How to Cancel Your Office 365 Subscription (And Save Money Doing It)

If you've decided to cancel your Office 365 subscription, you're not alone. Millions of users each year question whether a recurring €99/year fee is really worth it — especially when a permanent, one-time alternative exists for a fraction of the price. This guide walks you through cancelling your Microsoft 365 subscription step by step, explains exactly what happens to your files, and shows you a smarter alternative that many people switch to after cancelling.

Short answer: You can cancel Office 365 (Microsoft 365) at any time via your Microsoft account dashboard. Your files remain yours. Your locally installed apps keep working until the end of the billing period. After that, they switch to read-only mode — but there is a simple fix for that too.

How to Cancel Your Office 365 Subscription — Step by Step

Microsoft has made the cancellation process relatively straightforward, though the exact steps depend on whether you purchased directly through Microsoft or through a third-party retailer.

If You Purchased Directly from Microsoft

1. Sign in to your Microsoft account — Go to account.microsoft.com and log in with the Microsoft account linked to your subscription.
2. Navigate to "Services & subscriptions" — Click the Services & subscriptions tab in the top navigation bar. You will see your active Microsoft 365 plan listed here.
3. Find your Microsoft 365 plan — Locate the Microsoft 365 Personal, Family, or Business plan you want to cancel. Click Manage next to it.
4. Turn off recurring billing — You will see a toggle or button labelled Turn off recurring billing. Click it. This stops future charges without cutting your access immediately. You keep everything until your current paid period ends.
5. Request a full cancellation (if you want a refund) — If you want an immediate cancellation and refund for unused time, click Cancel subscription instead. Microsoft offers a pro-rated refund within 30 days of purchase; after that, they typically refund only for the remaining full months.
6. Confirm and save the confirmation email — Microsoft will send a confirmation. Keep it for your records.

If You Pay Through the App Store (iOS or Android)

If your Office 365 subscription is billed through Apple or Google, Microsoft cannot cancel it on their end. You must cancel directly:

• iPhone/iPad: Go to Settings → Your Name → Subscriptions → Microsoft 365 → Cancel Subscription
• Android: Open Google Play → Profile icon → Payments & subscriptions → Subscriptions → Microsoft 365 → Cancel

Business Plans (Microsoft 365 Business Basic / Standard / Premium)

1. Sign in at admin.microsoft.com with your admin account.
2. Go to Billing → Your products.
3. Select the subscription and choose Cancel subscription.
4. Follow the prompts. Note: cancelling a Business plan removes access for all users assigned to it.

Important: If your subscription was purchased through a reseller or IT provider, you will need to contact them directly — Microsoft cannot cancel third-party purchases on your behalf.

What Happens After You Cancel Microsoft 365

This is the question most people get wrong. Here is the precise timeline:

Bottom line: You have 180 days to retrieve your data before it is gone permanently. Act before this deadline.

Will You Keep Your Files? What About OneDrive?

This is the number-one concern people have — and understandably so. Here's the clear answer:

Your Local Files (on your hard drive)

Yes, they are completely safe. Any Word, Excel, or PowerPoint files saved to your local hard drive (e.g., in your Documents folder) remain on your computer permanently. Microsoft cannot and does not delete files stored locally. Cancelling your subscription has zero effect on them.

Files Stored on OneDrive

OneDrive is included in Microsoft 365, so your cloud storage shrinks significantly after cancellation. Specifically:

• You keep 5 GB of free OneDrive storage (the free tier) after cancellation.
• If you are using more than 5 GB, Microsoft will not delete those files immediately — you have time to download them.
• Action required: Before cancelling, download all important OneDrive files to your local drive, or move them to another cloud service (Google Drive, Dropbox, etc.).

Outlook Emails

If you use a @outlook.com or @hotmail.com address, your email is tied to your free Microsoft account — not your paid subscription. It stays intact after cancellation.

If your business uses a custom domain email (e.g., yourname@yourcompany.com) through Microsoft 365, those mailboxes will become inaccessible after the subscription ends. Export your emails first using the Microsoft PST export tool.

The Real Cost of Office 365: Subscription vs One-Time Licence

Let's talk numbers — because this is where most people have their "wait, really?" moment.

Microsoft 365 Personal costs €99 per year. That sounds reasonable for one year. But software is rarely replaced each year. Most people use the same productivity suite for 4–6 years. Here is what that actually costs you:

That is not a small rounding error. That is €432 back in your pocket over five years — for the same core apps: Word, Excel, PowerPoint, Outlook, and OneNote.

What Do You Give Up?

A one-time licence is not identical to Microsoft 365. Here is what changes:

For most home users and small businesses, the biggest practical loss is the 1 TB OneDrive storage. That can easily be replaced with Google Drive (15 GB free), a Dropbox account (~€10/month), or a local NAS — and still come out well ahead on total cost.

If you use Microsoft Teams heavily for work, note that a free standalone Teams app is available at no cost — you do not need Microsoft 365 for it.

The Better Alternative: Permanent Office Licences from Licendi

At Licendi, we sell genuine, certified Microsoft Office licences — permanent, one-time purchases with no annual renewal. All licences are 100% legal under EU law (UsedSoft ruling, C-128/11) and come with a lifetime warranty.

These are the same Office applications you already know. The same file formats. The same interface. Just without the subscription meter running every month.

Office 2024 Professional Plus — Best Value for Most Users

Office 2024 Professional Plus is Microsoft's most complete desktop suite — identical to what a Microsoft 365 subscription gives you in terms of core productivity apps, plus Access and Publisher that Microsoft 365 Personal doesn't include.

• Price at Licendi: €62.99 (one-time, permanent)
• Microsoft retail price: €439
• You save: 86%
• Includes: Word, Excel, PowerPoint, Outlook, OneNote, Access, Publisher
• Works on: Windows 10 / 11
• Delivery: Instant digital download + licence key
• Warranty: Lifetime

Get Office 2024 Pro Plus — €62.99 →

Office 2021 Professional Plus — Proven Stability

Office 2021 Professional Plus is an excellent choice if you want a mature, thoroughly tested version of Office at an even lower price point. Mainstream support runs until 2026, extended support until 2031.

• Price at Licendi: €62.99 (one-time, permanent)
• Includes: Word, Excel, PowerPoint, Outlook, OneNote, Access, Publisher, Teams
• Works on: Windows 10 / 11

Get Office 2021 Pro Plus — €62.99 →

Office 2019 Professional Plus — Budget-Conscious Option

If budget is the priority and you don't need the latest features, Office 2019 Professional Plus covers all the essentials at an even lower price.

• Price at Licendi: €31.99 (one-time, permanent)
• Includes: Word, Excel, PowerPoint, Outlook, OneNote, Access, Publisher
• Works on: Windows 10 / 11

Get Office 2019 Pro Plus — €31.99 →

Why Buy from Licendi?

• 4.8★ on Trustpilot — thousands of verified European customers
• 100% legal in the EU — all licences comply with the EU UsedSoft ruling (ECJ C-128/11)
• Instant delivery — licence key in your inbox within minutes of payment
• Lifetime warranty — if your key ever stops working, we replace it free of charge
• Personal support — chat, email, phone, and WhatsApp support in multiple languages

You can also read our in-depth guide: Office 2024 vs Microsoft 365 — Which Should You Buy? for a complete feature-by-feature breakdown.

Frequently Asked Questions