Microsoft 365 subscription prices

Microsoft 365 Personal costs $70 per year or $6 per month when you pay monthly. It covers one person on up to five devices at the same time. You get Word, Excel, PowerPoint, Outlook, OneNote, Access, and Publisher, plus 1 TB of OneDrive cloud storage.

Microsoft 365 Family costs $100 per year or $10 per month when you pay monthly. Up to six people can use it, each on their own five devices. Each person gets their own 1 TB of OneDrive storage, so a family of four has 4 TB total. Everyone gets the full suite of apps.

These are the prices Microsoft charges directly. Some retailers like Best Buy or Amazon occasionally run sales, usually around back-to-school time in August or during Black Friday in November, but the official price stays the same year-round.

Key Takeaways

  • Microsoft 365 Personal is $70 per year for one person across five devices, while Family is $100 per year for up to six people.
  • Both subscriptions include the full Office apps plus 1 TB of OneDrive storage per person, with automatic updates included.
  • Microsoft Office 2021 (the one-time purchase) costs $160 for a single computer and never expires, but you pay for updates separately if you want them.
  • Business plans like Microsoft 365 Business Basic start at $6 per user per month and include email and cloud storage, but are meant for companies, not individuals.
  • If you only need Word, Excel, or PowerPoint occasionally, the free web versions at Office.com work without a subscription.

One-time purchase: Office 2021

If you do not want a subscription, you can buy Microsoft Office 2021 as a one-time purchase for $160. This version never expires and works on one computer only. You own it outright — no monthly or yearly fees.

The catch is that Office 2021 does not update automatically. Microsoft released it in October 2021 and will support it until October 2026. After that date, it will still work, but you will not receive security patches or new features. If you want the latest version after 2026, you will need to buy Office 2024 or switch to a subscription.

Office 2021 is a good choice if you use the same computer for years and do not need the newest features. It is a poor choice if you share files with people using newer versions, because compatibility issues can happen.

Business and enterprise pricing

Microsoft 365 Business Basic costs $6 per user per month and includes Word, Excel, PowerPoint, Outlook, and Teams, plus email and cloud storage. It is designed for small companies, not individuals.

Microsoft 365 Business Standard costs $12.50 per user per month and adds Publisher and Access to the Basic plan.

Microsoft 365 Business Premium costs $22 per user per month and includes everything in Standard plus advanced security features and device management tools.

These plans are billed per person per month, and most require a commitment of at least one user. They are cheaper than Personal or Family if you have multiple people, but they include business email and security tools that individuals do not need. If you are self-employed and want your own business email address, Business Basic might make sense; otherwise, Personal or Family is the right fit.

What changes between subscription tiers

The main difference between Personal and Family is the number of people and devices. Personal covers one person on five devices. Family covers six people, each on five devices, so it is better value if you have a household of two or more.

All Microsoft 365 subscriptions include the same core apps: Word, Excel, PowerPoint, Outlook, OneNote, and Teams. Personal and Family also include Access and Publisher. Business plans vary — Basic does not include Access or Publisher, but Standard and Premium do.

Every subscription includes OneDrive cloud storage and automatic updates. The storage amount is the same across tiers: 1 TB per person. The difference is that a Family subscription gives each of the six people their own 1 TB, while Personal gives one person 1 TB.

Free alternatives if you do not want to pay

Microsoft offers free web versions of Word, Excel, and PowerPoint at Office.com. You need a free Microsoft account to use them. These versions work in any web browser on any device, and files save to OneDrive automatically.

The free versions have fewer features than the paid apps. You cannot use advanced formatting, macros, or some collaboration tools. If you only write straightforward documents, make basic spreadsheets, or create straightforward presentations, the free versions work fine.

If you have a school email address, you may have access to Microsoft 365 for free through your school. If you work for a company, your employer may provide it. Check with your IT department or school before paying.

How to buy and when prices change

You can buy Microsoft 365 directly from Microsoft.com, or from retailers like Best Buy, Amazon, Costco, or Walmart. Prices are the same everywhere when you buy directly from Microsoft. Retailers sometimes offer gift cards or bundles that make the effective price lower, but the subscription itself costs the same.

Microsoft has not changed the price of Personal or Family subscriptions since 2020. The company occasionally raises prices — it did in 2020 and 2022 — but there is no set schedule. If you see a price increase announced, it usually takes effect 30 days after you are notified.

If you pay monthly instead of yearly, you pay more overall. Monthly payments for Personal are $6 per month ($72 per year), compared to $70 per year if you pay upfront. For Family, monthly is $10 per month ($120 per year) versus $100 per year upfront. The yearly option saves you money.

Frequently Asked Questions

Can I use the same subscription on multiple computers?

Yes. Microsoft 365 Personal covers one person on up to five devices at the same time. Family covers six people, each on up to five devices. You can switch which devices you use it on whenever you want — there is no limit to how many times you can sign in and out.

Do I lose my files if I stop paying for a subscription?

Your files stay in OneDrive, but you cannot edit them with the desktop apps. You can still view and read them from OneDrive.com using the free web versions. If you want to keep editing, you need to renew the subscription or buy Office 2021 instead.

Is Microsoft 365 the same as Office 365?

Microsoft renamed Office 365 to Microsoft 365 in 2020. They are the same product — the company just changed the name. If someone mentions Office 365, they mean what is now called Microsoft 365.

What happens to my subscription if Microsoft raises the price?

If you pay yearly, your current price stays the same until your subscription renews. When it renews, you pay the new price. If you pay monthly, Microsoft can raise the price with 30 days' notice. You can cancel before the increase takes effect if you want to avoid it.

Can I share a Family subscription with people who do not live with me?

Technically yes — Microsoft does not verify that people live in the same house. However, the Family plan is intended for household members, and Microsoft's terms of service say you should only share it with people in your household. Sharing with roommates or close friends is common, but sharing with many people or strangers violates the terms.