Microsoft moved Copilot from flat-rate to per-token billing on June 1, and heavy users are seeing costs jump from double digits to thousands per month. We break down the new pricing, who's affected, and the alternatives gaining traction.
As of today, GitHub Copilot has moved from flat-rate subscriptions ($10–$39/mo) to a token-usage billing model. Developer reaction has been swift and negative, with some heavy users reporting projected costs exceeding $2,000/month.
Instead of unlimited completions and chats, Copilot now meters every interaction:
| Usage Level | Old Price | New Price (est.) |
|---|---|---|
| Light (occasional completions) | $10/mo | ~$15–25/mo |
| Moderate (daily driver) | $10–39/mo | ~$50–150/mo |
| Heavy (agent mode, long sessions) | $39/mo | ~$500–2,000+/mo |
Teams using Copilot's agent mode for multi-file refactors and long chat sessions are seeing the steepest increases. The agent mode consumes significantly more tokens than inline completions, and there's no cap on per-user spend.
This pricing change lands in the middle of an AI coding tools price war. OpenAI made Codex free for enterprise for two months starting May 14, and Anthropic increased Claude Code limits by 50% through July 13. Both are burning cash to lock in users before IPOs later this year.
If your team is on Copilot, check your projected bill now. The alternatives are mature and many are cheaper. If you're a heavy user, the math may push you toward Claude Code or Cursor sooner than you planned.
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