Someone on your team wants to build an app for equipment requests or site inspections, and the first question from finance is simple: what will Power Apps cost us?
The answer depends less on the app and more on the data it touches.
Quick answer: Is Power Apps free? Partly.
Many Microsoft 365 licenses already let users build and run apps that use standard connectors such as SharePoint, Excel and Outlook.
The Power Apps Developer Plan is free for building and testing, but not for production. Premium connectors, Dataverse, custom connectors and the on-premises data gateway need a paid license.
What “Free” Really Means in Power Apps
Microsoft separates building an app from running it. You do not need a license to build canvas apps, but every person who opens an app needs the right use rights.
Model-driven apps are different: you need a license even to build them.
So the real question is what each app user needs. That is decided by the connectors and data the app uses, not by how simple the screens look.
When we plan custom business apps for a department, we check this before anyone builds the first screen.
Option 1: Power Apps Included With Microsoft 365
Some Microsoft 365 licenses include limited Power Apps use rights. Microsoft describes them as rights for scenarios that use Microsoft 365 data and standard connectors, and they do not match a standalone premium license.
- Covered: apps that extend and customize Microsoft 365 with standard connectors, such as a SharePoint list, Excel or Outlook. There is no limit on the number of these apps.
- Covered inside Teams: apps built in Teams on Dataverse for Teams, with select Microsoft 365 plans. They run only inside Teams.
- Not covered: premium connectors, full Dataverse, custom connectors and gateways, even if a Dataverse service plan shows in the admin center.
A typical free case is a SharePoint-based request app.
Our ready-made IT help desk app built on Power Apps follows that pattern, so most Microsoft 365 users can run it without an extra Power Apps license.
Option 2: The Free Power Apps Developer Plan
The Power Apps Developer Plan gives you a free developer environment for building and testing with Power Apps, Power Automate and Dataverse.
Anyone with a work or school account backed by Microsoft Entra ID can sign up; personal accounts cannot.
- Full development features, including premium connectors, custom connectors, the on-premises gateway and Dataverse.
- Capacity of 750 flow runs per month and a 2 GB database. You cannot raise these limits with add-ons.
- Up to three developer environments, created in the Power Platform admin center.
- Environments inactive for 30 days are disabled automatically.
The catch is production. Apps in a developer environment show a banner, and you need a paid plan to run them for real work.
You can export solutions to another environment when you are ready. Our Power Platform consulting team often sets up this dev-to-production path as part of governance.
Option 3: The 30-Day Power Apps Trial
The trial gives you the Power Apps per user plan (now called Power Apps Premium) for 30 days. Microsoft positions it for trying premium features before you buy.
You can extend it twice, up to a maximum of 90 days.
For a longer proof of concept, Microsoft recommends a developer environment instead, because it does not expire while you use it.
Admins can also block trial sign-ups for the whole tenant, so a missing trial button is usually a policy, not a bug.
When You Need a Paid Power Apps License
Microsoft labels each canvas app with a license designation. A Standard app uses only standard connectors.
A Premium app uses at least one premium connector, a custom connector or an on-premises gateway, and every user then needs a premium entitlement.
| What you want to build | Free with Microsoft 365? | License needed |
|---|---|---|
| Request or tracking app on a SharePoint list | Yes | None beyond a qualifying Microsoft 365 license |
| App on Excel or Outlook data | Yes | None beyond Microsoft 365 |
| Team app on Dataverse for Teams, used inside Teams | Yes, inside Teams only | Premium if users open it outside Teams |
| App on SQL Server, Salesforce or another premium connector | No | Power Apps Premium, per app or pay-as-you-go |
| Model-driven app or any app on Dataverse | No | Premium use rights for every user |
| App that calls your own API (custom connector) | No | Premium use rights |
| App that reads on-premises data through a gateway | No | Premium use rights |
If your app falls in the bottom half of the table, plan the license budget with the build.
Our Power Apps development services team can often keep an app on standard connectors when that fits the requirement.
Paid License Types in Plain Words
- Power Apps Premium: a per user license to build and run unlimited custom apps and access unlimited Power Pages websites.
- Power Apps per app: lets a user run one custom app or access one Power Pages website. Since January 2, 2026, it is no longer sold to new customers through some channels.
- Pay-as-you-go: links an environment to an Azure subscription through a billing plan. You pay only for users who actually open an app in a month.
- Dynamics 365: qualifying licenses include Power Apps rights, but only in the context of the licensed Dynamics 365 app.
Power Pages websites for external users are licensed separately, by authenticated and anonymous users per website per month. We do not quote prices here, so check current licensing with Microsoft or your reseller.
For customer and partner portals, see our Power Pages development services.
How to Check Your License and Your App
You can check both your own plan and an app’s designation in a couple of minutes:
- Sign in to make.powerapps.com with your work or school account.
- Select the gear icon in the upper-right corner, then select Plan(s) to see your licenses.
- Select Apps, choose an app, then select Details (or Settings) to see its license designation.
- Admins can open the Power Platform admin center, select Licensing, then Power Apps, to see who uses which license.
After you remove premium connectors from an app, publish it again so the designation updates. If you would rather start from apps designed around standard connectors, browse our ready-made Microsoft 365 solutions.
Common Mistakes to Avoid
- Trusting the Standard label alone. If a standard app calls a flow that uses a premium connector, such as HTTP, users still need premium rights. The designation does not show this.
- Running production on a developer environment. It is for development and testing only, and it has fixed capacity.
- Ignoring February 2027. Microsoft will strictly require premium licenses for apps in managed environments, model-driven apps and apps used outside a Dynamics 365 context. Review assignments before then.
- Assuming guests are free. Guest users need the same license a regular user needs to run the app.
Flows are part of the same decision, so review the Power Automate connectors your apps rely on before you promise a free rollout.
Next Steps
Start with the Microsoft 365 rights you already pay for, prototype premium ideas in a developer environment, and license only the users who need premium features.
If you want a second opinion on an app design or a license plan, book a consultation with our team.
Frequently Asked Questions
Is Power Apps free with Microsoft 365?
Partly. Many Microsoft 365 licenses let users run apps that extend Microsoft 365 with standard connectors like SharePoint and Excel. Premium connectors, Dataverse, custom connectors and gateways need a paid Power Apps license.
Is the Power Apps Developer Plan free forever?
It stays free while you use it actively and only for development and testing. Developer environments that are inactive for 30 days are disabled automatically.
Do I need a license to build a Power Apps app?
Not for canvas apps; you can build them without a license. Model-driven apps need a license to build, and every user who runs any app needs the right use rights.
Can I use Power Apps with a personal Gmail or Outlook.com account?
No. Power Apps sign-up and the Developer Plan require a work or school account backed by Microsoft Entra ID.
How long is the Power Apps free trial?
The trial lasts 30 days and can be extended twice, for a maximum of 90 days. See Microsoft Learn: Power Apps licensing FAQs.
Keep Learning
- Automating desktop tasks too? Read our guide to Power Automate Desktop features and licensing.
- Looking for ideas? Browse real Power Automate examples.
- Need a quick win on SharePoint? See our employee leave request app.
