RingCentral vs Teams Phone Pricing for Small Teams

RingCentral RingEX Core costs $20 per user per month billed annually, or $30 month to month, with unlimited US and Canada calling, a phone number, an IVR and 25 texts per user. Microsoft Teams Phone with Calling Plan costs $17 per user with 3,000 outbound domestic minutes, but every Teams Phone plan card says a separate Microsoft Teams license is required. If your staff already have Microsoft 365 with Teams, Teams Phone is the cheaper line at $17. If they do not, the cheapest qualifying license is Teams Essentials at $4, which makes Teams $21 against RingCentral's $20.

Both rate cards were read at source on September 29, 2026: Microsoft's Teams Phone plan cards and footnotes at microsoft.com, and RingCentral's RingEX plans, billing toggle and add-on list at ringcentral.com. Where a vendor publishes nothing on a point, we say so instead of filling the cell.

RingCentral vs Teams Phone pricing, side by side

Microsoft sells four Teams Phone tiers and RingCentral three RingEX tiers. The column that matters most is the second license, because it is the line item that most comparisons skip.

Microsoft's footnotes add two details worth knowing before a purchase order. The domestic calling plan portion is sold inclusive of taxes and fees, including 911 fees, while the phone system portion is sold tax exclusive. And the one-month free trial converts automatically into a 12-month paid subscription unless you cancel during the trial. RingCentral advertises savings of up to 33 percent for paying annually, and its monthly rates are the $30, $35 and $45 above.

Is Teams Phone cheaper than RingCentral?

For a company already paying for Microsoft 365 with Teams, yes: $17 a user against $20 on an annual RingCentral contract and $30 on a monthly one. For a company with no Microsoft licenses, they are almost level on annual terms, $21 against $20, and RingCentral's month to month rate of $30 puts Microsoft well ahead for anyone who will not sign for a year. Here is the bill at four team sizes.

Two caveats sit under those numbers. The Teams column includes the domestic calling taxes and fees, and the RingCentral column does not, so RingCentral's real invoice lands higher once the federal universal service pass-through and E911 charges are added. The FCC set the fourth quarter 2026 contribution factor at 42.0 percent, which applies to the interstate share of the service, not the whole bill. The other caveat runs the opposite way: Microsoft's 3,000 minutes are outbound domestic minutes, while RingCentral's calling is unlimited, so a heavy outbound team should check its call logs before assuming the Microsoft plan covers it.

What does RingCentral include that Teams Phone does not?

Picture messages and texting without a calling plan. RingCentral includes SMS on every RingEX tier, 25 texts per user on Core, 100 on Advanced and 200 on Ultra. Microsoft's own SMS documentation limits Teams texting to users who hold a Microsoft Calling Plan license, so a company routing Teams through Operator Connect or Direct Routing cannot text from Teams at all, and MMS is not supported.

Unlimited domestic calling. RingEX Core carries unlimited calling in the US and Canada. Teams Phone with Calling Plan carries 3,000 outbound domestic minutes per user, with extra minutes and toll-free usage paid from Microsoft's prepaid Communications Credits wallet.

A phone system that does not depend on the suite. RingCentral runs as its own app on desktop, iOS, Android and the web, and it also plugs into Teams: RingCentral sells a Teams integration so staff can call from inside the Teams window on RingEX pricing. That is the option to look at if your company lives in Teams but wants RingCentral's calling, texting and toll-free allowances.

What does Teams Phone include that RingCentral does not?

Nothing new to learn. If your staff already work in Teams all day, Teams Phone puts the dial pad in the app they already keep open, under the admin console your IT person already manages, on a Microsoft invoice you already pay. That convenience is the real reason most Microsoft shops choose it, and it is a good one.

A larger text allowance per plan. Microsoft publishes included message thresholds of 200 on the domestic plan, pooled across the users on identical calling plans in your tenant, so a hundred people share 20,000 messages. RingCentral Core gives each user 25.

Taxes and fees inside the price. For a finance team trying to forecast the phone bill, a calling plan rate that already includes 911 fees and telecom taxes is easier to budget than a rate with regulatory line items added after the fact.

Which should you buy?

Buy Teams Phone with Calling Plan if everyone who answers the phone already has Microsoft 365 with Teams, your outbound calling fits inside 3,000 minutes a user, and texting is occasional. At $17 it is the cheapest working business line in this comparison, and the one your staff will adopt fastest.

Buy RingCentral if you need texting on every seat, picture messages, unlimited outbound calling or a phone system that works the same whether or not someone has a Microsoft license. If you want it inside Teams anyway, the RingCentral Teams integration does that without switching your calling to Microsoft. Before signing either annual term, put the renewal date somewhere you will see it: contract management software that flags the notice window is cheaper than an accidental second year.

Consider a third option if your team needs a phone menu and ring groups and does not need video, team chat or a Microsoft seat at all. Phoner Starter is $15 a user billed yearly ($19 month to month) for a number, unlimited US and Canada calling and voicemail to text, and Phoner Team is $29 ($35 monthly) with the visual phone menu, ring groups, business texting and recording. The RingCentral pricing and alternatives page prices every RingEX tier against it. Phoner has no Microsoft Teams integration and no video meetings, so a company that wants calling inside Teams should pick one of the two products above.

Frequently asked questions

Does Teams Phone require a Microsoft 365 license?

It requires a Microsoft Teams license. All four Teams Phone plan cards state that a separate license for Microsoft Teams is required. That can come from a Microsoft 365 business plan that includes Teams or from Teams Essentials, the cheapest qualifying option at $4 per user. Microsoft notes that some Microsoft 365 suites no longer include Teams.

How much does Teams Phone with Calling Plan cost?

Teams Phone with Calling Plan costs $17 per user per month and includes a phone number and 3,000 outbound domestic minutes for the US and Canada, with the calling plan's taxes and fees included. The Teams license it requires is extra, from $4 on Teams Essentials, so a company with no Microsoft licenses pays $21 per user.

How much does RingCentral cost per user?

RingCentral RingEX costs $20 per user on Core, $25 on Advanced and $35 on Ultra when billed annually, or $30, $35 and $45 month to month. Core includes unlimited US and Canada calling, an IVR, call queues and 25 texts per user a month. Taxes and regulatory fees are billed on top.

Can I use RingCentral inside Microsoft Teams?

Yes. RingCentral sells an integration for Microsoft Teams that puts RingCentral calling and texting inside the Teams app, priced on RingEX plans from $20 per user. It is the usual route for companies that want to stay in Teams but prefer RingCentral's unlimited calling and text allowances over a Microsoft Calling Plan.

Can Teams Phone send text messages?

Only with a Microsoft Calling Plan license assigned to the user, according to Microsoft's SMS documentation, and only SMS, not MMS. Numbers delivered through Operator Connect or Direct Routing cannot text from Teams. As with every US provider, business texting also needs 10DLC brand and campaign registration before messages go through.

For the wider comparison, Microsoft Teams calling plans and pricing breaks down every Microsoft tier, Zoom Phone vs Teams Phone covers the other suite-based option, and the business phone system cost breakdown adds the fees and taxes to every plan above.