Microsoft 365 pricing starts at $9.99 a month, or $99.99 a year, for the Personal plan, as of October 2026, on Microsoft’s own plan comparison page. For companies, Microsoft lists Basic at $7.00, Standard at $14.00 and Premium at $22.00 per user per month when paid yearly. Which Microsoft 365 price you pay depends on who the subscription is for, how many people use it and whether you pay monthly or yearly.
This guide sets out each plan, what Microsoft Copilot adds and honest ways to spend less. Every figure comes from Microsoft’s United States pages, in US dollars, read on 21 October 2026. Prices and app availability may vary by region and can change at any time.
Key takeaways
- The home plans are Personal at $99.99 a year, Family at $129.99 and Premium at $199.99. Paying yearly saves up to 17%.
- The work plans cost $7.00, $14.00 and $22.00 per user per month on a yearly term, and they support up to 300 users.
- Only the work plans include custom business email. The home plans do not.
Microsoft 365 plans and pricing at a glance
Microsoft 365 offers separate home and work plans on separate pages. The first table covers Microsoft 365 for individuals and families, and the second covers the work plans. Prices are list prices, as of October 2026.
Compare plans for home: Personal, Family and Premium
| Home plan | Price a month | Price a year | Who it is for | Cloud storage |
|---|---|---|---|---|
| Personal | $9.99 | $99.99 | 1 person | 1 TB |
| Family | $12.99 | $129.99 | 1 to 6 people | 2 TB, shared |
| Premium | Not shown | $199.99 | 1 to 6 people | 2 TB |
Microsoft 365 business plan options: Basic, Standard and Premium
| Plan | Price per user a month, paid yearly | Apps | Cloud storage |
|---|---|---|---|
| Basic | $7.00 | Web and mobile | 1 TB per user |
| Standard | $14.00 | Desktop, web and mobile | 1 TB per user |
| Premium | $22.00 | Desktop, web and mobile | 1 TB per user |
Microsoft also sells Office Home 2024, a one-time purchase for one PC or Mac, for people who do not want a subscription. Microsoft’s page lists no price for it, so check it before you compare. Microsoft publishes pricing and features side by side, so confirm any figure there before you buy.
How much does a Microsoft 365 subscription cost a month?
One person at home pays $9.99 a month on Personal, or $99.99 for the year. A household of up to six people pays $12.99 a month for Family. Work pricing runs from $7.00 to $22.00 per user per month, depending on the tier. Twelve months of Personal at $9.99 comes to $119.88, against $99.99 on the yearly term, and Microsoft says you save up to 17% when you pay yearly.
Benefits of Microsoft 365 on each plan
Microsoft 365 Personal
Personal is for one person. It includes the Word, Excel, PowerPoint, Outlook and OneNote desktop apps with Microsoft Copilot, Microsoft Teams, 1 TB of secure cloud storage and sign-in on up to five devices at once. It works across PCs, Macs, phones and tablets, and gives advanced Copilot chat with higher usage than the free version. You use it with your own Microsoft account.
Microsoft 365 Family
Family costs $129.99 a year and covers one to six people, each with a separate Microsoft account, sharing 2 TB of cloud storage. The Microsoft 365 Personal and Family plans share the same apps and include Microsoft Teams. AI features only available to subscription owners in Family, Premium and Microsoft 365 Pro plans cannot be shared with the other members.
Microsoft 365 Premium
The Premium plan costs $199.99 a year. It adds extensive Copilot usage, exclusive Copilot features and agentic AI for advanced research and analytics. Microsoft recommends it for freelancers who want heavy AI use.
Microsoft 365 Business Basic
Basic costs $7.00 per user per month on a yearly term. It gives web and mobile versions of Word, Excel, PowerPoint and Outlook, custom business email such as [email protected], 1 TB of cloud storage per user, Microsoft Teams and more than ten extra apps, including Bookings, Planner and Forms. Installable desktop apps are not part of it.
Microsoft 365 Business Standard
Standard costs $14.00 per user per month on a yearly term. It adds the fully installed desktop apps, Loop and Clipchamp for video editing.
