How does Microsoft 365 billing and renewal work?
Microsoft 365 for business is paid as an ongoing subscription rather than a one-time purchase. The total cost is based on the plan your company uses, the number of assigned licences, and the billing term attached to that subscription.
Renewal is controlled from the billing area in the Microsoft 365 admin center. If automatic renewal is active, Microsoft charges the saved payment method when the current term ends. If an administrator switches it off, the services continue only until the paid period runs out, and the subscription must then be renewed manually to avoid interruption.
Payment handling depends on the business billing account. Many organisations pay by card, while some account types can use other approved billing methods. Administrators can also open invoices, change payment details, and review renewal settings from the same billing section.