What you get with each Microsoft 365 subscription tier

Microsoft 365 subscriptions come in several versions, each with different apps, storage, and features. The main consumer plans are Microsoft 365 Personal, Microsoft 365 Family, and Microsoft 365 Basic. Each one bundles Office desktop applications (Word, Excel, PowerPoint, Outlook, Access, Publisher), cloud storage through OneDrive, and online versions of those same apps that work in a web browser.

Personal covers one person on one device at a time. Family covers up to six people, each with their own account and 1 TB of OneDrive storage per person. Basic is the lowest-cost option and includes only the web and mobile versions of Office apps, plus 100 GB of OneDrive storage — no desktop versions. Microsoft also sells Microsoft 365 Business plans for small businesses, which add features like shared mailboxes and advanced security tools, but those are separate products with different pricing and terms.

The subscription renews automatically each month or year depending on which plan you choose. You can cancel anytime, though you lose access to the apps and files once the subscription ends. If you own a copy of Office outright instead — called a one-time purchase — you pay once and keep it forever, but you do not get cloud storage, online versions, or updates beyond a certain point.

Key Takeaways

  • Microsoft 365 Personal and Family include desktop Office apps plus 1 TB of OneDrive storage per person, while Basic includes only web and mobile apps with 100 GB of storage.
  • Personal covers one person on one device; Family covers up to six people with separate accounts and storage for each.
  • Your subscription renews automatically each month or year, and you lose access to all apps and files if you cancel or let it lapse.
  • Microsoft 365 is a rental model; Office as a one-time purchase is a separate product that costs more upfront but never expires.
  • Business plans exist separately from consumer plans and include workplace-specific tools like shared mailboxes and team administration features.

Monthly versus annual billing and price differences

Microsoft offers both monthly and annual payment options for Personal and Family. Monthly billing renews every 30 days and costs more per month than the annual rate. Annual billing renews every 12 months and has a lower monthly cost when divided out, but you pay the full year upfront. If you cancel a monthly subscription, you stop paying when ready. If you cancel an annual subscription, you typically cannot get a refund for the unused months, though Microsoft's policy can vary by region and payment method.

Basic is billed monthly only and has no annual option. The actual dollar amounts for all three plans change by region and over time, so the price you see depends on your country and when you check. Microsoft sometimes runs promotional rates for new subscribers, especially during back-to-school or holiday periods, but these are temporary and revert to standard pricing after the offer ends.

What OneDrive storage means and how much you actually get

OneDrive is Microsoft's cloud storage service. Personal and Family subscriptions include 1 TB (1,000 gigabytes) of OneDrive storage per person. That means one person on Personal gets 1 TB total. On Family, each of the six people gets their own 1 TB, for a total of 6 TB across the family account. Basic includes only 100 GB, which is roughly one-tenth of what Personal offers.

The storage is tied to your Microsoft account, not to a specific device. You can upload files from any computer, phone, or tablet, and access them from anywhere you have internet. If your subscription lapses, you lose access to the files stored in OneDrive after a grace period (usually 90 days), though Microsoft may allow you to recover them if you resubscribe quickly. Files stored only on your computer, not uploaded to OneDrive, are not affected by a subscription cancellation.

Desktop apps versus web and mobile versions

Personal and Family include the full desktop versions of Word, Excel, PowerPoint, Outlook, Access, and Publisher. These are the programs you read and install on your computer. They work offline, have all the advanced features, and are what most offices and schools use. You can install them on multiple devices (up to five devices per person on Personal, up to five per person on Family), but you can only use them actively on one device at a time per subscription.

Basic does not include desktop apps. Instead, you get the web versions, which run in your browser (Edge, Chrome, Safari, Firefox) and require an internet connection. Web versions have fewer features than desktop versions — for example, you cannot use macros or some advanced formatting options. You also get mobile apps for phones and tablets, which are simplified versions designed for smaller screens. Many people use web and mobile versions for reading and light editing, then switch to desktop for serious work.

If you need desktop apps but want to avoid a subscription, Microsoft sells Office Home and Student or Office Home and Business as one-time purchases. These cost more upfront but never expire and do not require renewal. They do not include OneDrive storage or online versions, and they do not receive feature updates after a certain point.

How many devices you can use and what "active use" means

Personal allows installation on up to five devices, but you can use the apps actively on only one device at a time. Family allows each of the six people to install on up to five devices, so theoretically 30 devices total, but again only one per person at a time. "Active use" means you are signed in and using the app. If you sign in on a second device while still signed in on the first, Microsoft will sign you out on the first device automatically.

This limit exists to prevent one subscription from being shared across an entire office or school. If you need to use Office on multiple devices simultaneously, you would need multiple subscriptions or a different licensing model (such as Microsoft 365 Business for a workplace). The device limit applies only to desktop apps; web and mobile versions do not count against the limit because they run in a browser or app rather than as an installed program.

Cancellation, refunds, and what happens to your files

You can cancel a Microsoft 365 subscription at any time through your Microsoft account settings or by contacting Microsoft support. If you paid monthly, cancellation takes effect when ready and you stop being charged. If you paid annually, cancellation is when ready, but refunds for unused months depend on how long you have had the subscription and your region. Some regions offer pro-rated refunds; others do not.

When your subscription ends, you lose the ability to edit files in Office apps. You can still view them, but you cannot make changes or save new versions. Files stored in OneDrive remain there for about 90 days after your subscription lapses, giving you time to read them or resubscribe. Files stored only on your computer are not affected. If you resubscribe within the grace period, you regain full access to your OneDrive files.

Business plans and how they differ from consumer subscriptions

Microsoft 365 Business plans are separate products designed for small businesses and include features consumer plans do not: shared mailboxes, team sites, advanced security and compliance tools, and admin controls for managing multiple users. The main business plans are Business Basic, Business Standard, and Business Premium. They are billed per user per month and require a minimum commitment in some cases.

Business plans include different versions of the Office apps optimized for workplace collaboration, plus services like Teams (video conferencing and chat), SharePoint (document sharing), and Exchange (email). A sole proprietor or freelancer might use a consumer plan, while a small office with employees would use a business plan. The pricing, features, and support are different enough that comparing them directly to Personal or Family is not straightforward — they serve different needs.

Frequently Asked Questions

Can I use the same Microsoft 365 subscription on my laptop and phone?

Yes. Personal and Family allow installation on multiple devices (up to five per person), and you can use the apps on all of them. However, you can only use the desktop apps actively on one device at a time. Mobile and web versions do not have this restriction, so you can use those on multiple devices simultaneously.

What happens if I do not renew my subscription?

You lose the ability to edit documents in Office apps, though you can still view them. Files in OneDrive remain accessible for about 90 days. After that, if you do not resubscribe, you lose access to those files. Files stored only on your computer are not affected by a subscription lapse.

Is Microsoft 365 cheaper than buying Office once?

It depends on how long you keep it. A one-time Office purchase costs more upfront but never expires. Microsoft 365 costs less initially but renews every month or year. Over several years, the subscription often costs more total, but you get cloud storage, online versions, and regular updates with a subscription.

Can I share one Family subscription with roommates or extended family?

Family subscriptions are designed for household members and allow up to six people. Each person gets their own account, storage, and device limit. Microsoft's terms of service define "family" as people living in the same household, though enforcement is limited. Sharing with people outside your household technically violates the terms.

Do I need internet to use Microsoft 365?

Desktop apps work offline once installed, so you can use Word, Excel, and PowerPoint without internet. However, you need internet to sign in initially, to sync files with OneDrive, and to use web or mobile versions. Some features also require internet, such as real-time collaboration.