◀ Playbook index
NO.30.5

Usage-based Billing

Usage-based Billing (UBB)

Updated: 2026-10-26

In one line

On June 1, 2026, GitHub Copilot moved to usage-based billing (UBB).

Cost is tied to the tokens actually processed, and usage is shown in GitHub AI credits (1 credit = $0.01 USD).

📰 Details: Updates to GitHub Copilot billing and plans ↗ (Changelog). 💡 Code completions and Next Edit suggestions don’t consume AI credits — they stay unlimited on all paid plans.

How usage-based billing works

As GitHub Copilot supports more advanced AI workflows, usage-based billing ties cost to the AI usage actually executed.

  • AI usage is measured by the number of tokens processed during each interaction
  • Tokens include the prompt, the response, and cached context
  • Included usage: it is shared (pooled) across Copilot licenses
  • Overage usage: manageable with budgets and controls
    • Additional-usage budgets are set in US dollars, and usage is shown in GitHub AI credits
    • GitHub AI credits draw down the budget at a fixed rate (1 AI credit = $0.01 USD). For example, a $10 budget equals 1,000 AI credits

Tokens explained

A token is the unit of AI processing (input, output, context).

👤 Input tokens
What you send:
  • The prompt and new context
  • Grows with large files or codebases
🤖 Output tokens
What you receive:
  • The response the AI generates
  • Usually the highest compute cost
🔄 Cached tokens
What gets reused:
  • Context from past interactions
  • Improves speed and efficiency

🎯 Takeaway: every interaction consumes tokens based on input, output, and context.

Usage-based charging (UBB)

Billable tokens = input + output + cached tokens

How charging works:

  • Copilot usage is measured by the total tokens processed in each interaction
  • Tokens consume AI credits (based on model rates ↗)
  • AI credits are the unit of billing

🎯 Takeaway: larger prompts, longer responses, and more context all increase the tokens processed and the credits consumed.

Pricing model overview

Plans and included value

ItemCopilot BusinessCopilot Enterprise
Monthly price (unchanged)$19 / user$39 / user
Included token value$19 worth (1,900 AI credits)$39 worth (3,900 AI credits)

📦 The AI credits included with a Copilot plan are shared across the whole enterprise and consumed as tokens are processed. 🎁 Existing customers get a boost during the promotional period (Jun 1 – Sep 1, 2026): CB 3,000 / CE 7,000 credits. Details ↗

How it works:

  • Credits are shared at the enterprise / billing-entity level
  • They are consumed based on the tokens processed
  • They are not tied to individual users

🎯 Takeaway: customers pay for actual usage — not per user, but from credits shared across the whole enterprise.

Shared AI credit pool

Overage
License-included
AI credits
Total AI credits

The AI credits included with each GitHub Copilot license roll up into a single enterprise-wide shared pool.

Every licensed user draws from this pool first.

Any AI credit usage that occurs after the pool is fully exhausted becomes an additional cost.

Shared-pool usage distribution

Usage distribution within the enterprise

👤 Light user 👥 Heavy users 👥👥 Medium users
⬇ ⬇ ⬇
Shared pool

✅ All users draw from the same pool — but at different usage rates (light / medium / heavy).

PRU model vs AI credit model

PRU model (old)
✅ Pro
One user can't burn through another user's allotment

⚠️ Con
Overage can occur even while other users still have budget left
AI credit model (shared pool)
✅ Pro
Less waste

⚠️ Con
Consumption can skew toward certain users

💡 The shared pool optimizes globally — heavy users can draw more, absorbed by lighter users’ surplus.

User-level Budget (new)

Controls the total AI credits a user can consume during a billing cycle (covering both pool usage and additional spend).

👥
Universal user-level budget
A default budget applied to every Copilot-licensed user in your enterprise
Giving new users a baseline spending limit prevents unintended overspend
👤
Individual user-level budget
Power-user override
A per-user AI credit budget that overrides the universal default.

🎯 Takeaway: a $0 user-level budget blocks that user immediately — you can cap per user even while the pool still has credits.

Budget options

[New] User-level budget
UniversalIndividual*
Overage
Shared pool
Overage
Shared pool
*Overrides the universal default
Organization-level budget
Caps the organization's overage
Overage only
Cost center-level budget
Overage (budget) + [New] shared-pool cap
Overage
Shared pool
[New] can cap
Enterprise-level budget
Caps the enterprise's total overage
Overage only
▲
Cost center usage can be excluded
[New Jul 2026] AI credit pool cap: Limits how much of the shared included credit pool a cost center can draw, up to what its assigned licenses fund (cap auto-calculated). It is a separate control from the budget (which caps overage); on reaching the cap you can block or continue as additional spend. Only available on cost centers containing users or enterprise teams; organizations and repositories are not supported. You can now configure it directly in the Billing and licensing → Cost centers UI, or through the REST API ↗. UI announcement ↗

Budget hierarchy

Key rule: if any budget hits $0, usage stops
Phase 1. Shared AI credit pool
Everyone spends from the shared pool; only the user's ULB is checked
User-level budget
?
is zero
X
Phase 2. Shared AI credit pool exhausted
For overage spend, the following budgets are checked
User-level budget
Org-level budget
Cost center-level budget
Enterprise-level budget
▼
▼
▼
▼
?
?
?
?
is zero
is zero
is zero
is zero
▼
X
Optional policy: By excluding a cost center from the enterprise budget, its users keep working even when the enterprise budget hits $0.

How alerts work

When you enable alerts on a budget, GitHub sends email notifications as spending reaches each threshold.

75%
📧 Email
▶
90%
📧 Email
▶
100%
📧 Limit hit
Product typeWhen the budget is exceeded
🎫 License-based (Copilot license, etc.)Alerts only — usage does not stop
⚡ Metered (AI credits, Actions, etc.)Budget can stop usage at the threshold

📧 Emails go to account owners and billing managers by default (additional recipients can be added). 📝 The first billing cycle only counts usage from the budget’s creation date — so you may exceed it that first cycle.

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