Microsoft 365 plans compared
Word, Excel, PowerPoint and Outlook, plus online storage and Microsoft's AI helper, Copilot. Microsoft 365 currently sells 4 plans in the US, from $1.99 a month. Here is what each one includes and who it suits.
Which Microsoft 365 plan is right for you?
Answer a few plain-English questions and we'll check your answers against every plan. Takes about a minute. No account needed.
Current Microsoft 365 plans and prices
Verified September 21, 2026 from Microsoft 365's official pages. Prices are before tax and can change.
Microsoft 365 Basic
$1.99 a month
or $19.99 a year
Best for: Someone who mainly wants more email storage and no advertisements in Outlook.
- Storage space for each person100 GB
- People who get their own account1
- Word, Excel and PowerPoint installed on your computerNot included
- Email with no advertisementsIncluded
- Microsoft's AI helper (Copilot)Not included
Microsoft 365 Personal
$9.99 a month
or $99.99 a year
Best for: One person who wants Word, Excel and PowerPoint installed on their own computer.
- Storage space for each person1 TB
- People who get their own account1
- Word, Excel and PowerPoint installed on your computerIncluded
- Email with no advertisementsIncluded
- Microsoft's AI helper (Copilot)Included
Microsoft 365 Family
$12.99 a month
or $129.99 a year
Best for: A household of two or more people. Almost always better value than two Personal plans.
- Storage space for each person1 TB
- People who get their own account6
- Word, Excel and PowerPoint installed on your computerIncluded
- Email with no advertisementsIncluded
- Microsoft's AI helper (Copilot)Included
Microsoft 365 Premium
$19.99 a month
or $199.99 a year
Best for: People who want the most advanced AI features and do not mind paying more.
- Storage space for each person1 TB
- People who get their own account6
- Word, Excel and PowerPoint installed on your computerIncluded
- Email with no advertisementsIncluded
- Microsoft's AI helper (Copilot)Included
What actually differs between the plans
Only 4 things change as you move up the Microsoft 365 plans: storage space for each person, people who get their own account, word, excel and powerpoint installed on your computer, microsoft's ai helper (copilot). Everything else is the same on every plan, so those are the only questions worth asking yourself.
| Plan | Price | Storage space for each person | People who get their own account | Word, Excel and PowerPoint installed on your computer | Microsoft's AI helper (Copilot) |
|---|---|---|---|---|---|
| Microsoft 365 Basic | $1.99/mo | 100 GB | 1 | Not included | Not included |
| Microsoft 365 Personal | $9.99/mo | 1 TB | 1 | Included | Included |
| Microsoft 365 Family | $12.99/mo | 1 TB | 6 | Included | Included |
| Microsoft 365 Premium | $19.99/mo | 1 TB | 6 | Included | Included |
Head-to-head comparisons
- Microsoft 365 Microsoft 365 Basic vs Microsoft 365 Personal
- Microsoft 365 Microsoft 365 Personal vs Microsoft 365 Family
- Microsoft 365 Microsoft 365 Family vs Microsoft 365 Premium
Common questions about Microsoft 365 plans
Can I use Word and Excel without paying anything?
Yes, in a limited way. Microsoft offers free versions of Word, Excel and PowerPoint that run in a web browser. You only need a paid plan if you want the full programs installed on your computer.
Is the Family plan better value than Personal?
Almost always, if more than one person will use it. Family is $12.99 a month for up to 6 people, only $3 a month more than Personal for one person. Watch out for one thing: the AI helper is only for the person who pays.
Should I pay monthly or yearly?
Yearly is cheaper if you are sure you will keep it. Family costs $129.99 a year instead of about $155.88 if paid monthly, a saving of roughly $26.
What happens to my files if I stop paying?
Your files are not deleted, but the installed programs become read-only and your OneDrive storage drops back to the free 5 GB. If you are storing more than that, Microsoft stops syncing new files until you free up space or resubscribe.
Where this information comes from
- Microsoft 365 for Individuals – Plans and Pricing ↗ – checked September 21, 2026
- Compare All Microsoft 365 Products ↗ – checked September 21, 2026
Prices read from Microsoft's official US pages on 2026-09-21. Storage is recorded per person; Family and Premium advertise 6 TB total, which is 1 TB each for up to 6 people. Copilot AI is included with Personal, Family and Premium but on the shared plans it is limited to the subscription owner.
BetterTier is not affiliated with Microsoft 365. Plan names are used only to identify the plans being compared.