Copilot Studio Billing Configuration Guide

Compare prepaid capacity, tenant spillover, pay-as-you-go, and Microsoft 365 Copilot inclusion — then decide how each environment should behave when usage exceeds its plan.

Know the difference

Capacity allocation assigns prepaid credits to an environment. Spillover settings determine which capacity source can be used next. Azure budgets notify you about PAYG cost but don't stop consumption.

Billing configurations and overage behavior

Configuration	How capacity is assigned	How ongoing usage is handled	Azure charge?	Stop / alert behavior
Prepaid only No fallback	Tenant-pooled credits are allocated to the environment.	For general custom-agent usage, Microsoft documents enforcement when the tenant reaches 125% of prepaid capacity. An active conversation can finish; affected agents are then disabled until capacity is added or reset. Agent flows are enforced separately when prepaid capacity is exhausted.	No	Prepaid enforcementAutomatic at documented tenant thresholds, not at the environment allocation.
Prepaid + Tenant spillover	Environment allocation plus available tenant prepaid capacity.	Draws from the remaining tenant pool after its allocation. This reduces capacity otherwise available to other environments. Prepaid enforcement applies when the relevant shared capacity reaches its documented thresholds.	No	Prepaid enforcementAutomatic at documented tenant thresholds; agent flows are handled separately.
PAYG only	If available in the target GCC tenant, the environment is linked to an Azure billing plan.	While linked, billable Copilot Credits are metered to Azure. Removing PAYG stops future Azure charges but doesn't turn off the agent; continued operation depends on another entitlement or capacity path.	YesAll billable usage.	Cost alerts onlyAzure budgets don't stop usage. Turn off the agent to stop agent activity.
Prepaid + PAYG overage	If available and configured in the target GCC tenant, prepaid allocation is used first and a linked Azure plan covers overage.	Additional usage is billed to Azure after prepaid capacity is consumed. Removing PAYG stops future Azure charges but doesn't itself turn off the agent.	YesOverage only.	Cost alerts onlyAzure budgets don't stop PAYG. Turn off the agent to stop agent activity.
Microsoft 365 Copilot inclusion	Employee-facing usage is included when the user has a Microsoft 365 Copilot license and the agent operates using that authenticated user's identity.	Fair-use limits apply. Agent-flow inclusion applies only to When an agent calls the flow; computer-using agents are excluded. Nonincluded scenarios use the configured credit path.	DependsOn the scenario.	Fair-use termsNot an organizational spending control.

What each control actually does

Environment allocation

Assigns prepaid credits from the tenant pool to an environment.

Draw from tenant

Lets an environment use available shared prepaid credits after its allocation.

Bill to PAYG

Sends applicable usage or overage to the linked Azure subscription.

Azure budget

Sends actual or forecasted cost alerts. It doesn't stop agents or PAYG consumption.

Disable or disconnect

Turning off the agent stops activity. Removing PAYG stops future Azure charges but doesn't itself turn off the agent.

Reference only. Based on public Microsoft documentation as of July 23, 2026. Confirm pricing, licensing, PAYG availability, overage routing, and reporting in the target GCC tenant and Microsoft agreement. Official Microsoft terms and documentation control.