Microsoft has announced that it will be increasing its pricing from $69.99 per year to $99.99 and from $6.99 per month to $9.99 per month. While this may seem like a disappointment, economic shifts often lead to such changes, and there’s little we can do to prevent them. However, if you’re looking to continue using Microsoft 365 at an affordable price, there are still ways to do so. In this article, I’ll walk you through some practical methods on how to avoid the price increase of Microsoft 365 to help you save money while keeping access to Microsoft’s tools.
Microsoft 365 Price Increase
Microsoft has officially rolled out a significant price increase for its Microsoft 365 Personal and Family plans, citing the integration of AI-powered Copilot features as the key reason behind the hike. This marks the first major price adjustment since the service transitioned from Office 365 to Microsoft 365 in 2020. While AI tools like Copilot and Microsoft Designer promise to enhance productivity, many users are frustrated by the forced price increase—especially since Microsoft’s original plan was to sell Copilot separately. However, due to low adoption rates, they decided to incorporate Copilot into the classic plans and adjust prices for all subscribers.
Subscription Plan | Previous Monthly Price | New Monthly Price | % Increase | Previous Annual Price | New Annual Price | % Increase |
|---|---|---|---|---|---|---|
Microsoft 365 Personal | $6.99 | $9.99 | 43% | $69.99 | $99.99 | 43% |
Microsoft 365 Family | $9.99 | $12.99 | 30% | $99.99 | $129.99 | 30% |
Forced AI Integration – Users who don’t need AI tools are still required to pay more.
No True Opt-Out – The “Classic Plan” option is temporary, limiting long-term choices.
Subscription Cost Creep – Many long-time subscribers are frustrated by the sudden 30-43% jump in pricing.
Uncertain AI Value – While Copilot is promising, some users feel its benefits don’t justify the higher cost.
Easiest Way to Avoid Microsoft 365 Price Increase
Microsoft 365 prices have been rising, but there are smart ways to keep costs low while still accessing the tools you need. If you don’t need AI-powered tools, you may have the option to opt out of certain services like Copilot, which could help reduce your subscription cost. Here’s how you can cancel your present subscription and sign-up for a more customized plan excluding services you don’t require form Microsoft 365.
Step 1: Open your Microsoft 365 account settings, from where you will go to Subscription Management.
Step 2: Navigate to the Subscription section and click Manage.
Step 3: Scroll to the bottom and select Cancel Subscription. Follow the on-screen prompts to confirm cancellation.
Step 4: Return to the Subscriptions menu. You can sign up for Microsoft 365 Family Classic by clicking “Switch Plan”, which is similar to the original plan, without AI-integration.
Step 5: You will be automatically switched to Microsoft 365 Family Classic, which keeps your subscription fee lower. This way, you can continue using Microsoft’s core apps without paying extra for features you may not need.
By switching to Microsoft 365 Family Classic and using these cost-saving strategies, you can continue accessing essential office tools without overpaying.
Best Free Alternative to Microsoft 365
You might have already processed the new Microsoft 365 pricing, and now that the changes are in place, the bigger question is: Is Microsoft Office truly worth the cost, or should you explore other options? With so many alternatives available, it’s essential to consider whether you're paying for features you genuinely need or if a free, compatible alternative can serve you just as well.
One such alternative is WPS Office, a powerful and cost-effective office suite that offers features similar to Microsoft Office—without the hefty price tag. WPS Office is completely free to use and provides full compatibility with Microsoft file formats, allowing you to open, edit, and save Word, Excel, and PowerPoint files seamlessly. Whether you’re working on documents, spreadsheets, or presentations, WPS Office ensures a smooth experience, making it an excellent choice for those who want high functionality without the extra cost.
Other Ways to Avoid Price Increase
Use a Family or Group Plan
Instead of purchasing a Personal subscription, consider Microsoft 365 Family. This plan costs $129.99 per year ($10.83/month) but covers up to six people—meaning if you split the cost, it could be as low as $21.66 per person annually ($1.80/month).
How it works:
One person buys the Family Plan and shares it with up to five others.
Each user gets 1TB of OneDrive storage, their own Microsoft apps, and their own login.
Works great for families, roommates, or small groups of friends.
Where to get it: Microsoft 365 Family Plan
Switch to Educational or Non-Profit Pricing
If you’re a student, teacher, or part of a non-profit, you may be eligible for free or discounted Microsoft 365 plans.
Who qualifies?
Students & Teachers – Many universities provide free access to Microsoft 365 Education, which includes Word, Excel, and OneDrive.
Non-Profit Organizations – Microsoft offers special pricing and sometimes free licenses for verified non-profits.
Where to check eligibility:
Look for Promotions or Discounts
Microsoft regularly runs promotions and discounts, especially during:
Back-to-School Season (July–September)
Holiday Sales (Black Friday, Cyber Monday, Christmas)
Workplace Deals (Corporate discount programs for employees)
How to find deals:
Keep an eye on Microsoft’s official store or major retailers like Amazon, Best Buy, and Walmart.
Sign up for Microsoft’s email alerts to be notified of upcoming discounts.
Check for deals here: Microsoft 365 Official Store
FAQs
1. Why is Microsoft 365 raising its prices?
Microsoft 365 is implementing a price increase for the first time in over a decade, driven by the addition of Copilot AI, which brings advanced features to Word, Excel, PowerPoint, Outlook, and OneNote. The $3 increase reflects new features and ongoing improvements. Subscribers will also gain access to Microsoft Designer, an AI-powered image editing tool. The new pricing applies to Personal and Family plans upon renewal.
2. Can I still use Office 365 without subscription?
Yes, you can use Office 365 without a subscription, but with limitations. Microsoft offers Microsoft 365 for the web, a free version that includes Word, Excel, PowerPoint, and other essential apps accessible via a web browser. You only need a Microsoft account to use it. However, this version lacks advanced features, offline access, and has limited cloud storage compared to the subscription-based Microsoft 365.
3. How to get a 50% discount on Office 365?
Students and educators at accredited institutions may qualify for special offers or even free access to Office 365 through their school. By signing up with a valid college or university email, eligible users can access desktop versions of Word, Excel, PowerPoint, OneNote, Outlook, 1 TB of cloud storage, Microsoft Copilot, and AI-powered tools like Designer for image editing. Check with your institution or visit Microsoft’s education portal to see if you qualify.
How to Avoid the Microsoft 365 Price Increase
In today's fast-paced world, everyone is in a constant race—whether it’s to stay ahead in their career, keep up with technology, or simply manage daily tasks efficiently. When even essential tools like Microsoft Office raise their prices, it only adds to the pressure. The last thing you need is to worry about whether your office software will remain affordable. This is where WPS Office comes in. Unlike Microsoft Office, WPS Office is completely free while offering full compatibility with Word, Excel, and PowerPoint. You get all the essential features without compromising on quality, making it a dependable and cost-effective alternative in this never-ending race for efficiency.
