Microsoft Teams Essentials is a paid tier for small teams who need video meetings and cloud storage without buying Microsoft 365

Microsoft Teams Essentials is a standalone subscription that gives you video meetings for up to 100 people, cloud storage, and basic chat — without requiring you to buy a full Microsoft 365 plan. You pay a flat monthly fee per user. It sits between the free version of Teams (which limits group video calls to 60 minutes) and Microsoft 365 Business Basic (which adds email and other Office apps). The choice between them depends on whether you need email and desktop versions of Word, Excel, and PowerPoint, or just Teams itself.

The subscription is billed monthly per person. You can cancel at any time. It works on Windows, Mac, iOS, and Android. You do not need to own a Microsoft account beforehand — you create one as part of setup.

Key Takeaways

  • Microsoft Teams Essentials costs a fixed monthly rate per user and includes unlimited one-on-one calls, group video meetings up to 100 people, and 10 GB of cloud storage per person.
  • The free version of Teams limits group video calls to 60 minutes, while Essentials removes that limit and adds more storage.
  • Essentials does not include email or desktop versions of Word, Excel, and PowerPoint — if you need those, Microsoft 365 Business Basic is the next step up.
  • You can add or remove users from your subscription at any time, and billing adjusts monthly based on how many active users you have.

What's included in the subscription

Essentials gives you unlimited one-on-one video and audio calls with no time limit. Group video meetings can include up to 100 people and run as long as you need. You get cloud storage of 10 GB per person to save files, recordings, and shared documents. Chat is unlimited — you can message individuals or groups, and search your message history.

You can schedule meetings in advance, share your screen during calls, and record meetings to watch later. The subscription includes basic meeting features like mute, video on/off, and the ability to blur or replace your background. You can also use Teams on up to five devices at the same time (though only one active call per person).

File sharing works through OneDrive, Microsoft's cloud storage service. When you share a file in Teams, it stores in your OneDrive space. If you run out of your 10 GB, you can buy more storage separately.

How Essentials compares to the free version of Teams

The free version of Teams lets you make unlimited one-on-one calls, but group video calls are capped at 60 minutes. Once the timer hits 60 minutes, the call ends and you have to start a new one. Essentials removes that limit — group calls can run indefinitely.

Free Teams gives you 5 GB of storage per person. Essentials doubles that to 10 GB. Both versions include chat, screen sharing, and the ability to schedule meetings. The free version works on the same devices as Essentials.

If your team rarely has group video calls longer than an hour, or if you only need Teams occasionally, the free version may be enough. If you have regular meetings that run over 60 minutes, or if you need more storage, Essentials removes those constraints.

How Essentials compares to Microsoft 365 Business Basic

Microsoft 365 Business Basic includes everything in Essentials — the same Teams features, the same storage — plus email (Outlook), and desktop versions of Word, Excel, and PowerPoint. Business Basic costs more per user per month than Essentials.

Choose Essentials if you only need Teams and do not use email or Office apps. Choose Business Basic if you need a business email address, or if you want to edit Word documents, spreadsheets, and presentations on your computer rather than in a web browser. Business Basic also includes 1 TB of storage per person instead of 10 GB.

Some small teams use Essentials for Teams and handle email through a different provider (like Gmail). Others start with Essentials and upgrade to Business Basic later if they need email or more storage.

Pricing and how billing works

Microsoft Teams Essentials has a set monthly cost per user. The exact price varies by country and region. You can find the current price on Microsoft's Teams pricing page by entering your location.

Billing is monthly and per active user. If you add a new person to your subscription on the 15th of the month, you pay a prorated amount for the remaining days of that month, then full price starting the next month. If you remove a user, the charge stops when ready and you receive a credit for unused days.

You can pay by credit card or debit card. Invoices are sent to the email address associated with your account. There is no long-term contract — you can cancel at any time, and your access ends at the end of the current billing period.

Who manages the subscription and how to add or remove users

When you first set up Essentials, you become the account owner. As the owner, you can add new users by inviting them via email. They receive an invitation, create a Microsoft account if they do not have one, and then appear in your Teams workspace.

You can remove users from the subscription at any time through the Microsoft Teams admin center. Removing a user does not delete their Teams data — it just stops their access and removes them from the billing.

If you have multiple people managing the subscription, you can assign admin roles to other users. Admins can add and remove people, manage settings, and view billing information. You stay in control of who has admin access.

Storage and what happens when you run out

Each person on Essentials gets 10 GB of storage in OneDrive. This is shared storage — if you use 8 GB for personal files and 2 GB for team files, you have used your full 10 GB. When you hit the limit, you cannot upload new files until you delete something or buy more storage.

You can buy additional storage through Microsoft. A common option is 100 GB of extra storage per person per month, which you add to your subscription. Alternatively, you can upgrade to Microsoft 365 Business Basic, which includes 1 TB (1,000 GB) per person.

Recordings of Teams meetings also count toward your storage. If you record many meetings, storage can fill up quickly. You can delete old recordings to free up space, or move them to a personal OneDrive or external drive.

Frequently Asked Questions

Can I use Teams Essentials for a business email address?

No. Essentials includes Teams only — no email service. If you need a business email address (like name@company.com), you need Microsoft 365 Business Basic or a separate email provider like Gmail or Outlook.com.

What happens to my data if I cancel the subscription?

Your Teams data (chat history, files, recordings) remains accessible for 90 days after cancellation. After 90 days, Microsoft deletes it. If you want to keep files, read them before your subscription ends. You can also export chat history through the Teams admin center.

Can I switch from the free version of Teams to Essentials without losing my chat history?

Yes. When you upgrade to Essentials, your existing Teams workspace, chat history, and files move with you. There is no data loss. You straightforward start paying the monthly fee and gain the features that were locked in the free version.

Do I need a credit card to start a trial?

Microsoft offers a free trial of Teams Essentials for a limited time. The trial requires a credit card on file, but you are not charged during the trial period. If you do not cancel before the trial ends, billing begins automatically.

Can multiple people manage billing and user access?

Yes. The account owner can assign admin roles to other users. Admins can add and remove team members, view billing history, and manage subscription settings. Only the account owner can change the payment method or cancel the subscription.