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License & Subscription Issues

How to Change Microsoft 365 Business Premium from Annual to Monthly Billing

Elise WilliamsElise Williams Oct 16, 2026 868 views

Question details

The user wants to switch their Microsoft 365 Business Premium subscription from an annual payment plan to a monthly billing cycle while maintaining the same number of licenses.

How to Change Microsoft 365 Business Premium from Annual to Monthly Billing
Product
Microsoft 365 Business Premium
Device & OS
not provided
Scenario
Managing subscription preferences at renewal to change how frequently payments are processed.
Observed behavior
The user needs to locate the billing frequency options within the admin portal or contact support if the monthly option is unavailable.
Before you start

Ensure you are signed in with an account that has Global Administrator or Billing Administrator permissions in the Microsoft 365 ecosystem.

Solution 1Recommended

Change Billing Frequency via Microsoft 365 Admin Center

Use the built-in billing tools in the admin center to adjust your subscription's billing cycle from annual to monthly.

This is the standard method for modifying your subscription terms. Keep in mind that depending on how you originally purchased your subscription, billing frequency options may vary or be temporarily locked until your renewal date approaches.

1
Access the Admin Center

Log in to the Microsoft 365 admin center using your administrator credentials.

2
Navigate to Your Products

On the left-hand navigation menu, click on 'Billing', and then select 'Your products'.

3
Select Your Subscription

Find and click on your 'Microsoft 365 Business Premium' subscription to open its details page.

4
Edit Billing Frequency

Locate the 'Billing frequency' section. Click 'Edit billing frequency' or 'Change billing cycle', select 'Monthly', and confirm the change.

Change Billing Frequency via Microsoft 365 Admin Center
Availability of Monthly Billing: If the 'Monthly' option is greyed out or missing, it may be due to the terms of an existing annual commitment or a limitation from the third-party reseller who manages your license.
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Frequently Asked Questions

Why is the monthly billing option unavailable for my subscription?

The monthly option may be unavailable if you purchased your subscription through a volume licensing agreement, via a third-party Cloud Solution Provider (CSP), or if your current contract explicitly requires an annual commitment. In these cases, you must contact your reseller or Microsoft support.

Will switching to monthly billing increase my overall costs?

Yes, it often can. Microsoft typically offers a discount for annual billing commitments. Switching to a month-to-month billing cycle often results in a higher per-user monthly price.

Does changing the billing frequency reset my license count?

No, updating your billing cycle from annual to monthly only changes when and how you pay. Your current active license count, assigned users, and data remain completely unaffected.