There are countless reasons why you may want to cancel your Microsoft 365 subscription. You might no longer use the software, experience technical issues, or decide that the recurring costs are no longer worth it. Whatever your reason, cancelling a Microsoft 365 subscription is possible, although the steps depend on how and where the subscription was purchased.
In this blog, you can read how to cancel your Microsoft 365 subscription, what to consider when cancelling an annual plan, and which alternatives are available if you want to avoid subscriptions altogether.
Stop your Office 365 subscription
You can cancel your Microsoft 365 subscription directly through your Microsoft account on the Services and subscriptions page. This is the official method recommended by Microsoft Support.
Step-by-step cancellation guide
- Go to the Microsoft Services and subscriptions page and sign in with the Microsoft account tied to your subscription:
- Find the Microsoft 365 subscription you want to cancel
- Select “Cancel subscription” (it might also appear as “Upgrade or Cancel”)
- Check the “Please review” section which can be found at the top of the cancel page
- Follow the on-screen instructions to confirm cancellation. You may be prompted to confirm a few additional steps before the cancellation is final
Note: If you see Turn on recurring billing instead of a cancellation option, it means your subscription is already set to expire at the date shown and you will not be charged again after that date. You do not need to take any further action, and you can still continue to use your subscription until its expiring date.
Tip: You can see the details of alternative subscriptions, which can be cheaper in the “Please review” section.
If this method does not work because your subscription was purchased through a third party or mobile store, see the guidance below.
Subscription for one year
If you have an annual subscription of Microsoft 365, then you cannot simply just cancel it. If you have taken out an annual subscription within the last 30 days then you can still get a refund for it. After you do this, you can no longer use the license and the applications will immediately change to read-only mode.
Subscription purchased via a mobile device
If you have purchased a Microsoft 365 subscription via your mobile phone or tablet, you must also cancel the subscription in the corresponding store where you have obtained it from. For example, if you purchased a subscription through the App Store, you must cancel it through the same App Store.
Note: Certain App Stores can have different terms and conditions to Microsoft itself when it comes to cancelling subscriptions.
What happens after you cancel your Microsoft 365 subscription?
Cancelling your Microsoft 365 subscription does not immediately remove your account, but it does have important consequences for cloud storage, email access, and shared users.
According to Microsoft, once a Microsoft 365 Basic, Personal, Family, or Premium subscription is cancelled, your account is moved back to the free storage tier.
Cloud storage limits after cancellation
After cancellation, your available storage is reduced to:
- 5 GB of total cloud storage, shared between OneDrive and Outlook.com attachments
- 15 GB of Outlook.com mailbox storage
If your current storage usage exceeds these limits, restrictions will apply immediately.
What happens if you exceed the free storage limit?
If you or anyone you shared your Microsoft 365 subscription with uses more storage than the free allowance, Microsoft will apply the following restrictions:
- You can no longer upload, edit, or sync new files to OneDrive
- Automatic photo and camera uploads will stop
- You can no longer send or receive emails in Outlook.com
If the situation is not resolved, Microsoft may take further action.
Read more about Microsoft cloud storage.
Risk of data deletion
If your storage usage remains above the free limit for an extended period (which is usually after 6 months), Microsoft may delete your OneDrive account and all files stored in it. This still applies even if your subscription was cancelled unintentionally.
Impact on shared Microsoft 365 subscriptions
When you cancel a Microsoft 365 Family or Microsoft 365 Premium subscription, all users you shared the subscription with will be affected.
- Their storage limits are reduced to the free tier
- If they exceed the limit, the same restrictions and risks will be applied accordingly
Note: Shared users are not exempt from these changes.
Important for you
Before cancelling your Microsoft 365 subscription, make sure your cloud storage usage is below the free limit.
If you cancel while using more than the free allowance:
- You may lose access to email sending and receiving functionality
- File syncing and uploads will stop working
- Your data may be permanently deleted after six months
Microsoft does not guarantee data recovery once files are deleted.
Pre-cancellation checklist
Before you decide to proceed with cancelling your Microsoft 365 subscription, we strongly recommend that you should complete the following steps in the checklist below.
Microsoft 365 Cancellation Checklist:
- Check your current OneDrive and Outlook.com storage usage in the “Subscriptions” section on the account.microsoft.com page
- Download important files and email attachments to a local device
- Reduce cloud storage usage below 5 GB if you plan to keep using OneDrive
- Inform shared users if you use Microsoft 365 Family or Premium
- Confirm whether you are eligible for a refund in the country where you previously obtained your subscription from
- Verify whether your subscription was purchased directly from Microsoft or via a third party
- Consider whether a perpetual license better fits your needs
Completing this checklist can help prevent unfortunate data loss, email disruption, and unexpected access restrictions.
Read more about how Microsoft cloud storage.
