Microsoft has confirmed a price increase for Power Apps Premium taking effect on 1 January 2027, and organisations with any meaningful Power Apps footprint should treat this as a planning item now rather than a surprise line item at the next renewal. Beginning January 1, 2027, the list prices for the two Power Apps Premium plans will be updated, with each plan increasing by two dollars per user per month, applying to new purchases, renewals, and co-terminations with subscription terms beginning on or after that date, while current pricing remains in effect for the remainder of any existing subscription term.
What Is Actually Changing
The increase applies specifically to the Power Apps Premium plans, the licence that replaced what was previously called the per-user plan. Power Apps Premium is licensed per user and entitles the licensed user to build, modernise, and run unlimited custom applications and access unlimited websites, currently priced at twenty dollars per user per month, or twelve dollars per user per month for organisations purchasing two thousand or more new user licences at the enterprise tier.
From January 2027, both of these price points rise by two dollars per user per month. That is a ten percent increase on the standard twenty dollar rate, and a somewhat larger proportional increase on the discounted twelve dollar enterprise rate. Microsoft has been explicit that this change is scoped narrowly: it affects only these two Power Apps Premium SKUs, other Power Apps and Power Platform products are not affected, and entitlements included with Microsoft 365 and Dynamics 365 subscriptions remain unchanged.
Why This Increase Lands Differently in the UK
For organisations billed in pounds sterling, the increase is being communicated as a flat currency figure rather than a straight USD conversion. Microsoft Power Apps Premium plans will increase by two pounds per user starting January 2027, which is a detail worth flagging directly to any UK finance team modelling next year’s budget, since a flat currency increase behaves differently from a USD increase run through whatever exchange rate happens to apply at the time.
Why This Follows a Year of Change to the Same Product Line
This price increase does not arrive in isolation. It follows a genuinely disruptive change to Power Apps commercial structure earlier in the same year. In January 2026, Microsoft removed the Power Apps Per App plan from its licensing guide without an initial announcement, a five dollar per user per app plan that had offered a considerably cheaper entry point for single-app use cases, and organisations forced to migrate off Per App toward Premium or the pay-as-you-go alternative faced cost increases commonly cited between one hundred and three hundred percent depending on their prior usage pattern.
That earlier change is directly relevant context for this new price increase, because it shows Microsoft actively narrowing and simplifying Power Apps commercial options over a short period, generally in a direction that raises the effective cost for organisations with modest, single-application use cases. The Premium plan price increase confirmed for January 2027 continues that same direction rather than reversing it.
The Renewal and Co-Term Timing Question Worth Getting Right
The mechanics of exactly when the new price applies deserve careful attention, since Microsoft’s own guidance is specific about the trigger. The Power Apps Per App plan at five dollars per user per app per month is no longer available to new customers as of January 2, 2026, with existing Enterprise Agreement customers able to renew and CSP customers retaining access from April 2026 onward, a detail worth confirming directly for any organisation that assumed its Per App entitlement had already lapsed entirely. The increase itself applies to subscription terms beginning on or after 1 January 2027, which covers new purchases, straightforward renewals, and co-terminations, where a subscription term is deliberately aligned to match the end date of another agreement.
An organisation with a Power Apps Premium subscription due to renew in February 2027 will see the new price at that renewal. An organisation currently mid-term, with a subscription that runs through, say, October 2027, continues on the current price until that subscription’s own renewal point, regardless of the January 2027 date itself.
Co-termination is the detail worth flagging specifically for procurement teams managing several Microsoft agreements on a consolidated renewal cycle. If a Power Apps Premium subscription is deliberately co-termed to align with a broader Enterprise Agreement renewal, and that alignment pushes the effective start date of the new term to on or after 1 January 2027, the increased price applies from that point even if the underlying EA itself was negotiated earlier.
What This Means for a Brand-New Purchase
The timing consideration looks different for an organisation that does not yet hold a Power Apps Premium subscription at all, rather than one managing an existing renewal or co-term. For a genuinely new purchase, the relevant date is simply when the subscription term itself begins, not a renewal anniversary tied to a prior agreement, which means the calendar year end is a real, near-term decision point worth acting on deliberately rather than letting drift.
An organisation actively planning to roll out Power Apps Premium to a new group of users, whether as part of a citizen development initiative, a departmental expansion, or a first adoption of the platform, should weigh whether starting that subscription term before 31 December 2026 is achievable. Doing so locks in the current twenty dollar, or twelve dollar enterprise, rate for the full length of that initial term, rather than beginning at the increased rate from day one simply because the purchase decision was finalised a few weeks later than it needed to be.
This is also worth raising directly with any team currently mid-evaluation of Power Apps against other low-code options, since the calendar creates a genuine, if modest, incentive to conclude that evaluation before year end if Power Apps Premium is the likely outcome regardless. Delaying a decision that was already leaning toward Power Apps purely because of internal process timelines, when that delay pushes the purchase past 1 January 2027 for no substantive reason, is an avoidable way to pay the higher rate for the entire length of the first term.
What to Do Before the End of This Year
Microsoft’s own guidance to licensing, procurement, finance, and Power Platform administrators is worth following directly: review the renewal and co-termination dates for every Power Apps Premium subscription currently in place, and assess the budget impact specifically for any purchase or subscription term beginning on or after 1 January 2027. For an organisation with a large Power Apps Premium user base, even a two dollar per user monthly increase compounds into a material annual figure once multiplied across the full licensed population, and that figure is worth having modelled and approved internally well before the renewal conversation actually happens.
It is also worth using the remaining months before the increase takes effect to revisit actual Power Apps Premium usage against licensed headcount. An organisation that has not reviewed its Power Apps user assignment since the January 2026 Per App changes may be carrying licences assigned to users who no longer need Premium-level access, and correcting that assignment before the new pricing takes effect is a more straightforward saving than negotiating around the increase itself once it has already landed.
The Nonprofit and Education Discount Detail Worth Confirming
Microsoft has confirmed that eligible nonprofit and education discounts will continue to apply to the updated pricing, meaning organisations in those categories should expect the same proportional increase applied against their existing discounted rate rather than a return to full commercial pricing. Confirming this directly with a Microsoft account team or partner remains worthwhile for any nonprofit or education customer, simply to have written confirmation of the specific discounted rate that will apply from January 2027 rather than assuming the general commercial increase figure applies unchanged.
Conclusion
The Power Apps Premium price increase taking effect on 1 January 2027 is a modest, clearly scoped change on its own terms, a two dollar or two pound per user monthly increase affecting only the Premium plans. Its real significance is what it confirms about the direction Microsoft has been moving Power Apps commercial structure over the past year, following the removal of the cheaper Per App plan with a further increase to the plan many of those displaced customers were pushed toward.
Reviewing every Power Apps Premium subscription’s renewal and co-termination date now, modelling the budget impact ahead of the January 2027 deadline, and using the remaining time to confirm licence assignment still matches actual usage are the practical steps that turn this into a manageable planning item rather than an unwelcome surprise at the next renewal.
