Shed

What Microsoft's extra file storage really costs

Microsoft sells SharePoint storage above your quota by the gigabyte, at US$0.20 per GB a month. Counted the way Microsoft counts, 1,024 GB to the terabyte, that is about US$205 per terabyte every month the files stay.

How the pooled quota works

Your tenant's SharePoint storage is 1 TB plus 10 GB for each licence bought, pooled across every site. You only pay for extra storage once the tenant uses more than that.

LicencesPooled quota
101.1 TB
501.5 TB
1002.0 TB
3004.0 TB

Frontline plans (Microsoft 365 F1 and F3) add nothing per licence, and standalone OneDrive plans add 0.5 GB each. A studio of 50 people with 6 TB in SharePoint is 4.5 TB over.

The two ways Microsoft sells it

Office 365 Extra File Storage is an add-on bought in 1 GB steps in the Microsoft 365 admin center. You pay for the capacity you buy, used or not, and can reduce it later. Through a partner or volume licensing, their price applies.

Microsoft 365 SharePoint Storage is pay-as-you-go: it bills only the gigabytes above your quota, through an Azure subscription, at US$0.20 per GB a month. In public preview for commercial tenants from June 2026.

Prices in other currencies are set by Microsoft: the UK list price is £0.18 per GB a month on a monthly term and £0.16 on an annual term.

What a year of overage costs

At US$0.20 per GB a month, counted in binary terabytes:

Over quotaMicrosoft a monthMicrosoft a yearShed a month
1 TBUS$205US$2,458US$100
5 TBUS$1,024US$12,288US$500
10 TBUS$2,048US$24,576US$1,000
20 TBUS$4,096US$49,152US$2,000

The calculator on the front page does the same sum in your currency.

The cheaper routes, honestly

Shed's price is half Microsoft's published rate for this storage in each currency. We do not promise to follow Microsoft's price up or down.

Questions

Do we pay for the whole quota or only what is over?

Only what is over. The pooled quota comes with your licences. Extra File Storage is bought as a fixed number of gigabytes on top; the pay-as-you-go option bills only the gigabytes used above the quota.

Is the price the same in every country?

No. Microsoft sets a price per currency, and only your own admin centre shows yours. The US rate Microsoft publishes is US$0.20 per GB a month; a UK tenant's billing page shows £0.18 per GB on a monthly term and £0.16 on an annual term. Partners and volume licensing can differ again.

Why does 10 TB cost US$2,048 and not US$2,000?

Microsoft counts storage in binary units, so a terabyte is 1,024 GB. Ten terabytes is 10,240 GB on the meter, and 10,240 times US$0.20 is US$2,048 a month.

Sources

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