Microsoft 365 is a monthly or yearly subscription that gives you access to Office apps, cloud storage, and email
Microsoft 365 (formerly called Office 365) bundles together Word, Excel, PowerPoint, Outlook, and other Office applications. Instead of buying them once, you pay a recurring fee — usually monthly or yearly — and get updates automatically. The subscription also includes OneDrive cloud storage, where you can save files and access them from any device.
The main versions are Microsoft 365 Personal (one person, multiple devices), Microsoft 365 Family (up to six people), and Microsoft 365 for business (which has different tiers). Each plan costs differently and includes different amounts of storage and features. The personal and family plans are what most households use.
You do not have to buy Microsoft 365. You can use free versions of Office apps online through Outlook.com, use Google Docs instead, or buy Office apps once through a one-time purchase (though Microsoft no longer sells new one-time licenses for home users). The subscription model means you pay less upfront but more over time if you keep it for years.
Key Takeaways
- Microsoft 365 Personal costs around $70 per year or $7 per month and works on one person's devices; Family costs roughly $100 per year or $10 per month and covers up to six people.
- Every plan includes 1 TB of OneDrive storage per person, automatic app updates, and access to the latest versions of Word, Excel, PowerPoint, Outlook, and other Office tools.
- You can cancel anytime, but if you stop paying, you lose access to the apps and your files stay in OneDrive but you cannot edit them until you resubscribe.
- Microsoft 365 works on Windows, Mac, iPad, iPhone, and Android devices, so you can use the same subscription across multiple device types.
- If you only need to read or lightly edit Office files, the free online versions at Office.com may be enough and require no payment.
How much storage and how many devices do you get
Microsoft 365 Personal gives you 1 TB (1,000 GB) of OneDrive storage and lets you install the apps on up to five devices at once — though you can sign in and out to use more devices over time. Microsoft 365 Family also gives each person 1 TB of storage (so six people get six separate 1 TB allocations), and each person can use the apps on up to five devices.
1 TB is enough for most households — it holds roughly 250,000 photos or 500 hours of video, depending on quality. If you run out, you can buy extra storage separately, or you can delete old files to free up space. Family members each get their own OneDrive folder, so one person's files do not count against another person's storage limit.
What happens if you stop paying
If your subscription lapses, you lose the ability to edit files in Word, Excel, PowerPoint, and other Office apps. Your files stay in OneDrive and you can still view them, but you cannot make changes. Your email in Outlook continues to work if you are using Outlook.com (Microsoft's free email), but if you are using a work or school account, access depends on your organization's rules.
If you resubscribe later, your files are still there and you can edit them again. There is no penalty for canceling — you can stop and restart whenever you want. Many people pause their subscription during months they do not need it and turn it back on later.
Microsoft 365 Personal versus Family versus free online versions
| Plan | Cost | Users | Storage per person | Devices per person |
|---|---|---|---|---|
| Microsoft 365 Personal | Around $70/year or $7/month | 1 | 1 TB | Up to 5 |
| Microsoft 365 Family | Around $100/year or $10/month | Up to 6 | 1 TB each | Up to 5 each |
| Free Office online (Office.com) | $0 | 1 | 5 GB | Any device with a browser |
The free online versions of Office apps work in your web browser and let you create, edit, and save documents to OneDrive. They have fewer features than the desktop apps — for example, some advanced formatting and functions are missing — but they are genuinely free and require no payment. The 5 GB of free OneDrive storage is tight if you store a lot of files, but it is enough for basic document work.
Family is the better value if multiple people in your household use Office, because the cost per person drops. If only one person needs Office and they do not need advanced features, the free online version may be enough. If you need the full desktop apps with all features, Personal is the minimum paid option.
Where to buy and how to set it up
You can buy Microsoft 365 directly from Microsoft.com, from retailers like Amazon or Best Buy, or sometimes through your internet or phone provider. Prices are the same everywhere, though retailers occasionally run sales. You can also buy a gift card for Microsoft 365 and redeem it.
Once you buy a subscription, you sign in with a Microsoft account (you can create one free if you do not have one), and the subscription attaches to that account. You then read the Office apps on your devices and sign in with the same account. The apps automatically set up and you can start using them. If you buy Family, you invite the other people by sending them an email, and they each sign in with their own Microsoft account to get their copy of the apps.
Subscriptions renew automatically on the date they are set to renew. You can turn off auto-renewal anytime in your Microsoft account settings, and you will get a reminder email before the renewal date.
Common reasons people choose or avoid Microsoft 365
People choose Microsoft 365 because they need the full Office apps for work or school, because they want automatic updates and the latest features, or because they use multiple devices and want the same apps everywhere. Businesses often require it because their files are in .docx or .xlsx format and they need compatibility.
People avoid it because they do not want a recurring bill, because they prefer free tools like Google Docs or LibreOffice, or because they only need basic editing and the free online version is enough. Some people buy a one-time Office license through a third-party seller (these are older licenses that Microsoft no longer sells new), though those do not include cloud storage or updates.
Frequently Asked Questions
Can I use Microsoft 365 on a Mac or iPad?
Yes. Microsoft 365 works on Windows, Mac, iPad, iPhone, and Android. You use the same subscription across all device types — you do not need separate subscriptions for different operating systems. The apps work the same way on each device, though the iPad version has some features simplified for the touchscreen.
What if I share a computer with someone else?
If you have Microsoft 365 Family, each person can sign in with their own account and the subscription covers them. If you have Personal and want to share with someone else, you would need to upgrade to Family or buy them their own Personal subscription. If you are on the same computer but different accounts, each person gets their own copy of the apps.
Do I lose my files if I cancel?
No. Your files stay in OneDrive for 90 days after your subscription ends. You can view them but cannot edit them. If you resubscribe within 90 days, you can edit them again. After 90 days, Microsoft may delete the files, so if you think you might resubscribe, read your files first.
Is Microsoft 365 the same as Microsoft Office?
No. Microsoft Office is the name for the apps themselves (Word, Excel, PowerPoint). Microsoft 365 is a subscription service that includes those apps plus cloud storage and other services. You can also buy Office apps one time without a subscription, though Microsoft stopped selling new one-time licenses for home users.
Can I use Microsoft 365 offline?
Yes. Once you read the desktop apps, you can use them without an internet connection. Your files sync to OneDrive when you are online again. The online versions at Office.com require an internet connection to work.