License & Subscription Issues

What is the Cost of Microsoft 365 Basic (Formerly Hotmail Premium)?

Jason MillerJason Miller Oct 20, 2026 868 views

Question details

The user wants to know the current subscription cost for Hotmail Premium or its successor, Microsoft 365 Basic.

What is the Cost of Microsoft 365 Basic (Formerly Hotmail Premium)?
Product
Microsoft 365 Basic
Device & OS
not provided
Scenario
Evaluating subscription plans for Microsoft's basic cloud storage and ad-free email services.
Observed behavior
Seeking current price information because the original Hotmail Premium service was discontinued and transitioned to Microsoft 365 Basic.
Before you start

Ensure you are logged into your Microsoft account to view the specific pricing, taxes, and promotional offers available for your geographic region.

Solution 1Recommended

Reviewing Microsoft 365 Basic Pricing and Subscription Options

Understand the current cost of Microsoft 365 Basic and how to upgrade your plan.

Hotmail Premium has been officially discontinued. Microsoft has replaced it with Microsoft 365 Basic, which bundles 100 GB of OneDrive cloud storage, ad-free Outlook (including Hotmail) email, and access to technical support.

The pricing is structured as a low-cost, entry-level tier for users who need more than the free basic storage limit but do not require the full desktop Office applications.

1
Note the standard pricing

In the United States, a Microsoft 365 Basic subscription costs $1.99 per month or $19.99 per year.

2
Visit the pricing page

Go to the official Microsoft 365 website and navigate to the 'Compare OneDrive Plans' or 'Microsoft 365 Basic' pricing page.

3
Purchase the subscription

Select the 'Microsoft 365 Basic' tier, choose either the monthly or annual billing cycle, and follow the on-screen prompts to check out using your Microsoft account.

Reviewing Microsoft 365 Basic Pricing and Subscription Options
Regional Pricing Variations: The $1.99/month price is specific to the US. Prices may vary depending on your geographic location, local currency, and applicable taxes.
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Frequently Asked Questions

Why was Hotmail Premium discontinued?

Microsoft consolidated its subscription services to offer a more unified user experience. Hotmail Premium was replaced by Microsoft 365 Basic, which provides ad-free email alongside 100 GB of OneDrive cloud storage under a single subscription.

Does Microsoft 365 Basic include desktop Office applications?

No, Microsoft 365 Basic only includes access to the web and mobile versions of Word, Excel, and PowerPoint. To install full desktop applications, you would need to upgrade to a Microsoft 365 Personal or Family plan.

Do I get an ad-free Outlook inbox with Microsoft 365 Basic?

Yes. One of the primary benefits of Microsoft 365 Basic is an ad-free experience for Outlook.com, which covers users with @hotmail.com, @live.com, and @outlook.com email addresses.