What you're paying for with a Microsoft subscription

Microsoft subscriptions fall into two main categories: Microsoft 365 (formerly Office 365), which bundles productivity software and cloud storage, and Xbox Game Pass, which covers gaming. For most people, Microsoft 365 is the subscription that matters for work or school — it includes Word, Excel, PowerPoint, Outlook, and OneDrive cloud storage, with the software updated automatically and available on multiple devices.

The cost and what's included depends on which plan you choose. Microsoft 365 Personal covers one person on up to six devices. Microsoft 365 Family covers up to six people, each with their own account and storage. Both renew annually. There's also Microsoft 365 for Business, aimed at companies, which adds tools like Teams and cloud-based email hosting.

If you don't want a subscription, you can use free versions of Word, Excel, and PowerPoint through Office.com, though they have fewer features than the paid versions. You can also buy Microsoft Office as a one-time purchase (Office 2021 or Office 2019), but it doesn't receive updates and works only on one computer.

Key Takeaways

  • Microsoft 365 Personal costs less than Family but covers only one person; Family covers up to six people and is cheaper per person.
  • Your subscription includes OneDrive cloud storage, automatic software updates, and the ability to install on multiple devices at the same time.
  • Free versions of Word, Excel, and PowerPoint exist online at Office.com but lack features like advanced formatting and offline editing.
  • Subscriptions renew automatically each year, so you need to cancel before the renewal date if you don't want to be charged again.
  • Some employers, schools, and internet providers include Microsoft 365 at no extra cost, so check what you already have access to.

Microsoft 365 Personal vs. Family: which plan makes sense

Microsoft 365 Personal is meant for one person. You can install it on up to six devices (computer, tablet, phone), but only one person can use the account. You get 1 TB of OneDrive storage. The annual cost is lower than Family, but you're paying for one person's access.

Microsoft 365 Family is meant for households. Up to six people can each have their own Microsoft account, each with their own 1 TB of OneDrive storage (6 TB total). Each person installs the software on their own devices. If you divide the annual cost by six people, the per-person cost is much lower than Personal. Family makes sense if you live with other people who also use Word, Excel, or Outlook.

If you live alone and use Microsoft Office, Personal is simpler. If you share a household or want to give family members their own copies, Family is usually the better deal. Both plans include the same software and updates.

What happens when your subscription ends

When your subscription expires, you lose access to the full versions of Word, Excel, PowerPoint, and Outlook. You can still view and print documents you've already created, but you can't edit them. Your OneDrive storage remains accessible — you won't lose your files — but you can't upload new files until you renew.

Subscriptions renew automatically on the date you signed up, unless you cancel beforehand. You'll receive email reminders before the renewal date. If you don't want to renew, you can cancel through your Microsoft account settings or by contacting Microsoft support. If you're charged by accident, Microsoft typically allows refunds within a short window (usually 30 days, though this varies).

If you cancel and later want to resubscribe, you can restart your subscription at any time. Your files and settings remain tied to your Microsoft account, so you'll pick up where you left off.

Where to buy and manage your subscription

You can buy Microsoft 365 directly from Microsoft.com, from retailers like Amazon or Best Buy, or through your employer or school if they offer it. The price is the same regardless of where you buy it. Some internet service providers and phone carriers bundle Microsoft 365 with their plans at no extra cost — check your account to see if you already have it.

Once you've purchased a subscription, you manage it through your Microsoft account at account.microsoft.com. There you can see your renewal date, update your payment method, add or remove devices, and manage OneDrive storage. You can also cancel from the same page.

If you buy a subscription card in a store (rather than online), you'll scratch off a code and enter it into your Microsoft account to set up it. The subscription begins on the day you redeem the code, not the day you buy the card.

Free alternatives and when they make sense

Microsoft Office Online (at Office.com) is free and requires only a Microsoft account. You get Word, Excel, PowerPoint, and Outlook in your web browser. You can create, edit, and save documents to OneDrive. The tradeoff is that the online versions have fewer features — for example, some advanced formatting options, macros, and offline editing aren't available.

Google Workspace (Docs, Sheets, Slides) and Apple iCloud+ are free alternatives that work across devices. They're often easier to share and collaborate on, though they don't include Outlook-style email management. If you only occasionally use spreadsheets or documents and don't need Outlook, the free online versions may be enough.

If you need the full feature set of Word, Excel, and Outlook, or if you work offline frequently, a Microsoft 365 subscription is worth the cost. If you mostly read and edit documents online and rarely need advanced features, the free version at Office.com covers most needs.

Subscriptions through work or school

Many employers and schools provide Microsoft 365 subscriptions to employees and students at no cost. Your work or school email address usually comes with access to Word, Excel, PowerPoint, Teams, and OneDrive. You sign in with your work or school account rather than a personal Microsoft account.

These subscriptions are tied to your employment or enrollment. Once you leave the job or graduate, you lose access. Some schools and employers allow you to convert your account to a personal subscription, but policies vary. If you're unsure whether you have access through work or school, check with your IT department or school's help desk.

If you have both a work subscription and a personal subscription, you can use both — they're separate accounts. This is useful if you want to keep work and personal documents separate.

Common billing and cancellation issues

Subscriptions renew automatically, and many people forget to cancel before the renewal date. If you're charged and didn't intend to renew, contact Microsoft support with your receipt. Refunds are usually granted if you request them within 30 days, though the exact window depends on your region and payment method.

If you cancel your subscription but are still being charged, the issue is usually that you cancelled the wrong subscription (for example, a work subscription instead of a personal one) or that you have multiple subscriptions under the same account. Check your account settings to see all active subscriptions and cancel each one separately if needed.

If you move to a different country or region, your subscription price may change on the next renewal. Microsoft adjusts pricing by region. If the new price is higher than you expected, you can cancel and look for regional pricing options, though this varies by location.

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 install the apps the same way on each device. If you have a Family plan, each person can install the software on their own devices. The features are the same across all platforms, though the layout may look slightly different on mobile.

What's the difference between Microsoft 365 and Office 2021?

Microsoft 365 is a subscription that renews yearly and includes automatic updates, OneDrive storage, and support. Office 2021 is a one-time purchase that works on one computer only and doesn't receive updates. Office 2021 is cheaper upfront but costs more over time if you keep using it for several years.

Do I lose my files if I cancel my subscription?

No. Your files stay in OneDrive and remain accessible. You can view and read them, but you can't edit them in Word, Excel, or PowerPoint until you renew. If you want to keep editing, you can export your files to Google Docs or another free tool before your subscription ends.

Can I share a Microsoft 365 Family subscription with someone who doesn't live with me?

Technically yes, but Microsoft's terms of service say Family subscriptions are for people in the same household. Sharing with someone outside your home violates the terms. If you want to share with someone else, Personal subscriptions are meant for one person, so that's not the right fit either. The best option is for each person to buy their own subscription.

Why is my OneDrive storage full?

Microsoft 365 includes 1 TB of OneDrive storage per person. If you're at the limit, you can delete old files, empty your Recycle Bin (deleted files count toward your limit until you empty it), or buy additional storage. You can also check what's taking up space by going to OneDrive settings and looking at your storage breakdown.