What's the difference between Microsoft 365 and Office 2021?
Applies To
Office 2024 Office 2024 for Mac Office 2021 Office 2021 for Mac Office 2019 Microsoft 365 for home Office for business Microsoft 365 admin
Microsoft 365 is a subscription service that makes sure you always have the most up-to-date modern productivity tools from Microsoft. There are Microsoft 365 plans for home and personal use, as well as for small and midsized businesses, large enterprises, schools, and non-profits.
Microsoft 365 plans for home or business include the robust Microsoft 365 desktop apps that you’re familiar with, like Word, PowerPoint, and Excel. You also get extra cloud storage and cloud-connected features that let you collaborate on files in real time. With a subscription, you'll always have the latest features, fixes, and security updates along with perennial tech support at no extra cost. You can choose to pay for your subscription on a monthly or yearly basis. The Microsoft 365 Family plan also lets you share these subscription benefits with up to five additional people.
Note: Microsoft 365 Basic is a subscription for one person. It includes 100GB of cloud storage, secure ad-free email, secure photo and file storage, and Microsoft support. See the Microsoft 365 Basic FAQ for more information.
Most of the Microsoft 365 plans for business, schools, and non-profits include the fully installed desktop apps, but Microsoft also offers basic plans with the online versions of Microsoft 365, file storage, and email. You decide what works best for you: Small business, Enterprise, School, or Non-profit.
Office 2021 is sold as a one-time purchase, which means you pay a single, up-front cost to get Microsoft 365 apps for one computer. One-time purchases are available for both PCs and Macs. However, there are no upgrade options, which means if you plan to upgrade to the next major release, you'll have to buy it at full price.
Microsoft 365 for the web is a free version of Microsoft 365 that you can use in a web browser. All you need is to sign up for a Microsoft account with a new or existing email address. Use Word, Excel, PowerPoint and more for free on the web.
Tip: If you're a small business owner looking for more information on how to get Microsoft 365 set up, visit Small business help & learning.
Not sure what you have now? See What version of Office am I using?
Ready to install Microsoft 365 apps? See Install Office on your PC or Mac.
Looking for product details and prices?
Compare Microsoft 365 subscription with Office 2021 (one-time purchase)
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One-time purchase (Example: Office Home & Business 2021) |
Microsoft 365 subscription (Example: Microsoft 365 Family or Microsoft 365 Personal) |
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Cost |
Pay a single, one-time cost. |
Pay a small monthly fee, or save by paying for a full year. |
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Microsoft 365 applications |
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Get Microsoft 365 apps like Excel, Word, and PowerPoint. |
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Get the fully installed and latest versions of Excel, Word, PowerPoint and Outlook, and OneNote for Windows or Mac. You'll always get the latest features, new tools, security updates, and bug fixes. (PC users also get Access and Publisher.) |
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Feature updates |
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Security updates are included, but you won’t get any new features. Upgrades to major releases aren't included. |
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Your apps will always be improving. You'll get all the latest features and updates, as well as security updates and bug fixes. |
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Install Microsoft 365 on more than one computer (Mac or PC) |
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One-time purchases can be installed once on either a PC or Mac. |
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You can install Microsoft 365 Family or Personal, on all your devices and sign in to five at the same time―that means you can use the Microsoft 365 apps no matter where you are or what device you’re on. This includes PCs, Macs, tablets, and phones. With Microsoft 365 Family you can also share your subscription with up to five other people. |
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Advanced features on tablets and phones |
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Install the mobile apps for free and get basic editing features on tablets or phones under 10.1 inches. |
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Install the mobile apps for free and get extra features when you sign in to Microsoft 365 apps on your device. |
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Extra online storage |
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Not included. |
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Securely store your files in the cloud and access them from anywhere. Get 1 TB of cloud storage. With Microsoft 365 Family you get 1 TB per user, and anyone you're sharing with will also get their own 1 TB of cloud storage. |
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Technical support |
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Access to support resources. Chat is available (Call Back for activation only.) |
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Ongoing support is available via Call Back and Chat. Technical Support is also included for Windows 10 & 11. |
Need help choosing a Microsoft 365 for business plan?
Deciding on a plan can depend on your specific business needs. The Microsoft 365 plan chooser is designed to help you with this. The chooser will make recommendations based on your answers to questions such as the size of your business, your field of work, the devices you use, and what kind of features, IT support, and security you're looking for. See Help me find the right plan for my business.
FAQ
Choose an option below to get pricing info.
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Microsoft 365 subscriptions |
For home or personal use: Microsoft 365 Family (share with up to 5 additional people) Microsoft 365 Personal (for one individual) For business use: Compare Microsoft 365 small and midsized business plans (up to 300 users) Compare Microsoft 365 enterprise plans For non-profits: |
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One-time purchases of Microsoft 365 |
Yes. You can buy standalone versions of Word, Excel, and PowerPoint for Mac or PC. Go to the Microsoft Store and search for the app you want.
You can also get a one-time purchase or a subscription version of Visio or Project, available for PCs only. Buy Visio or buy Project.
Microsoft 365 subscriptions and Office 2021 can be installed on either Mac or PC. Compare prices
You don't need to be online to use Microsoft 365 apps after they are installed and activated on your devices. However, you will need internet access initially to install and activate Microsoft 365, to install any updates, and to manage your billing. Internet access is also required to access documents stored on OneDrive, unless you install the OneDrive desktop app. However, after your Microsoft 365 apps (like Word, PowerPoint, and Excel) are installed, you can use them offline.
You should connect to the internet regularly to keep your apps up to date and benefit from automatic upgrades. If you don’t connect to the Internet at least once a month, your applications will go into reduced functionality mode, and you might see an unlicensed product error. To reactivate your Microsoft 365 applications, simply reconnect to the internet and sign in to Microsoft 365. Learn how to sign in.
You don't need to be online to use Office 2021 apps after they are installed and activated on your device. However, you will need internet access initially to install and activate Office 2021 and to install any updates. In addition, Office 2021 requires reactivation periodically, and may also be triggered by changes to your device’s components, requiring an internet connection. Failing to reactivate may cause your applications to go into reduced functionality mode, or you might get an unlicensed product error.
If you are unable to connect to the internet, you should consider Office LTSC.
No. There are benefits with saving your files to the cloud, but the choice is yours. With both Microsoft 365 and non-subscription versions of Office, you choose where you want to store your documents. The option is yours to save them to a local device or save them to the cloud using a service such as OneDrive.
You can even choose to store your files in the cloud, but continue to access them from your device whether you're online or offline. You do this by syncing your files to your device and making them available for offline access. See Sync files with OneDrive in Windows or Sync files with OneDrive on macOS.
To learn more about the benefits of saving to the cloud, see Video: Why store files in the cloud? To learn more about the choices for where to save your files, see Save your files and Save, back up, and recover a file in Microsoft Office.
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