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Microsoft 365

Word, Excel, Outlook, Teams and OneDrive in one subscription

Freemium · $2Team communicationPersonal productivity
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Microsoft 365 is a personal productivity tool for Small businesses and Enterprise, offered as freemium ($2/mo). Based in United States, founded in 2011. Popular alternatives include Google Workspace, bytemail, Miro.

About Microsoft 365

Microsoft 365 is Microsoft's subscription suite of productivity apps and cloud services: Word, Excel, PowerPoint, Outlook, OneNote, OneDrive and, on business plans, Teams, Exchange email and SharePoint. It grew out of Office 365, launched in 2011, and took the Microsoft 365 name for consumer and small-business plans in 2020. Copilot AI is now built into the apps.

The suite is split into home and business lines. Free web and mobile apps work with a Microsoft account and 5 GB of OneDrive. Home plans run from Basic at $1.99 a month (100 GB, no desktop apps) to Personal, Family and Premium, which add desktop apps, 1 to 2 TB of storage and growing Copilot limits. Business plans start at Business Basic (web apps, Teams, email), Business Standard adds desktop apps, and Business Premium adds Intune device management and Defender security.

Microsoft 365 fits any organization that lives in Excel and Outlook, needs strong admin and compliance controls, or works with clients who send Office files. Real-time co-editing is good but feels less fluid than in Google Workspace, and the licensing maze confuses small buyers. Google Drive with Docs suits browser-first teams, Notion is better for wikis and lightweight project docs, and Slack offers a richer chat ecosystem than Teams.

Microsoft raised US business list prices on July 1, 2026: Business Basic moved from $6 to $7 and Business Standard from $12.50 to $14 per user per month, while Business Premium stayed at $22. Existing customers keep old pricing until their first renewal after that date.

Key features of Microsoft 365

  • Desktop, web and mobile versions of Word, Excel, PowerPoint and Outlook
  • Copilot in Word, Excel, PowerPoint and Outlook on paid home plans
  • OneDrive cloud storage from 100 GB up to 2 TB on home plans
  • Teams chat, meetings and webinars on Business plans
  • Exchange business email with custom domains and 50 GB mailboxes
  • SharePoint intranet sites and document libraries for teams
  • Intune device management and Defender security in Business Premium
  • Family plan sharing with up to six people

Pros and cons

Pros

  • Industry-standard file formats and the most capable spreadsheet in Excel
  • Desktop apps remain more powerful than any browser-based rival
  • Business Premium bundles security and device management at a fair price
  • Free web apps cover light editing without a subscription
  • Turkish and dozens of other interface languages

Cons

  • Plan and add-on licensing is confusing for small buyers
  • July 2026 increase raised Business Basic and Standard prices
  • Copilot usage limits and features vary by plan and region
  • Teams and SharePoint can feel heavy for small teams
  • Real-time co-editing less smooth than Google Docs

Microsoft 365 pricing

Microsoft 365 uses a freemium model. A 30-day free trial is available.

PlanPriceIncludes
Microsoft 365 Basic$1.99 / mo100 GB OneDrive and ad-free Outlook; no desktop apps or AI
Personal$9.99 / mo$99.99/year; 1 person, 1 TB, desktop apps with Copilot
Family$12.99 / mo$129.99/year; up to 6 people, 2 TB shared, Copilot for owner
Premium$19.99 / mo$199.99/year; Family plus extensive Copilot usage
Business Basic$7 / user/moAnnual commitment; web and mobile apps, Teams, 1 TB, email
Business Standard$14 / user/moAnnual commitment; adds desktop Office apps and webinars
Business Premium$22 / user/moAnnual commitment; adds Intune, Defender and Entra ID P1

Source: www.microsoft.com · checked on Oct 20, 2026

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Price changes for Microsoft 365

Verified changes to Microsoft 365's prices and plans, newest first.

All price changes
Price increase · Effective

Microsoft 365 Business Basic rises $6 to $7, Business Standard $12.50 to $14 per user

Microsoft's commercial price update effective July 1, 2026 also raises Apps for business (includes Excel) from $8.25 to $10.00, Microsoft 365 E3 from $36 to $39 and E5 from $57 to $60 per user a month. Existing customers stay on current pricing until renewal; standalone Teams and Copilot SKUs are excluded.

from$6to$7per user a month, Microsoft 365 Business Basic (USD list price)

Sources:Microsoft Licensing, 2026 Microsoft 365 packaging and pricing updates

Plan change · Effective

Microsoft 365 Enterprise suites with Teams return on sale; no-Teams suite prices cut

Microsoft's licensing FAQ says that as of November 1, 2025 Enterprise suites with Teams are again available to all customers worldwide in all channels, and prices of Enterprise and Business suites without Teams are reduced. Existing customers get the new pricing at their next renewal; suites with Teams are not affected.

