Microsoft Teams vs Loom pricing: which is cheaper for your team?
Microsoft Teams's cheapest paid tier (Teams Essentials) lists at $4/user/month, which beats the other on entry pricing. Mid-tier and enterprise math can flip the answer — use the per-tier table below to see the real cost for your team size at each tier.
Calculate the cost for your team
Microsoft Teams pricing tiers
| Tier | Monthly | Annual (eq) | Unit | Notes |
|---|---|---|---|---|
| Teams Essentials | $4 | $4 | user/month | Annual commit; chat, video, 10 GB storage |
| Microsoft 365 Business Basic | $6 | $6 | user/month | Teams plus web Office apps and 1 TB storage |
| Microsoft 365 Business Standard | $12.5 | $12.5 | user/month | Desktop Office apps, webinars, Loop, Clipchamp |
Loom pricing tiers
| Tier | Monthly | Annual (eq) | Unit | Notes |
|---|---|---|---|---|
| Starter | $0 | $0 | member/month | Limited videos and recording length. |
| Business | $18 | $15 | member/month | Unlimited recording and workspace features. |
| Business + AI | $24 | $20 | member/month | Adds Loom AI features. |
| Enterprise | Custom | Custom | custom | SSO, SCIM, uptime SLA, and enterprise controls. |
Feature by feature
The non-pricing differences that drive the real decision.
| Capability | Microsoft Teams | Loom |
|---|---|---|
| Billing model | user/month | member/month |
| Pricing model | Per-user license bundled with Microsoft 365 | Workspace member pricing |
| Cheapest paid tier | Teams Essentials at $4/user/month | Business at $15/member/month |
| Mid-tier benchmark | Microsoft 365 Business Basic at $6/user/month | Business + AI at $20/member/month |
| Total paid tiers published | 3 | 2 |
| Last verified | 2026-05-17 | 2026-05-16 |
Best for…
Hand-picked use cases mapped to the winner.
| Use case | Winner |
|---|---|
| Lowest entry price (10-person team) | Microsoft Teams Teams Essentials |
| Most pricing tiers (room to grow) | Microsoft Teams (3 tiers) |
| Predictable per-seat billing | Either (both per-seat) |
| Most recently verified pricing | Microsoft Teams |
Choose Microsoft Teams when
- Bundled video and chat that pulls you into the Microsoft 365 stack and unlocks Phone, Premium and Copilot only as paid add-ons.
- Entry tier (Teams Essentials) at $4/user/month is your budget ceiling.
- Enterprise E1/E3/E5 sold separately. Frontline and Government SKUs need direct sales contact and annual commit.
Choose Loom when
- Loom has a free starter tier and paid business tiers; AI and Atlassian enterprise controls are the key quote drivers.
- Entry tier (Business) at $15/member/month is your budget ceiling.
- Business + AI is the benchmark if AI summaries and workflows are a core reason to buy.
Switching considerations
Watch the hidden fees on both sides. Microsoft Teams: Teams Premium add-on at $10/user/month Loom: AI tier choice, Atlassian bundle, storage, and enterprise controls can change the final price. Always confirm with the vendor before purchase.
Frequently asked questions
Which is cheaper for a 10-person team, Microsoft Teams or Loom?
At entry tier and 10 seats on annual billing: Microsoft Teams Teams Essentials comes to $40/mo; Loom Business comes to $150/mo. Microsoft Teams is the cheaper entry-tier choice at this team size.
Does Microsoft Teams have more pricing tiers than Loom?
Microsoft Teams publishes more paid tiers (3 vs 2). More tiers usually means more granular ways to grow without re-platforming.
Which pricing was verified more recently?
Microsoft Teams's pricing was last verified 2026-05-17; Loom's on 2026-05-16. Both pages link to the vendor's official pricing source so you can re-check before committing.