What a Microsoft Office subscription is and how it differs from buying once

A Microsoft Office subscription is a monthly or yearly payment that gives you access to Office apps like Word, Excel, PowerPoint, and Outlook on your devices. Instead of paying once to own the software forever, you pay regularly and keep using it as long as your subscription is active. When you stop paying, you lose access to the apps — though you can still open and read files you created, you just cannot edit them.

Microsoft sells Office in two main ways: as a one-time purchase (Office 2024 or earlier versions) or as a subscription. The subscription model, called Microsoft 365, is what Microsoft now pushes most heavily. It includes not just the desktop apps but also cloud storage, email hosting, and online versions of the apps you can use in a web browser.

The practical difference matters: a one-time purchase never expires, but you do not get updates or new features. A subscription keeps your apps current and adds new tools throughout the year, but you need an active payment method on file.

Key Takeaways

  • Microsoft 365 subscriptions cost between $7 and $20 per month depending on the plan, and you can cancel anytime without penalty.
  • Each plan includes a set number of devices you can install on, ranging from one device for the cheapest plan to six devices for the family plan.
  • All Microsoft 365 plans include 1 terabyte of cloud storage per person and the ability to use Office apps online through a web browser.
  • You need a Microsoft account to sign in and set up your subscription, and you can share a family plan with up to five other people.
  • If you cancel, your files remain yours and you can read them, but you cannot edit Office documents until you renew or buy a one-time license.

The main Microsoft 365 plans and what each one covers

Microsoft offers several subscription tiers, each with a different price and set of features. Microsoft 365 Personal costs around $7 per month (or $70 per year if you pay upfront) and covers one person on up to six devices. You get the full desktop versions of Word, Excel, PowerPoint, Outlook, Access, and Publisher, plus 1 terabyte of OneDrive cloud storage and 60 minutes per month of Skype calls to phones and mobiles.

Microsoft 365 Family costs around $10 per month (or $100 per year upfront) and covers up to six people. Each person gets their own account, their own 1 terabyte of storage, and can install the apps on up to six devices. This plan works well if you share a household or want to cover multiple family members under one subscription.

Microsoft 365 Business Basic is designed for small businesses and costs around $7 per month per person. It includes the web and mobile versions of Office apps, email hosting through Outlook, and 1 terabyte of OneDrive storage, but not the full desktop versions of Word and Excel. Microsoft 365 Business Standard adds the desktop apps for around $13 per month, and Business Premium adds security and device management features for around $20 per month.

Prices vary by region and change periodically, so check Microsoft's website for the current rates in your country. Student and teacher discounts are often available through your school or university.

How to set up a subscription and start using it

To start a Microsoft 365 subscription, go to the Microsoft website and choose the plan you want. You will need a Microsoft account — this is a free login you create with an email address and password. If you already use Outlook, OneDrive, or Xbox, you already have one.

During checkout, you enter a payment method (credit card, debit card, or PayPal). Microsoft will charge you on the date you choose each month or year. After payment goes through, you can read the Office apps to your devices or sign in at Office.com to use the web versions right away.

On a Windows or Mac computer, read the Microsoft 365 apps from the Microsoft website or the Microsoft Store. On a phone or tablet, read them from the Apple App Store or Google Play Store. When you open any app, sign in with your Microsoft account. The app checks your subscription and unlocks the full features.

If you have multiple devices, sign in on each one. Your subscription covers the number of devices listed in your plan — Personal covers six, Family covers six per person. You can switch which devices you use anytime by signing out on one and signing in on another.

What happens to your files if you stop paying

If your subscription lapses because you did not renew or your payment failed, you keep your files. Any documents you created in Word, Excel, or PowerPoint remain on your computer and in your OneDrive cloud storage. You can open them and read them, but you cannot edit them — the apps go into read-only mode.

To edit again, you have two choices: renew your subscription, or buy a one-time Office license (like Office 2024 Home & Student or Office 2024 Home & Business). A one-time license costs more upfront but never expires and does not require a payment method on file.

If you want to move your files to a different tool, you can read them from OneDrive or export them from the Office apps. Word documents save as .docx files, Excel spreadsheets as .xlsx, and PowerPoint presentations as .pptx — these formats open in other software like Google Docs, LibreOffice, or Apple Numbers.

Shared subscriptions and family plans

Microsoft 365 Family is designed to be shared. One person buys the subscription, and up to five other people can join using their own Microsoft accounts. Each person gets their own 1 terabyte of storage, their own email inbox (if they use Outlook), and can install the apps on up to six devices.

To add someone to your Family plan, sign in to your Microsoft account on the Microsoft website, go to your subscription settings, and invite them by email. They accept the invitation and create or sign in with their own Microsoft account. They do not need to enter a payment method — the primary account holder is charged.

If someone leaves the family group, they lose access to the shared subscription, but their files stay in their OneDrive storage for 90 days. After that, the storage is deleted unless they renew a subscription or buy a one-time license.

The difference between desktop apps and web versions

Microsoft 365 includes both. The desktop apps (Word, Excel, PowerPoint) are programs you read and install on your computer. They work offline, have every feature, and save files to your computer or OneDrive. The web versions are lighter apps you use in a web browser at Office.com. They work online, have most features, and automatically save to OneDrive.

For most everyday work — writing documents, building spreadsheets, making presentations — the web versions are fine and require no read. If you need advanced features, work offline often, or want the fastest performance, the desktop apps are better. Many people use both: the web version on a shared computer or phone, and the desktop app on their main computer.

Business plans vary in what they include. Business Basic includes only the web and mobile versions. Business Standard and Premium include the desktop apps.

Canceling a subscription and what to expect

You can cancel your Microsoft 365 subscription anytime without a penalty or early termination fee. Sign in to your Microsoft account on the Microsoft website, go to your subscription settings, and select the option to cancel. Your subscription stays active until the end of your current billing period — if you paid for a month, you have access until that month ends; if you paid for a year, you have access until that year ends.

After cancellation, you will not be charged again. Your files remain in your OneDrive storage and on your devices, but the Office apps go into read-only mode. If you change your mind, you can renew your subscription at any time by signing back in and choosing a plan.

If you were charged by mistake or want to dispute a charge, contact Microsoft Support through your account settings. They can review your billing history and issue a refund if warranted.

Frequently Asked Questions

Can I use the same subscription on multiple computers?

Yes. Microsoft 365 Personal covers up to six devices, and Microsoft 365 Family covers up to six devices per person. You can install the apps on all of them and sign in with your account. You can use them on different devices at the same time.

Do I need internet to use Microsoft 365?

The desktop apps work offline — you can open, edit, and save files without an internet connection. The web versions require a browser and internet. You need internet to sign in and set up your subscription the first time, and to sync files with OneDrive.

What if my payment method fails?

Microsoft will try to charge your payment method on your renewal date. If it fails, you will receive an email asking you to update it. You usually have a grace period of a few days before your subscription is suspended. Update your payment method in your account settings to restore access.

Is Microsoft 365 the same as Office 365?

Microsoft renamed Office 365 to Microsoft 365 in 2020. They are the same subscription service. If you have an older subscription called Office 365, it is now called Microsoft 365, but nothing changed about how it works or what you pay.

Can I share my login with someone else?

Technically yes, but it violates the terms of service. The intended way to share is Microsoft 365 Family, which lets up to six people use the subscription on their own accounts. Each person gets their own storage and settings.