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Copy file name to clipboardExpand all lines: copilot/pay-as-you-go/overview.md
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---
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title: Microsoft 365 Copilot pay-as-you-go overview
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description: Enterprise and company IT admins can learn about the pay-as-you-go service for Microsoft 365 Copilot services, including Copilot Chat. Get an overview of the consumption-based billing process, connecting the billing to a Copilot service, and monitoring costs.
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description: Enterprise and company IT admins can learn about the pay-as-you-go service for Microsoft 365 Copilot services, including Copilot Chat. Get an overview of the usage-based billing process, connecting the billing to a Copilot service, and monitoring costs.
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author: cmcatee-MSFT
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ms.author: cmcatee
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manager: dansimp
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ms.date: 06/16/2025
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ms.reviewer: nishanair
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audience: Admin
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ms.topic: get-started
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ms.custom: [copilot-learning-hub]
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appliesto:
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- ✅ Microsoft 365 Copilot
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ms.date: 06/16/2025
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---
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# Microsoft 365 Copilot pay-as-you-go overview for IT admins
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The Microsoft 365 Copilot pay-as-you-go plan offers a flexible and cost-effective way for organizations to access Copilot services. This plan allows administrators to enable consumption-based billing for specific Copilot scenarios, providing users with the ability to use Copilot features without committing to a full license.
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The Microsoft 365 Copilot pay-as-you-go plan offers a flexible and cost-effective way for organizations to access Copilot services. This plan allows administrators to enable usage-based billing for specific Copilot scenarios, providing users with the ability to use Copilot features without committing to a full license.
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This article provides an overview of the pay-as-you-go plan, its benefits, and pricing details.
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## Why pay-as-you-go?
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The Microsoft 365 Copilot pay-as-you-go plan offers a flexible and scalable solution for organizations looking to use AI capabilities without the commitment of a full license. When you enable consumption-based billing, administrators can better manage costs and provide users with access to Copilot features as needed.
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The Microsoft 365 Copilot pay-as-you-go plan offers a flexible and scalable solution for organizations looking to use AI capabilities without the commitment of a full license. When you enable usage-based billing, administrators can better manage costs and provide users with access to Copilot features as needed.
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The following services are available for pay-as-you-go billing:
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- Microsoft 365 Copilot Chat
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- SharePoint agents
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More services will be added in the future. No ETA.
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### Common use cases
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-**Establish usage patterns** - Understand adoption patterns for new apps to determine if prepaid licenses make financial sense for your business.
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-**Scalability** - Organizations can scale their usage based on demand, paying only for the consumption.
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-**Scalability** - Organizations can scale their usage based on demand, paying only for the usage.
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## How does it work?
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The pay-as-you-go plan allows administrators to set up billing and enable users to access declarative agents on a consumption basis. You can manage billing, view costs, and turn off services as needed.
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The pay-as-you-go plan allows administrators to set up billing and enable users to access declarative agents on a usage basis. You can manage billing, view costs, set spending budgets, and turn off services as needed.
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The following administrator roles in the [Microsoft 365 admin center](https://admin.microsoft.com) can view and manage pay-as-you-go:
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- To enable administrators to enforce governance
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- To link users to a policy, establishing billing rules for a group of users
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For the steps to add or update a billing policy, see [Set up pay-as-you-go for Microsoft 365 Copilot](setup.md).
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As an admin, you can add a budget limit to a billing policy and configure the budget to send email notifications when certain percentage milestones are reached.
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For the steps to add or update a billing policy and add a budget, see [Set up pay-as-you-go for Microsoft 365 Copilot](setup.md).
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#### What you need to know
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## Monitoring and billing
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The organization's consumption of the pay-as-you-go service can be monitored in the [Microsoft 365 admin center](https://admin.microsoft.com) > [Cost Management](/microsoft-365/commerce/use-cost-mgmt) page for each Microsoft 365 pay-as-you-go service that you use.
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The organization's usage of the pay-as-you-go service can be monitored in the [Microsoft 365 admin center](https://admin.microsoft.com) > [Cost Management](/microsoft-365/commerce/use-cost-mgmt) page for each Microsoft 365 pay-as-you-go service that you use.
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Administrators can also view the cost breakdown and analysis in [Microsoft Cost Management](/azure/cost-management-billing/costs/overview-cost-management).
Copy file name to clipboardExpand all lines: copilot/pay-as-you-go/setup.md
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author: cmcatee-MSFT
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ms.author: cmcatee
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manager: dansimp
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ms.date: 06/16/2025
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ms.reviewer: nishanair
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audience: Admin
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ms.topic: get-started
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ms.custom: [copilot-learning-hub]
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appliesto:
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- ✅ Microsoft 365 Copilot
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ms.date: 07/23/2025
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---
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# Set up pay-as-you-go for Microsoft 365 Copilot services for IT admins
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The Microsoft 365 Copilot pay-as-you-go service offers a consumption-based option for organizations to access Copilot services, like Microsoft 365 Copilot Chat. To learn more about the pay-as-you-go service, see [Microsoft 365 Copilot pay-as-you-go overview](overview.md).
