Microsoft 365 subscription prices depend on which plan you choose
Microsoft 365 comes in several versions, each priced differently depending on whether you need it for personal use, a household, or a business. The most common personal plan costs $6.99 per month or $69.99 per year. A household plan that covers up to six people costs $9.99 per month or $99.99 per year. Business plans start at $6 per month per person and go up from there, depending on what features you need.
These are the standard prices Microsoft charges directly. Your actual cost may differ if you buy through a retailer, use a promotional offer, or bundle Microsoft 365 with other services like Game Pass or OneDrive storage. Some employers and schools also include Microsoft 365 as part of their benefits, which means you would not pay out of pocket.
Key Takeaways
- Microsoft 365 Personal costs $6.99 per month or $69.99 per year and covers one person on up to five devices.
- Microsoft 365 Family costs $9.99 per month or $99.99 per year and covers up to six people, each with their own account and storage.
- Business plans range from $6 to $20 per month per person depending on whether you need email, cloud storage, and advanced security features.
- Your school or employer may provide Microsoft 365 at no cost to you, so check before paying for a personal subscription.
Personal and household plans explained
Microsoft 365 Personal is the entry-level option for one person. At $6.99 per month, you get Word, Excel, PowerPoint, Outlook, Access, and Publisher. You also get 1 terabyte of OneDrive cloud storage and 60 minutes per month of Skype calling to phones and mobile devices. You can install these programs on up to five devices — computer, tablet, or phone — but only one person can use the subscription.
Microsoft 365 Family costs $9.99 per month and covers up to six people in your household. Each person gets their own Microsoft account, their own 1 terabyte of OneDrive storage, and access to the same apps as Personal. If you have a spouse, children, or roommates who all need Office, Family is usually cheaper per person than buying multiple Personal subscriptions. You manage who has access through your Microsoft account settings.
Both plans renew automatically each month or year, depending on which billing cycle you chose. You can cancel anytime, and your access ends at the end of your current billing period — you do not get a refund for unused time. If you pay yearly upfront, you save money compared to paying monthly.
Business plans and what they cost
Microsoft 365 business plans are sold per person per month and are meant for companies of any size. The three main options are Microsoft 365 Business Basic at $6 per month, Business Standard at $12.50 per month, and Business Premium at $20 per month. Each tier adds more features — Basic includes web versions of Office apps and email, Standard adds the desktop versions of Word, Excel, and PowerPoint, and Premium adds advanced security and device management tools.
Business plans also include Teams for video meetings and chat, 1 terabyte of OneDrive storage per person, and a business email address using your company domain. If you have ten employees, for example, Business Basic would cost $60 per month total. Many small businesses start with Basic and upgrade to Standard or Premium as they grow.
Microsoft also offers enterprise plans for very large organizations, but those are priced per company rather than per person and require contacting a sales representative. Your company's IT department would handle the purchase and setup.
Where to buy and how prices can change
You can buy Microsoft 365 directly from Microsoft's website, or through retailers like Amazon, Best Buy, or Costco. Prices are usually the same everywhere, but retailers sometimes run sales or bundle deals. For example, you might find a year of Personal bundled with a new computer or tablet at a discount.
Microsoft occasionally runs promotional pricing, especially around back-to-school season or Black Friday. These deals typically offer the first month or first year at a reduced rate, then revert to regular pricing for renewal. Read the terms carefully — some promotions apply only to new customers, and some require you to commit to a longer billing cycle.
If you have a Microsoft account already, you can check your current subscription and billing details by visiting account.microsoft.com. From there you can see your renewal date, change your payment method, or cancel if you no longer need the service.
Student and educator discounts
If you are a student or teacher, your school may provide Microsoft 365 for free through an institutional license. Many colleges and universities include it as part of tuition, and many K-12 schools do the same. Check with your school's IT department or help desk before buying a personal subscription.
Some schools use Microsoft 365 Education, which is a version designed specifically for learning. It includes all the standard Office apps plus Teams for Education, which has features for classroom collaboration. If your school provides this, you access it through your school email address, and the subscription ends when you graduate or leave the school.
Comparing Microsoft 365 to buying Office once
Microsoft also sells Microsoft Office as a one-time purchase, which means you pay once and own the software permanently. This version is called Microsoft Office 2021 or Office 2019, depending on the year. A one-time purchase costs around $160 for the standard edition, which is cheaper than two years of Microsoft 365 Personal.
The trade-off is that a one-time purchase does not include cloud storage, does not get automatic updates, and does not include Outlook email or Skype calling. You also cannot use it on multiple devices — you buy a license for one computer. If you use Office heavily across multiple devices and want the latest features, Microsoft 365 is usually the better choice. If you use Office occasionally on one computer and do not need cloud storage, a one-time purchase may save you money.
What happens if you stop paying
If your Microsoft 365 subscription expires or you cancel it, you lose access to the desktop versions of Word, Excel, PowerPoint, and the other apps. You can still view and edit your documents using the free web versions at Office.com, but you cannot use the full-featured desktop programs. Any files you stored in OneDrive remain there — you do not lose your documents, but you may have less storage space depending on your plan.
If you reactivate your subscription later, your apps work again immediately. Your documents and settings are still there. There is no penalty for canceling and restarting — you simply pay for the months you use.
Frequently Asked Questions
Can I use Microsoft 365 on a Mac?
Yes. Microsoft 365 works on both Windows and Mac computers, and also on iPad, iPhone, and Android devices. The apps look slightly different on Mac, but they have the same features. You can install Microsoft 365 on up to five devices total across all platforms.
Do I need to pay for OneDrive storage separately?
No. OneDrive storage is included with every Microsoft 365 subscription. Personal and Family plans include 1 terabyte per person. If you need more storage, you can buy additional OneDrive space separately, but most people do not need to.
What is the difference between Microsoft 365 and Microsoft Office?
Microsoft 365 is a subscription you pay for monthly or yearly. Microsoft Office is a one-time purchase. Microsoft 365 includes cloud storage, automatic updates, and email, while Office does not. Office is cheaper upfront but does not get new features after you buy it.
Can I share my Microsoft 365 subscription with family members?
Only with Microsoft 365 Family, which is designed for up to six household members. Each person gets their own account and storage. Microsoft 365 Personal is for one person only, and sharing it violates the terms of service.
Is there a free version of Microsoft 365?
Microsoft offers free web versions of Word, Excel, and PowerPoint at Office.com if you have a Microsoft account. These are simpler than the desktop versions but work for basic tasks. The full Microsoft 365 subscription includes the more powerful desktop apps and cloud storage.