As of October 2026, Microsoft 365 Personal costs $99.99 a year or $9.99 a month, Family costs $129.99 a year or $12.99 a month, and Premium costs $199.99 a year or $19.99 a month, in US dollars. For businesses, Microsoft 365 Business Basic starts at $7.00 per user a month, paid yearly.
Microsoft 365 is the subscription behind Word, Excel, PowerPoint and Outlook, and it now comes with Copilot built in. Microsoft splits it into home plans and business plans, and the prices work very differently between the two, so it's worth knowing which side you're on before you buy.
Microsoft 365 home plans and prices
| Plan | Yearly | Monthly | People |
|---|---|---|---|
| Microsoft 365 Personal | $99.99 a year | $9.99 a month | 1 person, up to 5 devices at once |
| Microsoft 365 Family | $129.99 a year | $12.99 a month | 1 to 6 people, each on up to 5 devices |
| Microsoft 365 Premium | $199.99 a year | $19.99 a month | Everything in Family, with more Copilot usage |
| Office Home 2024 | $179.99 once | Not a subscription | One-time purchase for PC or Mac |
Microsoft says paying yearly saves $19.89 on Personal, $25.89 on Family and $39.89 on Premium compared with twelve monthly payments. Each plan offers a one-month free trial, and Microsoft says the subscription automatically renews at the regular price unless you cancel in your Microsoft account.
What you get on Personal
- Word, Excel, PowerPoint, Outlook and OneNote desktop apps with Microsoft Copilot.
- 1 TB of secure cloud storage.
- Sign in on 5 devices at once, across PCs, Macs, phones and tablets.
- Higher Copilot usage than the free version for chat, image creation and visual assistance.
- Identity, data and device security, plus all-day video calling in Teams.
Family adds up to 6 people and 2 TB of shared cloud storage, but Microsoft notes that the AI features are for the subscription owner only. That's a detail worth knowing if you were planning to share Copilot with the household.
Microsoft 365 business plans and prices
Business plans are priced per user per month, paid yearly, on an annual subscription that auto-renews. Each one includes professional email at your own domain and admin controls through the Microsoft 365 admin center. These are Microsoft's US prices for the plans with Teams:
| Plan | Price | What Microsoft says it's for |
|---|---|---|
| Business Basic | $7.00 per user a month, paid yearly | Lightweight web and mobile apps to kickstart your business |
| Business Standard with Copilot | $23.50 per user a month, paid yearly | Desktop, web and mobile apps with Copilot built in |
| Business Premium with Copilot | $32.00 per user a month, paid yearly | Everything in Standard plus advanced security and device management |
Microsoft also lists versions without Teams, starting from $5.40 per user a month, and says usage-based billing applies for select advanced AI features on the Copilot plans.
Monthly or annual for business
Microsoft gives three ways to pay for business plans: a monthly commitment paid monthly that you can cancel at any time, an annual commitment paid monthly, or an annual commitment paid upfront. The prices in the table are the paid-yearly figures, so a month-to-month commitment may cost more. Check the checkout screen for the option you choose.
How to pick the right plan
- If you need a business email address at your own domain, go straight to the business plans. Microsoft lists professional business email on Basic, Standard and Premium.
- If you only need the Office apps for yourself, Personal is the cheapest full desktop option.
- If several people at home need the apps, Family covers up to 6 people for one price.
- If you'd rather never pay a subscription, Microsoft lists Office Home 2024 as a one-time purchase for PC or Mac at $179.99.
- Start with the one-month free trial and cancel before it renews if it isn't right.
My guide on whether Microsoft 365 is free covers the free web versions, and what Microsoft 365 Copilot is explains the AI side in plain English.
What Business Premium adds
The jump from Standard to Premium is about security, not apps. Microsoft says Business Premium includes the same apps and services as Standard plus advanced cyberthreat protection and device management. On its plan cards it lists Intune to protect business data on devices, Microsoft Defender against malicious cyberthreats, and Microsoft Purview for governing and protecting data. Microsoft's FAQ adds that Business Premium includes Defender for Business, with ransomware protection and automatic threat disruption.
For a small team handling client data on laptops and phones, that's the plan I'd look at. For a solo owner, Standard is usually enough.
My verdict
For a solo business owner who just needs the Office apps, Microsoft 365 Personal at $99.99 a year is the best value. The moment you want email at your own domain, move to Business Standard, because that's where the full desktop apps and business email come together. Pay yearly if you're sure, and use the one-month trial before you commit either way. And if a team member only needs email and the web apps, Business Basic at $7.00 per user a month keeps the bill down without leaving anyone out.
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If you're leaning towards Google's suite instead, see Google Workspace plans and prices.
Frequently asked questions
How many people can use Microsoft 365 Family?
Microsoft says Family covers 1 to 6 people, each on up to 5 devices at once, with 2 TB of shared storage. The AI features are for the subscription owner only.
Is Office Home 2024 a subscription?
No. Microsoft lists Office Home 2024 as a one-time purchase for PC or Mac at $179.99.
Can I pay monthly for Microsoft 365 Business?
Yes. Microsoft offers a monthly commitment paid monthly, an annual commitment paid monthly, or an annual commitment paid upfront. Its listed business prices are the paid-yearly figures.
How much is Microsoft 365 Personal?
As of October 2026, Microsoft lists Personal at $99.99 a year or $9.99 a month in the US.
How much is Microsoft 365 Family?
Microsoft lists Family at $129.99 a year or $12.99 a month, for 1 to 6 people.
What is the cheapest Microsoft 365 business plan?
Microsoft 365 Business Basic, at $7.00 per user a month paid yearly. Microsoft also lists versions without Teams from $5.40 per user a month.
Is there a Microsoft 365 free trial?
Yes. Microsoft offers a one-month free trial on Personal, Family and Premium, and the subscription renews at the regular price unless you cancel.
