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Microsoft 365 comes in more flavors than most people realize. From lean personal subscriptions built for a single user, to enterprise-grade plans packed with advanced security and compliance tooling, there’s a tier designed for almost every scenario. The challenge is figuring out which one actually matches your situation — and avoids paying for features you’ll never use. This article breaks down the five most popular Microsoft 365 plans, compares them side by side, and gives you a straightforward framework for making the right call.

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Personal Plans

If you’re an individual or part of a household, Microsoft’s consumer-facing plans offer excellent value. Both plans include the full suite of Office desktop applications, 1 TB of OneDrive storage per user, and access to Microsoft 365 on Windows, macOS, iOS, and Android.

Microsoft 365 Personal

Designed for a single user, this plan gives you access to all the core Office apps — Word, Excel, PowerPoint, Outlook, and OneNote — on up to five devices simultaneously. You also get 1 TB of OneDrive cloud storage and access to Microsoft Defender for personal device security. At approximately **6.99/month∗∗(or6.99/month** (or 69.99/year), it’s the most affordable way to get the full desktop app experience with continuous updates.

Microsoft 365 Family

Everything in Personal, extended to up to 6 people in your household. Each person gets their own 1 TB of OneDrive storage (6 TB total across the family), their own sign-in, and their own set of up to five device installs. At approximately **9.99/month∗∗(or9.99/month** (or 99.99/year), this plan offers exceptional value if two or more people in your home want Microsoft 365 — it works out to less than $1.70 per person per month.

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Business Plans

Microsoft 365’s business-tier plans are built for organizations of any size. They add professional email hosting, domain management, Microsoft Teams for internal communication, SharePoint for team file storage, and admin controls for managing multiple employee accounts from a centralized portal.

Business Basic

The entry-level business plan at approximately $6.00/user/month. It includes the web and mobile versions of Office apps (not the full desktop apps), Microsoft Teams, Exchange email hosting with a custom domain, SharePoint, and 1 TB of OneDrive storage per user. Best suited for organizations that work primarily in browsers or on mobile devices.

Business Standard

The most popular business plan at approximately $12.50/user/month. It includes everything in Business Basic, plus the full desktop versions of Word, Excel, PowerPoint, Outlook, Access (PC only), and Publisher (PC only). You also get webinar hosting capabilities in Teams and additional reporting tools. Ideal for businesses where employees need the full Office experience on their computers.

Business Premium

The top-tier small business plan at approximately $22.00/user/month. It includes everything in Business Standard, plus a powerful layer of advanced security and device management features: Microsoft Intune for mobile device management, Azure Active Directory Premium, Microsoft Defender for Business, and data loss prevention policies. The right choice for any business handling sensitive data or operating in a regulated industry.

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Feature Comparison Table

Use this table to compare the five plans at a glance across the features that matter most.

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How to Choose the Right Plan

Still weighing your options? Use the tabs below to find the recommendation that matches your situation.
If you’re a single user — whether you work from home, freelance, study, or just want Office for personal projects — Microsoft 365 Personal is almost certainly the right plan. At around 6.99permonth,itgivesyouthefulldesktopOfficeappsonuptofiveofyourowndevices(laptop,desktop,tablet,phone),1TBofOneDrivecloudstorage,andaccesstoMicrosoftDefender.Yougeteverythingyouneedwithoutpayingforfeaturesdesignedforteams.Ifcostisaconcern,theannualplanworksoutto6.99 per month, it gives you the full desktop Office apps on up to five of your own devices (laptop, desktop, tablet, phone), 1 TB of OneDrive cloud storage, and access to Microsoft Defender. You get everything you need without paying for features designed for teams. If cost is a concern, the annual plan works out to 69.99 per year — roughly the price of two months on the monthly plan.
Not sure whether a plan is right for you in the long run? Most Microsoft 365 personal plans offer a free 1-month trial — no commitment, cancel before the trial ends and you won’t be charged. It’s the smartest way to try the full experience before deciding on a monthly or annual subscription. Look for the “Try free for 1 month” option on the Microsoft 365 pricing page.
Once you’ve settled on the right plan, the next step is getting everything installed and configured. Head over to our step-by-step Microsoft 365 setup guide to walk through the entire process — from creating your Microsoft account to signing in on all your devices — in under 30 minutes.