Update: usage-based billing for Copilot Business in CSP starts December 1, 2026, not November 2
Microsoft has changed the date. Usage-based billing will be on by default for new Microsoft 365 Copilot Business licenses purchased through CSP starting December 1, 2026. The earlier date was November 2. Along with the new date, Microsoft announced a default spending limit, a list of countries where the change starts later, and, in a separate announcement, the option to buy Copilot without a Microsoft 365 base subscription.
What changed in Microsoft's announcement
- New date: December 1, 2026. From that day, pay-as-you-go becomes the default billing setting for new Microsoft 365 Copilot Business licenses in CSP. The November 2 date no longer applies.
- Scope. The change covers new Copilot Business purchases, both standalone offers and bundles. New licenses come with the Azure subscription setup that usage-based billing needs, so there's no separate billing configuration to do.
- Default spending limit. 4,000 Copilot Credits per user per month. Admins can change it. You're billed for actual usage, not for the limit.
- Phased rollout by country. At first, the change won't apply in Australia, Belgium, Brazil, France, Germany, India, Italy, Korea, the Netherlands, Poland, and Spain. Microsoft will share dates for those markets later.
- Partner sandbox. Partner Center sandbox environments open on November 2, so partners can test the scenario before it goes live.
What the 4,000-Credit limit means in dollars
At the PAYG rate, 1 Copilot Credit costs $0.01. That makes the default limit up to $40 per user per month on top of the license itself. Microsoft gives its own example: a company with 100 Copilot Business users could consume up to 400,000 Credits per month under the default limit.
25 users
Up to 100,000 Credits per month, or up to ≈ $1,000 in variable costs under the default limit.
100 users
Up to 400,000 Credits per month, or up to ≈ $4,000 in variable costs under the default limit.
250 users
Up to 1,000,000 Credits per month, or up to ≈ $10,000 in variable costs under the default limit.
The limit is a ceiling, not a bill
If employees only use Copilot Chat and Copilot in Word, Excel, Outlook, and Teams, they consume almost no Credits. The limit matters once a company starts running Copilot Cowork, Work IQ APIs, GitHub Copilot Harness, or agents that work around the clock. Microsoft set the default ceiling so it wouldn't slow down a quick start. It wasn't sized to any particular company's budget, so it's worth reviewing yourself.
Another change on December 1: Copilot without a base subscription
On October 14, Microsoft announced a second change that takes effect the same day. Starting December 1, 2026, new Microsoft 365 Copilot and Microsoft 365 Copilot Business offers can be purchased without a qualifying Microsoft 365 base subscription. The new offers cost the same but have their own Product IDs and SKU IDs.
- From October 16, 2026, current offers carry "(add-on)" in their names, for example "Microsoft 365 Copilot Business (add-on)".
- On November 1, 2026, the new SKUs appear in the CSP price list preview.
- On December 1, 2026, add-on offers reach end of sale in CSP for new purchases. End of sale isn't end of life: existing customers can keep renewing and adjusting seat counts.
Nothing changes for existing subscriptions: pricing, renewal terms, auto-renew settings, and IDs all stay the same, and no migration is needed. If your company has scripts or integrations that look up licenses by product name, switch them to Product IDs and SKU IDs.
Timeline to launch
October 16, 2026
Current Copilot offers are renamed to "(add-on)". Check any automations tied to license names.
November 1–2, 2026
New Copilot SKUs appear in the CSP price list preview, and partner sandbox environments open for testing usage-based billing.
December 1, 2026
Pay-as-you-go turns on by default for new Copilot Business licenses in CSP, with a limit of 4,000 Credits per user per month. The same day, Copilot goes on sale without a base subscription, and add-on offers stop selling for new purchases.
What to do in the remaining six weeks
Review your license purchase plan
If you plan to buy new Copilot Business licenses before year-end, decide when. Licenses bought before December 1 don't get default-on usage-based billing. Licenses bought after that date will have it switched on.
Set your own limit instead of the default
Estimate the usage you actually expect, then set spend policies and usage thresholds in the Microsoft 365 Admin Center. A pilot usually needs a limit well below 4,000 Credits per user.
Decide who will run which agent scenarios
Cowork, Work IQ APIs, and Copilot Studio agents should be part of the rollout plan, with an owner for each scenario. Otherwise the first Credits invoice will surprise your finance team.
Check your licensing automations
Scripts, reports, and integrations that look up Copilot licenses by name may start failing after the "(add-on)" rename and the new SKUs. Switch them to Product IDs and SKU IDs.
If you're just starting to plan agent scenarios, begin with our guide on building an AI agent in Copilot Studio without code. We covered data-access rules for agents in Copilot security and confidential company data.
FAQ
Why did the date change, and what applies now?
Microsoft updated its Partner Center announcement: usage-based billing turns on by default for new Microsoft 365 Copilot Business licenses in CSP starting December 1, 2026. The previously announced November 2 date has been dropped.
Does this affect licenses we've already bought?
The announcement covers new Copilot Business purchases, both standalone offers and bundles. Microsoft hasn't announced any changes to pricing, renewal terms, or IDs for existing subscriptions.
What is the 4,000 Copilot Credits limit?
It's the default monthly usage ceiling per user, and admins can change it. At the PAYG rate of $0.01 per Credit, that's up to $40 per user per month. You pay only for actual usage.
Does the change apply in Ukraine from December 1?
Ukraine isn't on the list of countries with a delayed rollout (Australia, Belgium, Brazil, France, Germany, India, Italy, Korea, the Netherlands, Poland, Spain). Microsoft is rolling the change out in phases across "supported markets," so confirm availability for your tenant with your CSP partner closer to the date.
Can we buy Copilot without Microsoft 365 from December 1?
Yes. From December 1, 2026, the new Microsoft 365 Copilot and Copilot Business offers don't require a Microsoft 365 base subscription and cost the same as the current ones. What Copilot can do still depends on which Microsoft 365 apps and services the company is licensed for.
Get Copilot set up before December 1
Progresia can help you estimate real Copilot Credits usage, set spend policies and limits in place of the default 4,000 Credits per user, and plan license purchases around the new SKUs.