Copilot Credits explained: what's changing with Microsoft 365 Copilot
Microsoft 365 Copilot Credits: what they are and how pricing works
Copilot can now do the work for you, not just help with it. From 2 November 2026, new Microsoft 365 Copilot Business plans include Copilot Credits as standard: pay-as-you-go AI for larger, more complex tasks.
If that sounds like a new bill waiting to happen, it isn't. Everyday Copilot is unchanged. Credits are an optional top-up for bigger jobs, and a spending limit is already in place from day one.
We've put together a short user guide that walks through it step by step. You can download it at the bottom of this page. Here's the plain-English version.
What's changing?
From 2 November 2026, new Copilot Business licences come with Copilot Credits built in.
- On from day one. Credits are available as soon as new Copilot Business licences are purchased.
- Nothing to set up. Billing is set up automatically, with no technical configuration required.
- A spend limit built in. Capped at 4,000 credits (about £30) per person, per month.
Why is Microsoft changing it?
Copilot's role has changed. It no longer just answers questions; it now completes entire pieces of work.
Quick questions, drafts and summaries are light usage that a single fixed price covers well. Tasks that run for minutes or hours across your apps need far more computing power, and every task runs in powerful data centres. The larger the task, the more it costs to run.
So everyday use stays at a fixed price, and heavier work is billed by usage. We expect every AI provider to move to usage-based pricing over time. Microsoft is one of the first.
How does Copilot pricing work now?
Think of it like a mobile contract: a plan for everyday use, plus pay-as-you-go extras.
The plan (your user licence) covers Copilot Chat and support across Word, Excel, PowerPoint, Outlook and Teams, plus the latest AI models within fair use.
The top-up (Copilot Credits) is what Microsoft calls usage-based billing. Credits are used when Copilot completes a task for you, and bigger jobs use more credits. One credit costs roughly 0.75p.
Your plan covers everyday use. Credits cover the extras, and you only pay for what you use.
What do credits pay for?
Credits are used by the features where Copilot moves from assisting to delivering. Some are still in early access, and Microsoft will add more over time.
- Copilot Cowork: hand over a task. Copilot plans the steps, works across your apps and delivers the finished piece.
- Copilot Code: describe an app, dashboard or automation in plain English, and Copilot builds it.
- Autopilot: a personal agent that completes routine work in the background.
- Newest AI models: keep using the latest models once you reach your plan limit.
A simple rule of thumb: if Copilot is completing a task for you, rather than helping you with it, it's likely using credits.
Does everyday Copilot use credits?
No. Everyday Copilot is covered by your licence. Only the more advanced, task-based features use credits.
- Included with a Copilot licence: chat using your work data, Copilot in Word, Excel, PowerPoint, Outlook and Teams, the Researcher, Analyst and Facilitator agents, and assistive custom agents. No credits needed.
- No Copilot licence: Copilot Chat is free on eligible Microsoft 365 plans. However, custom agents built by your organisation are charged by usage for these users.
- Uses credits: Copilot Cowork, Code, Autopilot and the Work IQ APIs. Some SharePoint, OneDrive and Teams Phone features are also included, and Microsoft expects to add more.
Will I get a surprise bill?
No. As with a spending cap on a phone, you decide how far spend can go and can see exactly where every credit is used.
- Set your own limit. The default is 4,000 credits (about £30) per person, per month. Lower it, raise it, or switch it off.
- Choose who gets access. Enable credit-based features only for the people who need them.
- Estimate before you spend. Microsoft's credit estimator calculates the cost of a task in advance.
- See where it goes. Dashboards show who is using credits, and on what.
Set your limit in the Microsoft 365 admin centre before anyone starts using credits. We can set this up for you.
What does it cost in practice?
Microsoft's own example follows one account manager in a 40-person business using Copilot Cowork for a month.
Weekly meeting prep and follow-up, Monday inbox triage, a Friday sales pipeline review, twice-monthly tender responses, a monthly branded pitch deck and a holiday handover document came to 3,970 credits. That's about £30 for the month, within the default 4,000-credit limit, or about £1.40 per working day.
This is illustrative only, and your team's usage will differ.
How do I buy credits?
There are two options. Most businesses start with pay-as-you-go, then switch once their usage is clear.
- Pay-as-you-go (the default): about 75p per 100 credits, billed monthly. No commitment, and it scales up or down with your team.
- Pre-purchase plan: packs of 25,000 credits for £153.80 a month, around 0.62p per credit. Annual plans offer further savings. Best for steady use.
Start flexible. Once your usage is clear, a pre-purchase plan can lower the cost per credit.
What should I do before 2 November?
Four questions to answer now, so credits work for you from day one.
- Who will actually use it? Start with people whose roles involve clear, repeatable tasks.
- Is the default limit right? About £30 per person, per month. Lower it, or switch it off until you're ready.
- Is your data in order? Copilot can see whatever each person can access. Review permissions first.
- Who will monitor spend? Agree who reviews usage each month and what good value looks like.
New to Copilot, or not sure your team is getting real value from it yet? Our free guide, Your first 60 days with Microsoft Copilot, walks you through setting it up week by week, so the everyday features covered by your licence are working hard before you spend a single credit.
Download the full guide
Our Copilot Credits user guide covers everything above in eight short steps, with examples you can share with your team. Download it below.
Download the Copilot Credits user guide (PDF)
How Flotek can help
We help our partners get real value from Copilot, without the guesswork.
- Set up safely: licences, permissions and spend limits configured correctly from day one.
- Find the right tasks: we help your team identify the work worth handing to Copilot.
- Keep an eye on spend: regular reviews to make sure credits are spent where they add value.
Not sure where to start? Call us on 02921 50 8000, email sales@flotek.io or get in touch.
Pay-as-you-go credits are billed in US dollars ($0.01 each). Pound figures are converted from USD and will move with the exchange rate. Microsoft list prices, ex VAT, October 2026. Your price through Flotek may differ.
Sources
- Microsoft Learn: Usage-based billing and cost management for Copilot Credits
- Microsoft Learn: Managing AI experiences enabled by usage-based billing
- Microsoft UK: Copilot Studio and Copilot Credit pricing
- Microsoft, Copilot Business usage-based billing briefing, October 2026
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