Licensing Microsoft Office

Word, Excel and PowerPoint have traditionally been sold as a package called Microsoft Office. Although this is still available, most people now buy these apps as an annual subscription called Microsoft 365. This guide summarises key facts and common sources of confusion.

Office isn’t free

You need a license to use the familiar desktop versions of Word, Excel and PowerPoint. This usually means buying one for yourself or your family. If you’re in education, your school or university might have a license you can also use on your personal computer, so ask them about this.

It doesn’t come with the computer

When you buy a Windows PC, you’ll find the Office apps on your Start menu, but they won’t work without a license.

Subscribing has benefits

A Microsoft 365 subscription has the following benefits over a one-time purchase:

You get 1,000 GB of storage in OneDrive to back up your documents and pictures. For most people, this is probably the most important benefit: online backup keeps a copy of your files in case the originals are lost to disk failure, fire, theft, malware or human error.
You can use the apps on more than one computer.
You can use Word, Excel and PowerPoint on larger iPad and Android devices (curiously, these apps are free for tablets with a screen size of 10.1 inches or smaller).
You’ll receive all future versions of the Office apps. In other words, you’ll always have the latest features and security updates.

You need a Microsoft account

Even if you buy Office or Microsoft 365 from a shop, there’s no disc — you just get a product key, which you must link to your Microsoft account in order to download and activate the software. But don’t worry: you’ve probably already got a Microsoft account, and it’s free to create one.

Business licenses are different

The versions of Office and Microsoft 365 most prominently advertised in shops are usually only for you or your family’s personal, non-commercial use — think homework, recipes, and posters for the church fete. If you’re a business, or if you’re self-employed, you need either:

A Microsoft 365 business subscription for each person using it.
A one-time purchase of Office Home & Business for each computer.

You might not need it

Alternative word processors, spreadsheets and presentation apps are available. They can open files created with Office:

Apple Mac computers come with Pages, Numbers and Keynote.
Google offers Docs, Sheets and Slides for free.
There’s a community-created suite called LibreOffice. It’s free, but will benefit from a donation if you can make one.

Microsoft also makes web-based versions of Word, Excel and PowerPoint available for free. This means you use them in a browser, like Chrome or Edge, and store your files exclusively in OneDrive rather than on your computer. Their features are limited compared to the traditional desktop versions.

License options

Time to buy? Here are the popular options, with prices as of March 2025:

Use	Pay annually	Pay once
Personal	365 Personal: £84 1 person, multiple devices	Office Home: £119 One computer only
Family	365 Family: £104 6 people, multiple devices	–
Business	Apps for business: £123 1 person, multiple devices	Office Home & Business: £249 One computer only

You can buy your chosen edition as a download directly from Microsoft.

Beware of illegitimate sellers

There are many websites selling product keys for Office at suspiciously low prices. As you might imagine, these keys are typically counterfeit, stolen, or otherwise obtained in ways that mean they cannot legitimately be used. Be sure to buy the software either directly from Microsoft or from a reputable retailer like Argos, Currys or John Lewis.