What is the difference between Power BI Pro, PPU, and Fabric capacity?

The licensing model in Power BI confuses many people, and it can become expensive if you choose the wrong option. The main distinction is between paying per user and paying for capacity.

Pro — per user

The most common model. Everyone who creates or reads shared reports needs their own license. Easy to calculate, and the right choice as long as the number of readers is moderate.

Premium Per User

The same per-user model, but with higher data volume limits, more frequent refreshes, and more advanced features. Suitable when the models become large or data freshness requirements become stricter, but still only for a limited group.

Capacity — when many people need to read

With Fabric capacity, you pay for compute power rather than per reader. The tipping point comes when the number of readers is high enough that per-user licensing costs exceed the capacity price. If reports are to be shared with the entire organization or with customers, this is usually the option you end up with.

Calculate based on readers, not developers

The most common mistake we see is planning licenses based on how many people will create reports. The number of readers is what determines the cost, and that figure grows quickly once the reports start proving useful.