The short version: Yes, almost always, once the app touches Dataverse, SQL Server, HTTP or any other premium connector. Microsoft 365 alone is not enough: every person who runs the app then needs Power Apps Premium at NZ$32.40 per month, so NZ$162 for 5 users, NZ$324 for 10 and NZ$648 for 20, before GST.
The trap, in one paragraph
Someone builds an app on their own account, which often holds a trial or an admin licence. It works. It goes to the team, and staff on ordinary Microsoft 365 licences either cannot open it or the firm finds out at renewal that everyone who does needs a paid plan. Licensing follows the person who runs the app, not the person who built it. Microsoft 365, including Business Standard at NZ$21.00 per user per month, carries Power Apps use rights for standard connectors and Microsoft 365 data only.
What forces Premium
| What the app uses | Premium needed? | Common way it sneaks in |
|---|---|---|
| SharePoint lists, Outlook, Teams, Excel Online, OneDrive, Forms | No | Standard connectors, covered by Microsoft 365 |
| Dataverse tables | Yes | Chosen as the database because it is the recommended one |
| SQL Server, Azure SQL | Yes | The job database on your own server |
| HTTP, or any custom connector | Yes | A flow behind a button calls a web service |
| On-premises data gateway | Yes | Reaching a server inside the office |
| Model-driven apps | Yes | Built on Dataverse, so premium by default |
| Dynamics 365, Business Central, Azure connectors | Yes | Connecting an accounting or ERP system |
| A code component that calls an outside service | Yes | A control from a third party |
Microsoft's licensing FAQ lists premium connectors, Dataverse entities, on-premises data gateways and custom APIs as the capabilities that require premium entitlements. The connectors most likely to catch a small firm are covered in premium connectors that catch small businesses. Source: Microsoft Learn, Power Apps licensing FAQs and license designation for an app, both read on 30 September 2026.
What it costs for 5, 10 and 20 users
| Users | Premium, per month | Premium, per year | Pay-as-you-go, one app | Pay-as-you-go, two apps |
|---|---|---|---|---|
| 5 | NZ$162.00 | NZ$1,944.00 | about NZ$86 | about NZ$172 |
| 10 | NZ$324.00 | NZ$3,888.00 | about NZ$172 | about NZ$344 |
| 20 | NZ$648.00 | NZ$7,776.00 | about NZ$344 | about NZ$688 |
Premium is Microsoft's NZ list price, NZ$32.40 per user per month, before GST, paid yearly, multiplied out. Pay-as-you-go is USD 10 per active user per app per month at about 1.72 NZD to the USD, so it moves with the exchange rate and only bills people who opened the app that month. The figures assume everyone opens every app every month, which is the worst case for pay-as-you-go.
When per-app or pay-as-you-go is cheaper
- One app, everyone in it. Pay-as-you-go is roughly half the price of Premium, and less again for people who open it only some months. The worked break-even is in Power Apps pay-as-you-go in NZ.
- Two apps per person. Premium wins: for ten users two apps on pay-as-you-go is about NZ$344 against NZ$324, and Premium also covers the gateway and unlimited apps.
- The per app plan. Came off general sale on 2 January 2026 and comes back only through some partners. Ask, but do not budget on it. The per-app plan post has the timeline.
- Only a couple of people need the premium part. A scheduled or automated flow that does the premium work in the background can be owned by one Power Automate Premium user at NZ$24.30, and the rest of the firm needs nothing extra. It does not work when a button in the app calls the premium flow, because then the app's users need premium rights.
- The data does not need Dataverse. A SharePoint list costs nothing per user; SharePoint or Dataverse has the test.
How to check your own tenant
- Open the app's details. In make.powerapps.com, Apps, pick the app, then Details or Settings. It shows a licence designation: Standard, Extended or Premium. Premium means every user needs a per user or per app plan.
- Do not trust it for flows. Microsoft lists a known issue: a premium connector inside a flow that the app calls is not reflected in the app's designation. An app that reads Standard can still need Premium use rights, so open each flow behind a button as well.
- Download the licensing reports. Admins can download the Power Apps licensing reports in the Power Platform admin centre to see which users run apps that need a licence.
- Republish after removing a premium piece. The designation only updates when you save and republish.
Do this now rather than later. Microsoft's licensing FAQ says that from February 2027 the requirement will be enforced on model-driven apps, apps in managed environments and custom apps used outside a Dynamics 365 context, and users without a qualifying licence will not be able to open the app. If you already run one of those on Microsoft 365 licences alone, check it before then. The licence picker walks the questions and gives the NZ price, and every list price is on Power Platform pricing in NZ.
Who can build and administer, as opposed to who can see which rows, is in Environment Maker, System Admin or Power Platform Admin: what to give a contractor.
Premium covers your staff on an app, not outside clients on a portal: Power Pages licences for clients logging in.
Common questions
Do I need Power Apps Premium?
Yes if the app uses Dataverse, SQL Server, HTTP, a custom connector, the on-premises gateway or any other premium connector, or if it is a model-driven app. Every person who runs it then needs Power Apps Premium at NZ$32.40 per user per month before GST, or a per app or pay-as-you-go entitlement. An app that only uses standard connectors like SharePoint and Outlook runs on Microsoft 365.
Is Microsoft 365 Business Standard enough for Power Apps?
Only for apps that use standard connectors and Microsoft 365 data, such as SharePoint lists, Outlook, Teams and Excel Online. Business Standard carries those Power Apps use rights. It does not cover Dataverse tables, SQL Server, HTTP or model-driven apps, which need Power Apps Premium at NZ$32.40 per user per month.
How much does Power Apps Premium cost for 10 users in NZ?
NZ$324.00 a month, or NZ$3,888.00 a year, before GST, at Microsoft's NZ list price of NZ$32.40 per user per month paid yearly. Five users cost NZ$162.00 a month and twenty cost NZ$648.00.
Is pay-as-you-go cheaper than Power Apps Premium?
For one app, usually yes: USD 10 per active user per app per month is about NZ$17, roughly half of NZ$32.40. With two apps per person it costs about the same or more, so Premium wins. It needs an Azure subscription and moves with the exchange rate.
How do I check whether my app needs a premium licence?
Open the app in make.powerapps.com, choose Details or Settings and read the licence designation. Then open the flows behind its buttons, because Microsoft documents that a premium connector in a flow is not reflected in the app's designation. Admins can also download the Power Apps licensing reports from the Power Platform admin centre.
Before the app goes to the team
Tell me what the app connects to and how many people open it. One free 30-minute call and you get the licence line in NZD before anything is built, so nobody meets it on an invoice.