Power Apps Premium sees its first price increase in more than five years
Microsoft has announced a Power Apps Premium price increase effective January 1, 2027, affecting both standalone Premium plans. Each plan will increase by $2 per user, per month, marking the first list price increase for Power Apps Premium in more than five years.
Microsoft attributes the change to the capabilities and enhancements added to Power Apps since its last price adjustment, particularly across AI, application development, Dataverse, governance, and administration.
For organizations using Power Apps alongside Dynamics 365, Microsoft 365, or other business systems, the scope of the change is relatively narrow. Only the two Power Apps Premium plans are affected, no capabilities or entitlements are being removed, and existing subscriptions retain their current price through the end of their existing subscription term.
What is changing and by how much?
The Power Apps Premium price increase applies to the per-user, per-month list price regardless of billing frequency. Microsoft lists the following U.S. pricing based on annual billing:
Only these two plans are affected. All other Power Apps and Power Platform products remain at their current prices, and Microsoft is not removing any capabilities or entitlements from Power Apps Premium as part of the pricing change.
Existing subscriptions will remain at their current price through the end of their current subscription term. The new pricing applies to new purchases, renewals, and co-terminations with a term beginning on or after January 1, 2027.
What the Power Apps Premium price increase does not affect
The update applies specifically to the standalone Power Apps Premium SKUs.
Power Apps entitlements included with Microsoft 365 plans, sometimes referred to as “Power Apps Basic,” are not affected by this pricing change. Power Apps entitlements included with qualifying Dynamics 365 plans are also unaffected.
However, these included use rights are not necessarily equivalent to a standalone Power Apps Premium license. Microsoft 365 and Dynamics 365 entitlements have licensing and usage limitations depending on the application, connectors, environment, and business scenario. Organizations should review their specific licensing requirements before assuming an existing entitlement can replace Power Apps Premium.
Government, nonprofit, and education customers are also treated separately. For U.S. Government customers, applicable regulations cap annual list price increases at 10 percent. Where the full increase would exceed that limit, Microsoft says the adjustment will be phased over two years.
Nonprofit and education pricing will be adjusted in line with commercial pricing. Existing nonprofit and education discounts will continue to apply for eligible customers.
What existing Power Apps customers should consider
Organizations with existing Power Apps Premium subscriptions will not automatically begin paying the new price on January 1, 2027. Their current price remains in place through the end of the existing subscription term.
The important date is the start date of the next subscription term. New purchases, renewals, and co-terminations with terms beginning on or after January 1, 2027 will use the new list price.
For organizations budgeting for 2027, this makes upcoming renewal dates and Premium seat counts worth reviewing. A $2 monthly increase may be relatively small on an individual license, but the impact grows as the number of licensed users increases.
Customers should also account for agreement-specific pricing, discounts, and licensing terms rather than assuming published list prices represent their final cost.
What prospective Power Apps customers should consider
Organizations evaluating Power Apps should incorporate the January 2027 pricing into long-term cost estimates, particularly for deployments involving large numbers of Premium users.
It may also be worth reviewing whether some application scenarios fall within Power Apps rights already included with qualifying Microsoft 365 or Dynamics 365 licenses. Those entitlements have specific limitations and are not direct replacements for Power Apps Premium in every scenario.
Organizations can also review how many users genuinely require Premium capabilities, which applications depend on premium connectors or Dataverse, and whether licensing has remained aligned with how the platform is actually being used.
Microsoft says the updated prices will appear on the Power Apps pricing page, public price list, and Power Platform Licensing Guide when the change takes effect. Customers with questions about a specific agreement should work with their Microsoft account team or partner.
The bottom line for Power Apps customers
The Power Apps Premium price increase adds $2 per user, per month to each of Microsoft’s two standalone Premium plans beginning January 1, 2027. Power Apps Premium will move from $20 to $22 per user, per month, while the 2,000-seat minimum plan will increase from $12 to $14.
The change is limited in scope: existing subscriptions retain their current price through the end of their subscription term, Microsoft 365 and Dynamics 365 Power Apps entitlements are not affected by this pricing update, and no Power Apps Premium capabilities are being removed.
Organizations planning a Power Apps deployment or approaching a renewal should review current licensing, Premium seat requirements, and projected costs before building their 2027 budgets. Working with an experienced Power Apps consulting partner can help organizations evaluate licensing requirements and align Power Apps licensing with how the platform is actually being used.
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