Billing Question

Question

Why was there a $30+ increase in my M O365 Family subscription this year?

Regards,

Pete Pouridis

Answer 1

In May last year, Microsoft announced there would be an increase of approx. 30% to the price of a Microsoft 365 subscription because they were adding new functionality like Copilot Ai to Microsoft 365.

If you do not need the new functionality, on your Microsoft account online, choose to cancel the subscription, then on the next page, scroll down, you should find the hidden option to get Microsoft 365 Classic for the original cheaper price.

Answer 2

A higher Microsoft 365 Family charge compared to last year is typically due to one or more of the following:

1. Subscription price change or plan change
   The amount billed is calculated as: license price × number of licenses (users) + any applicable taxes or fees. If the license price for the plan changed at renewal, or if the subscription renewed into a different offer (for example, a plan that includes additional features such as Copilot in supported regions), the total due will increase.
2. Mid-term changes to the subscription
   If licenses were added or removed, or other changes were made to the subscription outside the previous billing period, the current invoice can show:
   • A credit and rebill for the previous service period, and
   • New prorated charges for the current period. This can make the total appear higher than last year’s bill.
3. Taxes or regulatory fees
   Changes in tax rates or newly applied fees in the billing region can increase the total even if the base subscription price looks similar.

To see exactly where the extra $30+ came from:

1. Open the latest invoice in the Microsoft 365 admin/billing experience and compare it to last year’s invoice.
2. On page one, check the Billing Period and total due.
3. On page two, review:
   • New charges: service period, number of licenses, price per license, and taxes.
   • Previous charges: any credits/reversals from the prior invoice.
   • Charges during this billing period: any mid-term changes (added/removed licenses) and their prorated impact.

If the increase is still unclear or appears incorrect after reviewing the invoice details, contact Microsoft billing support so an agent can review the account and discuss refund or adjustment options where applicable.

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References:

• Understand your invoice for your Microsoft MOSA billing account
• overcharged for microsoft 365 family classic - Microsoft Q&A
• I received an e-mail offering 365 Family Classic option but cannot switch - Microsoft Q&A
• Request a refund - Microsoft Q&A