What's the difference between Microsoft 365 and Office 2021? (2024)

What's the difference between Microsoft 365 and Office 2021? (1)

Microsoft 365is a subscription service that makes sureyou always have the most up-to-date modern productivity tools from Microsoft. There are Microsoft 365plans 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 businessinclude 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 benefitswithup 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 .

Not sure what you have now? See What version of Office am I using?

Ready to install Microsoft 365apps? See Install Office on your PC or Mac.

Looking for product details and prices?

Buy or try Microsoft 365

Compare Microsoft 365 subscription withOffice 2021 (one-time purchase)

One-time purchase (Example: Office Home & Business 2021)

Microsoft 365 subscription
(Example: Microsoft 365 FamilyorMicrosoft 365 Personal)

Cost

Pay a single, one-time cost.

Pay a small monthly fee, or save by paying for a full year.

Microsoft 365 applications

What's the difference between Microsoft 365 and Office 2021? (2)

Get Microsoft 365 apps like Excel, Word, andPowerPoint.

What's the difference between Microsoft 365 and Office 2021? (3)

Get the fully installed and latest versions ofExcel, Word, PowerPointand 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 Accessand Publisher.)

Feature updates

What's the difference between Microsoft 365 and Office 2021? (4)

Security updates are included, but you won’t get any new features. Upgrades to major releases aren't included.

What's the difference between Microsoft 365 and Office 2021? (5)

Your appswill always be improving. You'll get all the latest features and updates, as well as security updates and bug fixes.

Install Microsoft 365 on more than one computer (Mac or PC)

What's the difference between Microsoft 365 and Office 2021? (6)

One-time purchases can be installed once on either a PC or Mac.

What's the difference between Microsoft 365 and Office 2021? (7)

You can install Microsoft 365Family or Personal, on all your devices and sign in to five at the same time―that means you can use theMicrosoft 365apps no matter where you are or what device you’re on. This includes PCs, Macs, tablets, and phones. WithMicrosoft 365 Familyyou can also share your subscription with up to five other people.

Advanced features on tablets and phones

What's the difference between Microsoft 365 and Office 2021? (8)

Install the mobile apps for free and get basic editing features on tablets or phones under 10.1 inches.

What's the difference between Microsoft 365 and Office 2021? (9)

Install the mobile apps for free and get extra features when you sign in to Microsoft 365 apps on your device.

Extra online storage

What's the difference between Microsoft 365 and Office 2021? (10)

Not included.

What's the difference between Microsoft 365 and Office 2021? (11)

Securely store your files in the cloud and access them from anywhere. Get 1 TB ofcloud storage. WithMicrosoft 365 Familyyou get 1 TB per user, and anyone you're sharing with will also get their own 1 TB of cloud storage.

Technical support is included

What's the difference between Microsoft 365 and Office 2021? (12)

Initial technical support is included for installing only.

What's the difference between Microsoft 365 and Office 2021? (13)

Contact us throughout your subscription at no extra cost for help with technical issues, or for subscription and billing support.

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.

Compare prices

Microsoft 365 subscriptions

For home or personal use:

Microsoft 365 Family (share with up to 5 additional people)

Microsoft 365 Personal (for one individual)

Microsoft 365 Basic

For business use:

Compare Microsoft 365 small and midsized business plans (up to 300 users)

Compare Microsoft 365 enterprise plans

For non-profits:

Microsoft 365 Nonprofit plans

One-time purchases of Microsoft 365

Office Professional 2021

Yes. You can buy standalone versions of Word, Excel, andPowerPointfor 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 Visioor Project, available for PCs only. Buy Visio or buy Project.

Microsoft 365 subscriptions andOffice 2021 can be installed on either Mac or PC.Compare prices

You don't need to be online to use Microsoft 365apps 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 OneDrivedesktop 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 useOffice 2021 apps after they are installed and activated on your device. However, you will need internet access initially to install and activateOffice 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 tosave 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. SeeSync files with OneDrive in Windows orSync files with OneDrive on macOS.

To learn more about the benefits of saving to the cloud, seeVideo: Why store files in the cloud? To learn more about the choices for where to save your files, seeSave your files andSave, back up, and recover a file in Microsoft Office.

Use Contact us at the bottom of this page. Thanks!

See Also

Find out which Office is right for you

What's new in Microsoft 365

Install Office on your PC or Mac

What's the difference between Microsoft 365 and Office 2021? (2024)

FAQs

What's the difference between Microsoft 365 and Office 2021? ›

365 allows you access from multiple devices while 2021 can only reside on one device. It also gets you access to 1 TB cloud storage, which none of the standalone versions of Office do.

