Choose a payment option for Copilot Credits
Organizations can fund Copilot Credits in three ways, and all three can be combined.
The following table compares how each funding option works, when it is a good fit, and whether it requires an upfront commitment:
| Aspect | Pay-as-you-go | Prepurchase plan | Prepaid capacity packs |
|---|---|---|---|
| How it works | Usage is billed monthly, after the fact, to a connected Azure subscription | A one-year commitment to Copilot Credits, with discounts that increase with the size of the commitment | Credits bought in advance as a monthly allowance; unused credits do not carry over |
| Best fit | Variable or unknown demand; a pilot | Predictable usage, once a baseline is known | Organizations that already use prepaid capacity for Copilot Studio or Power Platform |
| Upfront commitment | None | Yes | Yes |
The order credits are used
When an organization has more than one funding source, credits are drawn down in a fixed order: prepaid capacity packs first, then prepurchase plan credits, then pay-as-you-go for any remaining usage. If no prepaid credits remain and pay-as-you-go is not turned on, requests stop until an admin updates the billing method. Pay-as-you-go usage is still subject to the spending limits the organization sets.
Azure commitments
For organizations with a Microsoft Azure Consumption Commitment (MACC), pay-as-you-go consumption and Copilot Credit prepurchase plans can count toward the commitment. This applies only when the Azure subscription used for billing is linked to the billing account that holds the commitment. Confirm the details with your Microsoft account team.
A common approach
Many organizations start a pilot on pay-as-you-go, because there is no upfront commitment while usage is still unknown. This is similar to trying a new firm on one project before signing a longer agreement. After a few months, organizations use actual consumption to set a baseline. Then they commit to a prepurchase plan for the baseline and keep pay-as-you-go for any usage above it.
Caldova decision
Caldova does not yet have enough usage data to establish a reliable consumption baseline, so the pilot will start with pay-as-you-go. After three months, the team will review actual Copilot Credit consumption and usage patterns to determine whether pay-as-you-go should continue or whether a committed funding option would provide better value.
Note
If you were funding a pilot with unknown demand, which payment option would you choose and why? What evidence would you need before making an upfront commitment?