Microsoft 365 Plans and What They Include
Microsoft 365 comes in several versions, each with different apps, storage, and features. The main plans are Microsoft 365 Personal, Microsoft 365 Family, Microsoft 365 Business Basic, Microsoft 365 Business Standard, and Microsoft 365 Business Premium. Personal and Family are for home use. The Business plans are for companies and organizations of any size.
Each plan includes access to Office apps like Word, Excel, PowerPoint, and Outlook. The difference is how many people can use the subscription, how much cloud storage you get, and what extra features come with it. Some plans include Microsoft Teams, OneDrive storage, and advanced security tools. Others are simpler and cost less.
Key Takeaways
- Microsoft 365 Personal covers one person on up to five devices and includes 1 TB of OneDrive storage.
- Microsoft 365 Family covers up to six people, each with their own account and 1 TB of storage, and costs more than Personal.
- Business plans require a monthly subscription per user and include Teams, email hosting, and security features that Personal and Family do not.
- All plans include the core Office apps (Word, Excel, PowerPoint, Outlook) and regular updates at no extra cost.
- You can use Microsoft 365 on Windows, Mac, iPad, iPhone, and Android devices, though some features vary by device type.
Personal and Family Plans for Home Use
Microsoft 365 Personal is a single-user subscription. One person can install and use it on up to five devices at the same time — for example, a laptop, tablet, and phone. You get 1 TB of OneDrive cloud storage, which is enough for most personal files and photos. The subscription renews every year.
Microsoft 365 Family is designed for households. Up to six people can each have their own account under one Family subscription. Each person gets their own 1 TB of OneDrive storage, their own Outlook email inbox, and their own settings. Parents can manage the subscription and see who is using it. Like Personal, Family renews annually.
Both Personal and Family include the same Office apps: Word, Excel, PowerPoint, Outlook, Access, and Publisher. You also get 60 minutes per month of Skype calling to phones and mobiles in over 60 countries. Neither plan includes Microsoft Teams or advanced business security features.
Business Plans for Organizations
Microsoft 365 Business Basic is the entry-level plan for companies. It includes Outlook email with a custom domain (yourname@yourcompany.com), Teams for meetings and chat, OneDrive for file storage, and the web versions of Office apps. You do not get the desktop versions of Word, Excel, and PowerPoint — only the online versions. This plan is cheapest and works well for small teams that mostly work online.
Microsoft 365 Business Standard adds the full desktop versions of Office apps so you can work offline. It includes everything in Basic plus the ability to install Word, Excel, PowerPoint, and Outlook on your computer. You still get Teams, email, and OneDrive. This is the most common choice for small and medium businesses.
Microsoft 365 Business Premium includes everything in Standard plus advanced security and device management tools. These tools let you protect company data on employee devices, set up multi-factor authentication, and manage who can access what. It is designed for organizations that handle sensitive information or need strict security controls.
Storage, Devices, and Offline Access
Personal and Family plans come with 1 TB of OneDrive storage per person. Business Basic includes 1 TB per user. Business Standard and Premium also include 1 TB per user, though organizations can buy more storage if needed. OneDrive lets you access your files from any device with an internet connection.
Personal and Family plans let you install Office on up to five devices per person, but you can only use the apps on one device at a time. Business plans are licensed per user, so one person can install on multiple devices but only one person can use that license. If you share a computer, you each need your own subscription or license.
Personal and Family plans include the desktop versions of Office apps, so you can work without an internet connection. Business Basic does not include desktop apps — you must use the web versions, which require internet. Business Standard and Premium include desktop apps and work offline.
Teams, Email, and Collaboration Features
Microsoft Teams is included in all Business plans but not in Personal or Family. Teams is a chat and video meeting platform. It lets team members message each other, hold video calls, and share files in one place. Business Basic, Standard, and Premium all include Teams with the same core features — the difference is what else comes with each plan.
Business plans include Outlook email with a custom domain name. You can send and receive email from an address like john@mycompany.com instead of a personal Gmail or Outlook address. Personal and Family plans use Outlook.com email addresses, which are personal accounts.
Business plans also include SharePoint, which is a tool for storing and organizing documents that a whole team can access. Personal and Family do not include SharePoint. If you need your team to work on shared documents and projects, you need a Business plan.
Security and Admin Tools
Business Premium includes security features that the other plans do not. These include multi-factor authentication (requiring a password plus a second verification step), device encryption (protecting data if a laptop is lost), and the ability to wipe data from a lost device remotely. These tools help protect company information.
Business Premium also includes advanced threat protection, which scans emails for malware and phishing attempts before they reach your inbox. It includes data loss prevention, which can stop someone from accidentally sending sensitive information outside the company. These features are built for organizations that need to meet compliance rules or protect confidential data.
Personal and Family plans have basic security — password protection and encryption of your OneDrive files. They do not include the advanced tools in Business Premium. If you are a sole proprietor or freelancer, Personal or Family is usually enough. If you have employees or handle client data, Business Premium is worth the cost.
Comparing Plans Side by Side
| Feature | Personal | Family | Business Basic | Business Standard | Business Premium |
|---|---|---|---|---|---|
| Number of users | 1 | Up to 6 | Per user | Per user | Per user |
| Desktop Office apps | Yes | Yes | No | Yes | Yes |
| OneDrive storage | 1 TB | 1 TB each | 1 TB | 1 TB | 1 TB |
| Microsoft Teams | No | No | Yes | Yes | Yes |
| Custom email domain | No | No | Yes | Yes | Yes |
| SharePoint | No | No | Yes | Yes | Yes |
| Advanced security tools | No | No | No | No | Yes |
Frequently Asked Questions
Can I use Microsoft 365 on a Mac or iPad?
Yes. All Microsoft 365 plans work on Mac, iPad, iPhone, and Android devices. The desktop apps (Word, Excel, PowerPoint) are available for Mac and iPad. The mobile apps are available for all devices. Some features may work differently on mobile than on Windows or Mac.
What happens to my files if I stop paying for Microsoft 365?
Your files stay in OneDrive, but you cannot edit them with Office apps. You can still view and download your files from OneDrive.com using a web browser. If you want to edit them again, you need to renew your subscription or buy a one-time license for Office.
Do I need Business Premium if I work from home?
Not necessarily. If you work alone or with a small team and do not handle sensitive data, Business Standard is usually enough. Business Premium is most useful if you have employees, handle client information, or need to meet security rules for your industry.
Can multiple people use one Microsoft 365 subscription?
Yes, but only with Family. Family covers up to six people, each with their own account and storage. Personal is for one person only. Business plans are licensed per user, so each person needs their own subscription.
Is there a free version of Microsoft 365?
Microsoft offers free web versions of Office apps (Word, Excel, PowerPoint, Outlook) at Office.com if you have a Microsoft account. These are simpler than the desktop versions and require an internet connection. They do not include Teams, SharePoint, or advanced features. Paid plans add the desktop apps and more storage.