
Power Apps Premium is becoming more expensive: what changes on January 1, 2027?
On September 9, 2026, Microsoft announced a price change for Power Apps Premium.
Effective January 1, 2027, the list prices for both Premium plans will increase by $2 per user per month, the first such increase in over five years. For organizations already using Power Apps Premium, this serves primarily as an opportunity to do something that is too often postponed: re-evaluating the actual usage and necessity of this license.
What exactly is changing?
This concerns two specific SKUs:
- Power Apps Premium: from $20 to $22 per user per month.
- Power Apps Premium (2.000-seat minimum): from $12 to $14 per user per month.
The new prices take effect on January 1, 2027, for new purchases, renewals, and co-terminations from that date onwards. Existing subscriptions will retain their current pricing until the end of the contract term; there will be no changes during the course of an existing contract. All other Power Apps and Power Platform products remain unchanged, and no features or entitlements are being removed from Power Apps Premium. Power Apps Basic (the usage right included with Microsoft 365) and the Power Apps entitlements within Dynamics 365 are also unaffected.
Microsoft's motivation
Microsoft justifies the increase by citing investments made since the last price adjustment: AI and Copilot integration in apps, support for code-based apps alongside low-code development, Dataverse enhancements (additional storage, Customer Managed Keys, Customer Lockbox, high availability, and cross-region disaster recovery), and governance features such as Managed Environments, pipelines, and centralized monitoring. Users who actually utilize these capabilities will see a genuine expansion of functionality compared to the previous pricing.
One detail that the press release does not mention
On paper, the increase is modest: $2 per user per month for both plans. However, in percentage terms, the increase is not uniform. For the standard plan (rising from $20 to $22), it represents an increase of just over 10%. For the plan with a 2,000-seat minimum (rising from $12 to $14), that same $2 increase amounts to more than 16.5%.
For organizations licensing via the volume plan, typically larger deployments with many users, that difference adds up. With 2,000 users, this results in a structural cost increase that is greater, in percentage terms, than the headline suggests. This is precisely the kind of detail that only becomes apparent through an independent analysis of one's own licensing position, rather than by simply reading the announcement.
What does this mean for existing contracts?
For most organizations, there is no urgent deadline. Existing subscriptions continue at the current price until the end of their term. The new pricing only becomes relevant upon:
- New purchases of Power Apps Premium licenses after January 1, 2027;
- Renewals of existing contracts with a new term starting on or after that date;
- Co-terminations, where licenses are aligned with other contract terms.
It is precisely this lack of immediate pressure that leads many organizations to put off addressing this type of announcement until renewal is actually on the horizon, subsequently negotiating reactively based on incomplete information regarding their own usage.
Why now?
A price change with a deadline a year away does not feel urgent. That is precisely why it is a good time to reconsider the scope of the license, independently of the price itself. Questions relevant to many organizations using Power Apps Premium include:
- How many of the assigned Premium licenses are actually being used for functionality not provided by the Basic tier (via Microsoft 365)?
- Are there users on Premium who could manage just as well with a cheaper license type?
- Is the 2,000-seat minimum option still the right purchasing model, given the difference in percentage-based price trends compared to the standard plan?
- Which renewal or co-termination dates fall in or after 2027, and what portion of the license portfolio is therefore already affected by the new pricing?
Conducting an audit to answer these questions before the renewal comes up for consideration allows for adjustments to scope, allocation, and purchasing models, rather than agreeing to a renewal under time pressure based on historical, unverified usage.
Conclusion
The price increase for Power Apps Premium is modest in itself and easily justified by the announced product developments. The real value at this moment lies not in the price change itself, but in the opportunity it presents: to have your Power Apps Premium usage and licensing model independently assessed now — well before the first renewal at the new rates.
Geltec conducts this type of Power Apps license assessment for organizations in the Benelux region, operating independently of Microsoft and without any reseller interests. Would you like to know how your current Power Apps Premium position compares to your actual usage? Please contact us to discuss the options.



