MICROSOFT TEAMS LICENSING
Microsoft Teams’ licensing options can meet the needs of individuals, small businesses, and large enterprises. Whether you’re just getting started or looking to enhance your collaboration with advanced features, there’s a plan for you. Work with xMonthly to find the right one! Looking for Microsoft Teams Premium? Click here.
Microsoft Teams Free
Best For: Individuals and small teams
Includes: Group meetings up to 60 minutes (up to 100 participants), unlimited chat and file sharing, basic collaboration tools
FREE
Access Teams Through Other Microsoft Products…
Beyond the free version of Microsoft Teams offered, you can also access Teams through its inclusion in various Microsoft SKUs, including Microsoft 365 Personal/Family and Microsoft 365 Enterprise. Or, you can secure a Microsoft Teams Essentials or Enterprise license separately.
Key Features:
- AI-generated meeting recaps and notes
- Real-time translation for captions
- Branded meeting experiences
- Advanced webinar tools
- Enhanced meeting protection (e.g., watermarking, E2E encryption)
Microsoft 365 Business
Best For: Small and Medium sized businesses
Business Basic: Web and mobile versions of Office apps, 1 TB OneDrive, Teams meetings up to 300 participants
Business Standard: Includes desktop Office apps, webinar hosting, and appointment scheduling
Business Premium: Adds advanced security and device management
Microsoft Teams Essentials
Best For: Small businesses, startups, and organizations that need a simple, affordable collaboration tool
Month to Month Commitment
$4.80
per user/month
Annual Commitment
(paid monthly)
$4.20
per user/month
Annual Commitment
(paid upfront)
$4
per user/month
$48
per user/year
Microsoft Teams Enterprise
Best For: Large organizations, enterprises, and institutions with advanced security, compliance, and integration needs
Month to Month Commitment
$6.36
per user/month
Annual Commitment
(paid monthly)
$5.57
per user/month
Annual Commitment
(paid upfront)
$5.30
per user/month
$63.60
per user/year
Teams Premium as a Critical Add-On
Teams Premium is an add-on license that enhances your Teams experience with AI-powered features, advanced security, and personalized meeting tools. Check out a few key features below, or read our informational post about Teams Premium, “One Call Can Pay for Itself.”
Microsoft Teams Premium
Month to Month Commitment
$12
per user/month
Annual Commitment
(paid monthly)
$10.50
per user/month
Annual Commitment
(paid upfront)
$10
per user/month
$120
per user/year
Make Outbound Calls with Teams
Microsoft Teams Phone Plans enable users to make and receive traditional phone calls directly within Microsoft Teams. Designed for businesses of all sizes, these plans integrate seamlessly with Teams, turning it into a full-featured cloud-based phone system. With features like call transfer, voicemail, auto attendants, and call queues, Teams Phone supports both internal collaboration and external communication.
Teams Phone Standard
What it is: A license that enables PBX (Private Branch Exchange) capabilities in Microsoft Teams. It provides call control and features like call transfer, voicemail, auto attendants, and call queues.
What it does not include: Does not include PSTN (Public Switched Telephone Network) connectivity, meaning users can’t make or receive external phone calls unless you add a separate calling solution.
Enable calling by pairing with one of: Microsoft Calling Plan or a telecom provider.
Best for: Large enterprises with existing telephone infrastructure or organizations that want to use their own telecom provider.
Month to Month Commitment
$12
per user/month
Annual Commitment
(paid monthly)
$10.50
per user/month
Annual Commitment
(paid upfront)
$10
per user/month
$120
per user/year
Teams Phone with Calling Plan
What it is: A bundled license that includes both Teams Phone Standard (PBX features) and a Microsoft Calling Plan (PSTN connectivity)
What it includes: Everything needed to make and receive external calls, all managed by Microsoft.
Best for: Small to mid-sized businesses, organizations that want a simple, all-in-one solution, companies operating in regions where Microsoft Calling Plans are available (like the U.S., UK, etc.).
Month to Month Commitment
$20.40
per user/month
Annual Commitment
(paid monthly)
$17.85
per user/month
Annual Commitment
(paid upfront)
$17
per user/month
$204
per user/year
Teams Essentials + Teams Phone
Domestic and International Calling*
What it includes:
- Teams Essentials
- Teams Phone Standard
- Domestic & International Calling Plan: PSTN connectivity with outbound minutes for both domestic and international calls.
Best for:
- Small businesses or frontline teams needing full Teams functionality and global calling.
- Organizations without Microsoft 365 who still want a complete Teams + phone solution.
Month to Month Commitment
$43.20
per user/month
Annual Commitment
(pay monthly)
$37.80
per user/month
Annual Commitment
(pay upfront)
$36
per user/month
$432
per user/year
*Also available without international calling
Teams Essentials + Teams Phone
Pay-as-you-go Calling (US)*
What it includes:
- Teams Essentials
- Teams Phone Standard
- Pay-As-You-Go Calling Plan: No bundled minutes; you pay per minute for outbound calls.
Best for:
- Organizations with low or unpredictable call volumes.
- Cost-conscious businesses that want to avoid overpaying for unused minutes.
Month to Month Commitment
$18
per user/month
Annual Commitment
(pay monthly)
$15.75
per user/month
Annual Commitment
(pay upfront)
$15
per user/month
$180
per user/year
*Charged based on minutes used
Teams Phone Standard
Pay-as-you-go Calling (US)*
What it includes:
- Teams Phone Standard
- Pay-As-You-Go Calling Plan
- No Teams Essentials or Microsoft 365 included.
Best for:
- Organizations that already have Microsoft 365 or Teams licenses and just need calling capabilities.
- IT departments that want to add calling to existing users without bundling Teams Essentials.
Month to Month Commitment
$15.60
per user/month
Annual Commitment
(pay monthly)
$13.65
per user/month
Annual Commitment
(pay upfront)
$13
per user/month
$156
per user/year
*Charged based on minutes used
Work with xMonthly to Choose the Right Plan
Not sure which Microsoft Teams option is right for your business? Let xMonthly licensing experts help simplify the decision. We can help you navigate Microsoft Teams licensing, whether you’re using Teams for individuals or enterprise-wide processes.
Schedule a free consultation call today and get tailored recommendations that align with your business goals and budget!