Microsoft 365 Personal covers one person; Microsoft 365 Family covers up to six

Microsoft 365 Personal is a subscription for a single user on one device at a time. You get access to Word, Excel, PowerPoint, Outlook, and other Office applications, plus 1 TB of OneDrive cloud storage and Microsoft Defender antivirus. You can install it on multiple devices — a laptop, tablet, and phone — but you can only use it actively on one device at a time.

Microsoft 365 Family covers up to six people in one household, each with their own account and their own 1 TB of OneDrive storage. Each person can install Office on multiple devices and use it simultaneously on different devices. If you live with others who need Office, or if you use multiple devices yourself, Family is usually cheaper per person than buying Personal for each user.

Both subscriptions renew monthly or yearly depending on which plan you choose. Both include access to the web versions of Office apps (Outlook, Word, Excel, PowerPoint, OneNote) even if you do not install the desktop software.

Key Takeaways

  • Microsoft 365 Personal costs less per month but works on only one device at a time, while Family costs more overall but spreads across six people and multiple simultaneous devices.
  • Both subscriptions include the full desktop versions of Word, Excel, PowerPoint, and Outlook, plus 1 TB of cloud storage per person and antivirus protection.
  • You can use the web versions of Office apps without installing anything, and you can access your files from any device with an internet connection.
  • If your subscription lapses, you lose access to editing files in Office apps, though you can still view them and your OneDrive files remain stored.

What is included in both plans

Both Personal and Family subscriptions include the same core Office applications: Word, Excel, PowerPoint, Outlook, Access, and Publisher. You get the full desktop versions, not limited or stripped-down editions. You also get OneNote for note-taking, Microsoft Teams for video calls and messaging, and Clipchamp for basic video editing.

Every subscriber gets 1 TB of OneDrive storage (per person in a Family plan). OneDrive syncs files between your devices automatically, so changes you make on your laptop appear on your phone without you having to manually transfer anything. You can share files and folders with others and set permissions — view-only, edit, or download.

Both plans include Microsoft Defender, which scans your device for malware and viruses. You also get access to Microsoft Support, though the speed and depth of support may vary by region.

The real difference: how many people and how many devices

Personal is licensed to one person. You can install it on a laptop, tablet, and phone, but you can only actively use it on one device at a time. If you try to open Word on your laptop while it is already open on your phone, you will be asked to sign out on one device. This is Microsoft's way of preventing one subscription from being shared across an office or classroom.

Family is licensed to up to six people. Each person has their own Microsoft account and their own 1 TB of storage. Each person can install Office on multiple devices and use it on all of them at the same time. One person can be editing a spreadsheet on their laptop while another person in the household is writing a document on their tablet — both at the same time, both covered by the same subscription.

If you are the only person in your household who needs Office, Personal is simpler and cheaper. If two or more people need it, Family usually costs less per person, even though the total monthly or yearly bill is higher.

Cost and payment options

Microsoft 365 Personal is available as a monthly subscription or an annual subscription. The annual plan costs less per month if you divide the yearly cost by 12, but you pay the full year upfront. The monthly plan lets you pay smaller amounts more frequently and cancel anytime without penalty.

Microsoft 365 Family also offers monthly and annual options, with the same trade-off: annual is cheaper per month but requires paying for the whole year at once. The yearly cost for Family is higher than Personal, but when divided among six people, the per-person cost is usually lower than buying Personal for each person separately.

Prices vary by region and change periodically. Check the Microsoft 365 website directly for current pricing in your country. Some retailers and subscription services (like Costco or Amazon) occasionally offer discounted gift cards or bundled deals, but the official Microsoft pricing is the baseline.

What happens to your files if you stop paying

If your subscription expires or you cancel, you lose the ability to edit files in Word, Excel, PowerPoint, and other Office apps. You can still view your documents, but you cannot make changes. Your OneDrive files remain stored in the cloud for a period of time (usually 90 days, though this varies), so you can download them or reactivate your subscription to regain editing access.

If you need to keep using Office after your subscription ends, you have a few options: buy a one-time license for Office (older versions like Office 2021 or Office 2019), use the free web versions of Word, Excel, and PowerPoint online, or switch to free alternatives like Google Docs or LibreOffice.

Personal vs. Family: which one makes sense for you

Choose Personal if you are the only person in your household who needs Office, or if you want the simplest, cheapest option and do not mind the one-device-at-a-time limitation. Personal works well for students, freelancers, or anyone who primarily works on a single device.

Choose Family if two or more people in your household need Office, or if you personally use multiple devices and want to edit on all of them simultaneously. Family also makes sense if you want to give family members their own separate accounts and storage without buying multiple subscriptions. The per-person cost is usually lower, and the flexibility is higher.

If you are unsure, calculate the cost per person: divide the Family yearly price by six (or however many people will use it), then compare that to the Personal price. If the Family per-person cost is lower and at least two people will actually use it, Family is the better deal.

How to set up and manage your subscription

To start a Personal subscription, go to the Microsoft 365 website, choose Personal, and follow the checkout process. You will need a Microsoft account (a Hotmail, Outlook, or any email address linked to Microsoft). After payment, you can download the Office apps to your devices or use the web versions immediately.

To set up Family, the person paying for the subscription creates or signs in with their Microsoft account, then invites up to five other people by email. Each invited person accepts the invitation and creates or links their own Microsoft account. Once they accept, they can install Office on their devices and access their own 1 TB of OneDrive storage. The person who pays can manage the subscription, remove members, or change payment methods from the Microsoft account settings.

You can pause or cancel your subscription anytime from your account settings. If you cancel, you lose access to editing at the end of your current billing period, but your files stay in OneDrive for a limited time.

Frequently Asked Questions

Can I use Microsoft 365 on a Mac?

Yes. Both Personal and Family work on Mac, Windows, iPad, iPhone, and Android. You install the apps the same way you would on Windows, and the features are nearly identical. Some older Mac models may not support the latest versions, so check Microsoft's system requirements for your specific device.

Do I need an internet connection to use Office?

You need internet to download and install Office, and to activate your subscription. After that, you can use Word, Excel, and PowerPoint offline on your device. Changes sync to OneDrive when you reconnect. Outlook requires internet to send and receive email, though you can read cached messages offline.

Can I share my Family subscription with someone who does not live with me?

Technically, yes — you can invite anyone by email and they can accept and use it. However, Microsoft's terms of service state that Family is for household members. Sharing with people outside your household violates the terms, though enforcement is rare. If you want to share with non-household members, Personal subscriptions for each person is the compliant option.

What if I only need one or two Office apps, not all of them?

Microsoft 365 includes all the apps, but you do not have to install them all. You can install only Word and Excel, for example, and leave PowerPoint and Outlook uninstalled. You can also use the free web versions of Word, Excel, and PowerPoint without a subscription, though they have fewer features than the desktop versions. If you need advanced features in just one app, a Microsoft 365 subscription is usually cheaper than buying that app separately.

Can I switch from Personal to Family later?

Yes. You can cancel Personal and buy Family, or upgrade your account. If you have time remaining on your Personal subscription, Microsoft may credit that toward Family, though the exact policy depends on your region and payment method. Contact Microsoft Support to discuss your specific situation.