Is Power Platform Really Free with Microsoft 365?

There's a very common assumption: "I have Microsoft 365, so Power Platform is free." It's partly true, and it becomes false the moment you build something serious. Better to know that now than to discover it midway through.

What you already have

Your Microsoft 365 licenses include Power Apps and Power Automate rights. Concretely: using and building apps with the standard connectors, on data that lives inside the Microsoft 365 world (SharePoint, Excel, Outlook). For a lot of small needs, that's enough and you pay nothing more.

The test for whether you tip into premium

A simple rule: if your app touches any one of these three things, it's premium.

1. Dataverse as the database.
2. A premium connector (SQL Server, Salesforce, an in-house API, and many others).
3. A true model-driven app, beyond the standard scope.

In that case, count on a premium Power Apps license at around 18 to 20 dollars per user per month. Worth noting: there's also a pay-as-you-go option, handy for apps used only occasionally.

The real calculation to run

Before comparing against an off-the-shelf SaaS subscription, work out the total cost over three years, premium licenses included. Often, a custom app comes out cheaper than a stack of subscriptions, especially when it replaces several of them. But it's not automatic, and good advice will tell you honestly which case you're in.

Key takeaways

• M365 includes Power Apps and Automate with standard connectors, on M365 data.
• Premium the moment you touch Dataverse, a premium connector, or a model-driven app.
• A single premium connector tips the whole app over.
• Run the real 3-year calculation, licenses included, before deciding.