Plan your low-code budgets early and avoid surprises at renewal. Effective January 1, 2027, Microsoft raises the list price of both Power Apps Premium plans by 2 US dollars per user per month.
Summary
- First Power Apps Premium price increase in more than five years, announced on September 9, 2026
- Power Apps Premium moves from 20 to 22 US dollars per user per month
- Power Apps Premium (2,000-seat minimum) moves from 12 to 14 US dollars per user per month
- No capabilities or entitlements are removed, and all other Power Apps and Power Platform products keep their current prices
- Existing subscriptions keep today’s price until the end of their term
- Organizations should review renewal dates and seat counts before the change takes effect
What is changing
Microsoft updates the per user, per month list price of the two Premium plans only. The standard plan rises from 20 to 22 US dollars, and the plan with a 2,000-seat minimum rises from 12 to 14 US dollars, based on annual billing.
The increase applies globally, with comparable pricing in local currencies. It affects the list price itself, so both monthly and annual billing customers see the new price on the same date.
What is Power Apps Premium?
Power Apps Premium is the standalone, per-user license for Microsoft’s low-code application platform. It lets a user run unlimited apps built on Microsoft Dataverse and connect to premium and custom connectors.
Within the Power Platform, it is the entry point for business-critical applications that need governance, security, and administration beyond the app rights already included in Microsoft 365.
Why Microsoft is raising the price
Microsoft links the change to capabilities added since the last price update. These cover AI in apps, Microsoft 365 Copilot and agent integration, and code apps for professional developers.
The second area is data, security, and resilience: additional Dataverse storage, Customer Managed Keys, Customer Lockbox, high availability across Azure availability zones, and self-service disaster recovery. The third is governance, application lifecycle management (ALM), and monitoring, including Managed Environments, environment groups, built-in pipelines, source control integration, and centralized health metrics.
What this means for your agreements
- Running subscriptions stay at the agreed price through the end of the current term
- The new list price applies to new purchases, renewals, and co-terminations with a term starting on or after January 1, 2027
- Power Apps entitlements inside Microsoft 365 plans (often called Power Apps Basic) remain unaffected
- Power Apps rights inside Dynamics 365 plans are also not part of this change
Public sector, nonprofit, and education
Nonprofit and education pricing is adjusted in line with commercial pricing, while existing discounts continue to apply unchanged where customers remain eligible. For United States government customers, list price increases are capped at 10 percent per year, and a larger increase is phased over two years.
What organizations should do now
- Review every agreement with a term start on or after January 1, 2027
- Count your active Power Apps Premium seats and calculate the annual delta of 24 US dollars per user
- Validate whether users really need Premium or are covered by Microsoft 365 app rights
- Check eligibility for the 2,000-seat minimum plan if your user base is large enough
- Align renewal and co-termination dates so no term starts later than necessary
- Update your budget planning for fiscal year 2027 before negotiations start
Ready to review your Power Apps licensing?
Assess your Power Apps Premium position, renewal timing, and license mix with our licensing experts. Contact us to optimize your Microsoft licensing today.
Pricing note: All prices shown are non-binding and provided for information purposes only. Only a current, precise quote issued to the customer is binding.
Sources
For the announcement of Microsoft Power Apps Premium: New List Prices from January 2027, please visit: https://www.microsoft.com/en-us/licensing/news/power-apps-premium-price-update. For useful software licensing information on Microsoft products, please visit: https://www.schneider.systems/software/microsoft/.
