Choosing the right Microsoft 365 subscription can feel confusing because each plan includes different apps, different storage limits and different levels of Copilot access. This guide explains the most common Microsoft 365 plans, updated information for 2025 and practical advice to help you choose the option that fits your needs. I also use the Microsoft 365 Family plan myself and share real experience to help you make an informed decision.
Understanding Microsoft 365 Subscription Plans
Microsoft 365 is a subscription service that gives you access to traditional Office apps like Word, Excel, and PowerPoint, along with Outlook for email and Teams for communication. The subscription includes cloud storage through OneDrive, regular security and feature updates, cross device syncing, and access to Microsoft Copilot. Apps stay updated throughout the year, and you can install them on multiple devices.
For people who prefer a one-time purchase, Microsoft also offers Office Home 2024. It includes the essential Office apps and works offline, but it does not include Copilot, cloud storage, or future feature updates. This option is meant for people who want a fixed cost instead of an annual subscription.
Microsoft also provides a free browser-based version at office.com. It is very helpful and convenient for simple tasks or quick access when you do not need full desktop apps. Below is a closer look at how the free version works.
Microsoft 365 Free Version
The free online version of Microsoft 365 works directly in your browser. It includes online versions of Word, Excel, PowerPoint, OneNote, Outlook.com, Forms, To Do, and OneDrive with 5 GB of storage. This version is ideal for basic editing and simple viewing tasks.
How to Get Microsoft 365 for Free
To access the free version of Microsoft 365, follow these steps:
- Begin by visiting office.com.
- Next, sign in (if you already have an account) or sign up for the free version of Microsoft 365 to create your Microsoft accouont.
- Continue by following the on‑screen guidance to complete setup.
- Once logged in, you can use Word, Excel, PowerPoint and other Office apps, directly in your browser.
This version does not include offline access, desktop apps, or premium Copilot features. But it is a great way to try Microsoft 365 without paying for a subscription.
Microsoft 365 Personal, Family and Premium
Microsoft offers three main subscription plans for home users, and each one includes access to Microsoft Copilot. The difference is how much you can do with it. Each subscription includes a monthly pool of AI credits, and Microsoft outlines these limits clearly on their support page. The idea is that Copilot works across all plans, but the level of access varies depending on the subscription.
Below, we’ll take a closer look at what each plan includes and how Copilot fits into your everyday use. For the most up-to-date pricing, you can always check the official Microsoft website.
Microsoft 365 Personal
Microsoft 365 Personal is designed for a single user and includes the main Office apps such as Word, Excel, PowerPoint, Outlook, and OneNote, along with several other apps available on Windows. You can install the apps on your PC, Mac, tablet, and mobile device, and everything stays connected through your Microsoft account.
Main benefits:
- Full desktop versions of the core Office apps for creating documents, spreadsheets, presentations, emails, and notes.
- 1 TB (1000 GB) of OneDrive storage for backing up your files, syncing across devices, and accessing everything from anywhere.
- Copilot on Windows, on the web, and in the Edge browser, helping you write, summarize content, and generate ideas.
- Copilot inside the desktop apps through your monthly pool of AI credits, giving you assistance in Word, Excel, PowerPoint, Outlook, and OneNote.
- Microsoft Designer for creative work, including graphics, social media visuals, and basic image generation.
Microsoft 365 Family
Microsoft 365 Family is designed for households with multiple users. It includes the main Office apps such as Word, Excel, PowerPoint, Outlook, and OneNote, along with several additional apps available on Windows. The plan supports up to six people, and each person gets their own Microsoft account, private OneDrive storage, and access to the apps on their PC, Mac, tablet, and mobile device.
Main benefits:
- Full desktop versions of Office apps for every family member, so everyone can work with the same tools across all devices.
- 6 TB of total OneDrive storage (1 TB / 1000 GB per person), giving each user their own secure place to store files, photos, and personal documents.
- Copilot in Windows, on the web, and in the Edge browser for all members, helping with writing, summarizing, planning, and quick tasks.
- Microsoft Designer for all members, useful for creative projects, social media posts, and basic image generation.
- Shared management through the Microsoft Family dashboard, including safety features, device controls and shared subscription settings.
Important notes about Microsoft 365 Family Plan
- Only the primary account holder receives Copilot inside the desktop versions of Word, Excel, PowerPoint, Outlook and OneNote. Other members still get Copilot in Windows, in the Edge browser, and in the web apps.
- OneDrive storage remains private for every family member, ensuring personal files are secure.
- Users can install Microsoft 365 on up to five devices simultaneously while staying signed in.
- Billing, parental controls, and security settings are managed by the primary account holder.
I personally use the Microsoft 365 Family plan because it offers excellent value. It also fits really well with my workflow. I use it to plan and organize content for my website. If you want to build your own website or start a personal project online, I highly recommend the Hostinger platform. It has been simple, reliable, and affordable for my needs, and it’s beginner friendly if you’re just getting started. You can find their current plans and offers on their official website.
Microsoft 365 Premium
Microsoft 365 Premium includes everything from the Family plan, including support for up to six users, 6 TB of total cloud storage, and full desktop apps for each person. What makes Premium different is its expanded Copilot experience. This plan adds more AI credits each month, higher-priority processing for complex requests and several Copilot features that are exclusive to Premium.
These upgrades matter if you work with long documents, detailed spreadsheets, creative projects, or anything that benefits from deeper AI assistance. Premium is designed for users who rely on Copilot regularly and want faster responses or more advanced capabilities inside the desktop apps. Microsoft provides a clear breakdown of how AI credits work across Personal, Family and Premium plans, and it’s helpful to review it if Copilot is an important part of your workflow.
Microsoft 365 Business Plans
Microsoft also offers a range of business-focused Microsoft 365 plans. These plans are designed for professionals and organizations that need tools beyond what the home plans provide. These options include services such as Exchange Online, SharePoint, Teams for business, and enterprise-grade security tools.
Since this guide is focused on home subscriptions, we will not go into business plans in detail here. If you want to explore all Microsoft 365 Business options, Microsoft keeps the full list and pricing updated on their official website.
Office 2024
Office Home 2024 is a one-time purchase that includes Word, Excel, PowerPoint, and OneNote for a single computer. It works completely offline and gives you a traditional desktop experience without any ongoing subscription fees. This version does not include Copilot, OneDrive cloud storage, or feature updates. It is best suited for users who only need the essential Office apps and prefer a simple, one-time payment. If you want to see how Office Home 2024 compares to Microsoft 365 subscriptions, check out my Microsoft 365 vs Office 2024 post.
Microsoft 365 offers a lot of flexibility, and the best plan for you depends on how you work and what you need every day. Some people only need the essential apps, others want cloud storage and syncing across multiple devices. Additionally, many of us now rely on Copilot to help with writing, planning and staying organized. Microsoft’s plans cover all of these scenarios, so it’s more about matching the features to your own workflow.
I personally use the Microsoft 365 Family subscription for both personal and website work. I store documents, photos, drafts and my planning notes across several devices, and having everything synced in OneDrive has saved me a lot of time. I especially appreciated the subscription when I switched from previous laptop to my Copilot+ PC. Everything transferred seamlessly once I signed in. And I could continue working instantly without reinstalling or hunting for files. If you’re curious about Copilot+ PCs or thinking about upgrading your own device, feel free to explore my Copilot+ PC category where I share hands-on experience and detailed guides.
Microsoft also runs promotions throughout the year, especially around holidays and back-to-school season, so it’s always worth checking the latest pricing on the official Microsoft website if you’re considering a subscription. Spending a few minutes comparing the plans to your daily habits will make it much easier to choose the one that fits you best.
