Microsoft Office 2021 vs Microsoft 365: Which One Should You Choose?

If you are contemplating upgrading or installing Microsoft Office in 2025, the biggest decision you will have to make is to determine whether to use Office 2021 vs Microsoft 365. Both will allow you to access the familiar apps such as Word, Excel, PowerPoint, and Outlook, but how you pay, upgrade, and use them will be very different.

Whether you’re a student, professional, or small business person, what works best for you will depend on how you work, how frequently you will need upgrades, and what your budget looks like in the long run. In this article, we will point out the basic contrasting differences to help you work out which is a better option for you.

The Core Difference: Office Subscription vs. One-time

An important difference in the Office 2021 vs. Microsoft 365 choice is the licensing.

Microsoft 365 is offered as a subscription, with monthly or annual payments. You always get the most relevant features, cloud integration, and increased access with regular updates.

Office 2021 is a one-time purchase. You pay once, you are the owner of that license for life (forever), but only for that version without future feature updates.

If you want continuous upgrades and cloud collaboration, Microsoft 365 is right for you. If you dislike subscriptions and want to own a license, pick Office 2021.

What’s New: Office 2024 Features

Microsoft has announced Office 2024, the next perpetual release after Office 2021, which may debut later this calendar year. Some noteworthy Office 2024 features that are expected to include:

• An updated look across all Office apps
• More robust integration with Teams and OneDrive
• Improved Excel formulas and PowerPoint animations
• Increased security and support for Windows 11 devices

However, Office 2024 will still be a one-time purchase, meaning that there will not be ongoing updates until you upgrade again.

How to Buy an Office 2021 License

If you’ve decided to stick with the non-subscription route, here is some direction on how to buy an Office 2021 license safely:

• Buying directly from Microsoft or through authorized resellers is the best option.

• Choose from Home & Student, Home & Business, or Professional editions.

• You will receive a product key and a link to download.

• Follow the official office activation on their website to install and activate your product.

Note: You may only install it on one PC or Mac (depending on the version purchased).

What Do You Get with Microsoft 365 Perks?

Microsoft 365 is not just Office apps. It offers significantly more value to the modern user, especially if they work on multiple devices. Some key Microsoft 365 benefits are:

• Always up-to-date Office apps
• 1TB OneDrive cloud storage per user
• Built-in security features, including ransomware protection
• Access across Windows, macOS, iOS, and Android
• Microsoft Teams integration and support

Additionally, each license can cover up to 5 devices, making it ideal for families and teams.

Best Choice for Students: Office for Students

When the office for students is concerned, both versions have options, but Microsoft 365 is much more flexible. For eligible students, you can usually get Microsoft 365, free or at a discount, from the institution.

Office 2021 Home & Student is more limited: it has Word, Excel, and PowerPoint without extras such as Teams or Outlook.

If the student is looking for collaboration, cloud access, and frequent updates, Microsoft 365 is better suited for academic use.

Deep Dive: MS Office License Comparison

Let’s break down the components of this MS Office license comparison:

Feature	Microsoft 365	Office 2021
Payment	Subscription (monthly/yearly)	One-time
Apps Included	Word, Excel, PowerPoint, Outlook, Access (PC only)	Depends on edition
Updates	Continuous (new features and patches)	Security updates only
Cloud Storage	1 TB per user	None
Device Limit	Up to 5 per user	1 device only
Support	Included	Limited unless you pay extra

So, if you’re managing multiple devices or working collaboratively, Microsoft 365 provides more value.

Price Matters: Office Pricing 2025

In terms of office pricing 2025, here’s a snapshot of current estimated costs:

• Office 2021 Home & Student: ~$150 (one-time)
• Office 2021 Home & Business: ~$250 (one-time)
• Microsoft 365 Personal: ~$70/year or ~$7/month
• Microsoft 365 Family (up to 6 users): ~$100/year

The comparison is that during a 3-5 year time span, Office 2021 is cheaper, assuming you don’t need to update. The subscription model is cheaper than Office 2021 most of the time, if you want flexibility and additional features.

Comparing Office for Mac vs Office for Windows

Another comparison is Office for Mac vs Office for Windows. Both Office 2021 and Microsoft 365 are, of course, compatible with macOS as well as Windows, but there are a few things to note:

• Microsoft 365 has more feature parity (the same features) between the Mac and PC versions.
• Office 2021, version for Mac, does not provide the advanced tools found on the Windows version (i.e., Publisher, Access).
• The performance on Windows for Outlook and Teams is generally better.

If you are a Mac user and want the most complete feature set, Microsoft 365 may be a better fit for you.

Can I install Office offline?

Yes, you can install Office offline. Both versions let you do this.

• With Microsoft 365, you can download and install the full Office suite and able to perform your work offline. You can access your files offline, and once you are online, your files will sync to the cloud. 

• In Office 2021, you are able to do a full install offline as well, but you need access to the internet for the initial software activation and to periodically check your license.

This is especially critical for users with no internet connection, as those updates won’t just show up overnight and will have to be downloaded, which may not happen for months or more.

Activation tips: Office Activation Guide

Once you purchase a license, the basic office activation guide includes the following:

1. Go to https://setup.office.com
2. Sign in to (or set up) a Microsoft Account.
3. Enter your Product Key.
4. Download and install the software.
5. Activate the product by signing in to the Office apps.

You can also check the system requirements, but make sure your device is connected to the internet while activating.

Which One Should You Get?

Picking a side in the Office 2021 vs Microsoft 365 debate depends on how you use ED/SD applications:

• Pick Office 2021 if you prefer a simple, one-time purchase with no updates, and plan on using it on one device, possibly for years. 
• Select Microsoft 365 if you want flexibility of use, frequent updates, multiple device use, and an ordered CNS to expand your offerings.

If you are looking for value, both options retain good value in terms of Office Apps. By recognizing your work habits, your need for updates, and your long-term budget, you can make the best choice for your needs.