License & Subscription Issues

How to Pause a Microsoft 365 Account Without Deleting Data

Rana Garcia Oct 12, 2026 868 views

Question details

Organizations need to stop paying for a Microsoft 365 user license during an extended leave while preserving their email and business data for when they return.

How to Pause a Microsoft 365 Account Without Deleting Its Data

Product: Microsoft 365
Device & OS: not provided
Scenario: Managing user licenses and cutting subscription costs during extended employee absences without losing their work data.
Observed behavior: The administrator wants to retain access to user data (like emails and Teams history) without actively paying for a full Microsoft 365 license, avoiding complete account deletion.

Before you start

Verify that the user's mailbox size is under 50 GB, as unlicensed shared mailboxes have a strict 50 GB storage limit, and ensure you back up any critical OneDrive files since removing a license affects access to other Microsoft 365 services.

Solution 1Recommended

Convert the User Mailbox to a Shared Mailbox

The recommended method to pause billing for an account while retaining its email history is to convert it into a shared mailbox, and then revoke the paid license.

A shared mailbox preserves all email data, calendar items, and contacts. Because it does not have its own login credentials, it generally does not require a paid Microsoft 365 license.

Crucially, do not delete the user account itself. Deleting the account will permanently delete the mailbox and associated data.

Access the Active Users list

Log in to the Microsoft 365 admin center using your administrator credentials. In the left navigation menu, go to Users, and then select Active users.

Select the user account

Find and click on the name of the employee whose account you want to pause. This will open a properties pane on the right side of your screen.

Convert to a shared mailbox

In the user pane, select the Mail tab. Under the 'More actions' section, click on 'Convert to shared mailbox', and confirm your choice to complete the conversion.

Remove the Microsoft 365 license

Once the conversion is successful, switch to the Licenses and apps tab in the same pane. Uncheck the primary Microsoft 365 license to stop paying for it, then click Save changes.

Convert the User Mailbox to a Shared Mailbox

Storage Limits for Shared Mailboxes: An unlicensed shared mailbox is limited to 50 GB of storage. If the mailbox exceeds 50 GB, you must either delete older emails to free up space or purchase an Exchange Online Plan 2 license.

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Frequently Asked Questions

What happens to a user's OneDrive data when their Microsoft 365 license is removed?

When you remove a Microsoft 365 license from a user, their OneDrive data is retained for a default retention period (typically 30 days) before being permanently deleted. You must back up this data or transfer ownership to another user before removing the license.

Can an employee log into a shared mailbox directly?

No, shared mailboxes do not have their own passwords or login credentials. To access the shared mailbox, an administrator must grant 'Full Access' or 'Send As' permissions to another active, licensed user who can then open it from their own account.

Do I have to pay a subscription fee for a shared mailbox?

Generally, no. A shared mailbox does not require a paid license as long as its storage stays under the 50 GB limit. If the mailbox data exceeds 50 GB, or if you need advanced features like In-Place Archive or Litigation Hold, an Exchange Online Plan 2 license is required.

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