About 14; min
Slack charges per user for a chat app. Microsoft Teams comes bundled with Microsoft 365 — which means you might already be paying for it without realizing. We compared both platforms on pricing, features, AI, and total cost of ownership to help you figure out which one actually makes sense for your team.
Last updated: March 18, 2026. Prices sourced from slack.com and microsoft.com.
Price Comparison: Side by Side
| Tier | Slack | Microsoft Teams |
|---|---|---|
| Free | $0 (90-day history, 10 apps) | $0 (included with Teams free) |
| Entry paid | Pro: $7.25/user/mo | Teams Essentials: $4/user/mo |
| Mid-tier | Business+: $15/user/mo | M365 Business Basic: $6/user/mo |
| Full suite | Business+: $15/user/mo | M365 Business Standard: $12.50/user/mo |
| Enterprise | Enterprise Grid: custom | M365 Business Premium: $22/user/mo |
At first glance, Teams is cheaper at every tier. But the comparison isn’t that simple.
The Real Comparison: What Does Your Money Buy?
Slack is a standalone chat tool. Microsoft Teams is bundled with an entire productivity suite. Comparing them purely on chat features is misleading.
| What you get | Slack Pro ($7.25) | M365 Business Basic ($6) |
|---|---|---|
| Chat & channels | Yes | Yes |
| Message history | Unlimited | Unlimited |
| Video calls | Group calls | Up to 300 participants |
| File storage | Limited | 1TB per user (OneDrive) |
| No | Exchange email included | |
| Office apps (Word, Excel) | No | Web versions included |
| App integrations | 2,600+ apps | 700+ apps |
| AI features | Basic AI | Basic (Copilot costs extra) |
Microsoft 365 Business Basic at $6/user gives you chat, video, email, 1TB storage, AND web Office apps. Slack Pro at $7.25 gives you chat. If your team doesn’t already have email and storage solved, Teams/M365 is objectively more value per dollar.
Cost Comparison: 10, 25, and 50 Person Teams
| Team size | Slack Pro | Slack Business+ | M365 Basic | M365 Standard |
|---|---|---|---|---|
| 10 users | $870/yr | $1,800/yr | $720/yr | $1,500/yr |
| 25 users | $2,175/yr | $4,500/yr | $1,800/yr | $3,750/yr |
| 50 users | $4,350/yr | $9,000/yr | $3,600/yr | $7,500/yr |
$1,500 saved/year with Teams
Slack Business+: $9,000/year (chat only)
M365 Standard: $7,500/year (chat + email + Office + storage)
Teams gives you MORE for $1,500 LESS per year.
Where Slack Wins
Despite the price disadvantage, Slack has genuine strengths:
- App ecosystem: 2,600+ integrations vs Teams’ 700+. If your workflow depends on niche tools, Slack probably has the integration.
- Developer experience: Slack’s API is cleaner and better documented. Building custom bots and workflows is easier.
- Channel organization: Slack’s channel structure is more intuitive. Teams’ channel-within-team model confuses many users.
- Huddles: Quick drop-in audio calls feel more natural than Teams’ meeting-heavy approach.
- UX quality: Slack is simply faster and more pleasant to use. Teams has improved but still feels heavier.
- Connect channels: Communicate with external organizations directly in Slack. Teams’ external access is more limited.
Where Teams Wins
- Total value: Email + storage + Office apps + chat for $6-12.50/user. Nothing else competes on total bundle value.
- Video conferencing: Teams supports up to 300 participants on basic plans. Slack’s video is limited.
- Already paying for M365? Then Teams is literally free. Switching to Slack means paying extra for something you already have.
- Enterprise security: Microsoft’s security and compliance stack is deeper, especially for regulated industries.
- Phone system: Teams Phone integrates calling directly. Slack has no native phone option.
The AI Factor: Copilot vs Slack AI
| Slack AI | Microsoft Copilot | |
|---|---|---|
| Price | Basic: included with Pro Advanced: Business+ required |
$30/user/month add-on |
| Meeting summaries | Business+ only | Yes (with Copilot) |
| Channel summaries | Business+ only | Yes (with Copilot) |
| Cross-app AI | Limited | Works across Word, Excel, Outlook, Teams |
Slack’s AI is included with paid plans (limited on Pro, full on Business+). Microsoft Copilot costs an additional $30/user/month on top of your M365 plan. That’s a massive add-on cost. A 25-person team adding Copilot: $9,000/year extra.
If AI features matter to you: Slack’s approach (included) is more budget-friendly. Microsoft’s approach (premium add-on) is more capable but far more expensive.
The Real Decision Framework
Already on Microsoft 365? Use Teams. You’re already paying for it. Adding Slack is paying twice for messaging.
Google Workspace shop? Slack is the natural fit. Teams without M365 is awkward and you’d be duplicating tools.
Developer or startup team? Slack. The integrations, API, and developer experience are significantly better.
Cost is the top priority? M365 Business Basic ($6/user) gives you more for less than any Slack plan.
Need the best chat UX? Slack. It’s just a better messaging experience, and most teams who’ve used both agree.
Frequently Asked Questions
Is Microsoft Teams free?
Yes. Teams has a free tier, and it’s included at no extra cost with all Microsoft 365 business plans. If you already pay for M365, you have Teams.
Can Slack and Teams work together?
There are integration tools (like Mio or native connectors) that bridge Slack and Teams. But running both tools simultaneously doubles your communication tool cost and creates fragmentation. Pick one.
Is Slack worth paying for if Teams is free with M365?
Only if your team strongly prefers Slack’s UX, needs specific Slack integrations, or works with many external partners via Slack Connect. The preference has to be strong enough to justify the extra cost.
Which is better for remote teams?
Teams has better built-in video conferencing (300 participants, meeting recordings, breakout rooms on lower tiers). Slack is better for async communication and quick huddles. Most remote teams benefit from strong async — which gives Slack an edge for distributed teams across time zones.
Which has better security?
Microsoft’s enterprise security stack is more comprehensive (Intune, Defender, Conditional Access). Slack has solid security but can’t match Microsoft’s depth for heavily regulated industries.
Pricing data sourced from slack.com/pricing and microsoft.com on March 18, 2026. Microsoft has announced pricing changes effective July 1, 2026 — verify current rates before purchasing.
