Productivity Software · Updated

Slack vs Microsoft Teams Pricing for Company Size

Slack Pro is $7.25 per user/month billed annually, while Microsoft Teams Essentials starts at $4.00 per user/month paid yearly before add-ons.

AppStack Insider Editorial Team
AppStack Insider Editorial Team
AI-assisted research, human-reviewed • 9 min read
Slack vs Microsoft Teams Pricing for Company Size

Slack and Microsoft publish very different kinds of pricing information, which changes how buyers should compare them. Slack lists standard Free, Pro, and Business+ per-user prices on one pricing page, while Microsoft’s Teams comparison page presents several entry points at once: a standalone Teams plan, Microsoft 365 bundles that include Teams, and paid add-ons layered on top of an eligible license.

What it is and who it’s for

This comparison is for companies choosing a team collaboration product and trying to understand how price structure changes with company size rather than just sticker price. The practical audience is the B2B buyer or team lead deciding between Slack’s standalone plan ladder and Microsoft’s Teams packaging, which on the cited Microsoft page includes Teams Essentials, Microsoft 365 bundles, Teams Premium, Audio Conferencing, and Microsoft 365 Copilot Business.

Slack’s lineup is easier to read as a direct workspace purchase. According to Slack, the Free, Pro, and Business+ plans each support 1 workspace, while Enterprise+ supports unlimited workspaces.

Microsoft’s cited Teams page is shaped more like a licensing menu around Teams. Microsoft describes Teams Essentials as an affordable meeting solution for small and medium-sized businesses and, in its own FAQ, as a standalone offering alongside Teams Enterprise for enterprise customers. Layered above that, Microsoft says Teams Premium is an add-on that requires an eligible Microsoft Teams license, and that Microsoft 365 Copilot Business is an add-on that requires an eligible Microsoft 365 subscription and is for up to 300 users.

How it works

Slack’s pricing model works as a tiered per-user subscription with an entry-level free option. According to Slack, the Free plan includes 90 days of message history, up to 10 apps, 1:1 meetings via Slack huddles, and 1:1 external messages via Slack Connect; Pro adds unlimited message history, unlimited app integrations, and group meetings plus group external messages; Business+ remains a single-workspace tier; Enterprise+ moves to unlimited workspaces with admin-created templates and 24/7 priority support with a 4-hour first response time.

Microsoft’s cited Teams page works differently because the buyer picks an entry point before picking features. According to Microsoft, Teams Essentials costs $4.00 user/month paid yearly and supports meetings up to 30 hours, up to 300 participants, and 10 GB of cloud storage per user, but it does not include the Word, Excel, PowerPoint, and Outlook apps that come with the Microsoft 365 Business plans listed on the same page, which start at $7.00 user/month paid yearly for Business Basic.

Microsoft also ties some capabilities to broader subscription rules rather than only to a Teams seat. Microsoft says all users in an organization must be upgraded and will have access to the full version of Teams and all Microsoft 365 services.

Pricing and cost considerations

For the primary keyword question of Slack vs Microsoft Teams pricing, the cleanest comparison is to separate published base prices from conditional add-on pricing.

ProductPlan or add-onPublished standard priceBilling detailImportant condition
SlackFree$0 USDFree forever1 workspace
SlackPro$8.75 USD per user/monthPaying monthly1 workspace
SlackPro$7.25 USD per user/monthPaying annually1 workspace
SlackBusiness+$18 USD per user/monthPaying monthly1 workspace
SlackBusiness+$15 USD per user/monthPaying annually1 workspace
SlackEnterprise+Contact salesCustomUnlimited workspaces
Microsoft TeamsTeams Essentials$4.00 user/monthPaid yearlyStandalone plan; 1–300 employees
Microsoft TeamsMicrosoft 365 Business Basic$7.00 user/monthPaid yearlyBundle with Teams; 1–300 employees
Microsoft TeamsTeams Premium$10.00 user/monthPaid yearlyAdd-on; requires eligible Teams license
Microsoft TeamsMicrosoft 365 Copilot Business$18.00 user/month promotional, from $21.00Paid yearlyAdd-on; promotional price, first year only; requires eligible Microsoft 365 subscription; up to 300 users
Microsoft TeamsAudio Conferencing with dial-out to USA/CANFreeNo-cost add-onRequires eligible Teams license

Two of those prices are time-limited and should not be modeled as steady-state cost. Microsoft says the Copilot Business discount runs between July 1, 2026, and December 31, 2026, requires an annual commitment, and that the promotional pricing applies to the first year only, with $21.00 user/month shown as the original starting price. On the Slack side, the pricing page shows a 50% discount on Pro and Business+ for the first 3 months, which Slack limits to purchases made online within the first 7 days of creating a team and says does not apply to annual plans or to Enterprise+.

