Microsoft Teams vs Otter.ai 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 |
Otter.ai pricing tiers
| Tier | Monthly | Annual (eq) | Unit | Notes |
|---|---|---|---|---|
| Pro | $16.99 | $8.33 | user/month | 1,200 recording minutes/month, 10 imports |
| Business | $30 | $19.99 | user/month | Unlimited meetings, 4-hour meetings |
Feature by feature
The non-pricing differences that drive the real decision.
| Capability | Microsoft Teams | Otter.ai |
|---|---|---|
| Billing model | user/month | user/month |
| Pricing model | Per-user license bundled with Microsoft 365 | Per-user with annual discount |
| Cheapest paid tier | Teams Essentials at $4/user/month | Pro at $8.33/user/month |
| Mid-tier benchmark | Microsoft 365 Business Basic at $6/user/month | Business at $19.99/user/month |
| Total paid tiers published | 3 | 2 |
| Last verified | 2026-05-17 | 2026-05-17 |
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 Otter.ai when
- AI transcription tool with a free 300-minute tier; Business pricing more than doubles month-to-month and HIPAA is an Enterprise add-on.
- Entry tier (Pro) at $8.33/user/month is your budget ceiling.
- Enterprise pricing is custom and requires a demo; includes SSO, SCIM, domain capture and unlimited custom workflows.
Switching considerations
Watch the hidden fees on both sides. Microsoft Teams: Teams Premium add-on at $10/user/month Otter.ai: Salesforce and HubSpot integrations limited by tier Always confirm with the vendor before purchase.
Frequently asked questions
Which is cheaper for a 10-person team, Microsoft Teams or Otter.ai?
At entry tier and 10 seats on annual billing: Microsoft Teams Teams Essentials comes to $40/mo; Otter.ai Pro comes to $83/mo. Microsoft Teams is the cheaper entry-tier choice at this team size.
Does Microsoft Teams have more pricing tiers than Otter.ai?
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; Otter.ai's on 2026-05-17. Both pages link to the vendor's official pricing source so you can re-check before committing.