When Microsoft launched Windows 11 weeks ago, it unveiled Office 2021 as well. Office 2021 is the latest version of Microsoft’s productivity suite – with the last version unveiled in 2019 (Office 2019). But because both Office 2021 and Microsoft 365 have similar offerings, you might be wondering why Microsoft is selling two versions of essentially the same product, wondering how different are they? and which of them should you go for? In this article, we will be telling you about both products; their differences and similarities.

Office 2021 vs Microsoft 365: Key Differences

One-Time Fee vs. Subscription

Office 2021 is a one-time purchase software that allows users to buy, install and run Office apps like Word, Excel, and PowerPoint for only one computer. The downside of this is that you do not have an option to upgrade until the next version of Office is released. And this typically takes 2-3 years. Also, you will have to pay the full amount to get this new version when it is released. One-time purchase of Office 2021 starts from $149.99.

Microsoft 365 on the other hand, is a subscription-based (monthly/yearly) version of Office. But unlike Office, this one makes sure your apps are always up-to-date with the latest features. Microsoft 365 comes with a variety of plans for personal, family, businesses, large enterprises, schools, and non-profits. The family plan is quite interesting. It allows you to share your subscription with family members (up to 5 other people). Also, you can use your apps on up to 30 devices. The Personal plan for Microsoft 365 costs $69.99/year or $6.99/month, while the Family plan costs $99.99/year or $9.99/month.

Getting the Right One

If you are not a fan of continuous subscriptions and only use the basic functions of Microsoft Word, Excel, and PowerPoint, then I advise you to go for Office 2021. However, if you need Microsoft’s Office applications for multiple people (family members or your employees), your best bet is Microsoft 365 as it offers you more.