Company size changes the budget discussion in two ways. First, Microsoft’s cited page attaches an explicit 1–300 employee range to Teams Essentials, Microsoft 365 Business Basic, and Microsoft 365 Business Standard with Copilot, and says the Copilot Business add-on is for up to 300 users; Slack’s page instead distinguishes single-workspace plans from Enterprise+ with unlimited workspaces. Second, Slack’s message history, app, and meeting limits on Free can create a faster upgrade trigger for active teams than headline price alone suggests.

There are also billing mechanics that affect cost planning. Microsoft says Microsoft 365 plans are billed monthly or annually depending on the service chosen, a credit card is required to sign up for the free trial, the subscription automatically converts to paid after the one-month free trial, and customers have a 7-day cancellation window to receive a prorated refund.

Readers that want a product-specific breakdown of each vendor’s own tiers can see our Slack Pricing: Free, Pro, Business+, and Enterprise+ Costs and Microsoft 365 Pricing: Plans and 300-Seat Limit.

How to choose

If the company is very small and needs a no-cost starting point, Slack’s Free plan gives a clearly defined package with 90 days of message history and up to 10 apps. A team that relies on long-running project memory or many integrations may hit those limits quickly.

If the requirement is meetings and chat at the lowest published price, Teams Essentials is the cheaper paid entry point of the two: $4.00 user/month paid yearly against $7.25 user/month for Slack Pro on annual billing. The trade is scope, because Microsoft’s own FAQ points buyers who also want apps like Excel, PowerPoint, and Outlook, plus an email domain and Exchange calendar integration, to Microsoft 365 Business Standard instead.

If the company expects to stay within a single workspace and wants a straightforward paid tier, Slack’s Pro and Business+ plans are easy to estimate because Slack publishes both monthly and annual per-user rates for each.

If the company already buys into Microsoft’s broader environment, the decision is less about a single price and more about license eligibility. Microsoft states that Teams Premium and Audio Conferencing require an eligible Teams license, while Microsoft 365 Copilot Business requires an eligible Microsoft 365 subscription.

If the company is multi-workspace or needs enterprise administration across many workspaces, Slack’s published distinction is sharper. Slack says Enterprise+ includes unlimited workspaces, admin-created templates, and 24/7 priority support with a 4-hour first response time.

Limitations and gotchas

The biggest Slack gotcha is that the free tier is not an unlimited archive. Slack says the Free plan includes 90 days of message history and retains data up to 1 year, while paid plans keep it for life by default.

Another Slack constraint is collaboration scope by plan. Slack says Free supports only 1:1 Slack Connect and 1:1 huddles, while group meetings and group external messages arrive on Pro.

The Teams gotcha is that the cheapest line on the page is not the whole cost. Teams Essentials at $4.00 user/month covers chat, calls, video conferencing, file sharing, tasks, polling, meeting recordings with transcripts, and 10 GB of storage per user, but Teams Premium, Copilot Business, and Teams Phone Standard at $10.00 user/month are each sold separately on top of an eligible Teams license.

Microsoft also states two operational constraints that matter during rollout: once an account is converted from free to paid it cannot revert to the free version using the same email address, and all users in an organization must be upgraded to the full version of Teams and Microsoft 365 services.

Regional availability is another issue on Microsoft’s side. Microsoft says Microsoft 365 Copilot may not be available for all markets and languages, and that Audio Conferencing is available in countries where it is sold, with exceptions in China and India.

FAQ

Does Slack charge for seats that nobody uses?
Not for inactive ones. Slack says members who take an action within a 28-day period count as active for billing, and that a prorated credit is added to the account for someone already paid for who becomes inactive.

Does Slack discount any category of customer?
Yes. Slack says it offers special discount pricing for qualified nonprofit organizations and educational institutions.

Are meeting captions the same across Microsoft’s plans?
No. Microsoft lists live captions in English only for Teams Essentials, against more than 30 languages on the Microsoft 365 Business plans, where the additional languages depend on Microsoft Entra identities.

Is there a free way to run Teams meeting rooms?
Partly. Microsoft lists Teams Rooms Basic at no charge, but it requires a certified Teams device and is limited to 25 rooms; Teams Rooms Pro is $40.00 room/month paid yearly.

What happens to company data if a Microsoft subscription is cancelled?
Microsoft says that when a subscription is canceled, all associated data will be deleted.

Sources

This article was produced with AI-assisted research and drafting and reviewed by a human editor. All sources are listed above. Read more about how we use AI and our editorial policy.

Spotted an inaccuracy? Email corrections@appstackinsider.com — see our corrections policy.

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AppStack Insider Editorial Team

AppStack Insider Editorial Team

AI-assisted research, human-reviewed

AppStack Insider articles are produced with an AI-assisted research and drafting pipeline and reviewed by a human editor before publication. Every article cites its sources. See How We Use AI for the full process.

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