Microsoft Teams Phone Pricing Explained (2026)

Short answer: Microsoft Teams Phone Standard costs $10 per user per month on an annual subscription, plus a separate Microsoft Teams license. To get a Microsoft phone number with minutes, US customers pay $13 per user per month (pay-as-you-go calling), $17 (Calling Plan with 3,000 outbound domestic minutes) or $34 (domestic and international calling), all paid yearly.

Prices are from Microsoft's Teams Phone page as checked on October 1, 2026, in US dollars, excluding taxes and fees.

The four ways to buy Teams Phone

Option	Price per user/month (paid yearly)	Phone number from Microsoft	Outbound minutes
Teams Phone Standard	$10	No (bring your own via a provider)	Not included
Teams Phone with pay-as-you-go calling (US, zone 1)	$13	Yes	Metered
Teams Phone with Calling Plan (US, zone 1)	$17	Yes	3,000 domestic (US, UK, Canada) or 1,200 (rest of world)
Teams Phone with domestic and international calling	$34	Yes	3,000 domestic or 600 international (US, UK, Canada)

All four are annual subscriptions that auto-renew. Microsoft states that a separate Microsoft Teams license is required for each user.

What the license covers

Teams Phone turns Teams into a phone system: users can make and receive calls to regular phone numbers from the Teams app, desk phones certified for Teams and meeting rooms. Microsoft's page describes features such as reviewing recordings, transcripts and voicemails, AI-generated summaries and insights through Copilot and intelligent recap, and voice isolation to reduce background noise. Some AI features depend on additional Copilot licensing, so confirm what your organization's licenses include.

Understanding the total cost

A Teams Phone user typically needs three things:

1. A Teams license, usually through a Microsoft 365 business plan. Many companies already have this for email and documents.
2. Teams Phone Standard, the phone system license.
3. Calling: either a Microsoft Calling Plan (bundled in the $13, $17 and $34 options) or service from a third-party carrier through Microsoft's Operator Connect or Direct Routing programs.

The bundled options are the simplest path for a small business, because Microsoft supplies the number and minutes.

Example costs (phone licensing only)

Team size	Standard ($10)	With Calling Plan ($17)	Domestic + international ($34)
1 user	$10	$17	$34
5 users	$50	$85	$170
10 users	$100	$170	$340
25 users	$250	$425	$850

Add the Teams license for each user and multiply by 12 for the annual commitment. For a 10-person team on the Calling Plan bundle, the phone portion alone is $2,040 per year.

Trial and contract terms

Microsoft offers a one-month free trial of Teams Phone Standard. A credit card is required, and the trial automatically converts to a 12-month paid subscription unless you cancel. Put a reminder on your calendar before the trial ends if you are only evaluating.

Because the paid subscriptions are annual, adding staff mid-year adds licenses, but reducing headcount may not reduce your bill until renewal. Ask your Microsoft partner or Microsoft directly how seat reductions are handled.

Minutes and overages

The Calling Plan bundle's 3,000 outbound domestic minutes per user per month covers most office workers. Pay-as-you-go calling meters outbound minutes instead, which suits staff who rarely call out. The international option includes 600 international minutes. Inbound calls are not counted against these outbound minute allowances in the bundle descriptions.

Texting

Microsoft's Teams Phone page does not list business SMS among the plan features. If customers need to text your business number, ask how that would work for your setup before committing; it may require a third-party carrier or app.

How Teams Phone compares with other suite-based phones

Teams Phone is one of three common ways to add calling to a productivity suite. On published prices checked October 1, 2026:

Option	Phone price per user/month	Suite license also needed	Calling included
Teams Phone with Calling Plan	$17 (paid yearly)	Microsoft Teams license	3,000 outbound domestic minutes
Zoom Phone US & CA Unlimited + Workplace Basic	$18 monthly, $16 annual	Bundled with Zoom Workplace Basic	Unlimited US and Canada
Google Voice Starter / Standard	$10 / $20	Google Workspace (from $7/user)	Domestic calling

Standalone per-user systems cost more per seat but do not require a suite: RingCentral RingEX Core is $30 monthly or $20 annually, and Dialpad Standard is $27 monthly or $15 annually.

The deciding factor is usually what you already pay for. If every employee already has a Microsoft 365 plan with Teams, Teams Phone with a Calling Plan adds $17 per user per month and keeps calling inside the tool people use all day. If not, the license stack makes Teams Phone one of the more expensive ways for a small business to get a phone line.

Operator Connect and Direct Routing in plain terms

Teams Phone Standard by itself does not include a phone number or minutes. You either buy a Microsoft Calling Plan (the bundled options above) or connect a third-party carrier. Operator Connect lets a participating carrier provide numbers and calling inside Teams; Direct Routing connects your own carrier or phone system through certified equipment or a provider. Both can lower calling costs or keep existing carrier contracts, but they add setup work that usually needs IT help.

Who Teams Phone pricing suits

Microsoft 365 organizations with IT support. If everyone already has a Teams license and an administrator manages Microsoft 365, adding Teams Phone with a Calling Plan at $17 per user is a straightforward extension.

Companies with meeting rooms and desk phones. Teams-certified hardware and rooms make Teams Phone attractive for offices that meet in person.

Multinational teams. International calling options and numbers in many countries suit distributed organizations.

When a standalone system makes more sense

Callata is a standalone business phone system: Callata Office is $99 per month including five users, plus $20 per additional user per month, billed monthly with no annual term (the first month is $79.99). It includes up to three local numbers, unlimited inbound calling and 1,500 pooled outbound US and Canada minutes per user per month (then $0.01 per minute), a shared texting inbox (after a one-time $49 carrier registration), call recording with AI summaries, voicemail transcription with urgency triage, ring groups, extensions, business-hours routing and E911. Optional AI agents cost $0.25 per minute.

On phone licensing alone, Teams Phone with a Calling Plan is cheaper than Callata at every team size: $85 versus $99 for five users, $170 versus $199 for ten and $425 versus $499 for 25. Callata comes out ahead only when you would otherwise be buying Teams licenses just to get a phone line, or against the $34 domestic and international bundle (from three users). It does not offer Teams' chat, meetings, file sharing, desk phones or international calling.

Teams Phone pricing checklist

• Confirm every phone user has a qualifying Teams license.
• Choose Standard plus your own carrier, or a Microsoft Calling Plan bundle.
• Estimate outbound minutes per user against 3,000.
• Plan for the 12-month term and auto-renewal.
• Ask how business texting would work.
• Check which AI features need extra Copilot licensing.

For a side-by-side, read Callata vs Microsoft Teams Phone. For other options, see Microsoft Teams Phone alternatives.

Try Callata

If you want business calling and texting with one monthly bill and no license stacking, Callata Office is $99 per month for up to five users, then $20 per additional user, with free number porting. Get started with Callata.