Licensing Microsoft Office

Word, Excel and PowerPoint have traditionally been sold together as a package called Microsoft Office. While this is still available, most people now buy the Office apps as a monthly or annual subscription called Microsoft 365. This guide presents the key facts and addresses common sources of confusion.

Office isn’t free

You need a license to use the familiar desktop versions of Word, Excel, PowerPoint and the other Office apps. Usually, this means buying one for yourself or your family.

If you’re in education, your school or university might have a license that you can also use on your own computer, so ask them about this.

It doesn’t come with the computer

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

There are benefits to a subscription

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

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 Microsoft 365 and Office 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, you need either a Microsoft 365 business subscription for every employee who uses the apps, or a one-time purchase of Office Home & Business for each computer. The same is true if you’re self-employed.

You might not need it

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

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 September 2024:

UsePay annuallyPay once
Personal365 Personal: £59
1 person, multiple devices
Home & Student: £119
One computer only
Family365 Family: £79
6 people, multiple devices
BusinessApps for business: £123
1 person, multiple devices
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.