What Microsoft Office Subscriptions Cost and Include

Microsoft Office comes as a subscription called Microsoft 365 (formerly Office 365). You pay a monthly or yearly fee and get access to Word, Excel, PowerPoint, Outlook, and other apps on your devices. The price and what you get depends on which plan you choose.

The main plans are Microsoft 365 Personal (one person, multiple devices), Microsoft 365 Family (up to six people), and Microsoft 365 Business plans (for work). Personal runs about $70 per year or $7 per month. Family runs about $100 per year or $10 per month. Business plans cost more and vary by what features you need.

With any subscription, you get the desktop versions of Word, Excel, and PowerPoint; the web versions you can use in a browser; mobile apps for phone and tablet; and 1 TB of cloud storage in OneDrive. You also get Outlook email and Microsoft Teams for video calls and messaging. The subscription renews automatically unless you cancel it.

Key Takeaways

  • Microsoft 365 Personal costs about $70 per year and covers one person across multiple devices; Microsoft 365 Family costs about $100 per year and covers up to six people.
  • Your subscription includes the desktop apps (Word, Excel, PowerPoint), web versions, mobile apps, 1 TB of OneDrive storage, and Outlook email.
  • You can cancel your subscription at any time, but you lose access to the apps and your documents stay in OneDrive but you cannot edit them without a subscription.
  • If you only need to read or lightly edit documents, the free web versions of Word, Excel, and PowerPoint work in any browser without a subscription.
  • Students and teachers may get Microsoft 365 free or at a discount through their school; check with your school's IT department.

How to Set Up and Manage Your Subscription

To start a Microsoft 365 subscription, go to microsoft.com, choose the plan you want, and enter your payment method. Microsoft will send you a confirmation email. You then sign in with a Microsoft account (you can create one during signup) and download the apps to your computer, phone, or tablet.

Once you are signed in, your subscription is active on all your devices. You can use Word, Excel, and PowerPoint right away. Your files save to OneDrive by default, so they sync across your devices. If you share your subscription (like with Microsoft 365 Family), each person signs in with their own Microsoft account on their own device.

To manage your subscription, sign in at account.microsoft.com. There you can see your billing date, payment method, and renewal date. You can also change your payment method, update your address, or cancel your subscription. Cancellation takes effect at the end of your current billing period.

What Happens If You Cancel or Let Your Subscription Lapse

If you cancel or your subscription expires, you lose the ability to edit documents in Word, Excel, and PowerPoint on your computer. The apps stay installed but will not open your files or let you create new ones. You can still view your files in OneDrive through a web browser, but you cannot edit them.

Your files do not disappear. They stay in your OneDrive account for as long as you keep the account active. If you resubscribe later, you can edit them again right away. If you want to keep your files but do not want to pay for a subscription, you can download them to your computer as .docx, .xlsx, or .pptx files and open them with free software like Google Docs or LibreOffice.

Microsoft will send you reminder emails before your subscription expires. If you do not want to renew, you can turn off automatic renewal in your account settings so the subscription does not charge you again.

Free Alternatives to Microsoft 365

Microsoft offers free web versions of Word, Excel, PowerPoint, and Outlook at office.com. You sign in with a Microsoft account (free to create) and use them in your browser. These versions have fewer features than the desktop apps — for example, you cannot use advanced formatting or macros — but they work for basic writing, spreadsheets, and presentations.

Google Workspace (Docs, Sheets, Slides) and LibreOffice are also free and can open and save Microsoft Office files. They work differently from Microsoft Office but handle most everyday tasks. If you only need to read Microsoft Office files or make simple edits, the free web versions are often enough.

Microsoft 365 for Students and Teachers

Many schools give students and teachers free or discounted access to Microsoft 365. Check with your school's IT department or help desk to see if your school has a license. If it does, you sign in with your school email address and get the full subscription at no cost.

Some schools include Microsoft 365 as part of tuition or fees. Others require you to sign up separately but give you the license for free. The details depend on your school. Contact your IT department to find out what your school offers and how to set it up on your devices.

Shared Subscriptions and Family Plans

Microsoft 365 Family lets up to six people use the subscription on their own devices. Each person needs their own Microsoft account. When you buy a Family plan, you sign in to your account and add the other people's accounts to your subscription. They then sign in on their devices and get full access.

Each person gets their own 1 TB of OneDrive storage, so files stay private unless someone shares them. You manage the subscription from your account, but any of the six people can cancel it (which ends it for everyone). If someone leaves your household, you can remove their account from the subscription.

If you share a Personal subscription (meant for one person), Microsoft may detect it and ask you to upgrade to Family or end the sharing. The terms of service say Personal is for one person only, though Microsoft does not always enforce this strictly.

Billing, Renewal, and Payment Issues

Microsoft charges your payment method on your renewal date each month or year, depending on which plan you chose. You can see your renewal date and next charge amount in your account settings at account.microsoft.com. If your payment method fails, Microsoft will try again a few times and send you an email asking you to update it.

If your payment fails and you do not update it within a grace period (usually a few weeks), your subscription will pause. You will not be able to edit documents, but your files stay in OneDrive. Once you update your payment method, your subscription resumes and you can edit again.

You can change your payment method, billing address, or billing email at any time in your account settings. If you have questions about a charge, you can contact Microsoft support through your account or call the number on your receipt.

Frequently Asked Questions

Can I use Microsoft 365 on more than one device?

Yes. Microsoft 365 Personal works on up to five devices at the same time (computer, tablet, phone). Microsoft 365 Family works on up to six devices per person. You sign in with your Microsoft account on each device and the subscription covers all of them.

What if I do not want to renew my subscription?

Turn off automatic renewal in your account settings at account.microsoft.com at least a few days before your renewal date. Your subscription will end on that date and you will not be charged again. You can resubscribe anytime after that.

Can I get a refund if I change my mind?

Microsoft offers a 30-day money-back may provide on new subscriptions if you have not used the apps much. Contact Microsoft support with your order number to request a refund. After 30 days, refunds are not available, but you can cancel anytime to stop future charges.

Do I need internet to use Microsoft Office?

You need internet to sign in and activate your subscription. After that, the desktop apps work offline on your computer. However, OneDrive syncing and some features work better with an internet connection. The web versions require internet every time you use them.

What happens to my files if Microsoft goes out of business?

Your files stay in your OneDrive account. You can download them anytime as standard Microsoft Office files (.docx, .xlsx, .pptx) and open them with other software. Microsoft is unlikely to shut down, but your files are yours and you can always move them.