OEM vs Retail vs Volume License Keys: What Is the Difference?

The difference between an OEM vs retail license decides whether you can move your software to a new PC, who it is meant for and what rules apply. When you buy Windows or Office keys online, you will also see terms such as volume, MAK, KMS and bind. This guide explains them in plain language, so you know what you are buying.

This is general information, not legal advice. Always check Microsoft license terms and the seller product description.

OEM vs retail license: the main differences

TypeMeant forMove to a new PC?
RetailIndividuals and small businesses buying the software on its ownGenerally yes, subject to Microsoft license terms
OEMNew PCs and system buildersUsually no. It stays with the first PC it is installed on
Volume (MAK / KMS)Organizations with a Microsoft Volume Licensing agreementDepends on the agreement
BindA key linked to a Microsoft account when redeemedYou reinstall from that account

What is a retail license?

A retail license is sold as a standalone product for one user or one PC. It is the most flexible type, because it can generally be moved to another computer if you remove it from the old one and follow Microsoft license terms.

What is an OEM license?

OEM licenses are made for computer manufacturers and system builders. They are tied to the first PC they are installed on, so they are usually not meant to move to a new computer. They can be cheaper, which suits a fixed PC that you will not replace.

What is a volume license (MAK and KMS)?

Volume licensing is designed for organizations that need many installations. A MAK key activates a set number of devices. KMS activation uses a company server, and computers must reconnect to it regularly to stay activated. If you are buying for personal use, check that the seller states the license type and that it suits your use.

What does bind mean?

Some sellers describe Office keys as bind keys. It means the key is linked to a Microsoft account when it is redeemed. You then install Office by signing in to that account. Our guide on how to activate Microsoft Office shows the steps.

How to check what you are buying

  • Read the product description. It should state the license type, the number of PCs and the version.
  • Check the operating system: Windows or Mac.
  • Check how long Microsoft supports the version. For example, Office 2021 support ends on 13 October 2026. See our Office 2021 end of support guide.
  • Look for clear activation steps and a way to contact the seller.
  • Be careful with prices far below the market. Ask the seller what type of license it is.

How to check your license type after activation

In Windows, open the Command Prompt and type slmgr /dli. The result shows the license channel, such as RETAIL, OEM or VOLUME. For Office, click File then Account in Word or Excel to see the product name and activation status. Microsoft explains the steps here: Where to enter your Office product key. Seeing an activation error instead? See our guide on common Windows activation errors and fixes.

Buying from outside your own country?

The licence type rules above apply the same way everywhere. If you’re buying from the UK, Greece, Cyprus or Switzerland specifically, see our regional buyer guide for what differs (currency and VAT) and what stays the same.

Browse Microsoft Office licenses and Windows licenses, or contact us if you are unsure which one you need.

Can I move an OEM license to a new computer?

Usually not. An OEM license stays with the first PC it was installed on.

Is a volume license key for home use?

Volume licensing is designed for organizations. For personal use, choose a license type that the seller clearly describes and supports.

Which license is best for one home PC?

A retail license is the most flexible choice. If you will never change the PC, an OEM license can also work.

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