What you get with a Microsoft Office subscription

A Microsoft Office subscription gives you access to Word, Excel, PowerPoint, Outlook, and other Office apps on your devices. You do not own the software — you rent the right to use it as long as you keep paying. The subscription renews automatically each month or year, depending on which plan you choose.

Microsoft offers two main subscription paths: Microsoft 365 (formerly Office 365) for individuals and families, and Microsoft 365 for business. The individual plans include cloud storage through OneDrive, technical support, and regular updates to the apps themselves. Business plans add team collaboration tools, email hosting, and security features designed for workplace use.

The apps work on Windows, Mac, iPad, iPhone, and Android devices. How many devices you can use at once depends on your plan — some allow installation on multiple devices but only one active user at a time, while others let you sign in on several devices simultaneously.

Key Takeaways

  • Microsoft 365 subscriptions cost between $7 and $20 per month for individuals, or $100 to $200 per year, depending on which plan you choose and whether you pay monthly or annually.
  • You can install Office apps on multiple devices, but the number of devices you can use at the same time varies by subscription tier.
  • Your subscription includes cloud storage, automatic updates, and technical support — costs that would be separate if you bought Office outright.
  • If you stop paying, you lose access to edit documents, though you can still view files you created.
  • Microsoft also offers a free web version of Office online that works in any browser, with limited features compared to the desktop apps.

Microsoft 365 Personal versus Family plans

Microsoft 365 Personal covers one person on up to five devices. You can use the apps on all five at the same time if you want — sign into Word on your laptop, Excel on your phone, and Outlook on your tablet all at once. The subscription includes 1 TB of OneDrive storage. This plan costs $7 per month or $70 per year when you pay annually.

Microsoft 365 Family covers up to six people, each with their own Microsoft account. Each person gets their own 1 TB of OneDrive storage, so the household shares 6 TB total. Each family member can install Office on up to five devices and use the apps simultaneously across all of them. Family plans cost $10 per month or $100 per year.

The apps and features are identical between Personal and Family — the difference is only the number of people covered and the amount of storage. If you live alone or only one person in your household uses Office, Personal is cheaper. If two or more people need it, Family usually costs less per person.

Business subscriptions and what they include

Microsoft 365 Business plans are designed for companies and include the Office apps plus email hosting, cloud storage, and security tools. The most common plan is Microsoft 365 Business Standard, which includes Exchange email, Teams for video calls and chat, SharePoint for document sharing, and OneDrive for file storage. Each user gets 1 TB of storage.

Business plans cost more than personal plans — typically $12 to $22 per user per month, depending on the tier. The price varies because business plans include hosted email and collaboration features that personal subscriptions do not. You pay per user, so a five-person company pays five times the per-user rate.

Business subscriptions also come with different support options. Personal subscribers get email and chat support. Business subscribers can choose phone support and faster response times, which costs extra. If your business uses Office, your employer or IT department usually handles the subscription and assigns you a login.

Free alternatives and the web version

Microsoft offers Office Online at no cost through Office.com or through OneDrive. You can create and edit Word documents, Excel spreadsheets, and PowerPoint presentations in your web browser without paying anything. The web versions have fewer features than the desktop apps — some formatting options, advanced formulas, and design tools are missing — but they work for basic documents.

Office Online saves files to OneDrive automatically. You get 5 GB of free OneDrive storage, which is enough for most documents and spreadsheets but fills up quickly if you store photos or videos. If you need more storage, you can buy additional space separately or upgrade to a paid subscription.

Google Workspace and LibreOffice are other free or low-cost alternatives. Google Docs, Sheets, and Slides work similarly to Office Online and store files in Google Drive. LibreOffice is free desktop software you read and install on Windows, Mac, or Linux. Neither integrates with Outlook email the way Microsoft 365 does.

What happens when your subscription ends

If you stop paying or your subscription expires, you lose the ability to edit documents in the Office apps. You can still open and read files you created, but you cannot make changes. The apps will display a message asking you to renew your subscription or switch to read-only mode.

Your OneDrive storage does not disappear when ready. You keep access to your files for a grace period — usually 90 days — even after your subscription ends. After that, Microsoft may delete the files if you do not renew. Your email in Outlook also stops working if your subscription includes email hosting through Microsoft 365 for business.

If you downgrade from a paid plan to Office Online, you can still access your files through the web version at no cost. You just cannot use the desktop apps or the full feature set.

How to choose between monthly and annual payment

Microsoft offers both monthly and annual billing. Monthly plans let you cancel anytime without penalty — you pay for the current month and then stop. Annual plans cost less per month but require you to commit to a full year. The annual plan for Microsoft 365 Personal is $70 per year, which works out to about $5.83 per month. The monthly plan is $7 per month, so you save roughly $20 per year by paying annually.

If you are unsure whether you will use Office regularly, start with a monthly plan. If you know you will need it all year, the annual plan saves money. Some retailers and subscription services offer discounts on annual plans, so it is worth checking Best Buy, Amazon, or your mobile carrier before buying directly from Microsoft.

You can also pause or cancel your subscription at any time. If you pay monthly, your subscription ends at the end of the current billing cycle. If you pay annually, you cannot get a refund for unused months, but you can stop the automatic renewal so it does not charge you again next year.

Installing Office on multiple devices and managing your account

When you buy a Microsoft 365 subscription, you sign in with your Microsoft account on each device where you want to use Office. Your subscription follows your account, not the device. If you sign into Word on your work laptop and your personal tablet with the same Microsoft account, both devices count toward your device limit.

You can manage your devices and subscription through your Microsoft account page. There you can see which devices are currently signed in, remove devices you no longer use, and change your payment method. If you reach your device limit and want to use Office on a new device, you must sign out on one of the old devices first.

If you share a computer with someone else, you can each sign in with your own Microsoft account and use your own subscriptions. Each person's documents and settings stay separate. However, only one person can use the Office apps at a time on a shared computer.

Frequently Asked Questions

Can I use Microsoft 365 offline, or do I need internet?

The desktop apps work offline — you can open, create, and edit documents without an internet connection. However, you must sign in to your Microsoft account at least once every 30 days to verify your subscription is still active. Office Online requires an internet connection because it runs in your browser.

What is the difference between Microsoft 365 and buying Office outright?

Buying Office outright (a one-time purchase) costs more upfront but never expires. You own a license to that version forever. Microsoft 365 costs less per month but requires ongoing payments. Microsoft 365 includes cloud storage, automatic updates, and technical support — things you would have to pay for separately with a one-time purchase.

Do I lose my documents if I cancel my subscription?

Your documents stay in your OneDrive storage for 90 days after your subscription ends. You can read them or view them through Office Online at no cost. After 90 days, Microsoft may delete files if you do not renew. You can prevent this by downloading your files before your subscription expires.

Can I use the same subscription on my work and personal computers?

Yes, as long as you sign in with the same Microsoft account on both devices. Both devices count toward your device limit. If your employer provides a Microsoft 365 subscription, you typically cannot use it for personal work — your employer's subscription is separate from your personal one.

Is there a student discount for Microsoft 365?

Many schools and universities provide Microsoft 365 to students for free as part of their IT services. Check with your school's IT department or help desk. If your school does not provide it, Microsoft sometimes offers discounted rates for students, though availability and pricing vary by region and change over time.