If you’re evaluating Microsoft Copilot Studio for your organization, then understanding the costs is a critical first step. To help you navigate your options, this Copilot Studio price guide breaks down everything you need to know about licensing and billing in 2025—ranging from prepaid tenant licenses to flexible pay-as-you-go options. Whether you’re deploying for a small team or scaling across departments, this guide will help you choose the right model for your needs.
In addition, if you’re exploring Microsoft Copilot Studio, understanding its pricing is key—but just as important is understanding what it can do for your business. For more insightyes, check out our blog: How Microsoft Copilot Studio Is Changing the Game for Business Automation.
Copilot Studio Price Guide: Two Licensing Options
There are two pricing models for Copilot Studio. In the sections below, we outline the key differences to help you make an informed decision based on your business needs.
1. Tenant License (Prepaid Model)
This model is based on a fixed monthly fee.
Cost: $200 per month per tenant
Includes: 25,000 messages per month
Billing: Through Microsoft 365 admin center or Microsoft Volume Licensing
Best For: Organizations with consistent usage patterns who want a predictable monthly cost
Users consume messages whenever they interact with a copilot—whether through a website, mobile app, or Microsoft Teams.Because of this, Copilot Studio makes it easy to extend automation across departments. If you’re planning to deploy copilots directly within Teams, we recommend reading our blog on AI Collaboration with Microsoft Teams to see what’s possible.
2. Pay-As-You-Go (PAYGO) Model
For those who prefer flexibility, the PAYGO model charges based on actual usage.
Cost: No upfront license fee
Billing: Through an Azure subscription
Charges: Based on the number of messages used
Best For: Businesses with variable usage, testing scenarios, or those who want to avoid a base monthly fee
Unlike the tenant license, the PAYGO model allows you to start small and scale as your needs grow. Additionally, it’s a great option for testing copilots before committing to a monthly plan.
Need help choosing the right plan? enCloud9 will assess your needs and recommend the best Copilot Studio licensing for your business. Contact us today.
Understanding Message Metering
To get the most value from your licensing model, you need to understand how usage is measured. The system counts a “message” each time a user interacts with a copilot—this includes queries, clicks, and responses. Regardless of whether you choose the tenant license or PAYGO, message metering ensures you’re only billed based on actual interaction volume.
Copilot Studio User Scenarios
To get the most value from your licensing model, you should understand how usage works. The system counts a “message” every time you interact with a copilot—whether by submitting a query, clicking a button, or receiving a response.BELOW, we break down the most common scenarios:
Microsoft 365 Copilot Licensed Users
These users can access copilots without additional charges.
Their M365 Copilot license includes message consumption.
Users Without Copilot Licenses
These users will trigger message charges.
- These users cover both internal and external user scenarios.
For these scenarios, organizations must cover costs either via the tenant license or PAYGO.
Agent Developers
For development and testing, developers can use Copilot Studio developer licenses to build and test copilots for free.
This license includes limited usage and is ideal for prototyping.
Furthermore, if you’re using Copilot Studio alongside Dynamics 365 Sales, you’ll also want to explore how AI scoring can help prioritize leads more effectively—read more in our blog, Smarter Lead Prioritization: AI Scoring Comes to Dynamics 365 Sales in 2024 Release Wave 2.
Setting Up Billing with Copilot Studio Pricing Options
Getting started with Copilot Studio billing is straightforward. Follow these steps to ensure your environment is properly configured:
Go to the Power Platform Admin Center
Enable Copilot Studio for your environment
Choose your billing model: tenant license or PAYGO
Assign licenses or link to your Azure subscription
Monitor usage regularly to avoid surprise charges
By proactively managing setup, you can avoid unexpected costs and ensure users are licensed appropriately.
Copilot Studio Price Guide Summary
You can set up Copilot Studio billing quickly by following these steps to properly configure your environment: Here’s a quick summary:
Use the tenant license for high-volume, predictable deployments
Choose PAYGO for flexibility and smaller-scale use
Developers can build and test with a free license
Microsoft 365 Copilot licenses typically include the required coverage.
Get Expert Help with Copilot Studio from enCloud9
We hope you’ve found this Copilot Studio price guide helpful as you plan your next steps. At enCloud9, we guide organizations in fully leveraging Microsoft Copilot Studio through expert consultation, tailored implementation, and continuous support—whether they’re just getting started or scaling up. Our successful deployment with a pet supply company is a great example of how we’ve helped businesses streamline operations and deliver smarter customer experiences using Copilot Studio. Let us help you choose the right licensing model, build impactful copilots, and get the most out of your investment.
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