Copilot Credits: How Much AI Agents Cost
Calculate and Manage Consumption
Key Facts at a Glance
Microsoft is increasingly billing for AI features using Copilot Credits—for example, in Copilot Studio, Agent Flows, and, starting in November 2026, in AI Builder as well. We explain how usage is calculated, what costs are involved, and why targeted governance is becoming important.
What Are Copilot Credits?
Copilot Credits are the unit of consumption that Microsoft uses to track and bill for certain AI features in Copilot Studio, Agent Flows, Copilot Workflows, and AI Builder. As of September 1, 2025, they have replaced the former “Messages.” Organizations can purchase Copilot Credits as prepaid capacity or pay for them on a pay-as-you-go basis through an Azure subscription.
With the introduction of the shared consumption unit, the way AI solutions are priced is also changing. In addition to user- or capacity-based licenses, the actual consumption of an AI solution is taking center stage. The number of Copilot Credits incurred depends on the specific harness, the functions executed, and the context of use. For companies, this means that, in addition to licensing, the active management of AI consumption is becoming an important part of cost planning.
A Comparison of the Standard Harness and the Microsoft Copilot Harness
With the Microsoft Copilot Harness, formerly known as GitHub Copilot Harness,, Microsoft is introducing another usage model in addition to the standard Harness. Both models are billed in Copilot Credits, but calculate usage based on different principles.
Standard Harness: Fixed Rates per Function
With the Standard Harness, clearly defined functions such as generative responses, grounding, or agent actions are billed based on set Copilot credit rates. However, the exact costs incurred by an agent do not depend solely on the number of user requests. Another key factor is which functions an interaction triggers in the background. For example, if there is no Microsoft 365 Copilot license, Microsoft charges the following under the Standard Harness:
2 Copilot Credits for a generative response
5 Copilot Credits for an Agent Action
10 Copilot Credits for Tenant Graph Grounding
A Microsoft 365 Copilot license can cover usage by authenticated users in supported Microsoft 365 channels, so no credits are consumed.
A single request can trigger several of these functions. Therefore, a cost-benefit analysis should always take into account an agent's entire processing chain.
Microsoft Copilot Harness: Billing Based on Resource Usage
With the Microsoft Copilot Harness, the calculation works differently. There is no fixed credit price per response or action. The number of Copilot credits required for the task depends on the actual resource consumption. In particular, the calculation includes LLM tokens, tools used, knowledge sources, MCP servers, and the Harness itself as part of the resource consumption. MCP stands for Model Context Protocol and enables the integration of external tools and data sources.
The number of credits required for a task depends, among other things, on its complexity, the agent design, the language model used, and the functions called. Copilot credits may be incurred during the development, preview, testing, and evaluation of an agent. A Microsoft 365 Copilot license does not reduce credit consumption in this model.
For companies, this results in a new cost-calculation logic: It is not the number of messages alone that determines the cost, but rather the effort an agent actually expends to process a task. Particularly with complex, multi-stage agents, architecture, model selection, tool calls, and knowledge access therefore have a significant impact on Copilot credit consumption.
A direct comparison highlights the key differences:
Copilot Workflows and Agent Flows: What Are the Considerations for Automation?
With the new Copilot Workflows, Microsoft is expanding process automation in Copilot Studio. The workflows are based on the Microsoft Copilot Harness and combine a defined sequence of actions and branches with native AI functions, handoffs to agents, connectors, and tests of individual nodes. For cost planning, it is important to distinguish these from the existing Agent Flows: These remain available and consume 13 Copilot credits per 100 actions executed. This also applies to the new Copilot workflows. If these workflows use additional AI tools during the process, further credits will be incurred depending on the specific action. The actual total consumption may vary depending on the process design, execution frequency, and functions used.
AI Builder: From AI Builder Credits to Copilot Credits
Microsoft is gradually transitioning billing for AI Builder from AI Builder Credits to Copilot Credits. AI features in Power Apps and Power Automate will thus be integrated into the overarching Copilot Credit model.
As of November 1, 2026, newly purchased or renewed eligible Power Platform and Dynamics 365 licenses will no longer include AI Builder credits. Licenses purchased or renewed before this date will retain their included AI Builder credits until the end of their respective contract terms. In Power Apps and Power Automate, existing AI Builder credits are used first. Once these are exhausted, billing switches to Copilot credits. Agents and Agent Flows use only Copilot credits.
For businesses, this change primarily means that AI-usage in Power Platform and Copilot Studio will increasingly be tracked using a single, shared unit. Custom document processing illustrates how this affects costs. Instead of the previous 100 AI Builder credits per page, 8 Copilot credits will be consumed in the future. According to Microsoft’s current comparison, 100 AI Builder credits are equivalent to approximately $0.05. Under the pay-as-you-go model, 8 Copilot credits cost about $0.08. However, the actual costs depend on the specific purchasing and licensing model. A detailed overview of usage rates and licensing is available at Microsoft Learn.
