Usage-based billing in Copilot Credits will be on by default for new Microsoft 365 Copilot Business licenses bought through Microsoft’s Cloud Solution Provider (CSP) program, starting December 1, 2026. Each user gets a default spending limit of 4,000 Copilot Credits a month, and admins can change it.
Microsoft first set the CSP date as November 2. Its Partner Center announcements for October 2026 moved it to December 1. Direct purchases from Microsoft follow a separate notice, Message Center post MC1476200, published September 21.
The short version: nothing changes on the licenses you already have, and the seat price does not change. What changes is that a new Copilot Business purchase arrives ready to spend money on advanced AI features, beyond the seat price, unless an admin sets limits. At Microsoft’s published rate of $0.01 per credit, the default cap allows up to $40 per user per month in extra charges. Check your settings before December 1.
This post is for IT leads at nonprofits and associations who buy Microsoft licenses through a partner, such as TechSoup or a managed services provider. It covers what changes, what stays the same, the math on the default cap, how OpenAI and Google handle the same question, and a settings checklist.
What changes on December 1
The Partner Center notice, dated October 1 and updated October 14, says pay-as-you-go will be the default billing setup for new Copilot Business licenses in CSP. It applies to standalone offers and bundles.
Microsoft says new licenses will include the Azure subscription setup that usage-based billing needs. In the past, an admin had to set that up by hand before any credits could be spent. That setup step was a natural brake. It goes away for new purchases.
Charges apply only when someone uses a feature that consumes Copilot Credits. The Partner Center notice names Copilot Cowork, Work IQ APIs and GitHub Copilot Harness as examples. Microsoft’s usage-based billing overview lists these services:
- Cowork (Copilot license required)
- Advanced work in SharePoint and in OneDrive (Copilot license required)
- Work IQ API for custom apps and agents
- Copilot Managed Runtime
- Teams Phone Agent
- Code (Copilot license required)
The rollout skips some countries at first. Microsoft lists Australia, Belgium, Brazil, France, Germany, India, Italy, Korea, the Netherlands, Poland and Spain. US nonprofits are in scope.
Partners get sandbox environments on November 2 to test the change, according to the same notice.
What stays the same for your Copilot Business seats
Existing subscriptions are not affected. A second Partner Center notice, dated October 14, says it plainly: "No action is required for existing subscriptions." It adds that product and SKU IDs, pricing, renewal terms, auto-renew settings and service stay the same.
The same notice covers a naming change. Since October 16, current Copilot offers that need a Microsoft 365 base license carry "(add-on)" in their names. Those add-on offers reach end of sale in CSP on December 1. Existing customers can still renew and change seat counts. New offers that do not need a base license go on sale the same day.
For direct buyers, MC1476200 makes the same promise. A copy of the notice reposted by PUPUWEB says existing Copilot Business "subscription benefits and payment terms do not change." It also says an existing spending policy stays in place.
The seat price is also unchanged. As of October 2026, Microsoft lists Copilot Business at $18 per user per month on annual billing, a promotional price down from $21, or $25.20 on monthly billing. Nonprofit and partner pricing can be lower. We covered how the nonprofit discounts and CSP promotions combine in our post on nonprofit Copilot discounts stacking with CSP promotions.
How Copilot Credits work alongside the seat license
Microsoft now splits Copilot into two parts. Its page on the user subscription license and usage-based billing explains the split.
The seat license covers "everyday AI work" at a fixed price. Microsoft says that includes the default Auto mode and some models with fair use, such as GPT 5.6 and Sonnet.
Copilot Credits pay for "advanced AI and frontier models." Microsoft says that includes Cowork, Code, Autopilot, new agent features in SharePoint, and newer frontier models. A user still needs a seat to use any of these.
Microsoft also says usage limits on the seat license are "coming soon." When a user reaches one, they can keep going by spending credits.
For a small team, that means the seat price is now a floor. What you pay above it depends on who uses the advanced features, how often, and what limits you set.
The math on the default Copilot Credits cap
Microsoft’s Copilot Credits licensing guide lists the pay-as-you-go price as $0.01 per credit, billed after the month ends. Partner pricing may differ, so confirm the rate on your partner’s price list.
At that rate, here is what the default cap allows:
| Users on Copilot Business | Default cap (credits per month) | Maximum extra charge per month at $0.01 |
|---|---|---|
| 1 | 4,000 | $40 |
| 10 | 40,000 | $400 |
| 25 | 100,000 | $1,000 |
| 100 | 400,000 | $4,000 |
The 100-user row matches Microsoft’s own example in the Partner Center notice. These are ceilings. You pay for credits used, and most users will use far fewer.
Compare the ceiling to the seat. At the $18 promotional price, the default cap allows a user to run up more than twice the seat cost in a single month.
How fast do credits go? Microsoft’s guide gives "rough planning estimates" for Cowork. Building a medium app takes an estimated 400 to 750 credits, or about $4 to $7.50. Running a heavy app takes an estimated 3,000 to 5,000 credits per app per month. One staff member running one heavy app could reach the default cap alone.
