Microsoft Shifts GitHub Copilot to Usage-Based Billing with AI Credits in 2026

Microsoft announces GitHub Copilot will switch to usage-based billing with AI Credits in June 2026, replacing per-user pricing while keeping current tier costs

Microsoft Shifts GitHub Copilot to Usage-Based Billing with AI Credits in 2026

Microsoft announced a pricing update for GitHub Copilot on April 28, 2024. The company will transition the service to a usage-based billing model with AI Credits starting June 1, 2026. This change replaces the previous per-user pricing structure. Microsoft stated that the older model cannot maintain the necessary long-term reliability for the service.

The new billing system calculates costs based on token consumption. The metric includes input tokens, output tokens, and cache tokens. Users will pay for the specific volume of tokens they use rather than a flat subscription fee for the core service.

Existing subscription tiers retain their current monthly prices during the transition period. Copilot Pro remains at $10 per month. Copilot Pro+ stays at $39 per month. Copilot Business continues at $19 per user per month. Copilot Enterprise also remains at $39 per user per month.

Microsoft transitions GitHub Copilot to token-based billing while keeping tier prices stable

The updated model supports long-duration, multi-step autonomous coding sessions. The new architecture enables full repository navigation for developers. This capability allows the system to search entire codebases using the latest model improvements. The shift aims to align costs with actual usage patterns.

Discussion

0 comments

Log in to join the thread with a thoughtful take, question, or correction.

Add to the discussion