What Companies Should Do Now
With the increasing use of Copilot Credits , targeted cost and usage governance is becoming significantly more important than ever before. Companies should not only keep track of existing AI Builder capacities and Copilot Credits, but also evaluate agents, agent flows, Copilot workflows, and AI-powered Power Automate processes based on their actual usage.
As early as the solution design phase, architecture, model selection, expected usage volume, and cost model should be considered together. Clear responsibilities, regular monitoring, and transparent allocation of costs to solutions and environments help identify unexpected usage early on.
Five steps are particularly important:
- Track your balance and contract terms: Check which AI Builder credits and Copilot credit capacities are available and how long the respective contracts run. This will help you identify early on when previously included quotas will expire.
- Evaluate solution usage: Analyze agents, agent flows, Copilot workflows, and AI-powered Power Automate processes.
- Consider costs when designing a solution: Evaluate how architecture, model selection, knowledge access, and expected usage volume affect credit consumption. This allows you to identify unnecessarily complex processes and unsuitable models early on.
- Define Responsibilities and Cost Allocation: Designate individuals responsible for capacity management, monitoring, and approvals. Allocate consumption to individual agents, flows, users, and environments so that costs remain traceable from a business perspective.
- Monitor and limit your usage: Check your credit usage regularly. Any unused monthly prepaid allowance does not roll over to the following month. With pay-as-you-go, on the other hand, you are billed for your actual usage.
In the Power Platform Admin Center, you can assign Copilot credits to environments and agents, thereby setting monthly usage limits. Notification thresholds help you detect anomalies early on. For pay-as-you-go, Azure Budgets and Alerts complement cost control.
Copilot Credit Governance thus becomes an essential component of a sustainable AI and Power Platform strategy. It creates transparency, mitigates financial risks, and provides a robust foundation for architectural and operational decisions.
Establishing Credit Governance for Copilot and Power Platform
Robust credit governance begins with an assessment. This involves identifying existing capacities and contract terms, assigning consumption to individual agents, flows, and environments, and defining appropriate thresholds.
Arvato Systems helps companies with this analysis and with setting up the necessary control mechanisms. These include limits for environments and agents in the Admin Center, as well as custom dashboards that provide a detailed overview of usage and break it down by category. The Power Platform Foundation workshop series offers a structured introduction. Building on this foundation, responsibilities, monitoring, and cost control for Copilot Studio and Power Platform can be systematically established.
Frequently Asked Questions About Copilot Credits
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What is a Copilot Credit?
A Copilot Credit is the unit Microsoft uses to track and bill usage of certain AI features in Copilot Studio, Agent Flows, Copilot Workflows, and AI Builder. As of September 2025, Copilot Credits have replaced the former “Messages.”
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How much does a Copilot Credit cost?
With pay-as-you-go, a Copilot Credit costs $0.01. Alternatively, companies can use prepaid capacity or an annual prepurchase plan. The effective price depends on the selected model and package.
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What role does the Microsoft 365 Copilot license play?
In the Standard Harness, the license may cover use by authenticated users. In the Microsoft Copilot Harness, it has no effect on credit usage.
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What happens to my AI Builder credits?
Eligible licenses purchased or renewed before November 1, 2026, will retain their included AI Builder credits until the end of their respective contract terms. In Power Apps and Power Automate, existing AI Builder credits are used first, followed by Copilot credits. Agents and Agent Flows use only Copilot credits. After November 1, 2026, it will no longer be possible to purchase new AI Builder credits.
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Do unused Copilot Credits expire?
Yes, unused monthly prepaid capacity is not carried over to the following month. With pay-as-you-go, on the other hand, only actual usage is billed. Regular monitoring helps you plan your needs realistically and size your capacity appropriately.
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Are there costs involved even during the development of an agent?
In the Microsoft Copilot Harness, yes: Copilot credits may be incurred during development, preview, testing, and evaluation. In the Standard Harness, testing an agent in the test chat is generally free of charge; however, credits may be charged for other features and execution contexts.
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Why is it still sometimes called GitHub Copilot Harness?
Microsoft renamed GitHub Copilot Harness to Microsoft Copilot Harness at the end of October 2026. This does not affect features or billing. During the transition, the former name may still appear in documentation and user interfaces.
Written by
Michael Schumann is a Senior Consultant for Microsoft 365, Power Platform, and Copilot at Arvato Systems. With over 15 years of experience in IT consulting, he combines technical expertise with practical advice and helps companies leverage modern Microsoft technologies to drive business success.