Microsoft 365 pricing depends on which plan you choose and whether you buy monthly or yearly

Microsoft 365 subscriptions range from about $7 per month for a single person to $20 per month for a family plan, though prices vary slightly by region and change periodically. The cost covers the Office apps (Word, Excel, PowerPoint, Outlook), cloud storage, and other services bundled into each tier. You pay the same amount every month or year — there is no hidden cost that appears later, but the subscription renews automatically unless you cancel.

The price you see is what you pay. Microsoft does not charge setup fees, set up fees, or require you to buy anything else to use the apps. If you buy a yearly plan instead of monthly, you usually save a small amount per month, but you pay the full year upfront.

Key Takeaways

  • Microsoft 365 Personal costs roughly $7 per month and covers one person on up to five devices at the same time.
  • Microsoft 365 Family costs roughly $10 per month and covers up to six people, each with their own account and storage.
  • Buying a yearly subscription instead of monthly saves you money per month, but requires paying the full amount upfront.
  • The subscription renews automatically each month or year, so you need to cancel before the renewal date if you want to stop paying.
  • Students and educators often get a discount through their school, and some employers include Microsoft 365 as part of their benefits.

Personal plans: one person, multiple devices

Microsoft 365 Personal is designed for a single person and costs roughly $7 per month when you pay monthly, or about $70 per year when you pay yearly. This plan includes Word, Excel, PowerPoint, Outlook, and other Office apps, plus 1 terabyte of cloud storage in OneDrive. You can install the apps on up to five devices — a laptop, a tablet, a phone, and two others — and use them all at the same time.

This plan makes sense if you are the only person in your household who needs Office, or if you want your own separate account and storage from other family members. The apps work on Windows, Mac, iPad, and Android devices, so you can use them on whatever you own.

Family plans: up to six people with separate accounts

Microsoft 365 Family costs roughly $10 per month when you pay monthly, or about $100 per year when you pay yearly. This plan covers up to six people, and each person gets their own Microsoft account, their own 1 terabyte of cloud storage, and their own copy of the Office apps. Everyone can install the apps on up to five devices, so a family of four could have 20 devices total running Office under one subscription.

The person who buys the plan is the account owner and can add or remove family members at any time. Each family member sees only their own files in OneDrive and their own email in Outlook — there is no shared inbox or shared storage unless someone deliberately shares a file with another family member. This setup works well for households where multiple people need Office but want to keep their work separate.

What happens when your subscription renews or ends

Your subscription renews automatically on the same date every month or year, depending on which plan you chose. Microsoft sends you a reminder email a few days before the renewal date. If you do not cancel before that date, your payment method is charged and your subscription continues for another billing period.

If you cancel before the renewal date, you keep access to the apps until the current subscription period ends. For example, if you pay yearly and cancel in month six, you still have access through the end of that year. After the subscription ends, the Office apps stop working — you can still open and read your files, but you cannot edit them or create new ones.

Where to buy and how to manage your subscription

You can buy Microsoft 365 directly from Microsoft's website, from retailers like Amazon or Best Buy, or sometimes from your employer or school. The easiest way is to go to microsoft.com, choose the plan you want, and pay with a credit card or debit card. Microsoft then sends you a confirmation email with instructions to set up your account.

Once you have a subscription, you manage it through your Microsoft account settings. You can change your payment method, update your billing address, cancel your subscription, or switch to a different plan without losing your files. If you bought the subscription from a retailer instead of Microsoft directly, you may need to redeem a code first before you can manage it online.

Discounts for students, educators, and employees

Students and educators often get Microsoft 365 for free or at a steep discount through their school or university. Many schools include it as part of their technology package, so check with your school's IT department or student services before you buy. Some employers also include Microsoft 365 as part of their benefits package, so ask your HR department whether it is covered.

Microsoft occasionally runs promotions for new subscribers, especially around back-to-school season or the holidays. These deals usually appear on the Microsoft website or in email offers if you have a Microsoft account. Signing up for Microsoft's email list can alert you to these offers, though they are not may provide to happen every year.

Comparing Microsoft 365 to buying Office once instead of subscribing

Microsoft also sells Office as a one-time purchase — you pay once and own the software forever, with no monthly or yearly fees. This option costs more upfront (usually $150 to $160) but has no recurring cost. The trade-off is that one-time Office does not include cloud storage, does not get new features as often, and eventually stops receiving security updates.

For most people, the subscription makes more sense because the monthly cost is low, you always have the latest version, and you get cloud storage included. The one-time purchase is worth considering only if you use Office rarely, do not need cloud storage, and do not mind using an older version of the software eventually.

Frequently Asked Questions

Can I use Microsoft 365 on more than five devices?

You can install the apps on more than five devices, but you can only use them actively on five devices at the same time. If you sign in on a sixth device, you will be asked to sign out on one of the others. This limit applies per person, so a family plan with six people can have 30 active devices total.

What happens to my files if I stop paying for Microsoft 365?

Your files stay in your OneDrive account and you can still read them, but you cannot edit them or create new ones in Office. You can read your files to your computer or export them to another service. Your OneDrive storage shrinks to 5 gigabytes of free storage after your subscription ends, so read large files before that happens.

Is Microsoft 365 the same as Office 365?

Microsoft renamed Office 365 to Microsoft 365 in 2020, but they are the same product. If you see "Office 365" mentioned online, it is referring to what is now called Microsoft 365. The apps, features, and pricing are identical — only the name changed.

Can I share my Microsoft 365 Family plan with someone who does not live with me?

Technically you can add anyone to your Family plan, but Microsoft's terms of service state that it is meant for people in the same household. Microsoft does not actively police this, but they reserve the right to remove accounts that appear to violate the policy. If you want to share with someone outside your household, buying them their own Personal plan is the safer option.

Do I need to pay for Microsoft 365 if I only use Word or Excel sometimes?

Microsoft offers free online versions of Word, Excel, and PowerPoint through Office.com if you have a Microsoft account. These work in a web browser and have most common features, though they lack some advanced tools. If the free online versions meet your needs, you do not need to pay for a subscription.