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The Microsoft 365 Copilot pay-as-you-go service offers a usage-based option for organizations to access Copilot services, like Microsoft 365 Copilot Chat. To learn more about the pay-as-you-go service, see [Microsoft 365 Copilot pay-as-you-go overview](overview.md).
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You can set up the pay-as-you-go plan directly in the Microsoft 365 admin center. This article provides step-by-step instructions on how to set up and manage pay-as-you-go billing.
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To learn more about these roles, see [Microsoft 365 admin roles](/microsoft-365/admin/add-users/about-admin-roles).
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## Step 1 - Add a billing policy
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## Add a billing policy
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The first step is to add a billing policy.
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To set up pay-as-you-go billing for Microsoft 365 Copilot, you must first add a billing policy in the Microsoft 365 admin center. You can create up to 10 billing policies for your tenant.
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1. In the [Microsoft 365 admin center](https://admin.microsoft.com), go to **Copilot** > **Billing & usage**.
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1. In the <ahref="https://go.microsoft.com/fwlink/p/?linkid=2024339"target="_blank">Microsoft 365 admin center</a>, go to the **Copilot** > **Billing & usage** page.
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2. On the **Billing policies** tab, select **Add a billing policy**.
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3. Select the Azure subscription, resource group, and region for the pay-as-you-go setup.
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4. Select the user scope for the billing policy:
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3. On the **Billing details** page, enter a name for the policy. Under **Subscription details**, select the Azure subscription, resource group, and region for the policy. Under **Terms of service**, select the checkbox next to **I accept the pay-as-you-go billing terms or service**, then select **Next**.
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4. On the **Choose users** page, select a user scope for the billing policy, then select **Next**. You can choose from the following user scopes:
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-**All Users**: All users in the tenant are included in the billing policy
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-**Specific group**: Assign a specific security group to be included in the billing policy
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5. Review the details and select **Create policy** to complete the creation on billing policy.
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-**Specific group**: Assign a specific security group to include in the billing policy
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5. On the **Budget** page, select the checkbox next to **Set a budget for this policy**. This option lets you specify a spending budget for your user's Copilot usage.
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- Enter a value for the budget limit.
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- Select when to reset the budget spending: first day of the month, first day of the quarter, or first day of the year.
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- To send budget spending alerts, in the **Recipients** box, select the name of one or more groups that you want to receive alert messages.
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- Under the **Send alerts when usage reaches this percentage of budget** section, the default value is 100%. To add other percentages, select **Add more**, then enter the percentage at which you want an alert sent.
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> [!NOTE]
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> It can take up to 24 hours for recipients to receive budget alert notifications.
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- When you're finished configuring the budget, select **Next**.
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6. On the **Review and finish** page, review the details, then select **Create policy**.
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> [!IMPORTANT]
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> When you set a budget amount, it triggers email notifications based on your organization's spending relative to that limit. However, the system doesn't enforce the budget or prevent your organization from exceeding it. Usage can continue uninterrupted even after the budget is surpassed, ensuring no disruption to the service.
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## Connect a billing policy
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After the billing policy is created, you must connect the policy to the Copilot pay-as-you-go service.
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1. In the <ahref="https://go.microsoft.com/fwlink/p/?linkid=2024339"target="_blank">admin center</a>, go to the **Copilot** > **Billing & usage** page, then select the **Pay-as-you-go services** tab.
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2. Select **Microsoft 365 Copilot Chat** or **SharePoint agents** and select the billing policy you created.
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To learn how to set up a billing policy for SharePoint agents, see [Use agents with pay-as-you-go billing](/sharepoint/sharepoint-agents-azure-billing).
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## Add a budget to an existing billing policy
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If you have an existing billing policy that doesn’t have a budget assigned to it, you can add one in the Microsoft 365 admin center.
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1. In the <ahref="https://go.microsoft.com/fwlink/p/?linkid=2024339"target="_blank">admin center</a>, go to the **Copilot** > **Billing & usage** page.
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2. On the **Billing policies** tab, select an existing billing policy.
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3. In the flyout panel, select the **Budget** tab, then select **Settings**.
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4. To set a budget, select the checkbox next to **Set a budget for this policy**. This option lets you specify a spending budget for Copilot usage by your users.
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- Enter a value for the budget limit.
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- Select when to reset the budget spending: first day of the month, first day of the quarter, or first day of the year.
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- To send budget spending alerts, in the **Recipients** box, select the name of one or more groups that you want to receive alert messages.
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- Under the **Send alerts when usage reaches this percentage of budget** section, the default value is 100%. To add other percentages, select **Add more**, then enter the percentage at which you want an alert sent.
