Copilot billing changes on Dec 1. Set your own spending limit first.
From December 1, Microsoft will sell Copilot without a Microsoft 365 base plan, and new Copilot Business seats bought through a reseller will bill extra use by default; here is what changes and what to set.
On October 14, 2026, Microsoft told its resellers about two changes that land on December 1. You will be able to buy Microsoft 365 Copilot without a Microsoft 365 base plan, and new Copilot Business licenses bought through a reseller will come with usage-based billing switched on. This post explains what changes, what it could mean for your bill, and the settings to check before you add seats.
What Microsoft announced
Microsoft posted the details in its Partner Center announcements for October 2026:
- 01
Copilot without a base plan.
"Beginning December 1, 2026, new Microsoft 365 Copilot and Microsoft 365 Copilot Business offers can be purchased without a qualifying Microsoft 365 base subscription." Microsoft says the new offers are priced the same as the current ones and sold in all channels. In its words, the change "affects how customers purchase Copilot, not the underlying Copilot capabilities."
- 02
New names from today.
Starting October 16, the current offers that need a base plan carry "(add-on)" in their names, for example "Microsoft 365 Copilot Business (add-on)." If you see that on an invoice or in your admin center, nothing else about your subscription has changed.
- 03
Usage billing on by default.
From December 1, usage-based billing "will be enabled by default for new Microsoft 365 Copilot Business licenses purchased in Cloud Solution Provider (CSP)," Microsoft's reseller program. Microsoft had first said November 2.
What it means in plain words
Copilot Business is a per-seat license. Some newer Copilot features, such as Copilot Cowork, are billed by use instead, in Copilot Credits, on top of the seat. Until now a business had to switch that billing on and connect an Azure subscription. From December 1, new Copilot Business seats bought through a reseller arrive with pay-as-you-go already set up.
Microsoft also sets a default ceiling: "The default spending limit will be 4,000 Copilot Credits per user per month, which can be adjusted by admins." Its own example is a business with 100 Copilot Business users, which could use up to 400,000 credits a month under that default, with charges based on actual use. The announcement does not say what a credit costs, so ask whoever sells you the license.
Existing subscriptions stay as they are. Microsoft says "No action is required for existing subscriptions," and pricing, renewal terms and auto-renew settings do not change.
How the billing controls work
Microsoft's guide to usage-based billing for Copilot Credits describes a Cost management dashboard in the Microsoft 365 admin center, under Copilot > Cost management. From there an admin can:
- 01
Set spending policies.
Choose which users and groups can use billed services, and which services each policy covers.
- 02
Set limits.
Apply organization-level and user-level spending limits, with alerts for admins and threshold notifications for users.
- 03
Watch consumption.
See usage by policy, user, group, agent and service, and spot people close to their limits.
- 04
Give read-only access.
Reader roles can review the dashboards without being able to change policies, so the person who handles your books can watch spend without touching settings.
One default deserves attention. Microsoft says: "The Auto-apply new services setting is enabled by default for spending policies." A billed Copilot service that Microsoft adds later can fall under your existing policy without anyone reviewing it first.
Why it matters to a small business
The seat price is not changing. What changes is a second, variable line on the bill that grows with use. The 4,000-credit limit is Microsoft's default, not a number chosen for your budget. And buying Copilot without a base plan makes it easier for one team or one person to start on their own, which is good for trying it and easy to lose track of.
Three settings to check first
These are our suggestions, based on Microsoft's documentation, not Microsoft screens. Check them in your own admin center.
- 01
Set your own user limit.
Decide what a month of Copilot use is worth per person and set the limit to match. You can raise it for the few people who need more.
- 02
Decide on auto-apply.
If you want to approve each new billed service before your team can use it, turn off "Auto-apply new services" on your policies.
- 03
Name a watcher.
Give whoever handles your books read-only access to the dashboard, and set an alert well before a limit, not at it.
This week
- 01
Check how you buy Copilot today.
Directly from Microsoft or through a reseller. The usage-billing default applies to new Copilot Business licenses bought through a reseller.
- 02
Ask before you add seats.
If you plan to add Copilot Business after December 1, ask your reseller what a Copilot Credit costs you and whether usage billing will be on.
- 03
Check your country.
Microsoft says the default will not be available at first in Australia, Belgium, Brazil, France, Germany, India, Italy, Korea, the Netherlands, Poland and Spain.
- 04
Estimate before Cowork.
If Copilot Cowork is on your list, Microsoft offers a Copilot Credit Estimator to model usage first.
Our take
Paying by use is a fair way to buy agent work that varies from month to month. Set the limits yourself before the first bill sets them for you.
No partnership with Microsoft is implied here.
Sources
October 2026 announcements, Partner Center (Microsoft Learn, Oct 14, 2026; the usage-billing notice is dated Oct 1 and was updated Oct 14)
Usage-based billing and cost management for Copilot Credits (Microsoft Learn, checked Oct 16, 2026)
Want this working in your business?
Tell us what you are trying to fix and we will point you at the smallest useful next step.
Talk to us