How does Slack compare to Microsoft Teams for small teams?

Updated October 2026 · How we answer

Short answerSlack is praised for its intuitive interface and strong third-party integrations, while Microsoft Teams offers deeper integration with Office 365 and often better value for businesses already using Microsoft. For small teams, Slack may feel simpler, but Teams can be more cost-effective if you need Office apps.

Features and usability

Slack is known for its clean, channel-based messaging, extensive app directory, and quick search. It's easy to set up and feels lightweight, which many small teams appreciate. However, its free plan limits message history and integrations.

Microsoft Teams combines chat, video meetings, file storage, and Office app integration in one hub. It can be more complex to navigate, but it eliminates the need for separate tools if you already use Microsoft 365.

  • Slack: intuitive channels, strong app integrations
  • Teams: chat, meetings, files, Office apps in one
  • Slack free plan: limited message history
  • Teams free plan: includes meetings and 5 GB storage per user

Pricing and integration

Slack's paid plans start around $7.25 per user per month (billed annually) for the Pro tier, with higher tiers for larger organizations. Microsoft Teams is included with Microsoft 365 Business plans starting at $6 per user per month, which also includes Office apps.

For small teams already using Microsoft 365, Teams adds no extra cost. If you rely on Google Workspace or other tools, Slack's integrations may be more flexible, but you'll pay separately.

  • Slack Pro: from ~$7.25/user/month
  • Teams: included with Microsoft 365 from ~$6/user/month
  • Teams includes Office apps on many plans
  • Slack offers more third-party app integrations

Common mistakes

  • Assuming Slack is always more expensive—it depends on whether you need Office apps.
  • Thinking Teams is only for large enterprises; it has free and small-business plans.
  • Overlooking that Slack's free plan hides older messages, which can hinder small teams.