What you get with a Microsoft subscription

Microsoft offers several subscription services, each covering different products and use cases. The main ones are Microsoft 365 (formerly Office 365), which bundles productivity software like Word, Excel, and Outlook; Xbox Game Pass, which gives you access to games; and OneDrive, which provides cloud storage. Some subscriptions overlap — Microsoft 365 includes OneDrive storage, for example — so the right choice depends on what you actually use.

Microsoft 365 comes in versions for individuals, families, and businesses. The individual plan covers one person on one device at a time (though you can install it on multiple devices and switch between them). The family plan lets up to six people each have their own account and install the software on their own devices simultaneously. Business plans vary by company size and include email, file storage, and collaboration tools alongside the desktop applications.

Each subscription renews automatically on a monthly or annual cycle, depending on which plan you chose. You can cancel anytime, but you will lose access to the software and files stored in OneDrive once your subscription ends — the files themselves are not deleted, but you cannot open them without an active subscription or a one-time purchase license.

Key Takeaways

  • Microsoft 365 subscriptions renew automatically each month or year and cost between roughly $7 and $20 per month for individuals, depending on the plan and billing cycle.
  • The family plan covers up to six people and costs more than the individual plan but is cheaper per person when shared.
  • Cancelling a subscription stops your access to the software and cloud files, though the files remain in your OneDrive account if you resubscribe later.
  • Business subscriptions include email and collaboration tools in addition to desktop software and are priced per user per month.
  • You can use Microsoft 365 on Windows, Mac, iPad, and Android devices, but the number of devices you can use simultaneously depends on your plan.

Microsoft 365 plans and their costs

Microsoft 365 Personal is the entry-level individual subscription. It includes Word, Excel, PowerPoint, Outlook, and other applications, plus 1 TB of OneDrive storage. The cost is roughly $7 per month if you pay monthly, or about $70 per year if you pay annually. You can install it on multiple devices but use it on only one at a time.

Microsoft 365 Family covers up to six people and costs roughly $10 per month or about $100 per year. Each person gets their own account, their own 1 TB of OneDrive storage, and can install the software on their own devices. If six people share the cost, the per-person expense is significantly lower than buying individual subscriptions.

Microsoft 365 Business Basic, Business Standard, and Business Premium are aimed at companies. They include the desktop applications plus email (Outlook), file storage (OneDrive), and collaboration tools (Teams, SharePoint). Pricing varies by plan and is charged per user per month, typically ranging from roughly $6 to $22 per person. The exact cost depends on your company's size and the reseller or direct purchase channel.

Prices listed here are approximate and vary by region, currency, and current promotions. Check Microsoft's official website for your country to see the exact price you will pay.

How to manage your subscription and billing

You manage your Microsoft 365 subscription through your Microsoft account. Log in at account.microsoft.com, go to the Subscriptions section, and you can see your current plan, renewal date, and payment method. From there you can change your billing cycle (monthly to annual or vice versa), update your payment information, or cancel.

If you cancel, your subscription ends on the next renewal date. You keep access to the software and your files until that date arrives. After the subscription expires, you can still view and download files from OneDrive, but you cannot edit them or use the desktop applications without resubscribing or buying a one-time license.

If you want to pause rather than cancel, you cannot do that directly — Microsoft does not offer a pause feature. Your options are to cancel and resubscribe later, or to keep the subscription active. Some people downgrade to a cheaper plan temporarily instead.

If you are charged and did not authorize it, or if you believe there was an error, contact Microsoft Support through your account or by phone. Keep records of your subscription purchase confirmation and any communications with Microsoft in case you need to dispute a charge with your bank or credit card company.

Devices and simultaneous use

Microsoft 365 Personal can be installed on multiple devices — Windows PCs, Macs, iPads, and Android phones — but you can use it actively on only one device at a time. If you sign in on a second device, you are signed out on the first. This is different from the family plan, where each of the six people can use their own copy simultaneously on their own devices.

The web versions of Word, Excel, and PowerPoint (available through Office.com) do not count against this limit and can be used on any device without signing out of the desktop version. The web versions have fewer features than the desktop applications but work in any browser.

If you share a computer with someone else, you can each have your own Windows user account and install Microsoft 365 under your own Microsoft account. Each person's files and settings stay separate.

One-time purchase licenses versus subscriptions

Microsoft also sells one-time purchase licenses for Office, separate from subscriptions. These are sold as Office Home & Student or Office Home & Business and cost a flat amount upfront — typically between $100 and $160 — with no recurring charges. You own the license permanently and can use it indefinitely, but you do not receive updates to the software and you do not get OneDrive storage or other online services.

The trade-off is straightforward: a subscription costs less per month but requires ongoing payments and access to the internet for some features; a one-time purchase costs more upfront but has no recurring fees and works offline. If you use Office occasionally, a one-time license may be cheaper over time. If you use it regularly and want the latest features and cloud storage, a subscription usually makes more sense.

One-time licenses are sold through Microsoft, retailers like Best Buy and Amazon, and authorized resellers. Make sure you are buying from a legitimate source — counterfeit or unauthorized licenses may not work or may violate Microsoft's terms.

What happens if you stop paying

If your payment method fails or you do not renew before your subscription expires, your access to Microsoft 365 ends. You can still download your files from OneDrive for a limited time, but you cannot edit them or use the desktop applications. If you resubscribe later, your files are still there and you can access them again.

Microsoft may send you reminder emails before your subscription expires, but it is your responsibility to renew or cancel. If you are charged unexpectedly, check whether you have an active subscription and when it renews. If you cancelled but were still charged, contact Microsoft Support with your cancellation confirmation.

If you dispute a charge with your bank or credit card company, Microsoft may suspend your account until the dispute is resolved. Keep records of all subscription confirmations and cancellation requests.

Frequently Asked Questions

Can I use Microsoft 365 offline?

Yes. Once you install the desktop version of Word, Excel, or PowerPoint, you can use them without an internet connection. However, you must be connected to the internet at least once every 30 days so Microsoft can verify your subscription is still active. The web versions (Office.com) require an internet connection to use.

What happens to my files if I cancel my subscription?

Your files stay in your OneDrive account and you can download them anytime, even after your subscription ends. You cannot edit them in Microsoft 365 applications without an active subscription, but you can view and download them. If you resubscribe, you can edit them again.

Can I share my Microsoft 365 subscription with someone else?

If you have Microsoft 365 Personal, you can install it on multiple devices but only one person can use it at a time. The family plan is designed for sharing — up to six people each get their own account and can use the software simultaneously on their own devices. Sharing a Personal subscription with someone else violates Microsoft's terms.

Is there a student discount for Microsoft 365?

Many schools and universities provide Microsoft 365 to students for free or at a reduced cost through their institution. Check with your school's IT department or student services. Microsoft also offers Office 365 Education, which is free for may be able to access students and teachers, though it has fewer features than the commercial subscription.

Can I switch from monthly to annual billing?

Yes. Log into your Microsoft account, go to Subscriptions, and change your billing cycle. If you switch from monthly to annual, you will be charged the annual rate immediately and your renewal date will shift. If you switch from annual to monthly, the change takes effect at your next renewal date.