Is Microsoft Office the same as Microsoft Office 365? ›

Microsoft 365 plans include Office 2021 as a part of a greater offering. It also includes Windows 10 Enterprise, Enterprise Mobility + Security (EMS), and machine learning. There are multiple plans to choose from depending on your needs. The services included in Microsoft 365 are also available as separate licenses.

What is the main advantage of using Microsoft Office 365 over traditional Office versions? ›

You can work anywhere, anytime

One of the biggest benefits of Microsoft 365 is its flexibility. It allows you to work from anywhere on earth. All you need is an internet connection. You can access your email, files and essential programs like Word and Excel from any location and on any device.

What is the difference between Office 365 and Excel 2021 functions? ›

Limited updates and features Microsoft Excel 2021 does not receive regular updates and feature additions like Microsoft Excel 365. This means that users may miss out on new and improved tools and functions.

Can I install both Office 365 and Office 2021? ›

If you have a Microsoft 365 subscription or non-subscription version such as Office Home and Business 2021, 2019, 2016 or 2013, in most cases you can't run these versions together on the same computer.

How is Microsoft 365 different from Office 365? ›

Microsoft 365 is a comprehensive suite of tools that includes Office 365, Windows 10, and Enterprise Mobility + Security. It is designed to meet the needs of modern businesses with features like advanced security, device management, and collaboration tools.

What is the best version of Microsoft Office? ›

Microsoft 365/Microsoft Office 2021 is the most effective, reliable, and easiest to use of all the suites, but it has two disadvantages: First, it's expensive. Second, you may have strong reasons to avoid proprietary software. If you insist on open-source software, then LibreOffice is your only serious choice.

What are some of the disadvantages of using Microsoft 365? ›

8 Cons & Disadvantages of Microsoft 365 (formerly Office 365)
  • Security Shortcomings in Complex Environments. ...
  • SharePoint Online Versioning Inconsistencies. ...
  • Manual Intensiveness in Teams Permissions Settings. ...
  • Performance Limitations on Low-End Devices. ...
  • Prohibitive Subscription Costs. ...
  • Steep Learning Curve for New Users.
Dec 22, 2023

Why do people pay for Microsoft 365? ›

Any documents you create with the free versions of apps like Word, Excel, and PowerPoint are automatically saved to OneDrive. With a Microsoft 365 Personal or Family subscription, you'll always have the most up-to-date modern productivity tools from Microsoft all with the latest features, fixes, and security updates.

Do you need Microsoft 365 to use Microsoft Office? ›

In countries/regions where Microsoft 365 plans are not available, you can still buy an Office 2021 suite, a one-time purchase which includes 2021 versions of the Office apps, but no additional security or storage features.

What is the major difference between Microsoft Office 2021 and Office 365? ›

The most prominent distinction between Microsoft 365 and Office 2021 comes from the different licensing of the products. Microsoft 365 is a subscription-based service that provides access to the latest versions of Microsoft apps, including Word, Excel, PowerPoint, Outlook and many more.

Is Office 365 better than Office 2021? ›

But Office 2021 doesn't get the continually upgraded features and functionality that Microsoft 365 does. What you get when you buy the suite, feature-wise, is it. If you want the updates, at some point in the future, you will have to buy whatever version Microsoft is selling as a perpetual license then.

What is different about Office 365 2021? ›

What's the difference between Microsoft 365 and Office 2021?
  • 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. ...
  • Microsoft 365 for the web is a free version of Microsoft 365 that you can use in a web browser. ...
  • Not sure what you have now?

How do I switch from Office 2021 to Office 365? ›

Hi Remus, there is no 'upgrades' as such re Microsoft Office. You need to purchase Microsoft 365 Buy Microsoft 365 Family & Personal Subscriptions and Office 2021 – Microsoft Store You should uninstall your Office 2021 before installing Microsoft 365 Personal or Family.

Do I need to uninstall Office before installing Office 365? ›

Warning: If you're installing Microsoft 365 (Office) on a computer with an existing Office version, you must uninstall Office before installing Microsoft 365.

Can I install Office 2021 without a Microsoft account? ›

For those seeking to activate Microsoft Office 2021 without a Microsoft account, please be aware that there doesn't seem to be an official or supported method to do so. Microsoft typically requires a Microsoft account for activation.

Is Microsoft Office now called Microsoft 365? ›

Office is now Microsoft 365.

Is Microsoft Office compatible with Microsoft 365? ›

The most up-to-date subscription versions of the Office client are always supported connecting to Microsoft 365 services. We provide various services to help you upgrade to subscription versions of the Office client.

Is Office 365 replacing Office? ›

Beginning in January 2023, Office.com, the Office mobile app, and the Office app for Windows will become the Microsoft 365 app, with a new icon, a new look, and even more features.

Can I get Microsoft Office for free? ›

Can I download Microsoft 365 for Free? Yes. Use Word, Excel, PowerPoint and more for free with Office on the web.

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