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Cowork is a usage-based add-on, not a per-seat price. It requires a Microsoft 365 Copilot license as a prerequisite, then bills separately on Copilot Credits at $0.01 per credit (pay-as-you-go; volume discounts apply on pre-purchase). The estimate below is a rough planning range only — actual spend varies with task complexity and usage.
Copilot Credits are the shared usage currency behind Cowork, Work IQ APIs, Copilot Studio agents, and AI features in Dynamics 365 and Power Platform. You pay for the work performed, not a flat per-seat fee. Think of it like a utility bill: the Copilot license is the fixed connection, the credits are the metered usage. List rate is $0.01 per credit pay-as-you-go, with prepaid plans offering volume discounts. Admins can set spending limits and alerts, and usage is off until switched on.
Important distinction: native Microsoft 365 Copilot experiences — Copilot Chat, AI in Word/Excel/PowerPoint/Outlook/Teams, and the built-in Researcher, Analyst, and Facilitator agents — do not incur separate Work IQ charges. Credits only apply when Work IQ is accessed directly through its APIs inside a custom-built agent or solution.
Microsoft: Copilot Credits usage-based billing overview ↗