Microsoft 365 Business Premium
Premium costs $22.00 per user per month on a yearly term. It keeps everything in Standard and adds advanced device management, threat protection against phishing and cyber attacks, and information protection. It also includes Microsoft Defender and Intune, and these security features are the main reason to choose it over Standard.
Enterprise plans: E3, E5, E7 and Windows 365 Cloud PCs
Microsoft says the Business family’s base per-user plans are designed for organizations with up to 300 users, a limit its business page also applies to Microsoft 365 Apps for business. Larger organizations use Microsoft’s enterprise page, which sets out three plans:
- Microsoft 365 E3
- Microsoft 365 E5
- Microsoft 365 E7 for enterprise customers
Microsoft lists E5 at $60.00 and E7 at $99.00 per user per month, both paid yearly on an annual commitment. E7 includes E5, Copilot, Agent 365 and Microsoft Entra Suite. E3 sits below E5 with enhanced rather than advanced identity management, and Microsoft’s page shows no E3 price. The E5 and E7 highlights also mention Cloud PCs managed with Windows Enterprise and Microsoft Intune. The older Office 365 plan line on the same page has E1 at $10.00, E3 at $26.00 and E5 at $41.00, and Microsoft 365 Apps for enterprise is $14.00, all per user per month, paid yearly.
Education plans for schools and universities
The plan options page on learn.microsoft.com groups the plans into families: Business, with a maximum of 300 users, Enterprise, Education and U.S. Government. Schools and universities use the Education family, whose A1, A3 and A5 tiers run from web-based productivity to advanced security and governance. Microsoft’s education page shows no prices and asks institutions to contact a sales partner, so we list no education figure.
Explore Microsoft 365 apps and security features
All the plans share the same core apps, and the higher plans add more of them.
- Office apps like Word, Excel and PowerPoint: desktop versions on the home plans and on Standard and Premium, and web and mobile versions on Basic.
- Outlook and OneNote: mail, calendar and notes. The work plans add Exchange email.
- Productivity apps with Copilot: the home plans list productivity apps with Copilot built in, and work teams can add Copilot.
- Cloud storage and protection: 1 TB of OneDrive on Personal and each work user, plus ransomware protection for OneDrive and advanced security with Microsoft Defender on the home plans.
Copilot in Microsoft 365 and what it adds to the cost
Copilot is the biggest swing in a work bill. Everyday Microsoft Copilot experiences, such as chat and Copilot in the apps, are included with the license, while advanced AI such as Copilot Cowork and Autopilot is billed by usage. Microsoft says Copilot Chat comes at no additional cost with an eligible Microsoft 365 subscription. Its Copilot page lists two bundled plans for small teams, as of October 2026, and both are paid yearly.
Microsoft 365 Business Standard with Copilot
This bundle costs $23.50 per user per month. Microsoft 365 and Copilot come together in one annual subscription that auto-renews.
Microsoft 365 Business Premium with Copilot
This bundle costs $32.00 per user per month and suits small teams that also want advanced security.
Microsoft 365 Copilot Business add-on
The add-on suits teams that already have a plan. It starts from $21.00 per user per month, and Microsoft shows $18.00 as a promotional price from July 1 to December 31, 2026, for the first year only. It is open to existing Microsoft 365 customers with an eligible plan in the Business family on an annual commitment.
Follow Microsoft Copilot and Microsoft 365 price changes
Because the add-on promotion ends on December 31, 2026, check Microsoft’s plan pages again before you buy.
What changes the cost of a Microsoft 365 subscription
Three things decide the final bill, besides Copilot.
- Billing term. Microsoft offers monthly, annual with monthly payment, and annual with annual payment on its work tiers. The prices above are for a yearly term.
- Number of users. The work tiers are charged per user, so a team of five on Standard costs five times $14.00 a month.
- Region. Features available in Microsoft 365 and app availability may vary by region, so your local Microsoft Store page can differ.
Cancelling and refunds
You can cancel a work subscription at any time in the Microsoft 365 admin center. Microsoft says that once a paid subscription begins there is a seven-day cancellation window to receive a prorated refund. Annual commitments paid month to month may incur penalties if cancelled early. To contact Microsoft support about billing, account access or general technical usage, use the support team Microsoft describes on its Business Premium page.