Refund eligibility
In certain countries, cancelling Microsoft 365 may entitle you to a prorated refund, depending on subscription length and renewal status. According to official Microsoft Support, refunds may apply in the following cases:
Countries where refunds may apply for any subscription length
- Canada
- Israel
- Korea
- Turkey
Countries where refunds may apply for renewed subscriptions longer than one month
- Denmark
- Finland
- Germany (for purchases on or after March 1 2022)
- The Netherlands
- Poland
- Portugal
Read more about Official Microsoft refund information.
Reasons to cancel your Microsoft 365 subscription
There are several reasons why individuals and organizations decide to cancel their Microsoft 365 subscription. While Microsoft 365 offers cloud services and continuous updates, these features are not always necessary for every user.
Common reasons to cancel Microsoft 365 include:
- Ongoing subscription costs that increase over time
- Limited use of cloud storage and collaboration features
- Preference for predictable one-time software costs
- Data storage and compliance concerns
- Working environments where offline access is sufficient
In many cases, switching to a perpetual on premises Microsoft Office license can be a more cost effective and practical solution. In one of our related blog bellow, we explain in detail why on premises Office solutions can be a better choice for long term use.
Read more about the different reasons why on-premises is better.
Buy affordable Office licenses
Softtrader offers a wide range of pre-owned Microsoft Office licenses, providing a cost-effective alternative to Microsoft 365 subscriptions. With pre owned licenses, you benefit from lower costs, one-time purchases, and fully compliant software.
Whether you want to reduce recurring subscription expenses or switch to a perpetual Microsoft Office license, our licensing specialists are happy to help you find the best solution for you and your organization.
Request a quote today and save on Microsoft licenses.
Do you have questions? Contact us!
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FAQ
Can I cancel my Microsoft 365 subscription at any time?
Yes, you can cancel Microsoft 365 at any time through your Microsoft account. If you have a monthly subscription, cancellation usually takes effect at the end of the billing period. Annual subscriptions may have different refund conditions depending on when they were purchased.
Read more about Cancel a Microsoft 365 subscription.
Will I lose access to my files after cancelling Microsoft 365?
After cancellation, your cloud storage is reduced to the free storage limit. If your storage usage exceeds this limit, you may lose the ability to upload files, send or receive email, and after several months Microsoft may delete stored files. It is strongly recommended to back up your data before cancelling.
Read more about Cancel a Microsoft 365 subscription.
Can I keep using Microsoft Office after cancelling Microsoft 365?
Once Microsoft 365 is cancelled, access to the desktop applications is removed or limited to read only mode. To continue using Microsoft Office without a subscription, you need a perpetual Microsoft Office license.
Read more about Cancel a Microsoft 365 subscription.
Is a one-time Microsoft Office license cheaper than Microsoft 365?
For many users, yes. While Microsoft 365 has a lower upfront cost, long term subscription fees often exceed the price of a one-time Microsoft Office license. Over several years, a perpetual license can be significantly more cost effective.
Read more about all Microsoft 365 plans pricing.
Do I need cloud services to use Microsoft Office?
No. Many users only need Word, Excel, PowerPoint, and Outlook for offline or local use. If you do not rely on cloud storage or real time collaboration, a perpetual Microsoft Office license is often sufficient.
Read more about Microsoft 365 online could storage.
Can businesses cancel Microsoft 365 and switch to on premises Office?
Yes. Many organizations choose to cancel Microsoft 365 and move to on premises Microsoft Office licenses to reduce costs, maintain predictable licensing, or meet data and compliance requirements.
Does Softtrader sell Microsoft 365 subscriptions?
No. Softtrader does not sell Microsoft 365 subscriptions. We specialize in pre-owned perpetual Microsoft Office licenses, offering a cost-effective alternative to recurring subscription models.
Check out Softtrader’s alternatives for Microsoft 365.
Is buying a pre-owned Microsoft Office license legal?
Yes, many standard software licenses stipulate that after paying a single fee, the software can be used forever. In C-128/11, the European Court of Justice – Europe’s highest court – ruled that such licenses lead to a ‘sale’ of the software. This implies that these licenses can be sold to third parties: pre-owned licenses are therefore legal. A perpetual software license issued for a single price can therefore be resold, regardless of what is stipulated in that license. Therefore, our pre-owned OLP license transfers are fully compliant with European regulations.
Read more about the Judgement of the court about the legality of pre-owned software licenses
When is Microsoft 365 the better choice for me?
Microsoft 365 is best suited for users who need continuous updates, cloud storage, collaboration tools, and access across multiple devices. If these features are not essential, a perpetual license may be the better option.
When is a perpetual Microsoft Office license the better choice for me?
A perpetual license is ideal if you prefer a one-time purchase, want predictable costs, work mainly offline, or do not need cloud-based services.