Who can change Copilot Credits settings
Copilot Credits spending is managed in the Microsoft 365 admin center under Copilot > Cost Management. Microsoft’s setup guide splits the work by role:
| Role | What it can do | What it cannot do |
|---|---|---|
| Global administrator, Billing administrator | Add and change billing methods; set billing in policies | No limits listed |
| AI administrator, License administrator | Edit spending policies, limits, alerts and billing methods | Create new spending policies |
| AI Reader, Global Reader and other reader roles | View consumption dashboards and reports | Change anything |
If your partner manages your tenant, find out which of these roles they hold. A partner with Global administrator rights can change billing methods in your tenant.
The settings that control spending
Microsoft’s guide to managing spending policies describes the controls. Four of them matter most for a small organization.
Spending policies. A policy sets who can use credit-based features and how much they can spend. You can create any number of them. Policies target users through security groups.
Per-user and policy limits. Each policy has a monthly limit per user and a monthly limit for the policy as a whole. Microsoft says the per-user limit must be at least 2,000 credits a month. If you want a lower ceiling for most staff, leave them out of the policy instead.
What happens at the limit. Microsoft says users "lose access to agents and services for the rest of the month until credits reset on the first of the month."
Auto-apply new services. This toggle is on by default in each policy. When Microsoft adds a new credit-based service, it joins the policy on its own. Turn it off if you want to approve each new service.
Two more settings sit under Copilot > Settings. Access to usage-based billing experiences controls who can ask for a spending policy. It is set to "All users" by default. Microsoft’s access request page says changes can take up to 24 hours to apply. An older discovery setting, which controlled whether users could see these features, is being retired in favor of this one.
How OpenAI and Google bill extra AI usage
The other large workplace AI platforms have their own versions of this. They differ mostly in what happens by default.
OpenAI sells credits for advanced features in ChatGPT Business, such as Deep Research, image generation and Codex. Its help article on flexible pricing says Business owners buy credits in Billing settings, and buying them is optional. When the pool runs out, the feature stops until an owner adds more. We covered the ChatGPT Business seat options in ChatGPT Business Premium Seat vs Standard.
Google bills Gemini in Workspace mainly by license. For the older AI Ultra Access add-on, Google says credit overages "are disabled by default," and admins set a per-user maximum if they turn them on. Google’s admin help page also says AI Ultra Access is no longer for sale. Our post on Gemini defaults in Google Workspace covers the other settings Google turned on in September.
Microsoft’s Copilot Credits default puts new Copilot Business buyers in the opposite position. Spending is possible from day one, up to a set limit.
A Copilot Credits checklist before December 1
- Ask your partner how you buy. Is your Copilot Business license through CSP or direct? The dates differ.
- Ask your partner what counts as new. Will a seat added to an existing subscription after December 1 get the default? Get the answer in writing.
- Confirm the rate. Ask what your partner charges per Copilot Credit and how it shows on your invoice.
- Decide who needs advanced features. Most staff may not. Put the people who do in a security group.
- Set the policy limit. Lower the policy-wide monthly limit to a figure your budget can absorb.
- Turn off Auto-apply new services if you want to review each new service before it can bill.
- Set access requests to specific users or no users under Copilot > Settings.
- Give your finance lead a reader role so they can see the Overview and Consumption tabs.
- Check the dashboard monthly. Microsoft says the Overview tab refreshes every four hours.
If you are reviewing other defaults this month, our post on GitHub Copilot default enablement covers a similar change on the developer side.
Frequently Asked Questions
What are Copilot Credits?
They are Microsoft’s unit for usage-based AI charges. Advanced features such as Cowork and the Work IQ API use them. Microsoft lists the pay-as-you-go price at $0.01 per credit.
When does usage-based billing turn on for Copilot Business?
For new licenses bought through CSP, December 1, 2026. Microsoft had first said November 2. For new direct purchases, a copy of MC1476200 gives October 19, 2026.
Does this change our existing Copilot Business subscription?
No. Microsoft says existing subscriptions need no action, and pricing, renewal terms and auto-renew settings stay the same. An existing spending policy stays in place.
How much could one user cost us under the default limit?
Up to 4,000 credits a month. At $0.01 per credit, that is $40 per user per month. You pay only for credits used.
Can we set a lower limit than 4,000 credits?
Yes, with one limit. Microsoft says a per-user limit in a spending policy must be at least 2,000 credits a month. To give some staff nothing, leave them out of the policy.
What happens when a user reaches the limit?
They lose access to credit-based agents and services for the rest of the month. Credits reset on the first of the month. Everyday Copilot work is covered by the seat license, which is billed separately.
Where do we change these settings?
In the Microsoft 365 admin center, under Copilot > Cost Management for spending policies, and Copilot > Settings for access requests.
Which admin roles can change spending?
Global and Billing administrators can change billing methods. AI and License administrators can edit policies and limits but cannot create policies. Reader roles can only view reports.
Does the change apply outside the United States?
Not everywhere at first. Microsoft says it will initially not be available in Australia, Belgium, Brazil, France, Germany, India, Italy, Korea, the Netherlands, Poland and Spain.
Do nonprofit discounts apply to Copilot Credits?
Microsoft’s licensing guide does not list a nonprofit rate for credits. Ask your partner, and see our post on how nonprofit Copilot discounts stack with CSP promotions.
