Microsoft 365 Price: Plans, Monthly Cost & Price History

Microsoft 365 is Microsoft's subscription for Word, Excel, PowerPoint, Outlook and other Office apps, plus OneDrive cloud storage. Instead of buying a copy of Office once, you pay a recurring fee and receive updates for as long as you stay subscribed. The price depends mostly on how many people will use the plan and how much AI functionality you want included.

The monthly prices on this page are published by Microsoft and were checked on Oct 12, 2026. The annual prices come from Office Watch. Microsoft changes plan names and prices from time to time, so confirm the current rate on Microsoft's official plan comparison page before you buy.

Three consumer plans are sold for home use: Personal, Family and Premium. Personal is the entry point at $9.99/mo, Family costs $12.99/mo, and Premium costs $19.99/mo when billed monthly.

Which Microsoft 365 Plan Fits You

Personal is built for one person. If you are the only one who needs the desktop apps and cloud storage, it is the least expensive way in.

Family is built for a household. Microsoft allows a group of people to share one subscription, with each member using their own account and storage. When two or more people would otherwise buy separate Personal plans, Family usually costs less per person. Check Microsoft's current limit on the number of people before you set it up.

Premium is the top consumer tier. Microsoft markets it as the tier with the fullest access to its Copilot AI features. If you do not use those tools often, Personal or Family is likely enough.

Microsoft also sells each plan as a yearly subscription, paid in one charge. These are the annual prices:

Personal costs $99.99/yr, Family costs $129.99/yr, and Premium costs $199.99/yr. Spread across twelve months, each annual price works out lower than paying the monthly rate for the same plan. The tradeoff is a larger upfront payment and less flexibility if you want to stop after a few months.

Monthly billing suits short-term needs, such as a school term or a single project. Annual billing makes more sense if you already know you will use Office for the full year.

Microsoft has also sold Office as a one-time purchase for a single computer. That version does not include ongoing feature updates or the same cloud storage, and it covers one device rather than a household. A subscription generally costs more over several years, but it includes updates and works across the devices you sign in on.

If you only need basic documents and spreadsheets and rarely use them, free web versions of Microsoft's apps may cover your needs. Their features are more limited than the desktop apps, so check that they handle the files you work with.

The listed prices are US prices and may not be your final charge. Depending on your state and city, sales tax can be added to a digital subscription. Prices in other countries differ and are set in local currency.

If you buy through an app store, a retailer or a work or school program, the price and billing date may follow that seller's terms rather than Microsoft's. Check which plan a bundle includes before you pay for a second one.

• Choose annual billing if you know you will keep the plan for the full year.
• Share a Family plan with people you live with instead of buying several Personal plans.
• Check whether your school, employer or an existing bundle already provides Microsoft 365.
• Pick the plan that matches the features you use. Paying for Premium makes little sense if you never use the AI tools.
• Review your plan before each renewal, since auto-renewal continues until you cancel.