Canva to raise prices by 300% due to new AI features

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Canva is set to dramatically increase the price of its Canva Teams subscription next year, with some users facing a price hike of over 300%. The increase comes as Canva continues to roll out advanced generative AI features, which the company claims justify the higher costs due to the expanded capabilities and value added to the platform.

The price increase has sparked significant backlash among users, many of whom have expressed frustration at the sharp rise. For instance, U.S. users who were previously paying $120 per year for up to five users will see their subscription fee jump to $500 per year. Canva has offered a 40% discount for the first 12 months, bringing the initial price down to $300, but the long-term cost remains a significant jump. In Australia, the fee for five users is increasing from AUD 480 per year to AUD 2,430, a steep rise that has caught many users off guard.

These price hikes are particularly striking for users who have been locked into lower prices that Canva no longer offers. In April, the company discreetly updated its pricing model for new Teams subscribers, establishing a rate of $10 per month per user, with a minimum requirement of three users. Existing customers are now being moved to this new pricing plan as well, according to Canva’s communications lead, Louisa Green. Green stated that the adjustment reflects the current price of the plan and the value of Canva’s expanded product offerings, which now include the Visual Suite and Magic Studio.

The introduction of generative AI tools like Magic Media, a text-to-image generator, and Magic Expand, a background extension tool, has transformed Canva into a comprehensive workspace that caters to a broader range of users beyond design and marketing professionals. However, the new pricing strategy has left many long-time users feeling alienated, with some vowing to cancel their subscriptions and switch to Adobe’s software.

This substantial price increase follows Canva’s acquisition of the company behind Affinity’s creative software suite and comes ahead of a potential public listing in the U.S. in 2026.