Octobits Blog – Microsoft 365 is a must-have for businesses and individuals alike thanks to its versatility and comprehensive features. But how much does Microsoft 365 cost each year? Is it worth the investment?
Microsoft 365, which used to be called Office 365, has become a must-have tool for many thanks to its full range of applications, including Word, Excel, PowerPoint, and Outlook.
However, with so many plans to choose from, it can be tricky to work out the cost.
So, this is our chance to break down the different Microsoft 365 plans.
How Much Does Microsoft 365 Cost Per Year?
The answer isn’t straightforward because Microsoft has different pricing plans for different types of users.
Microsoft has a tiered pricing structure that caters to different users, like personal, family, business, and enterprise users.
Each user segment gets a range of features and services that are tailored to their needs.
You can read “Microsoft 365 Developer Program Cost: A Guide of Free to Paid Innovation,” to learn more about the specific developer program.
Microsoft 365 Plans and Pricing
Now, let’s take a look at the different plans and the associated costs.
Personal and Family Plans
Microsoft 365 Personal is designed for individual users and costs $69.99 a year. This plan gives you access to all the essential Microsoft apps, including Word, Excel, and PowerPoint.
Plus, users get 1 TB of OneDrive storage, which is plenty of space for documents, photos, and other files.
If you’re looking for something for the whole family, Microsoft 365 Family is a great option, priced at $99.99 per year. This plan supports up to six users, each with their own 1 TB of OneDrive storage.
Plus, you can use Microsoft apps on all your devices, including PCs, Macs, tablets, and smartphones. It’s flexible and easy to use.
Business Plans
Microsoft has a range of plans for businesses, so there’s something for everyone.
The Microsoft 365 Business Basic plan is the entry-level option, costing $6 per user per month when billed annually.
This plan includes the web and mobile versions of the core Office apps, like Word, Excel, and PowerPoint.
Plus, each user gets 1 TB of OneDrive storage for document management and sharing.
If you’re looking for more, the Microsoft 365 Business Standard plan is for you. It’s priced at $12.50 per user per month, billed annually, and it includes all the features of the Business Basic plan plus some extra goodies.
This plan gives you desktop versions of Office apps, so you can access them offline and use all the advanced features. Plus, it includes business services like email hosting with a 50 GB mailbox.
If you need more advanced features, the Microsoft 365 Business Premium plan is available at $22 per user per month, billed annually.
This all-in-one plan includes all the features of the Business Standard plan, plus extra security and device management tools.
Enterprise Plans
Microsoft has some great plans for businesses that need to meet the needs of large organizations with advanced security, compliance, and management requirements.
The Microsoft 365 E3 plan costs $33.75 per user per month when billed annually and gives you access to all the major Office apps.
It’s got all the enterprise-level security features, compliance tools, and comprehensive management capabilities you could need.
The Microsoft 365 E5 plan is the most comprehensive option, costing $54.75 per user per month, billed annually.
On top of all the good stuff in the E3 plan, the E5 has some extra security measures, advanced analytics, and voice capabilities.
These features include advanced threat protection, identity management, and detailed analytics tools that give you insights into how your business is doing and how secure it is.
E5’s voice capabilities are all about enterprise-level telephony.
For frontline workers, Microsoft offers the Microsoft 365 F3 plan, which costs $8 per user per month, billed annually.
This plan includes web and mobile versions of Office apps and the basic services employees need to connect and collaborate on the go.
Educational Plans
Microsoft offers special deals for educational institutions, often at reduced rates or even for free.
These plans include Microsoft 365 A1, A3, and A5, which give you different levels of access to Office apps, tools, and security features.
To figure out which plan is right for your institution, you’ll need to get in touch with a Microsoft sales representative.
Factors Influencing the Cost
The number of users has a big impact on the overall price. Family plans, like Microsoft 365 Family at $99.99 a year, let up to six users share the cost, making it a good deal for multiple people.
Business plans are different. They charge per user, so costs go up with each extra person on the team.
The features included in the plan also affect the price. Basic plans have all the essential apps.
Meanwhile, premium plans, like Microsoft 365 Business Premium, which costs $22 per user per month, have advanced security features, device management, and compliance tools, which justify their higher costs.
Also, think about how the billing frequency affects the total cost. You’ll usually get a discount if you pay for an annual subscription instead of monthly.
For instance, Microsoft 365 Personal costs $69.99 a year, but would total $83.88 if paid monthly at $6.99 a month. That makes annual payments a better deal for many users.
For additional security reference, kindly check “How Investment in Microsoft 365 Defender Cost Pays You Back.”
Cost Comparison with Other Software Solutions
Comparison with Google Workspace
Google Workspace, which used to be called G Suite, has a bunch of tools that help you get stuff done, similar to Microsoft 365.
Google Workspace plans start at $3.60 per user per month if billed annually.
The Business Standard plan costs $8.40 per user per month with a one-year commitment. The Business Plus plan is $18 a month if you pay annually.
Each plan has different storage capacities and features. The higher-tier plans have more advanced capabilities, like increased storage and enhanced security features.
Comparison with Zoho Office Suite
Zoho Office Suite is a more affordable alternative to Microsoft 365. The standard plans start at $3 per user per month and require an annual billing commitment.
The Professional plan is $6 per user per month and requires an annual billing commitment.
However, while Zoho’s pricing is attractive, it doesn’t have all the same features as Microsoft 365, like really robust security and all the office apps you could need.
Zoho’s suite has some basic productivity tools, but if you need more advanced functionalities and tighter integration with other enterprise tools, Microsoft 365 might be a better choice.
Comparison with Apple iWork
Apple iWork is a free office suite that includes Pages, Numbers, and Keynote. It’s a solid choice for Mac users, offering basic document creation, spreadsheet management, and presentation tools.
However, iWork doesn’t have all the features and cross-platform compatibility that Microsoft 365 does.
Also, iWork doesn’t have the same kind of enterprise-level tools and integration that you’ll find in Microsoft 365, so it might not be the best fit for businesses with more complex needs.
How Much Does the Office 365 Program Cost?
Office 365 is now part of Microsoft 365, and the costs are in line with the Microsoft 365 pricing structure.
For instance, Office 365 Business Premium is now Microsoft 365 Business Standard at $12.50 per user per month.
If you need to double-check any of the info we’ve given you or want to buy a product, just head over to the Microsoft 365 product comparison page here.
We don’t get any kind of affiliate benefit or incentives for sending you to the Microsoft 365 product page.
At Octobits, we’re here to help you find reliable and worthwhile products.
Microsoft 365 has always been a reliable product, and it’s inspired us to build Octobits into a SaaS management platform to help streamline your business operations.
Octobits has tools to help you track your software’s usage, ensure you’re following the rules, and better understand it.
If you want to know more about how Octobits can help your company manage software license, kindly visit the Octobits website. The good news is that we’re free to use until the end of December 2024.
In Closing
Finding the best Microsoft 365 plan for you depends on your specific needs. Are you an individual, a family, a small business, or an enterprise?
By figuring out what you need and comparing different plans and options, you can get the most out of Microsoft 365.
If you’re looking for a complete solution to manage your software subscriptions and get the most out of them, tools like Octobits can be really helpful.
So, how much does Microsoft 365 cost per year? It all depends on what you need and what you want to achieve.
