Microsoft announces 365 and Copilot price hike — here's how much more you'll pay

Microsoft announced this week that enterprise-focused subscriptions for 365 Copilot will be getting price hikes, at least on the monthly payment plan. According to the company, this plan is a mixture of introducing a new monthly payment option for Microsoft 365 Copilot and "standardizing" the billing for all subscriptions already offered monthly. As part of that standardization, Microsoft is raising the price by 5% to monthly billing plans starting on April 1, 2025.

No, it does not appear to be a too-early Fool's Day prank. Microsoft says that the payment changes will impact people using Buy Online, Cloud Solutions Partner, and enterprise Microsoft Customer Agreement (MCA-E) channels. Specifically, it will hit Microsoft 365 Copilot, Microsoft 365 Pilot for Sales and Microsoft 365 Copilot for Service.



Those programs can pay monthly starting on December 1, 2024. Here is the complete list of programs that are seeing a 5% monthly payments: Additionally, the Teams Phones program will also see a 5% price bump. That price will rise in April 2025, along with the other Microsoft services.

Microsoft appears to be pushing subscribers toward a more annual subscription, where the company says the price will remain the same. Only the monthly payment will see the 5% bump. However, the annual payment is an upfront one-time payment.

So, it may be easier to defray costs over a monthly plan even with the higher price, but it remains to be seen how users will respond. More from Tom's Guide.