LicensingHow much does Power Platform cost in the UK?

For many UK organisations, Power Platform costs nothing extra to start: Microsoft 365 already includes the right to build apps and flows that use standard connectors such as SharePoint, Outlook and Teams. You start paying when a solution uses premium connectors, Dataverse, unattended automation or AI, and at that point the cost depends on how many people use it, not how many people build it. This article explains where the lines are and how to estimate your own bill.

At the time of writing (October 2026). Microsoft changes Power Platform licence names, rules and prices regularly. Figures below are Microsoft list prices quoted in US dollars where Microsoft publishes them that way. GBP prices are set separately, depend on your agreement and reseller, and are reviewed by Microsoft from time to time. Always check current Microsoft pricing before you buy.

The short answer: four cost layers

It helps to think of Power Platform spending as four layers. Most organisations only need the first one or two.

If you want a quick estimate for your own numbers, our free licensing calculator walks through the same layers.

What Microsoft 365 already includes

Business Basic, Business Standard, Business Premium, E3 and E5 plans include what Microsoft calls seeded rights for Power Apps and Power Automate. In practice that means you can build:

• Canvas apps that store data in SharePoint lists or Excel files.
• Approval and notification flows using Outlook, Teams, SharePoint and the Approvals connector.
• Simple apps inside Teams using Dataverse for Teams, within its size and sharing limits.

That covers a surprising amount of everyday work: holiday requests, equipment booking, onboarding checklists, expense approvals and replacing shared spreadsheets. Our use cases on replacing Excel trackers and approvals without email are usually buildable on seeded rights alone.

What seeded rights do not cover: premium connectors, full Dataverse, model-driven apps, unattended desktop flows and external-facing portals.

When premium licences apply

Every connector is labelled standard or premium in the maker portal. If an app uses even one premium connector, the app is premium and its users generally need premium licensing. Common premium triggers include:

• Dataverse (outside Teams), which you will want for relational data, row-level security or large volumes.
• SQL Server and other Azure data sources.
• The HTTP connector, often added casually to call an API.
• Custom connectors to your own systems.
• Line-of-business systems such as Salesforce, SAP, ServiceNow and many finance and HR platforms.

The rule that catches people out: licences are for the people who use a solution, not only the people who build it. A maker with a premium licence cannot share a premium app with 50 unlicensed colleagues.

The main licence options and list prices

At the time of writing (October 2026), Microsoft lists these options. Treat the numbers as orientation, not a quote.

Microsoft has also offered a per-app Power Apps plan at a lower price for users who need only one or two apps. Microsoft has been changing that offer, so confirm with your reseller whether it is available on your agreement.

Volume discounts exist at higher user counts, and education, charity and public sector pricing differs. None of the figures include VAT.

Hidden costs to budget for

The licence table is rarely the whole picture. These are the costs we most often see missed in UK business cases.

Dataverse capacity

Each tenant gets base database, file and log capacity, and each premium licence adds a little more. Store large attachments in Dataverse and you can run out, at which point Microsoft charges for extra capacity per GB per month. Keeping documents in SharePoint and linking to them is usually cheaper.

AI consumption

Copilot Studio agents and AI Builder models consume credits. A generative answer costs more than a scripted reply, and autonomous agents that run on triggers consume credits without anyone chatting. If you are exploring an AI agent for policies or invoice and document processing, estimate monthly volumes before you commit. Our article on Copilot Studio pricing goes deeper.

Leavers and licence ownership

Flows licensed through one person can stop when that person leaves. Fixing this properly sometimes means a Process licence or a licensed service account. See what happens to flows when the maker leaves.

Governance

Managed Environments, the premium governance features Microsoft offers, require the apps in those environments to be used by premium-licensed users. That is often fine, but it should be a decision rather than a surprise. Our governance service covers this.

Three worked examples

These are illustrations built on list prices and simple assumptions, not quotes or client results. Your own figures will differ.

A 60-person firm automating approvals

A SharePoint-based purchase approval app with Teams notifications. Everything uses standard connectors, so the licence cost is nil beyond existing Microsoft 365. The cost is the build.

A 15-person operations team replacing an Access database

A Dataverse app with security roles. Fifteen users on Power Apps Premium at the list price above would be around USD 300 a month before discounts, or less with pay-as-you-go if half the team only uses it occasionally. Our paper forms to app use case follows a similar pattern.

A finance team processing supplier invoices for the whole business

One flow extracting invoice data, routing approvals and posting to the finance system. A Process licence on the flow, plus AI credits for extraction, typically costs less than licensing every approver, because approvers act through standard Outlook or Teams approvals.

How to reduce your Power Platform licence bill

• Design on standard connectors where it is genuinely good enough. SharePoint is fine for many apps under a few thousand records per list.
• Count real users. Audit who opens each app in the admin centre before renewing.
• Use pay-as-you-go for occasional users and pilots.
• Attach Process licences to shared flows instead of licensing everyone who benefits.
• Keep files out of Dataverse.
• Review annually. Offers change, and unused licences accumulate.

A fixed-fee Licensing Review (from £395) does exactly this for your tenant. We do not resell licences or take a margin on them, so the advice is not tied to selling you more.

Checklist: estimate your own cost

• List each app, flow and agent you plan to build.
• Mark each connector as standard or premium.
• Count users per solution, split into regular and occasional.
• Decide on SharePoint, Dataverse for Teams or full Dataverse for each.
• Estimate monthly AI interactions, if any.
• Check Dataverse capacity after the purchase.
• Ask your reseller for current GBP prices and renewal dates.
• Run the numbers through the licensing calculator.

Frequently asked questions

Is Power Apps free with Microsoft 365?

Partly. Microsoft 365 includes rights to build and use canvas apps on standard connectors such as SharePoint. Apps that use premium connectors or full Dataverse need premium licensing for their users.

Do I need a licence to build apps, or only to use them?

Building on standard connectors is covered by Microsoft 365. For premium solutions, every user who runs the app or flow generally needs coverage, whether through a per-user licence, pay-as-you-go or a Process licence for flows.

Can we use one service account to avoid licensing users?

No. Pooling users behind one account or flow to reduce licences is called multiplexing and is not permitted under Microsoft's terms.

Why are UK prices different from the US list prices?

Microsoft sets GBP prices separately from USD prices and adjusts them periodically. Your reseller and agreement type also affect what you pay. Always ask for a current GBP quote.

How often does Microsoft change Power Platform pricing?

Changes to names, bundles and prices happen several times a year. Anything you read, including this article, should be checked against current Microsoft pricing before you buy.

Key takeaways

• Many everyday apps and flows cost nothing extra on Microsoft 365.
• Premium connectors and Dataverse are the line that triggers licence costs, and those costs scale with users.
• Process licences, Dataverse capacity and AI consumption are the costs most often left out of business cases.
• Design choices made in week one decide most of the licence bill, so check licensing before you build.
• If you want a second opinion on your tenant, see our licensing advice or book a call below.