Microsoft Teams Phone price increase 2025: Teams Phone Standard goes to $10 per user
Microsoft raised the price of Teams Phone on April 1, 2025. Teams Phone Standard went from $8 to $10 per user a month, a 25% rise. The Teams Phone bundles with calling went up $2 per user a month. Existing customers keep their price until the next renewal. Microsoft launched Teams Phone in 2017, and this was its first price change. We do not track Teams Phone on SaaS Price Watch yet. More vendors are on the vendor list.
Old and new prices
| Teams Phone license, per user a month | Before April 1, 2025 | From April 1, 2025 | Change |
|---|---|---|---|
| Teams Phone Standard | $8 | $10 | +$2, 25% |
| With pay-as-you-go calling, US | $11 | $13 | +$2, 18% |
| With Calling Plan, US | $15 | $17 | +$2, 13% |
| With domestic and international calling | $32 | $34 | +$2, 6% |
| Teams Phone for Frontline Workers | not shown | $5 | withheld |
| With pay-as-you-go calling, UK and Canada | not shown | $12 | withheld |
| With Calling Plan, outside US, UK, and Canada | not shown | $22 | withheld |
Old prices come from a February 2025 copy of the Teams Phone page, on yearly billing. That page did not list the Frontline, UK and Canada pay-as-you-go, or outside-market Calling Plan prices, so we withhold those changes.
Per year, a Teams Phone Standard user went from $96 to $120, $24 more. A company with 50 Standard users went from $4,800 to $6,000 a year, $1,200 more.
What Microsoft said
Microsoft's post lists the new prices "starting April 1, 2025." On timing it says: "Commercial customers with existing licenses will continue to have their current pricing until their next renewal." On billing: "The monthly billing plan for annual subscription will be priced 5% higher." On E5: "Currently, there are no pricing changes for customers who purchase Teams Phone through Microsoft 365 E5 or Office 365 E5 annual term subscriptions with annual billing."
Who it hits and when
- New Teams Phone customers pay the new prices from April 1, 2025.
- Existing customers keep the old price until the next renewal.
- Annual terms paid monthly cost 5% more than paid up front. Teams Phone Standard at $10 comes to $10.50 a month on that plan, by our math.
- Microsoft 365 E5 and Office 365 E5 customers on annual terms with annual billing get Teams Phone in the suite, with no price change from this update.
What to do before your renewal
- Find your renewal date in the Microsoft 365 admin center.
- List users with a Teams Phone license. Remove it from people who do not take calls.
- Compare pay-as-you-go calling with a Calling Plan for each user, based on minutes used.
- If you pay monthly on an annual term, compare the 5% higher price with paying up front.
- If many users need Teams Phone, price an E5 suite against the add-on licenses.
FAQ
How much is Teams Phone Standard now? $10 per user a month, up from $8. That is $120 per user a year.
When did the Teams Phone price increase start? On April 1, 2025. Existing customers pay the new price at their next renewal.
How much is Teams Phone with a Calling Plan? $17 per user a month in the US, UK, and Canada. In the US it was $15 before. Outside those markets it is $22.
Does Microsoft 365 E5 include Teams Phone? Yes. Microsoft says there are no pricing changes for Teams Phone in Microsoft 365 E5 or Office 365 E5 annual term subscriptions with annual billing.
Why does monthly billing cost more? Microsoft prices the monthly billing plan for an annual subscription 5% higher than paying for the year up front.
How we check
We read the Microsoft 365 blog post from November 2024 and a February 2025 copy of the Teams Phone page on the Wayback Machine on October 26, 2026. Get an alert when a SaaS price changes.
Checked 2026-10-26. Prices and policies change. Confirm on the source before you buy.
Sources
- https://techcommunity.microsoft.com/blog/microsoft_365blog/flexible-billing-for-microsoft-365-copilot-pricing-updates-for-annual-subscripti/4288536
- https://web.archive.org/web/20250201/https://www.microsoft.com/en-us/microsoft-teams/microsoft-teams-phone
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