Microsoft 365 is a subscription service offered by Microsoft that provides various productivity and collaboration tools. It’s essentially a cloud-based version of the familiar suite of Office apps but with some additional benefits.
The company offers two subscription plans: Microsoft 365 Personal, for one user, and the Microsoft 365 Family plan, for up to six people. The new plans are designed to replace Office 365 Home and Personal while maintaining the same pricing scheme and enhancing the existing offerings.
The new plans remain available with the same Office apps, such as Word, Excel, PowerPoint, Outlook, Publisher, and Access. However, the Microsoft 365 branding offers additional services, such as Microsoft Defender, Microsoft Family Safety, Microsoft Loop, and Microsoft Teams. In addition, you will receive more features for existing services, such as PowerPoint Designer and Presenter Coach, Microsoft Editor, Outlook Play My Emails, and more.
It’s important to note that Copilot isn’t part of the offering, and you will have to purchase a separate $20 subscription on top of the plan you’re already paying to access the chatbot AI in Word, Excel, PowerPoint, and Outlook.
Regardless of the plan, you will have access to the versions of the Office apps on up to five devices, access to the latest features and security updates, 1TB of OneDrive cloud storage (per user in the case of the Family tier), and technical support.
The Microsoft 365 Personal plan costs $6.99 per month or $69.99 per year, and the Microsoft 365 Family plan costs $9.99 per month or $99.99 per year.
Microsoft 365 subscription plans comparison
This table lists the features and pricing of the Microsoft 365 Personal and Microsoft 365 Family plans.
| Microsoft Account (Free) | Microsoft 365 Personal | Microsoft 365 Family | ||
|---|---|---|---|---|
| Office | Office apps | Web apps Mobile apps iOS & Android | Web apps Mobile apps iOS & Android Desktop apps Windows 11, 10, macOS | Web apps Mobile apps iOS & Android Windows 11, 10, macOS |
| Real-time co-editing | Yes | Yes | Yes | |
| Preserve formatting across web, mobile and desktop apps | Yes | Yes | Yes | |
| Microsoft Editor | Spelling and grammar | Spelling and grammar Advanced grammar and style | Spelling and grammar Advanced grammar and style |
|
| PowerPoint Designer | Layout recommendations | Layout recommendations Advanced layout recommendations with premium content | Layout recommendations Advanced layout recommendations with premium content |
|
| PowerPoint Presenter Coach | Filter words and pacing | Filter words and pacing Monotone pitch, originality, and speech refinements | Filter words and pacing Monotone pitch, originality, and speech refinements |
|
| Creative content | 2000 templates 750 images 25 looping videos 82 fonts 320 icons | 2300 templates 8000 images 175 looping videos 300 fonts 2800 icons | 2300 templates 8000 images 175 looping videos 300 fonts 2800 icons |
|
| OneDrive | Storage quota | 5GB per person | 1TB per person | 6TB for 6 people |
| Deep integration Office and Windows 10 | Yes | Yes | Yes | |
| Files on demand | Yes | Yes | Yes | |
| PC folder backup | Yes | Yes | Yes | |
| Personal Vault | 3 files | Unlimited up to the storage quota | Unlimited up to the storage quota | |
| Ransomware detection and recovery | NA | Yes | Yes | |
| Expiring and password-protected sharing links | NA | Yes | Yes | |
| Outlook | Outlook apps | Web app Mobile apps iOS & Android | Web app Mobile apps iOS & Android Desktop app Windows 11, 10, macOS Ad-free secure email | Web app Mobile apps iOS & Android Desktop app Windows 11, 10, macOS Ad-free secure email |
| Play My Emails | Yes | Yes | Yes | |
| Outlook.com storage | 15GB | 50GB | 50GB | |
| Outlook calendar integration | Yes | Yes | Yes | |
| Outlook custom email domain | NA | Yes | Yes | |
| Outlook Advanced securit | NA | Yes | Yes | |
| Skype | Skype to Skype (50 people) | Unlimited | Unlimited | Unlimited |
| Skype call recording | Yes | Yes | Yes | |
| Skype subtitles and live captions | Yes | Yes | Yes | |
| Skype guest links | Yes | Yes | Yes | |
| Skype landline and mobile calling | NA | 60 minutes per month | 60 minutes per month | |
| Clipchamp | Video editing | Limited | Video editor with premium filters and effects, but not fully unlocked. | Video editor with premium filters and effects, but not fully unlocked. |
| Microsoft Defender | Unified dashboard to manage protection for all your devices | NA | Yes | Yes |
| Microsoft Loop | Online hub to organize your documents and collaborate with other people | Limited | Yes | Yes |
| Other benefits | Support | Account and setup support | Ongoing technical support Windows 11, 10, apps | Ongoing technical support Windows 11, 10, apps |
| Partner benefits program | NA | Yes | Yes | |
| Usage | 1 Person | 1 Person | 6 People | |
| Price | Free | $6.99 per month | $9.99 per month |
Microsoft 365 vs. Office 2021
Microsoft 365 offers a subscription model with constant updates, cloud storage, collaboration tools, and multi-device access. Office 2021 provides a one-time purchase option but lacks some of the features like real-time collaboration and cloud storage.
You should consider one of the Microsoft 365 plans if you want the latest features and updates, need cloud storage, collaborate frequently with others, and have to install Office apps on multiple devices.
On the other hand, you should consider Office 2021 if you prefer a one-time purchase, don’t need the latest features, don’t use cloud storage or collaboration features, and only have to use the apps on one computer.
Pricing can also be a factor in the decision. While the personal plan typically starts at around $69.99 per year and $99.99 per year for the family plan, Office Home & Student 2021 costs $149.99, and when the time comes to upgrade, you will have to pay again for the new version.
Choosing the right plan
- Get Microsoft 365 Personal if you need the app and storage for yourself.
- Get Microsoft 365 Family if you want to share the subscription and its benefits with up to five other people (family or friends). In this case, it’s even cheaper than the Personal plan.
Getting started with Microsoft 365
- How to share Microsoft 365 Family subscription with other people
- How to install Microsoft 365 (Office) apps on Windows 11, 10
- How to join Office apps to Microsoft 365 Insider Program
Also, if you do not have a subscription but a Microsoft account, you can still access many of the features.
Update April 18, 2024: This guide has been updated to ensure accuracy and reflect plan changes.
Mauro Huculak is a Windows How-To Expert who started Pureinfotech in 2010 as an independent online publication. He has also been a Windows Central contributor for nearly a decade. Mauro has over 14 years of experience writing comprehensive guides and creating professional videos about Windows and software, including Android and Linux. Before becoming a technology writer, he was an IT administrator for seven years. In total, Mauro has over 20 years of combined experience in technology. Throughout his career, he achieved different professional certifications from Microsoft (MSCA), Cisco (CCNP), VMware (VCP), and CompTIA (A+ and Network+), and he has been recognized as a Microsoft MVP for many years. You can follow him on X (Twitter), YouTube, LinkedIn and About.me. Email him at [email protected].