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> [!NOTE]
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> It can take up to 24 hours for recipients to receive budget alert notifications.
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- When you’re finished configuring the budget, select **Save**.
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> [!IMPORTANT]
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> When you set a budget amount, it triggers email notifications based on your organization’s spending relative to that limit. However, the system doesn’t enforce the budget or prevent your organization from exceeding it. Usage can continue uninterrupted even after the budget is surpassed, ensuring no disruption to the service.
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## Step 2 - Connect a billing policy
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## View spending for your organization
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After the billing policy is created, the next step is to connect the policy to the Copilot pay-as-you-go service.
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If you previously set up a budget for your organization, you can view the spending report in the Microsoft 365 admin center.
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1. In the admin center, go to the **Pay-as-you-go services** tab.
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2. Select **Microsoft 365 Copilot Chat** or **SharePoint agents** and select the billing policy you created. To learn more about how to set up a billing policy for SharePoint agents, see [Use agents with pay-as-you-go billing](/sharepoint/sharepoint-agents-azure-billing).
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1. In the <ahref="https://go.microsoft.com/fwlink/p/?linkid=2024339"target="_blank">admin center</a>, go to the **Copilot** > **Billing & usage** page.
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2. On the **Billing policies** tab, select an existing billing policy.
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3. In the flyout panel, select the **Budget** tab, then select **Spending**.
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## Disable pay-as-you-go
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Disabling pay-as-you-go for a Copilot service involves disconnecting the billing policies associated with the service, like Microsoft 365 Copilot Chat or SharePoint agent.
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1. In the admin center, go to the **Pay-as-you-go services** tab, and select the Copilot service, like Microsoft 365 Copilot Chat or SharePoint agent.
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2. Unselect the billing policy, one at a time to disconnect the billing policy.
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3. Read and accept the confirmation. This step completes the disconnection.
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1. In the <ahref="https://go.microsoft.com/fwlink/p/?linkid=2024339"target="_blank">admin center</a>, go to the **Copilot** > **Billing & usage** page.
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2. Select the **Pay-as-you-go services** tab, then select the Copilot service, like Microsoft 365 Copilot Chat or SharePoint agent.
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3. Clear the checkboxes of the billing policies that you want to disconnect.
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4. Read and accept the confirmation. This step completes the disconnection.
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When you turn off pay-as-you-go, it can take up to two hours for users to stop being able to use the agents. If the agent is unused, it stops being available when pay-as-you-go is turned off.
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## Delete a billing policy
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After you disable pay-as-you-go, you can also delete the billing policy.
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1. In the admin center, select a billing policy, and select the **Delete billing policy** button.
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2. Accept the confirmation dialogue. Any services connected to the billing policy are disconnected.
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1. In the <ahref="https://go.microsoft.com/fwlink/p/?linkid=2024339"target="_blank">admin center</a>, go to the **Copilot** > **Billing & usage** page.
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2. On the **Billing policies** tab, select a billing policy, then select **Delete billing policy**.
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3. Accept the confirmation dialogue. Any services connected to the billing policy are disconnected.
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## What if pay-as-you-go is already set up in the Power Platform admin center?
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If you already set up pay-as-you-go in the Power Platform admin center, the two setups can coexist. You can create another setup in the Microsoft 365 admin center without being double billed. The billing system ensures that you're only billed once for your user's usage, regardless of the setup location.
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If you already set up a pay-as-you-go billing policy in the Power Platform admin center, you can create another policy in the Microsoft 365 admin center. Both policies can coexist and you're only billed once. The billing system ensures that you're only billed once for your organization's usage, regardless of the billing policy location.
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Although the setups can coexist, we recommend you turn off pay-as-you-go in the Power Platform admin center before you enable it in the Microsoft 365 admin center.
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Although the policies can coexist, we recommend that you turn off any pay-as-you-go billing policy in the Power Platform admin center before you enable it in the Microsoft 365 admin center. By disabling the policy in the Power Platform admin center, you can manage your pay-as-you-go policies from single location.
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- OneDrive accounts and SharePoint sites that undergo the following types of changes won't be undoable via restore: tenant rename, tenant move, and site URL change.
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- SharePoint sites that utilize Term Store term sets will restore, but the terms will not restore to their previous states. Terms will retain their current state when the site itself is restored by Microsoft 365 Backup.
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- SharePoint sites that utilize Term Store term sets will restore, but the terms will not restore to their previous states. Terms will retain their current state when the site itself is restored by Microsoft 365 Backup if the site is restored to the same URL. If the site is restored to a new URL, the term store will not be copied to the new location.
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- OneDrive accounts and SharePoint sites being restored to a new URL have a read-only lock on that new URL. The [Global Administrator](/entra/identity/role-based-access-control/permissions-reference#global-administrator) can download documents or remove the read-only lock manually.
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