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License & Subscription Issues

Why Am I Paying for Microsoft 365 If I Only Use Hotmail and OneDrive?

Rana GarciaRana Garcia Sep 25, 2026 869 views

Question details

The user wants to understand the monthly charges for Microsoft 365 since they only utilize basic services like Hotmail (Outlook) and OneDrive, which have free versions.

Why Am I Paying for Microsoft 365 If I Only Use Hotmail and OneDrive?
Product
Microsoft 365
Device & OS
not provided
Scenario
Reviewing monthly subscription charges and determining if a paid Microsoft 365 plan is necessary for basic email and cloud storage usage.
Observed behavior
The user is being billed monthly for a Microsoft 365 subscription despite only needing standard email and limited cloud storage capabilities.
Before you start

Before making any subscription changes, check your current OneDrive storage usage to ensure your files are safely below the 5 GB free limit, preventing data access issues when downgrading.

Solution 1Recommended

Review and Downgrade Your Microsoft 365 Subscription

Check your Microsoft account's active services and cancel the paid Microsoft 365 subscription if the free 5 GB OneDrive storage meets your needs.

A Microsoft 365 subscription typically costs around £7.88/month (or equivalent) and includes premium desktop Office apps and 1 TB of OneDrive storage. If you do not use Word, Excel, or PowerPoint, and your files take up less than 5 GB, you can downgrade to a free account.

1
Log into your Microsoft Account

Navigate to account.microsoft.com in your web browser and sign in using your Hotmail or Outlook email address and password.

2
Access Services & subscriptions

Click on the 'Services & subscriptions' tab in the top navigation menu to view your active plans and their associated monthly or annual charges.

3
Cancel the subscription

Locate your Microsoft 365 subscription, select 'Manage', and then choose 'Cancel subscription' or 'Turn off recurring billing' to stop future charges.

4
Verify your storage limits

Go to onedrive.live.com and check your storage metric in the bottom left corner to ensure you are below the 5 GB free allowance.

Review and Downgrade Your Microsoft 365 Subscription
Need slightly more storage?: If you need more than 5 GB but do not want to pay for full Microsoft 365 applications, Microsoft offers standalone OneDrive storage plans (e.g., 100 GB) for a significantly lower monthly cost.
Free Microsoft Office alternative

Switch to WPS Office and Save on Subscription Fees

If you cancel Microsoft 365 to save money but still occasionally need powerful Word, Excel, and PowerPoint alternatives, WPS Office provides a fully featured, lightweight, and free office suite.

  1. 1. Download the installer: Visit the official WPS Office website and click the free download button for your operating system.
  2. 2. Install the software: Run the downloaded installer file and follow the quick on-screen instructions to set up WPS Office on your device.
  3. 3. Open and edit your files: Launch WPS Office and open your existing Microsoft formats directly—no conversion or paid subscription required.
Completely free alternative to costly Microsoft 365 subscriptionsFully compatible with Microsoft Word, Excel, and PowerPoint formats (.docx, .xlsx, .pptx)Lightweight design with a familiar, easy-to-use tabbed interfaceNo mandatory monthly fees just to edit basic documents
microsoft office alternative - wps office

Frequently Asked Questions

Can I use Hotmail and OneDrive without a Microsoft 365 subscription?

Yes. Microsoft provides free versions of Hotmail (now Outlook.com) and OneDrive. A free Microsoft account automatically includes standard web email access and 5 GB of free OneDrive cloud storage.

What happens to my files if I cancel my Microsoft 365 subscription?

Your OneDrive storage limit will drop from 1 TB to the free 5 GB limit. If you currently have more than 5 GB of data saved, your files will remain safe but become read-only. You will not be able to upload or sync new files until you delete enough data to get back under the 5 GB limit or purchase a standalone storage plan.

Can I buy just OneDrive storage without the other Office apps?

Yes, Microsoft offers standalone OneDrive Basic and Personal storage plans (such as 100 GB) for a lower monthly cost if you only need cloud space and do not require the premium desktop Office applications.