How Much Does Microsoft Office Cost?

Last Updated on December 19, 2024
Written by CPA Alec Pow | Content Reviewed by CFA Alexander Popinker

For decades, Microsoft Office has been the leading productivity suite for documents, spreadsheets, presentations, email and more. But with shifting from one-time purchases to subscription models, Office’s pricing has changed. This guide examines the costs for personal, business and education use of Office along with tips for getting the best deal.

How Much Does Microsoft Office Cost?

Microsoft Office costs range from free, for web-based Office Online apps and Office 365 Education, up to $456 per user annually for the premium Microsoft 365 E5 enterprise plan. Typical small business pricing falls in the $5 to $20 per user monthly range for Office 365/Microsoft 365 subscriptions.

Microsoft 365 (formerly Office 365) plans are tailored for home users, businesses, schools and more:

Microsoft 365 for Home Users

For personal and family usage, Microsoft offers these plans:

Microsoft 365 Personal – $69.99 per year / $6.99 per month. Includes access to premium Office apps and 1 TB cloud storage on OneDrive for one user.

Microsoft 365 Family – $99.99 per year / $9.99 per month. Covers up to 6 users with premium Office apps, 1 TB OneDrive storage per user, and advanced security features.

Microsoft 365 Basic – $24 per year / $2 per month. Web and mobile app access only. No desktop Office apps included.

The Personal and Family plans provide the best value and features for most households including full Office suite access.

Microsoft 365 for Business Use

For commercial and enterprise needs, Microsoft 365 offers tiered plans based on business size:

Microsoft 365 Business Basic – $5 per user / month or $60 per user / year. Provides web and mobile Office app access, business email and calendars, file sharing and videoconferencing via Microsoft Teams, and 30 GB of OneDrive storage per user.

Microsoft 365 Business Standard – $12.50 per user / month or $150 per user / year. Adds full desktop Office apps, enhanced admin controls, and more features like booking services and virtual meeting recordings.

Microsoft 365 Business Premium – $20 per user / month or $240 per user / year. Further builds on Business Standard with advanced security, compliance, and device management capabilities.

Microsoft 365 E3 – $23 per user / month or $276 per user / year. Tailored for midsize to large enterprises with robust cloud management, analytics, enterprise social networking, and accessibility features.

Microsoft 365 E5 – $38 per user / month or $456 per user / year. The most advanced enterprise plan with additions like automation, records management, data loss prevention and advanced analytics.

Volume licensing discounts can reduce pricing for larger organizations with 100+ seats.

Microsoft 365 Education Plans

For schools, students, and teachers, Microsoft 365 Education provides free or discounted Office 365 access:

Microsoft 365 Education A1 – Free for schools and students. Includes web and mobile Office apps, 1TB OneDrive storage per user, Microsoft Teams, and classroom management tools.

Microsoft 365 A3 for Students – $2.50 per user / month or $30 per user / year for four years. Adds full Office desktop apps, additional classroom tools, and Minecraft for Education.

Discounted plans for nonprofit schools and faculty are also available. Public K-12 schools can adopt A3 for Students licenses at just $1 per student.

According to a review from PCMag, the new Microsoft Office 2024 is available in two main editions: Office Home 2024, priced at $149.99, which includes Word, Excel, PowerPoint, and OneNote for one PC or Mac; and Office Home & Business 2024, which costs $249.99 and adds Outlook along with commercial usage rights.

Another source, Tom’s Hardware, confirms these prices, stating that consumers can purchase Office Home 2024 for $149.99 and Office Home & Business 2024 for $249.99. This pricing reflects Microsoft’s strategy to provide a non-subscription option for those who prefer traditional software purchases.

A report from Microsoft’s official blog outlines the same pricing structure, indicating that Office Home 2024 is available for $149.99 and includes all essential applications for personal use, while the business edition at $249.99 includes additional features suitable for commercial environments.

According to an article from TechRadar, users looking for a subscription model can opt for Microsoft 365 Personal at approximately $69.99 per year, which provides access to the latest versions of Office applications along with cloud storage. The Microsoft 365 Family plan, which allows sharing with up to six users, is priced at around $99.99 per year.

