Office 2021 or Microsoft 365: Subscription or One-Time Purchase?
Perpetual license or subscription? A direct comparison including cost analysis, support periods, and a clear recommendation for both user types.
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Short answer: Office 2021 is a perpetual license – you pay once and use the software indefinitely. Microsoft 365 is a subscription with ongoing costs, but it offers new features, cloud storage, and usage on multiple devices. For usage periods of about two years or more, the perpetual license is usually more cost-effective.
What is the difference between Office 2021 and Microsoft 365?
Both products include Word, Excel, PowerPoint, and Outlook. The difference lies in the business model and what happens afterward.
With Office 2021, you purchase a perpetual license for a fixed set of features. The programs remain as they are – no new features are added. Security updates are provided as long as the version is supported.
With Microsoft 365, you rent the software. As long as you pay, you continuously receive new features and security updates. If the subscription ends, documents can only be edited with limited functionality.
When does a perpetual license pay off?
A Microsoft 365 individual subscription costs around 70 to 100 euros per year, depending on the plan. An Office perpetual license typically pays for itself after one to two years.
| Usage period | Microsoft 365 (approx.) | Office 2021 Perpetual License |
|---|---|---|
| 1 year | approx. 70–100 € | one-time fee |
| 3 years | approx. 210–300 € | one-time fee |
| 5 years | approx. 350–500 € | one-time fee |
The exact subscription prices change regularly – check them on the Microsoft website before making a decision.
Which model is suitable for whom?
Perpetual license, if: You work at a fixed workstation, primarily use Word and Excel, don't need cloud collaboration, and want cost predictability.
Subscription, if: You work on documents simultaneously in a team, need a lot of OneDrive storage, or constantly switch between desktop, laptop, and tablet.
What about the support period?
A point many overlook: Office 2021 receives security updates until October 2026. If you want peace of mind for longer, opt for Office 2024 – updates for this version run until October 2029.
"After two years of a Microsoft 365 subscription, I had already paid more than a perpetual license would have cost - and in the end, I still didn't own the software." This is how a self-employed graphic designer describes her experience before switching to an Office 2021 perpetual license. Since then, she calculates more carefully before deciding on a subscription.
Conclusion
If you use Office for more than two years and can do without cloud features, a perpetual license is more cost-effective and predictable. If you work in a team and truly need the cloud, the subscription is a better choice.
