What are the new Microsoft 365 license types?

30-day commitmentAnnual commitment
Payment dueMonthlyAnnual or monthly
Can I increase licenses?YesYes
Can I decrease licenses?Only within the first 7 days of a new subscription or at the end of the subscription term.Only within the first 7 days of a new subscription or at the end of the subscription term.
Can I change the license type?Yes, you can change the licenseYes, you can upgrade to a higher level license but cannot downgrade until the end of your annual subscription
PricingMonthly licenses cost roughly 20% more than annual subscriptionsAnnual pricing now runs at what used to be the standard pricing, but Microsoft did increase some prices in 2022

Microsoft changed its licensing model in 2022 and quite frankly it’s a nightmare, the less said about it the better. Find out below the general rules and terms.