user
Package type: Business
Key features: Microsoft 365 Business Premium offers the benefits of Microsoft 365 Business Standard, plus enterprise-grade device, endpoint, and cyberthreat protection.
Pros:
- Ideal for business
- Ironclad security
- Desktop versions of essential Microsoft apps
- Advanced video editing and design tools
- Collaborative workspaces for project organisation via Microsoft Loop
- Best-in-class webinars
- Substantial storage capacity and file attachment provision
- Live caption in over 30 languages
- Configurable user settings and policies
- 99.9% uptime guarantee
- Offers usage reporting and analytics
- AI-powered chat
Cons:
- This package may be a bit too expensive
Note: These prices do not include VAT.
Bottom Line
While you can use Microsoft Teams for free for your personal needs, you'd be limited to the basic features. To access advanced and business-oriented tools, you'll need to choose a suitable paid plan. The cheapest business plan costs £3.30/month ($4/month) per user, while the most expensive business plan is priced at £18.10/month ($22/month) per user.
Frequently Asked Questions
How much is Microsoft Teams for business?
The price of Microsoft Teams for business depends on the plan. There are four business plans available. Microsoft Teams Essential costs £3.30/month ($4.00/month) per user, Microsoft 365 Business Basic is priced at £4.90/month ($6.00/month) per user, Microsoft 365 Business Standard costs £10.30/month ($12.50/month) per user, and Microsoft 365 Business Premium charges £18.10/month ($22.00/month) per user.
How much is Microsoft Teams for personal use?
For personal use, Microsoft Teams offers a free plan with basic features. However, to access premium features, you'll need to purchase a paid plan. Microsoft 365 Personal costs £8.49 per month ($9.99 per month), while Microsoft 365 Family is priced at £10.49 per month ($12.99 per month).
How much is Microsoft Teams in the UK?
The price of Microsoft Teams depends on the plan and features that come with it. In the UK, the paid Microsoft Teams plans range from £3.30 per month to £18.10 per month. Note that you may incur additional charges for VAT.