Is there a free tier, a trial or a discount?
Microsoft points to free versions of its apps for people without a paid subscription, and a free Microsoft account gets limited usage of the AI tools. Microsoft’s business page mentions a one-month free trial. When it ends, the subscription converts to paid and you are charged the fee for the subscription term and billing plan you select, so check the regular price and selected term before you start. Microsoft also lists student plans, and volume discounts are for enterprise agreement customers, typically with 250 or more licences.
Which plan do you need?
- One person who wants the Office apps, 1 TB of storage and security: Personal.
- A household that wants to share storage: Family, for up to six people.
- A freelancer who uses AI every day: Premium, for extensive Copilot usage.
- A small team that works in a browser and wants custom email: Basic.
- A team that needs installed desktop apps: Standard.
- A team that handles client data and needs device security: Premium.
Microsoft’s work page, headed “Grow your business with Microsoft 365”, offers a Microsoft 365 plan chooser to find the right plan for your business, or you can talk to a product specialist about pricing.
Ways to pay less for Microsoft 365
There are three honest routes, and they differ in what you give up.
- Pay yearly. It saves up to 17% if you will use the subscription all year.
- Pick the smallest plan that fits, and buy only the seats you need. Personal covers one person, Basic covers web-based teamwork, and work tiers are per user.
- Use a DigitaVision seat. The Microsoft 365 Personal account is a private login of your own, set up by the DigitaVision team, with access to Microsoft 365 and its premium Microsoft 365 apps. It costs $14.99 for one year, paid once with no renewal, and setup usually takes 2 to 4 hours. It includes 1 TB of cloud storage, but Copilot usage is not included. The Business Basic account invites you on your own email address to a Microsoft 365 organisation that DigitaVision sets up and manages for you, and you sign in to Microsoft with that email. It costs $17.99 for one year, with web and mobile apps and Teams, and Copilot is not included. It has no desktop apps, and DigitaVision manages the organisation, so you do not manage it or its domain. Support is available every day from 8 AM to 3 AM Bangladesh time. These are not official Microsoft plans, and DigitaVision is not affiliated with Microsoft.
If you need a company tenant, your own business email or admin controls, an official work tier is the better choice.
Microsoft 365 pricing compared with Google Workspace
Google Workspace is the closest rival for companies. Its plans page lists Business Starter at $7, Standard at $14 and Plus at $22 per user per month, as of October 2026, with a lower promotional price shown on the page and a 16% saving for a one-year commitment. Storage differs: Google lists 30 GB pooled per person on Starter and 2 TB on Standard, while each Microsoft tier above lists 1 TB per user. Check both vendors’ pages for current prices.
FAQ
How does Microsoft 365 pricing work?
As of October 2026, Microsoft lists Personal at $99.99 a year, Family at $129.99 and Premium at $199.99 for home use. The work tiers cost $7.00, $14.00 and $22.00 per user per month on a yearly term.
Can I permanently buy Microsoft 365?
Not as a subscription. Microsoft sells Office 2024 as a one-time purchase for one computer, with no upgrade options, so the next major release has to be bought at full price. Microsoft 365 is paid monthly or yearly.
Is Microsoft 365 free for personal use?
No, Personal is a paid plan at $9.99 a month. Microsoft’s comparison table shows free versions of some apps, such as Outlook and Teams, and 5 GB of OneDrive storage with an account.
Is Microsoft Office 365 the same as Microsoft 365?
In practice, yes. Microsoft’s own page titles say Microsoft 365 is formerly Office 365, which is why some people still search for ms office 365.
Can I cancel my Microsoft subscription?
Yes. Work subscriptions can be cancelled at any time in the admin center, and there is a seven-day window for a prorated refund. Annual commitments paid monthly may carry penalties.
Is there a cheaper way to get Microsoft 365?
Yes, with trade-offs. Paying yearly saves up to 17%, and a DigitaVision seat costs less than the official yearly price. It is not an official Microsoft plan, and the Business Basic seat is shared.
