Microsoft 365 Pricing Changes

Microsoft 365 offers two main plans: the Home Plan and the Business Plan. As the names suggest, the Home Plan is designed for families and personal use, while the Business Plan is intended for businesses.

The Business Plans charge per user, while the Home Plans charge per plan.

The Home Plan includes three options:

  • Family: For up to 6 users, with each user receiving up to 1 TB of cloud storage.
  • Personal: For one person, also with 1 TB of cloud storage.
  • One-time Purchase (Office Home): A single purchase for PC or Mac, which does not include cloud storage.

All Home Plans come with Word, Excel, and PowerPoint. However, the One-time Purchase (Office Home) Plan is a basic package without cloud storage or future updates. There are no upgrade options for the one-time purchase plan, meaning if you want to move to a newer version, you’ll need to pay full price.

The Business Plan is ideal if you're interested in collaboration tools and customizations.

It’s generally more affordable to pay for either plan annually rather than monthly. Additionally, college and university students can now subscribe to Microsoft 365 Personal for only $2.99 per month.

The charts and graphs below show how Microsoft 365 prices for the lowest-cost Home Plan have evolved. Prices will be automatically updated when they change. 

Microsoft 365 Price Changes


Date Price (USD)
2024-11-14 69.99
2010-02-04 149.95
2006-12-26 399.00
2002-01-05 499.00

Table: Microsoft 365 Price History


Microsoft 365 Line Graph Price History


Microsoft 365 Bar Chart Price History


Note

The price data displayed above is for the lowest-cost Home Plan with a yearly subscription.

Observation

Although Microsoft has added and removed some features to each plan over the years, the price of the Home Plan has been declining

History

In 2022, Microsoft Office became Microsoft 365.

In 2009, Microsoft acquired the office.com domain to host and sell Office app subscription services.

In 2003, the cheapest Office plans were the "Small Business" and "Standard", which offered tools for basic computer needs.

In the early 2000s, Microsoft offered standalone prices for Word, Excel, and PowerPoint.