Which Power Automate license does a small team need?

Short answer: if your flows use only standard connectors such as SharePoint, your Microsoft 365 license is enough. You need a Power Automate Premium license (one per user) or a Process license (one per flow) only when a flow uses a premium connector. Check the connector's tier before you build, and ask your admin to confirm what your own plan covers.

Why teams fear a surprise bill

A team can build a flow, see it work, and then hear "that needs a paid license." Microsoft sells several kinds of license, and the names can be confusing. The rule that settles the question is short: the connector you use decides the license you need.

A connector is the part of a flow that talks to another service, such as SharePoint or email. Each connector is labeled Standard or Premium.

What Microsoft 365 already includes

Microsoft's licensing pages say that users with a Microsoft 365 license, or the free Power Automate license, can only use standard connectors. They also say:

A Microsoft 365 license lets a user create and run cloud flows with standard connectors.
If a flow does not use a premium connector, you do not need a Premium license. You can use a Microsoft 365 license.
The SharePoint connector is listed as Standard.
A Microsoft 365 license has a daily action limit of 6,000 per user. A Premium license has 40,000 per user. Microsoft says a transition period is in force, during which these limits are applied per flow instead of per user.
The free Power Automate license creates and runs cloud flows without sharing.

So a flow like "when an item is added to a SharePoint list, send a message" can run on what you already pay for, as long as every step uses a standard connector. Microsoft lists the exact rights for each plan in its Power Platform licensing guide, so your admin should confirm what your own plan covers.

What needs a premium license

A flow needs a license that includes premium connectors when any trigger or action uses a premium connector. Microsoft's premium connector list includes, for example, Azure SQL, Azure Blob Storage, Service Bus and Dynamics 365. Microsoft's license types page says a Premium license and a Process license include custom connectors, and a custom connector is one you build when an app has no prebuilt connector. Microsoft's FAQ table lists custom connectors as "No" for Office 365.

Microsoft says these options give access to premium connectors:

Power Automate Premium. This is a license for one user.
A Process license. This is a license for one flow instead of one person. Microsoft says the flow must be in a solution first. Ask your admin to set this up.

Check Microsoft's current pricing page for what each costs: https://www.microsoft.com/en-us/power-platform/products/power-automate/pricing . Your admin or reseller can give your real number.

The license types side by side

These come from Microsoft's page on types of Power Automate licenses. For cost, use the pricing page above.

Free: cloud flows with standard connectors only, without sharing. Desktop flows run locally in attended mode.
Microsoft 365: standard connectors for cloud flows. Microsoft's FAQ lists a 6,000 daily action limit for this license context.
Premium: one user. Standard, premium and custom connectors, a 40,000 daily action limit per user, and one attended desktop bot.
Process: one cloud flow or one machine. Standard, premium and custom connectors, and a 250,000 daily action limit per license. Flows must be in a solution. On a machine it gives one unattended desktop bot.
Hosted Process: for hosted machines, with one hosted bot per license. Microsoft says it is a superset of Process, but notes that part is not yet available.

Desktop flows and custom connectors

Desktop flows automate apps that have no connector or API. Per Microsoft's license types page, the Free license can author and run desktop flows locally in attended mode. Attended mode needs the attended entitlement, which a Premium license or a trial includes. Unattended mode needs a Process license on a machine, and a trial includes one unattended bot. Microsoft says a Process license on a machine still requires that a Premium user registered the machine.

Custom connectors: see the section above. A Microsoft 365 license alone does not cover them.

Who is billed

The answer depends on how the flow starts.

Automated and scheduled flows run under the flow owner's license. If one of these flows uses a premium connector, only the owner needs a Premium license. People who add items to the list do not need one.
Instant flows, such as a button, run under the person who presses the button. If an instant flow has a premium connector, every person who runs it needs a Premium license. A Process license on the flow is the other option, so you do not license every user.
If a Process license is assigned to a flow, the flow uses that license no matter who owns or runs it.

Microsoft gives one example. A premium flow starts when an item is added to a SharePoint list and sends an email to the owner. Only the owner needs a license. If the same flow sends an email to the person who added the item, both people need a Premium license.

How to check before you build

Make a list of every app your flow needs to touch. Write one line each, such as "SharePoint list" and "email."
Open Microsoft's connector reference and look up each app. Each connector page shows its tier. The reference also has a filter for Standard and Premium. The premium list page shows only Premium connectors.
Look for the premium icon. In the reference, the legend marks a Premium connector with its own icon.
If any app is Premium, stop and ask your admin before you build. Ask who would own the flow and whether that person has the right license.
After you build, look at your flows list. Microsoft's release notes say a diamond icon appears next to a flow that uses premium connectors, on the flows list and the flow details page. Exact names and icons may differ in your version.
To see your own licenses, open Power Automate and select Settings, then View my licenses. Exact names may differ.

What to avoid

Adding a premium connector by accident. A flow that works in a test can still need a paid license. Check the tier of each new action when you add it.
Using a premium connector for a job a standard one can do. If you only need SharePoint, keep the flow on SharePoint.
Building an instant flow with a premium connector and sharing it with the whole team. Each person who runs it would need a license.
Leaving a premium flow with an owner who has no Premium license. Microsoft says the flow is downgraded, the owners are notified, and the flow is turned off after 14 days if nobody acts.
Guessing. Never assume your plan covers a connector. Your admin can confirm what your own plan covers.

Other limits and traps

Microsoft's license types page recommends the Premium license for all users, because it covers both API-based and desktop automations. A trial gives access to premium connectors for a set time, then ends. Microsoft's license types page lists the user trial as 90 days. If you try a feature on a trial, find out what it will cost when the trial stops.

If the person who owns your flows leaves, the flow can be affected too. See "The person who built your flows left: what happens and what to do". If you are still choosing a tool, see "Power Automate vs Zapier for Microsoft 365 teams". If a built-in list rule is enough for your case, see "Microsoft Lists rule did not send the email: what to check".

When to get help

You can build all of this yourself in Microsoft 365. If you would rather have it built and tested for your team, I do that. A tracker like this is a fixed price: $5,000 for one, built in 2 weeks. See "What a SharePoint tracker costs to build". Bring one example of the problem to a free call.

Tell me what's still manual

I am Al Davies. I run 250 High Street LLC and build SharePoint trackers and Power Automate flows for operations teams. I work remotely. The first call is free, and I will not try to sell you anything.

See trackers I built: Tools I built

FAQ

Do I need to pay extra to use Power Automate with SharePoint?

Microsoft says a Microsoft 365 license lets you create and run cloud flows with standard connectors, and the SharePoint connector is listed as Standard. Your admin can confirm what your own plan covers.

Power Automate desktop license requirements?

Attended desktop flows need the attended entitlement, which Premium includes. Unattended desktop flows need a Process license on a machine. The Free license can run desktop flows locally in attended mode.

Power Automate custom connector license requirements?

Microsoft's license types page says Premium and Process licenses include custom connectors. Its FAQ table lists custom connectors as "No" for Office 365.

Is Power Automate included in E5?

Microsoft's FAQ lists Office 365 E5 among licenses with limited Power Automate use rights: standard connectors, and a 6,000 daily action limit in a Microsoft 365 context. Ask your admin about your exact E5 plan.

Power Automate license types and cost?

Types are Free, Microsoft 365, Premium, Process and Hosted Process, listed above. For cost, check Microsoft's current pricing page.