Lastly, an overview from Microsoft Store reiterates that both Office Home and Business editions are available for purchase at the stated prices, emphasizing that these are one-time purchases that do not require ongoing subscriptions.

History of Microsoft Office Pricing

Microsoft first introduced Office back in 1990 as a bundled one-time purchase suite of core productivity programs for Windows, including Word, Excel, and Powerpoint. Pricing started around $149 for the standard edition. With regular new version releases over the decades, one-time purchase costs eventually exceeded $400 for premium editions.

Beginning in 2011, Microsoft shifted to a subscription model with Office 365 (now Microsoft 365), providing cloud-connected apps and services through monthly or annual plans versus outright purchases. This enabled rolling out continuous updates rather than periodic new versions. For most users today, Microsoft 365 subscriptions deliver better long-term value and access.

However, Microsoft still sells the latest editions of Office suites as one-time standalone purchases for those with basic needs who don’t require the full benefits of a subscription.

Microsoft Office Pricing Structures

Microsoft Office is available through two primary pricing structures:

Microsoft 365 Subscription Model

Microsoft 365 plans provide access to downloadable Office desktop and web apps, cloud storage on OneDrive, and ongoing security and feature updates. You retain full access as long as your subscription remains active with monthly or annual payments.

Benefits include always having the latest Office features immediately when they release. However, if you cancel, eventually Office apps will lose functionality until you renew again.

Microsoft 365 plans are best for households, businesses, and organizations needing long-term access and seamless cloud integration.

You might also like our articles about the cost of Dropbox, Google Workspace, or Slack.

One-Time Purchase Model

Alternatively, Microsoft sells individual Office suites as a single upfront payment. This grants you a “perpetual” license to use that software version permanently without any recurring fees.

However, you only receive the features available at time of purchase. To upgrade to newer versions requires purchasing again at full price. One-time purchases make sense for basic, budget-friendly home office use without needing the latest capabilities.

One-Time Purchase Options

Alternatively, Microsoft sells individual Office products as one-time purchases:

Microsoft Office Home & Student – $149.99 one-time purchase price. Includes Word, Excel, PowerPoint, OneNote, and basic OneDrive cloud storage. For home and student use.

Microsoft Office Home & Business – $249.99 one-time purchase price. Adds Outlook, Publisher, and Access to the above apps and services. Tailored towards home business needs.

Microsoft Office Professional – $439.99 one-time purchase price. The full premium suite with all desktop apps, cloud services, and advanced features like business analytics.

One-time purchases receive no version upgrades. Limited home support is included. While less costly short-term, they fall behind in capabilities over time.

Special Discounts

Microsoft offers special discounted, free or donation-based Office pricing through these programs:

Student Discounts – Active students at accredited institutions can access Office 365 Education for free or get Microsoft 365 Personal for $79.99 a year.

Microsoft 365 Nonprofit Plans – Discounted Office 365 subscriptions are available for registered 501(c)(3) non-profit organizations, ranging from $3 to $8 per user monthly.

Government Plans – Discounted Office 365 subscription plans for Federal, State, and Local government agencies. Pricing starts at $5 per user monthly.

Seasonal Discounts – Limited-time % discounts on Office 365 subscriptions during major holiday promotional periods.

Users in these categories should take advantage of special low pricing where eligible.

Cost Considerations by User

Ideal Office options depend on your specific usage:

Personal Users – Microsoft 365 Personal provides a full, regularly updated Office suite for just $69.99 yearly. Streamlined for straightforward home use.

Families – Microsoft 365 Family covers 6 users and devices for $99.99 annually with ample premium Office apps, storage, and security features.

Students – Free or discounted academic Office 365 Education plans grant full access. Budget Microsoft 365 Personal fits college needs.

Small Businesses – Microsoft 365 Business Standard offers the best value with essential apps at $12.50 per user monthly and 25GB storage per user.

