License & Subscription Issues

How to Replace a Microsoft 365 Subscription With a Lower-Cost Annual Plan

Ayan Masood Sep 28, 2026 868 views

Question details

The user wants to replace their currently paid Microsoft 365 subscription with a lower-cost £19.99 annual plan (Microsoft 365 Basic) and needs to know if they can receive a goodwill refund for the cancelled months.

How to Replace Your Microsoft 365 Subscription With an Annual Basic Plan

Product: Microsoft 365
Device & OS: not provided
Scenario: Downgrading an expensive Microsoft 365 subscription to a cheaper annual plan while attempting to secure a refund for unused time.
Observed behavior: The user must cancel their existing subscription to claim any eligible refund before purchasing the new 100 GB basic tier.

Before you start

Ensure you have the login credentials for the Microsoft account tied to your current subscription before attempting to modify your billing settings.

Solution 1Recommended

Cancel Current Subscription and Purchase Microsoft 365 Basic

This is the standard procedure to stop your current billing, claim any eligible refunds, and start a new, lower-cost subscription.

Microsoft typically requires users to cancel their existing subscription rather than offering a direct downgrade button. Depending on when you purchased or renewed, you may automatically receive a prorated refund upon cancellation.

Access Microsoft Services

Navigate to https://account.microsoft.com/services in your web browser and sign in with your Microsoft account.

Manage the Subscription

Locate your active Microsoft 365 subscription in the list of services and click on 'Manage'.

Cancel the Subscription

Click 'Cancel subscription' (or 'Upgrade or cancel'). If you are eligible for a refund, the system will prompt you with an option to get a refund for the remaining time.

Purchase the Basic Plan

Once cancelled, go to the Microsoft store and purchase the Microsoft 365 Basic (£19.99/year) plan to activate your 100 GB storage.

Cancel Current Subscription and Purchase Microsoft 365 Basic

Refund Eligibility Criteria: Refund eligibility generally applies to annual subscriptions cancelled within 30 days of purchase, or monthly subscriptions cancelled within 30 days of the last renewal.

Solution 2

Contact Microsoft Billing Support for a Goodwill Request

Use this method if the online cancellation fails, or if you fall outside the standard 30-day refund window and wish to request an exception.

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Switch to WPS Office and Eliminate Subscription Costs

If you are looking to lower your software expenses, consider switching to WPS Office. It provides a robust, lightweight, and completely free alternative to Microsoft Office, meaning you can edit your documents without worrying about annual subscriptions.

1. Download the Software: Visit the official WPS website and download the free installation file for your computer.
2. Install and Launch: Run the setup file and open WPS Office to access Writer, Spreadsheets, and Presentation modules.
3. Edit Existing Files: Open your existing Microsoft Office files directly in WPS Office to continue working seamlessly with full formatting support.

Completely free core features for Word, Excel, and PowerPoint document editing.Highly compatible with Microsoft Office formats like .docx, .xlsx, and .pptx.Lightweight design ensures smooth performance on almost any device.Familiar user interface requires no learning curve when migrating from Microsoft 365.

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Frequently Asked Questions

Can I downgrade my Microsoft 365 subscription directly to the Basic plan?

Microsoft typically requires you to cancel your existing higher-tier subscription first and then purchase the Microsoft 365 Basic plan separately, rather than offering a simple one-click downgrade button.

Will I lose my OneDrive files when I cancel Microsoft 365?

Your files will remain safely in OneDrive. However, if your data exceeds the storage limit of your new plan, you will not be able to upload new files or send/receive emails via Outlook until you delete files to free up space or purchase additional storage.

How long does it take for a Microsoft subscription refund to be processed?

If your cancellation is eligible for a refund, it usually takes 3 to 5 business days for the funds to appear on your original payment method.

What happens if I miss the 30-day refund window?

If you are outside the refund window, you can turn off 'Recurring billing' in your account settings. This ensures you will not be charged again, and you will retain access to your current subscription benefits until the end of your billing cycle.

Login & Account Issues