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Communication

Microsoft Teams vs Otter.ai: Pricing Comparison 2026

Side-by-side pricing comparison of Microsoft Teams and Otter.ai. See all plans, features, and costs at a glance.

Bottom line: Microsoft Teams starts at $4/mo, making it $13/mo cheaper than Otter.ai ($16.99/mo). Neither offers a free plan.

Last updated: March 16, 2026

Data compiled by Arthur Jacquemin
Updated March 16, 2026

Microsoft Teams vs Otter.ai: Quick Pricing Facts

FeatureMicrosoft TeamsOtter.ai
Starting Price$4/mo$16.99/mo
Number of Plans34
Free TierNoNo
Pricing Modelper-seatfreemium
Annual DiscountN/AN/A

Microsoft Teams is the more affordable option, starting at $4/mo compared to Otter.ai's $16.99/mo. Both are Communication tools with 7 combined pricing plans and 17 features compared.

Microsoft Teams uses per-seat pricing while Otter.ai uses freemium pricing, which may affect your total cost at scale.

Review the detailed tier-by-tier comparison above to see exactly which features are included at each price point and find the best fit for your Communication needs.

Pricing Plans
Microsoft Teams
Microsoft Teams
Try it free
Otter.ai
Otter.ai
Try it free
Tier 1
Microsoft Teams EssentialsPopular
$4/monthCheapest
Includes
  • Chat, call, and video conferencing
  • Real-time collaboration with file sharing, tasks, and polling
  • Team meeting recordings with transcripts and live captions (English)4
  • 10 GB of cloud storage per user
  • Data encryption for meetings, chats, calls, and files
  • Anytime phone and web support
Start with Microsoft Teams Essentials
Basic
Custom pricing
Start with Basic
Tier 2
Microsoft 365 Business Basic
$6/monthCheapest
Includes
  • Identity and access management for up to 300 users
  • Web and mobile versions3 of Word, Excel, PowerPoint, and Outlook apps
  • Custom business email (you@yourbusiness.com)
  • 1 TB of cloud storage per user
  • 10+ additional apps for your business needs (including Microsoft Bookings, Planner, and Forms)
  • AI chat experience with web grounding, writing assistance, data analysis, and access to agents5
  • Automatic spam and malware filtering
Start with Microsoft 365 Business Basic
Pro
$17/month
Start with Pro
Tier 3
Microsoft 365 Business Standard
$13/monthCheapest
Includes
  • Desktop, web, and mobile versions3 of Word, Excel, PowerPoint, Outlook, and other apps
  • Webinars with attendee registration and reporting
  • Collaborative workspaces to co-create using Microsoft Loop
  • Video editing and design tools with Microsoft Clipchamp
Start with Microsoft 365 Business Standard
Business
$3024/month
Start with Business
Tier 4
Enterprise
Custom pricing
Start with Enterprise

Swipe to compare plans →

Microsoft Teams

Team collaboration hub with chat, meetings, and file sharing

View all Microsoft Teams plans

Otter.ai

AI meeting transcription and note-taking assistant

View all Otter.ai plans

What Reviewers Say

Our Pick

Microsoft Teams

Microsoft Teams starts at $12.989999999999998/mo lower ($4/mo vs $16.99/mo).

Based on pricing data only. Review the full comparison below for your specific needs.

Best value: Microsoft Teams

Try Microsoft Teams free

Which Should You Choose?

Choose Microsoft Teams if:

  • You want lower per-user costs—Microsoft Teams starts at $4/mo, saving $12.989999999999998/mo compared to Otter.ai at $16.99/mo
  • You want more features built-in—Microsoft Teams offers 17 additional features across its plans
  • You need predictable billing — Microsoft Teams's per-seat model avoids surprise overages

Choose Otter.ai if:

  • You need 4 pricing tiers for flexible team sizing—more options mean less overpaying for features you don't need
  • Your team needs custom enterprise pricing—Otter.ai offers negotiated terms for large deployments
  • Otter.ai's 4-tier freemium structure gives clearer cost visibility for budget planning

Microsoft Teams is the more affordable choice [1], starting at $4/mo compared to Otter.ai's $16.99/mo. For a 50-person team on paid plans, this translates to Microsoft Teams saving approximately $649/month. Microsoft Teams offers 3 pricing tiers compared to Otter.ai's 4, giving you more granular control over scaling costs as your team grows. Across all tiers, Microsoft Teams provides 17 total features versus 0 for Otter.ai, offering a richer feature set depending on your specific needs. If controlling SaaS spend is a priority, Microsoft Teams offers the better cost-to-value ratio. Consider Otter.ai only if its unique capabilities directly address a gap Microsoft Teams cannot fill.

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Frequently Asked Questions: Microsoft Teams vs Otter.ai

Which is cheaper, Microsoft Teams or Otter.ai?
As of March 2026, Microsoft Teams starts at a lower price point. Microsoft Teams starts at $4/mo while Otter.ai starts at $16.99/mo. However, the best value depends on the features you need at each tier.
How many pricing plans does Microsoft Teams have vs Otter.ai?
Microsoft Teams offers 3 pricing plans, while Otter.ai offers 4 plans. More plans typically means more flexibility to match your exact needs and budget.
What is the most popular Microsoft Teams plan?
The Microsoft Teams Essentials plan is Microsoft Teams' most popular tier, priced at $4/mo. Key features include Chat, call, and video conferencing, Real-time collaboration with file sharing, tasks, and polling, Team meeting recordings with transcripts and live captions (English)4.
Does Microsoft Teams or Otter.ai offer custom enterprise pricing?
Otter.ai offers a custom-priced enterprise tier for larger teams. Microsoft Teams lists all its pricing publicly.
What pricing models do Microsoft Teams and Otter.ai use?
Microsoft Teams uses a per-seat pricing model, while Otter.ai uses freemium pricing. The right model depends on your team size and usage patterns.
How do Microsoft Teams and Otter.ai compare for Communication?
Both Microsoft Teams and Otter.ai are Communication tools. Microsoft Teams offers 3 plans starting at $4/mo, while Otter.ai offers 4 plans starting at $16.99/mo. Review the feature breakdowns above to see which better fits your Communication needs.

Sources

  1. Microsoft Teams Official PricingVendor pricing page
  2. Otter.ai Official PricingVendor pricing page

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