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Payment for Microsoft 365 is annual by default, but you can switch to monthly payment from the settings.
In this article, we will explain the difference in fees depending on the payment method of Microsoft 365 and the points of how to choose.
We also have a summary of how to switch between annual and monthly payments, so please refer to it if you are thinking about changing to monthly payment.
Microsoft 365 charges differ between monthly and annual payments
The final payment amount will differ depending on whether Microsoft 365 is paid monthly or annually.
First, let’s compare the total payment amount for both the individual plan and the corporate plan when choosing monthly or yearly payment.
For individual plans (Personal/Family)
Microsoft 365 individual plans include the Personal plan for one person and the Family plan for families.
The difference in the payment amount when contracting the two plans with monthly payment or annual payment is as follows.
| Microsoft 365 Personal | Microsoft 365 Family | |
|---|---|---|
| Plan features | Plan for 1 person | Family plan for up to 6 people |
| Annual contract / annual payment | 12,984 yen | 18,400 yen |
| Monthly contract / monthly payment | 1,284 yen/month (15,408 yen per year) | 1,850 yen/month (22,200 yen per year) |
| Difference from annual payment | +2,424 yen | +3,600 yen |
* Microsoft official site fee information as of May 2023
Comparing the monthly payment and annual payment, you can see that the annual payment is about 2 months cheaper.
Corporate plan (Business)
There are various types of Microsoft 365 corporate plans, but let’s compare the prices of “Microsoft 365 Business”, which is a general plan for small and medium-sized enterprises.
| Microsoft 365 Apps for business |
Microsoft 365 Business Basic |
Microsoft 365 Business Standard |
Microsoft 365 Business Premium |
|
|---|---|---|---|---|
| Plan features | Get Office apps at a discounted price | Only the web version of Office apps is supported | Business standard plan | High-end plan with enhanced security measures |
| Annual contract / annual payment | 12,360 yen | 9,000 yen | 18,720 yen | 33,000 yen |
| Monthly contract / monthly payment | 1,240 yen/month (14,880 yen per year) |
900 yen/month (10,800 yen per year) |
1,880 yen/month (22,560 yen per year) |
3,300 yen/month (39,600 yen per year) |
| Difference from annual payment | +2,520 yen | +1,800 yen | +3,840 yen | +6,600 yen |
* Microsoft official site fee information as of May 2023
As with the individual plan, the annual payment is cheaper than the monthly payment for two months.
Points for choosing monthly or annual payment
If you compare the fees alone, the annual payment seems to be more profitable, but there is also the disadvantage that you can only cancel once a year in the case of annual payment.
On the other hand, if you have a monthly payment contract, you can cancel or change the plan in a short period of time, which is convenient when there is an increase or decrease in the number of employees.
Below is a summary of the pros and cons of monthly and annual payments.
| monthly payment | annual payment | |
|---|---|---|
| merit | Short-term cancellation and plan changes possible | About 2 months cheaper than monthly payment in annual terms |
| Demerit | High annual payment total | Only updated once a year |
From this, it can be said that monthly payment and annual payment are more suitable for the following cases.
Cases where annual payment is appropriate
- Assuming long-term use
- Plans and services to be contracted are fixed
- Less employee turnover
Cases where monthly payments are appropriate
- Assuming short-term use
- There is a possibility of changing the plan / service to be contracted
- Increase/decrease in number of employees
How to change your Microsoft 365 payment information
From here, we will explain the operation procedure when switching the payment of Microsoft 365 to monthly payment or annual payment.
Individual
If you want to change your payment information for an individual plan, you can do so from your Microsoft account page.
- Visit the Microsoft 365 admin page ( https://www.office.com/ )
- Enter your user ID and password and click “Sign in”
- Click the profile icon on the top right of the screen
- Click “Microsoft Account”
- Click on the Services & Subscriptions tab
- Click “Manage” of the Microsoft 365 plan displayed in the “Subscription” column
- Click “Switch plan” on the flat-rate billing and select either monthly or annual payment
For corporations
If you want to change your billing information for a business plan, you can do so through the Microsoft admin center.
Please note that only accounts with administrator privileges can change payment information for corporate plans.
- Visit the Microsoft 365 admin center ( admin.microsoft.com )
- Enter your user ID and password and click “Sign in”
- Click “Billing” in the menu on the left side of the screen
- Select the “Products” tab and click the subscription for which you want to change payment information
- Click “Edit billing frequency” under “Subscription and payment settings”
- Select either monthly payment or annual payment and click “Change”
If you have purchased a license from a sales agency such as NEC Networks & System Integration, the billing amount and payment information will not be displayed even if you access the management center.
In this case, you will need to contact the agency and change your payment information through the agency.
summary
- Microsoft 365 subscription fees vary depending on whether you choose monthly or yearly billing
- Although the total annual payment is cheaper with annual payment, monthly payment has the advantage of being able to cancel in a short period of time.
- If you purchased a corporate license from a reseller, you will need to contact your reseller to change your payment method.
NEC Networks & System Integration offers a variety of solutions and services that can be linked with Microsoft 365 services.
Along with the introduction of Microsoft 365, we also accept consultations for improving the IT environment for business and converting to DX. Please feel free to contact us.