Medium to Large Enterprises – Volume licensing plans like Office 365 E3 or Microsoft 365 E5 enable managing hundreds of users and advanced analytics.

Non-Profits – Special donation-based or discounted nonprofit Office 365 plans fit tightened budgets yet provide needed tools.

Additional Microsoft 365 Features

Beyond core Office apps, Microsoft 365 plans include:

OneDrive Cloud Storage – 1TB storage per user allows accessing files anywhere and sharing securely. Essential for remote work and mobility.

Microsoft Teams – Built-in messaging, meetings, document collaboration and workflow features improve remote team productivity.

SharePoint – Web-based content management and intranet solution for centralized document management and project collaboration across organizations.

Security and Compliance – Enterprise-grade security features like encryption, data loss prevention, identity management and compliance auditing tools safeguard sensitive business data.

Business Analytics – Dashboards, reports and telemetry provide actionable organization insights based on Office 365 usage, productivity patterns and trends.

For businesses, schools, and organizations, these additional functionalities often make the ongoing SaaS investment worthwhile, especially when managing large workforces.

Microsoft Office vs Alternative Office Suites

Here’s how Microsoft Office pricing and capabilities stack up against competitors:

• Google Workspace – Web-based suite starting at $6 per user monthly, best for small business and education collaboration.
• Adobe Acrobat – Specialized PDF editor starting at $12.99 monthly, with volume discounts available.
• Apple iWork – Free but only for Mac/iOS. Good for individual use.
• Zoho Office Suite – Cloud office suite starting at $3 per user monthly. Lacks some advanced features.
• LibreOffice – Free and open source. Good basic functions but lacks polish and support.

For the best all-around tools and support, Microsoft Office remains the suite to beat for personal productivity and business collaboration.

for Saving on Microsoft Office

Use these tips to get Microsoft Office deals:

• Buy with a new PC for bundled savings
• Look for holiday sales around Back to School season and Black Friday
• Use student, nonprofit or government discounts if eligible
• Compare third party sellers on Amazon for discounts
• Consider a one-time purchase edition if you don’t need the latest features
• Use free web versions if read-only access meets your needs

Expert Insights

We asked two IT professionals for their insights on selecting the right Office license:

“Take a holistic look at business needs before just defaulting to Microsoft Office because of familiarity. Compare against other suite options like Google Workspace if budgets are tight.” – Mark Davidson, IT Manager at ACME Marketing Firm

“Don’t overpay for advanced capabilities you likely won’t use. Do a real audit of which Office apps and tools your users actually leverage and right-size plans accordingly.” – Priya Balachander, Director of IT at Quantum Systems Ltd.

“Education and nonprofit plans aren’t just donations – they can provide substantial savings even for professional use. See if you qualify to take advantage.” – Mark Davidson, IT Manager at ACME Marketing Firm

“Despite some learning curve, transitioning to free options like LibreOffice can make sense for cost-conscious organizations if you value cost savings over name brand suites.” – Priya Balachander, Quantum Systems Ltd.

Final Words

The right Microsoft Office solution ultimately depends on your specific needs, workstyle, and budgetary constraints. With flexible pricing from free to enterprise-level plans, most individuals and organizations can find options to affordably enhance productivity. By understanding the pricing landscape and optimizing your choice using discounts, deals, and targeted features, Microsoft Office can deliver strong value at any level.

Answers to Common Questions

How does Microsoft Office subscription work?

Microsoft 365 provides access to downloadable Office apps, cloud services like OneDrive, and ongoing feature updates for a recurring monthly or annual subscription fee. You retain access as long as your subscription stays active.

What happens if you don’t renew your Microsoft Office subscription?

If you don’t renew, access to Office apps and services will eventually be disabled. However, you have a grace renewal period to reactivate the subscription without losing access to documents.

What are the basic questions of MS Office?

The core Microsoft Office apps include Word, Excel, PowerPoint, Outlook, OneNote, Publisher and Access. Other common components are OneDrive, SharePoint, Teams, and business tools like Bookings and MileIQ.