MC1186367 - Announcing the new pay-as-you-go experience in Microsoft 365 Admin Center

Updated December 12,17, 2025: We have updated the document link. Thank you for your patience.

Introduction

We’re introducing a new pay-as-you-go (PAYG) experience in the Microsoft 365 Admin Center (MAC). This update provides a centralized way to manage metered services such as Microsoft 365 Backup and Copilot under the Billing node.

When this will happen:

General Availability:

• Available to new Microsoft 365 Backup and all Copilot customers starting January 15, 2026 (previously December 15, 2025 (previously early December)2025).
• Migration path for existing Backup customers will be announced later.

How this affects your organization:

Who is affected: Admins in Worldwide and GCC environments managing Microsoft 365 Backup and Copilot PAYG services.

What will happen:

• A new PAYG page will appear under the Billing node in MAC.
• Admins can create and manage billing policies directly in MAC.
• Services can be linked to billing policies, with support for departmental billing. Note: departmental billing for Backup customers will become available in Q1 2026.
• Budgets can be set, and notifications triggered when thresholds are met.
• Usage and spending can be viewed at the billing policy level.
• Subscriptions and resource groups can be created in MAC without navigating to Azure.
• PAYG setup for other services remains under Org Settings > PAYG until transitioned.
• Additional PAYG-enabled services will be added to the Billing node over time. Until then, the PAYG setup for other products (besides Backup) will continue to remain under Org Settings > PAYG.

What you can do to prepare:

No action is required.

Admins may decide to:

• Review the new PAYG page under Billing in MAC.
• Monitor announcements for migration timelines for existing Backup customers.
• Refer to Microsoft documentation for guidance on billing policies and budget notifications.

Learn more: Set up or disconnect pay-as-you-go billing for services in new billing node | Microsoft Learn (will be updated before rollout)

Compliance considerations:

No compliance considerations identified, review as appropriate for your organization.