Microsoft 365 pricing in the US ranges from a free one-person offering to consumer subscriptions starting at $9.99 per month and business plans starting at a $7 per-user monthly equivalent with an annual commitment. Start by choosing the right category: Personal, Family, or Premium for individual and household use, or a business plan when you need organizational email, license administration, Teams, or advanced security controls. Prices and plan details below were verified on September 24, 2026.
Microsoft 365 pricing at a glance
If you are wondering how much Microsoft 365 costs, the answer depends mainly on the number of people, required app versions, storage, and whether the subscription is for personal or managed business use. The following official US prices are in USD. Applicable taxes are excluded where stated, and offers can vary by plan and eligibility.
| Plan | US price and billing | Users | Key entitlement or limit |
|---|---|---|---|
| Microsoft 365 Free | $0 ongoing | One person | 5 GB storage and supported web or mobile apps; Outlook is ad-supported |
| Microsoft 365 Personal | $9.99 monthly or $99.99 yearly | One person | 1 TB OneDrive storage and up to five signed-in devices |
| Microsoft 365 Family | $12.99 monthly or $129.99 yearly | One to six people | Up to 6 TB total storage; AI benefits are limited to the subscription owner |
| Microsoft 365 Premium | $19.99 monthly or $199.99 yearly | One to six people | Copilot access and higher AI usage allowances remain subject to market, language, plan, and license conditions |
| Microsoft 365 Business Basic | $7 per user per month with an annual commitment, paid yearly | Up to 300 users | Web and mobile apps, business email, Teams, and per-user cloud storage; no desktop apps |
| Microsoft 365 Business Standard | $14 per user per month with an annual commitment, paid yearly | Up to 300 users | Adds desktop applications to the business productivity package |
| Microsoft 365 Business Premium | $22 per user per month with an annual commitment, paid yearly | Up to 300 users | Adds advanced identity, device, threat, and data-protection capabilities |
Consumer subscriptions offer monthly and annual options. The listed business prices are monthly equivalents, but they require an annual commitment and are paid yearly. They should not be interpreted as month-to-month rates.
Which Microsoft 365 plan is right for you
For one person
Choose Microsoft 365 Free if 5 GB of storage and supported browser or mobile apps cover your basic needs. Personal is the clearer fit when one person needs substantially more cloud storage and access across several devices. Its 1 TB allowance and support for up to five signed-in devices are attached to one subscriber, not five separate people.
For a household
Family is designed for one to six people and provides up to 6 TB of total storage. It is generally more appropriate than Personal when several household members need their own subscription access. However, the AI benefits belong only to the subscription owner, so do not assume that every included person receives the same Copilot entitlement.
Premium also covers one to six people. Its higher price is most relevant to buyers prioritizing Copilot capabilities and higher AI usage allowances. Availability and allowances still depend on the license, market, and language, making those conditions worth checking before upgrading solely for AI.
For a small business
Business Basic suits organizations that can work with web and mobile apps and need business email, Teams, cloud storage, and administrative licensing. It does not include desktop applications. Business Standard is the more suitable step up when employees need locally installed productivity apps.
Business Premium is aimed at organizations that also need more advanced identity, device, threat, and data-protection controls. Those tools must still be configured and managed; buying the license does not automatically establish an appropriate security policy.
All three business plans covered here have a 300-user ceiling. Organizations exceeding that limit should evaluate enterprise licensing rather than splitting a larger deployment across consumer subscriptions.
What affects Microsoft 365 cost
The billing cadence changes the Microsoft 365 cost. Personal, Family, and Premium each have monthly and yearly prices. Annual subscriptions renew automatically unless canceled, so compare the annual renewal amount rather than treating an introductory offer as the long-term price.
Business pricing depends on seat count. Each licensed user increases the annual total, and the displayed monthly figure for the listed business plans assumes an annual commitment paid yearly. Some annual business commitments may also carry cancellation penalties.
Illustrative calculation: eight Business Basic licenses at $7 per user per month produce a monthly-equivalent cost of $56. Multiplying that by 12 gives an annual payment of $672 before applicable taxes. This calculation uses the same plan and annual-commitment basis for all eight users.
A one-month trial may be available for eligible offers. It requires a credit card and converts to a paid subscription unless canceled. Note the conversion date, paid plan, and renewal price before starting. Add-ons or separately assigned licenses can increase total spending, particularly when users need benefits not included in their base plan.
What to check before buying or switching
- Identify the account type. Decide whether the subscription belongs to an individual or household account, or whether an organization needs managed user accounts and administrative control.
- Review the existing subscription. Check its plan name, renewal date, billing term, and current license holders. This helps avoid overlapping subscriptions or removing access prematurely.
- Count actual users. Personal covers one person, Family and Premium cover up to six people, and business subscriptions are licensed per user. A device is not the same as a separately licensed person.
- Choose the required app versions. Confirm whether browser and mobile apps are sufficient or whether users need locally installed desktop applications. Business Basic does not include the desktop versions.
- Assess organizational requirements. Businesses should determine whether they need business email, Teams, centralized license assignment, identity management, device controls, or advanced protection.
- Check storage and file ownership. Compare the old and new allowances, identify who owns shared material, and preserve any files that must remain accessible. Cloud synchronization improves access but should not be treated as a guaranteed backup strategy.
- Review commitment conditions. Check taxes, trial conversion, automatic renewal, eligibility conditions, and possible cancellation penalties before submitting payment.
The term Microsoft Office 365 plans still appears in conversation and searches, but it does not describe one specific current package. Use the complete Microsoft 365 plan name when comparing prices and entitlements, especially where desktop apps, business services, storage, or Copilot access matter.
A practical next step
First classify the subscription as individual, household, or business. Then count users and decide whether desktop apps are mandatory. Those two choices usually narrow the list quickly: Personal for one subscriber, Family for a multi-person household, Business Basic for browser-based organizational work, Business Standard for desktop apps, or Business Premium when advanced management and protection are required.
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Frequently Asked Questions About Microsoft 365 pricing
How much is Microsoft 365 for one person?
In the US, Microsoft 365 Personal costs $9.99 per month or $99.99 per year. It covers one person, includes 1 TB of OneDrive storage, and supports up to five signed-in devices. Microsoft 365 Free is also available for one person with 5 GB of storage and supported web or mobile apps.
How much does Microsoft 365 cost for a family?
Microsoft 365 Family costs $12.99 per month or $129.99 per year in the US and covers one to six people. It includes up to 6 TB of total storage. Its AI benefits apply only to the subscription owner rather than every family member.
Are Microsoft Office 365 plans still available under that name?
Microsoft 365 is the current umbrella name used for these consumer and business subscriptions. People still use Microsoft Office 365 informally, but it does not identify one precise current package. Compare complete names such as Personal, Family, Business Basic, or Business Premium.
Which Microsoft 365 business plan includes desktop apps?
Business Basic provides web and mobile app access rather than locally installed desktop applications. Businesses that require desktop software should consider an eligible higher tier, such as Business Standard, while separately assessing whether Business Premium’s additional protection capabilities are necessary.
Is there a free trial for Microsoft 365?
An advertised one-month trial is available for eligible offers. It requires a credit card and converts to a paid subscription unless canceled. Trial availability and eligibility can vary, so review the displayed conversion price and cancellation date before starting.
