What happens if I cancel Microsoft 365?
What happens after you cancel Microsoft 365 depends on the type of subscription and when the cancellation is made. In many business cases, the service continues until the end of the paid term, but NCE subscriptions follow stricter cancellation rules.
For standard business subscriptions, an admin can usually cancel the plan or turn off recurring billing in the Microsoft 365 admin center. If recurring billing is turned off, the subscription stays active until the current paid period ends and then expires.
The rules are stricter for NCE license-based subscriptions. Under Microsoft’s NCE policy, customers usually have seven calendar days from purchase or renewal to cancel and receive a prorated refund. After that window, the subscription usually continues until the end of the term, even if the business no longer needs all licences.
In practice, refund eligibility depends on the subscription type, billing model, and whether the cancellation falls inside the allowed window. If the subscription was purchased through a CSP partner, billing and cancellation may also need to be handled through that provider.