Microsoft 365 License Audit
Find potentially unused Microsoft 365 licenses and identify opportunities to reduce licensing waste — unassigned seats, disabled accounts still holding paid licenses, and long-inactive users. Read-only, with a dollar estimate next to every finding.
Read-only. We read license and usage data only — never mail or files.
A Microsoft 365 license audit compares the licenses you pay for against how they’re actually assigned and used, then surfaces the seats that are being wasted. M365 Health Score runs this read-only and puts an estimated monthly cost next to every finding.
The three ways licenses go to waste
| Finding | How it’s detected | Urgency |
|---|---|---|
| Unassigned paid seats | Prepaid units that exceed consumed units on a subscription — bought, never assigned. | High |
| Disabled accounts still licensed | Accounts with accountEnabled = false that still carry a paid license (often ex-staff, or a shared/resource mailbox that doesn’t need one). | High |
| Inactive users still licensed | Users with no Exchange, Teams, SharePoint or OneDrive activity for 90+ days, still holding a paid license. | Medium |
A worked example
Say a 120-seat tenant on Microsoft 365 E3 has 8 seats that were bought but never assigned, 5 disabled ex-employees still licensed, and 6 users inactive for over a quarter. At roughly $36/user/month list, that’s 19 wasted seats — an estimated ~$680/month, or over $8,000 a year, sitting in plain sight. The audit surfaces each one by name so you can confirm and reclaim it.
Figures use public list prices and infer waste from assignment and activity data. They exclude your agreement’s discounts, and a flagged seat may be intentionally kept — you make the final call before removing anything. Inactive-user findings also depend on Microsoft usage-report data being available for your tenant.
Why license waste accumulates
Onboarding adds licenses; offboarding forgets to remove them. Plans get layered on over the years but rarely reviewed. And the data you’d need to notice — assignment counts, last-activity dates, subscription totals — is scattered across different admin center reports. Nobody’s job is to reconcile them, so the waste compounds quietly.
Microsoft 365 license audit FAQ
What is a Microsoft 365 license audit?
A Microsoft 365 license audit compares the licenses you pay for against how they are actually assigned and used, to surface seats that are wasted — unassigned, held by disabled accounts, or held by users who have been inactive for months.
How do I find unused Microsoft 365 licenses?
Look for three things: paid seats that were bought but never assigned, licenses still attached to disabled accounts, and licenses on users with no sign-in or app activity for 90+ days. M365 Health Score checks all three automatically and estimates the monthly cost.
Is the savings figure exact?
No — it is an estimate. The audit infers waste from license assignment and activity data and applies public list prices. Your actual savings depend on your agreement’s discounts and whether a flagged seat is genuinely surplus, which you confirm before removing it.
Does the license audit change anything?
No. It is read-only. It identifies waste and tells you what to remove; you make the change in the Microsoft 365 admin center.
Find out what your licenses are really costing
Run a free check and see your estimated monthly Microsoft 365 license waste — read-only, in minutes.