Microsoft 365 subscription prices start at $6.99 per month for a single person and go up to $20 per month for a family plan, but the real cost depends on which version you need and how many people will use it

Microsoft sells three main subscription tiers for individuals and families. The cheapest is Microsoft 365 Basic at $6.99 per month — it includes Outlook, Word, Excel, PowerPoint, and OneDrive cloud storage, but only on web browsers and mobile apps. If you want to use these programs on your desktop computer, you need Microsoft 365 Personal at $9.99 per month. The family plan, Microsoft 365 Family, costs $19.99 per month and covers up to six people, with each person getting their own desktop apps and cloud storage.

These are the prices Microsoft charges directly. Some retailers and subscription services offer discounts or bundle deals, and prices can vary by country. If you buy a year upfront instead of paying monthly, you may see a lower total cost, though Microsoft's website will show you the monthly equivalent.

Key Takeaways

  • Microsoft 365 Basic costs $6.99 per month and works only in web browsers and on phones, not on Windows or Mac desktop computers.
  • Microsoft 365 Personal costs $9.99 per month and includes desktop versions of Word, Excel, and PowerPoint for one person on one computer.
  • Microsoft 365 Family costs $19.99 per month and covers up to six people, each with their own desktop apps and 1 terabyte of cloud storage.
  • All three plans include 1 terabyte of OneDrive storage per person, except Basic which gives you 100 gigabytes.
  • Microsoft also sells one-time purchases of Office (like Office 2021 or Office 2019) that cost between $160 and $250 but do not include cloud storage or updates.

What's included in each subscription level

Microsoft 365 Basic gives you Word, Excel, PowerPoint, and Outlook in your web browser and on your phone. You get 100 gigabytes of OneDrive storage. This plan is useful if you already have a computer at work or school that has Office installed, or if you only need to edit documents occasionally on your phone or tablet.

Microsoft 365 Personal adds the desktop versions of Word, Excel, PowerPoint, Outlook, Access, and Publisher. You can install them on one Windows PC or Mac, and you get 1 terabyte of OneDrive storage instead of 100 gigabytes. You can also use the web versions on other computers if you log in. This is the plan most home users choose if they own their own computer.

Microsoft 365 Family covers up to six people. Each person gets their own login, their own 1 terabyte of OneDrive storage, and can install the desktop apps on up to five devices each. So if you have a household of four people with laptops and phones, everyone can use Word and Excel on their own machines. The subscription is shared under one account, which means one person manages the payment and can see who is using it, but each person's files and settings stay private.

One-time Office purchases instead of subscriptions

Microsoft still sells Office as a one-time purchase — Office 2021 for Windows costs $160, and Office 2021 for Mac costs $200. Office Home & Student 2021 (which includes Word, Excel, and PowerPoint but not Outlook or Access) costs $160. These are permanent licenses that you buy once and own, with no monthly fee.

The trade-off is that one-time purchases do not include OneDrive storage, do not get automatic updates, and do not include newer features that Microsoft adds to subscriptions over time. Microsoft typically releases a new version of Office every three years, so if you want the latest features, you eventually have to buy a new license. With a subscription, you always have the current version.

How to figure out which plan saves you money

If you are the only person using Office and you plan to keep the same computer for at least three years, a one-time purchase might cost less overall. At $9.99 per month, Microsoft 365 Personal costs about $120 per year. Over three years, that is $360, compared to $160 for a one-time Office 2021 license. But if you want OneDrive storage, automatic updates, and the newest features, the subscription is worth the extra cost.

If two or more people in your household need Office, Microsoft 365 Family almost always costs less than buying separate subscriptions or one-time licenses for each person. At $19.99 per month for up to six people, each person pays about $3.33 per month if the cost is split evenly — far less than $9.99 per month for an individual subscription.

If you use Office only occasionally and do not need desktop apps, Microsoft 365 Basic at $6.99 per month is the cheapest option. You can also use Microsoft Office online for free if you have a Microsoft account, though the free web versions have fewer features than the paid plans.

What happens to your files if you stop paying

If your Microsoft 365 subscription expires, you can still view and print your Word, Excel, and PowerPoint files, but you cannot edit them. Your OneDrive storage stays available for 90 days, so you have time to download your files before they are removed. If you renew your subscription within that window, you get full editing access back.

This is different from a one-time Office purchase, where you own the license permanently and can edit files as long as you want, even if you never pay again. The subscription model means you are paying for the right to edit, not for ownership of the software.

Student and business pricing

Microsoft offers different pricing for students and organizations. If you are a student or work at a school, you may be able to get Microsoft 365 for free or at a discount through your institution — check with your school's IT department. Some employers also provide Microsoft 365 as part of their work software, so you may already have access through your job.

Businesses pay different rates depending on the plan. Microsoft 365 Business Basic starts at $6 per user per month for small businesses, and Microsoft 365 Business Standard costs $12.50 per user per month. These include Teams, SharePoint, and other business tools that the consumer plans do not have.

Where to buy and whether discounts are real

You can buy Microsoft 365 directly from Microsoft's website, or from retailers like Amazon, Best Buy, and Costco. Some retailers offer discount codes or bundle deals, but the monthly subscription price is usually the same everywhere — $6.99, $9.99, or $19.99. If you see a significantly lower price, check the fine print to make sure you are buying a full subscription and not a discounted gift card or a limited trial.

Microsoft sometimes runs promotions where the first month costs less, or where you get a discount if you pay for a year upfront. These are real savings, but they are temporary. After the promotional period ends, the price goes back to the standard rate.

Frequently Asked Questions

Can I use the same Microsoft 365 subscription on multiple computers?

With Microsoft 365 Personal, you can install Office on one computer at a time, but you can sign in on other computers and use the web versions. With Microsoft 365 Family, each of the six people can install the apps on up to five devices each, so a household with multiple computers and phones can all use it.

Do I have to pay for OneDrive storage separately?

No. OneDrive storage is included in every Microsoft 365 subscription — 100 gigabytes with Basic, and 1 terabyte with Personal and Family. If you need more storage, you can buy extra OneDrive space separately, but most people do not need to.

What is the difference between Microsoft 365 and Office 2021?

Microsoft 365 is a subscription you pay for every month or year, and it includes automatic updates and OneDrive storage. Office 2021 is a one-time purchase with no monthly fee, but you do not get updates or cloud storage, and you have to buy a new license when Microsoft releases the next version.

Can I cancel my subscription anytime?

Yes. If you pay month to month, you can cancel anytime and your subscription ends at the end of that month. If you paid for a year upfront, you can cancel, but Microsoft typically does not refund the unused portion unless you cancel within 30 days of purchase.

Is Microsoft 365 the same as Microsoft Office?

Microsoft 365 is the subscription version that includes Word, Excel, PowerPoint, and other apps. Office refers to the one-time purchase versions like Office 2021. Both contain the same core programs, but they have different payment models and different features.