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Power Apps: Per-User vs Per-App Licensing

Calculate the most cost-effective licensing approach for your organization

Understanding the Two Main License Types

Power Apps standalone licensing comes in two primary flavors. Choosing the right one depends on how many apps your users need and how widely they're deployed.

Power Apps Premium

$20 /user/month

Unlimited apps per user

  • Run unlimited Power Apps
  • All premium connectors
  • Custom connectors
  • On-premises data gateway
  • Dataverse database included
  • 500 AI Builder credits/month
  • Power Automate included

Power Apps per App

$5 /user/app/month

One app per license

  • Run one specific app
  • Premium connectors for that app
  • Dataverse included for that app
  • Portable (reassign apps)
  • Best for targeted rollouts
  • 250 AI Builder credits/month
  • Bundle with Power Pages portal

The Break-Even Point

The key question: How many apps does each user need?

Break-Even Calculator

Apps per User Per-App Cost Premium Cost Best Choice
1 app $5/month $20/month Per-App saves $15
2 apps $10/month $20/month Per-App saves $10
3 apps $15/month $20/month Per-App saves $5
4 apps $20/month $20/month Break-even
5+ apps $25+/month $20/month Premium saves money
Rule of Thumb: If users need 4+ apps, go with Premium. If users only need 1-3 specific apps, Per-App is more economical.

What's Included with Microsoft 365?

Before purchasing standalone licenses, understand what's already included with your M365 subscription:

M365 Seeded Power Apps Rights

  • Standard Connectors: SharePoint, Excel, Outlook, Teams, OneDrive
  • Customize M365: Extend SharePoint lists, embed apps in Teams
  • No Dataverse: Use SharePoint or other M365 data sources only
  • No Premium Connectors: SQL Server, Salesforce, etc. require standalone license
Common Mistake: Many organizations purchase licenses they don't need. Always verify if M365 seeded rights cover your use case before buying standalone licenses.

Real-World Scenarios

Scenario 1: Department-Wide App

Situation: 50 users need access to one expense reporting app using Dataverse.

Calculation:

  • Per-App: 50 users × $5 = $250/month
  • Premium: 50 users × $20 = $1,000/month

Recommendation: Per-App saves $750/month ($9,000/year)

Scenario 2: Power Users

Situation: 10 IT staff build and use multiple apps across departments.

Calculation:

  • Average 6 apps per user × $5 = $30/user (exceeds Premium)
  • Premium: 10 users × $20 = $200/month

Recommendation: Premium is the clear choice for power users

Scenario 3: Mixed Environment

Situation: 100 employees, but only 20 need premium connectors for 2 specific apps.

Calculation:

  • 80 users: M365 seeded (free - SharePoint app only)
  • 20 users × 2 apps × $5 = $200/month

Recommendation: Hybrid approach maximizes value

Licensing Tips & Gotchas

Things to Know

  • Per-App is Portable: You can reassign per-app licenses to different apps or users
  • Dataverse Included: Both license types include Dataverse database and file capacity
  • Environment Access: Premium unlocks access to all environments; Per-App is app-specific
  • Power Automate: Premium includes full Power Automate capabilities; Per-App includes limited flow rights for the app

Common Pitfalls

  • Over-licensing: Don't buy Premium for users who only need one app
  • Under-licensing: Using premium connectors without proper licenses risks compliance issues
  • Ignoring M365: Check if seeded rights cover your needs first
  • Not Planning Growth: Consider future app expansion when choosing

Dynamics 365 Use Rights

Dynamics 365 licenses include Power Apps use rights:

  • Full Use Rights: Run any Power App within the same environment as D365
  • Cross-Environment: Requires additional Power Apps license for apps in non-D365 environments
  • Check Entitlements: Review your D365 license for exact Power Apps inclusions

Purchasing Options

Channel Minimum Notes
Direct (Microsoft 365 Admin) 1 license Monthly commitment, flexible
CSP Partner 1 license Often better pricing, support included
Enterprise Agreement 500+ licenses Best volume pricing, annual commitment

Additional Resources

Disclaimer: Pricing and licensing information provided on this page is for general guidance only and may not reflect the most current Microsoft pricing or licensing terms. Microsoft frequently updates its licensing models, pricing, and feature inclusions. We are not responsible for any inaccuracies or outdated information. Always verify current pricing and licensing requirements directly with Microsoft's official licensing resources or your Microsoft partner before making purchasing decisions.

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