Microsoft Excel

Microsoft announced multiple adjustments to its Microsoft 365 plans pricing in 2025 that align with the addition of new capabilities like AI-powered Copilot and changes in billing models. Monthly subscription plans with an annual commitment will be 5% more expensive starting from April 1, 2025, than paying annually upfront, which has made users switch to using annual billing for cost savings. Individual and family plan pricing is now $9.99/month and $12.99/month, respectively, to reflect the inclusion of Copilot AI functionality. Microsoft 365 Copilot is included in business plans priced at $30/user/month (annual), or $31.50/user/month (monthly). Enterprise-focused solutions like Copilot for Sales or Service are priced at $50/user/month. These changes are intended to standardize charges, encourage transparency, and identify value creation from AI productivity aids such as natural language processing and custom AI agent creation. Customers will still be required to maintain a qualifying Microsoft 365 subscription and Copilot, which can increase total costs.