Sources:Microsoft Licensing FAQ, Teams and Microsoft 365 suites

Microsoft 365 price history

2026$6$7$1.99
Main plan price of Microsoft 365 over time, from the dated changes above (per user a month, Microsoft 365 Business Basic (USD list price))
2026-07-01$6
2026-07-01$7
2026-10-20$1.99

How Microsoft 365 compares in Personal productivity

Rank by votes
#1 / 49

0 votes from members

Starting price
$2

80% below the category median ($10/mo)

Free alternatives
6

Free or open-source tools in Personal productivity

Microsoft 365 ranks #1 of 49 personal productivity tools by community votes and is priced below most tools in the category.

Common use cases

  1. 1Running company email, calendars and file sharing on one tenant
  2. 2Financial modeling and reporting in Excel with Copilot assistance
  3. 3Managing and securing employee laptops with Business Premium
  4. 4Hosting internal meetings and webinars in Teams
  5. 5Sharing apps and 2 TB of storage across a household
  6. 6Building an intranet and document repository on SharePoint

Best for

Businesses and households that depend on Word, Excel and Outlook and want email, storage, security and AI under one Microsoft account.

Not ideal for

Browser-first teams that prefer lightweight docs and chat (Google Workspace, Notion or Slack fit better).

Integrations

  • Microsoft Teams
  • OneDrive
  • SharePoint
  • Outlook
  • Power Automate
  • Zoom
  • Salesforce
  • Adobe Acrobat

Our take

Microsoft 365 remains the default productivity suite for most companies, and Business Premium is one of the best-value security bundles for small firms. Individuals who rarely use desktop apps can stay on the free web apps or Basic; everyone else should pick Business Standard or Personal.

FAQ

What is Microsoft 365?
Microsoft 365 is a Personal productivity tool: Word, Excel, Outlook, Teams and OneDrive in one subscription.
How much does Microsoft 365 cost?
Microsoft 365 uses a Freemium model; paid plans start at $2 per month.
What are the best alternatives to Microsoft 365?
Community-listed alternatives to Microsoft 365 include Google Workspace, bytemail, Miro, Willow.
Does Microsoft 365 have a free trial?
Yes, Microsoft 365 offers a 30-day free trial.
What does Microsoft 365 integrate with?
Microsoft 365 integrates with Microsoft Teams, OneDrive, SharePoint, Outlook, Power Automate, Zoom and more.
Which platforms does Microsoft 365 support?
Microsoft 365 is available on web, windows, macos, ios, android.
Who is Microsoft 365 for?
Businesses and households that depend on Word, Excel and Outlook and want email, storage, security and AI under one Microsoft account.

Alternatives to Microsoft 365

See all 10

  • Google Workspace

    ▲ 0

    Google's suite of Gmail, Drive, Docs, Meet and Gemini for business

    Paid · $8Small businesses

    checked Oct 20

  • bytemail

    ▲ 0

    Native Mac email client with notch alerts and tracker blocking

    Paid · $4Freelancers

    checked Oct 29

  • Miro

    ▲ 0

    AI-powered visual collaboration canvas for product and design teams

    Freemium · $10Small businesses

    checked Oct 20

  • Willow

    ▲ 0

    AI voice dictation and writing agent that works in any app

    Freemium · $15Freelancers

    checked Oct 22

  • Microsoft Excel

    ▲ 0

    The standard spreadsheet for analysis, modeling and reporting

    Freemium · $10Small businesses

    checked Oct 20

  • Scribe

    ▲ 0

    Auto-generated step-by-step guides and SOPs from screen activity

    Freemium · $17Small businesses

    checked Oct 20

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    Daily planner that pulls tasks from your tools

    Paid · $22Freelancers

    checked Oct 20

  • Superhuman

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    The fastest email experience

    Paid · $30Enterprise

    checked Oct 20

  • Intriq

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    Personal CRM that remembers what people tell you, by voice or text

    Freemium · $8Freelancers

    checked Oct 31

  • ShogunAI

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    Mac assistant that remembers your work and drafts in your voice

    Paid · $62Freelancers

    checked Oct 23

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