The cost of Microsoft 365 Personal and Family subscriptions will rise by $3 per month, the company said in a blog post on Thursday, Jan. 16. It's the first price change since the software bundle launched in 2013 under the name "Office 365".
Existing subscribers will see the adjustment at their next renewal.
"We understand that our customers have a variety of needs and budgets, so we’re committed to providing options," Microsoft wrote. "Existing subscribers with recurring billing enabled with Microsoft can switch to plans without Copilot or AI credits like our Basic plan, or, for a limited time, to new Personal Classic or Family Classic plans."
Microsoft 365 Personal will now cost $9.99 monthly or $99.99 annually. That's up from $6.99 per month and $69.99 per year.
The Microsoft 365 Family plan's price has risen to $12.99 per month and $129.99 per year. The plan serving up to six people used to cost $9.99 monthly and $99.99 annually.
The price hike accompanies significant updates, most notably including the integration of Copilot. Microsoft's AI-powered assistant will be included in widely used apps like Word, Excel, and PowerPoint.
Subscribers will also gain access to Microsoft Designer, a tool for creating and editing images with AI.
"These changes bring the transformative power of AI to the personal productivity tools that millions of people use every day," said Microsoft.
The new features include personalized help for tasks like meal planning, budget updates, and organizing notes. For instance, Copilot can generate a polished recipe based on dietary preferences in Word or suggest budget improvements in Excel.
Designer allows users to enhance photos or create graphics by simply describing their vision. Subscribers will receive monthly AI credits to use Copilot and Designer, with options to upgrade to Copilot Pro for expanded use.
Microsoft also said prompts, responses, and file contents won't be used to train Copilot's foundation models.
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