SFDIFY
Xero pricing in the US runs from $27 a month (Early) to $59 (Growing) and $97 (Established), with new US customers offered 80% off for the first three months [1]. Payroll is a separate add-on, Xero Payroll powered by Gusto, at $36 a month plus $6 per employee or contractor [2]. Early is the cheapest paid plan here but caps you at 20 invoices and 5 bills [1]; if you only need invoicing and basic books, Wave and Zoho Books start at $0 [3] [4].
This guide covers what each Xero plan costs and includes, what you pay on top, and how the totals compare with QuickBooks Online, FreshBooks, Zoho Books and Wave.
How we chose
We compared the five accounting tools a US small business is most likely to shortlist when it searches for Xero plans: Xero, QuickBooks Online, FreshBooks, Zoho Books and Wave. Every price, limit and feature below comes from each vendor's own pricing or product page, checked on 2026-11-10 and cited inline. We did not test the products hands-on, and prices are monthly list prices unless noted. Confirm on the vendor page before you buy.
Xero pricing compared with QuickBooks, FreshBooks, Zoho Books and Wave
| Product | Best for | Starting price | Notable |
|---|---|---|---|
| Xero | Small teams that want unlimited users and add payroll later | $27/month for Early [1] | "No per-user license fees" [1]; payroll is $36/month + $6 per person [2] |
| QuickBooks Online | Businesses whose accountant already works in QuickBooks | $0 Free plan; Simple Start $38/month [5] | Users are capped by plan: 1, 3, 5 or 25 [5] |
| FreshBooks | Freelancers and service firms that bill clients | Lite $23/month [6] | Lite covers 5 billable clients, Plus 50 [6] |
| Zoho Books | Cost-conscious teams that want a free tier with real bookkeeping | $0 Free plan; Standard $15/org/month billed annually [4] | Free plan requires revenue under $50K [4] |
| Wave | Solo owners who mainly need free invoicing | Starter $0; Pro $19/month [3] | Card fees of 2.9% + $0.60 on Starter [3] |
Xero — three plans, no per-user fees
Xero's main pricing difference is how it charges. Xero says its plans come with "No per-user license fees" and free expert setup help [1]. You pick a plan by feature level, not by headcount.
Verified features: Every US plan includes sending invoices and quotes, accepting online invoice payments, reconciling bank transactions, Smart Document Capture, "W-9 + 1099 management" and sales tax [1]. All three plans also include free domestic ACH bill payments; Xero notes "Fees apply for other payment methods" [1]. Higher plans add longer cash flow forecasts: 30 days on Early, 60 on Growing and 180 on Established [1].
Pricing: Here is what each plan costs at its regular monthly price [1]:
- Early, $27/month. Limited to "Send quotes and 20 invoices" and "5 bills" a month [1]. Xero adds that the invoice limit applies "to both approving and sending invoices," and that transactions from connected apps can count toward it [1]. Auto-reconcile is an optional extra at $5.00 per month on this plan [1].
- Growing, $59/month. Removes the Early caps, adds automated bill entry, performance dashboards, financial health scorecards, budgeting with smart suggestions and auto-reconcile [1].
- Established, $97/month. Adds multiple currencies, project time and cost tracking, employee expense and mileage claims, industry benchmarking and international bill payments [1].
New US customers can get 80% off the base plan for the first three months, which brings Early to $5.40, Growing to $11.80 and Established to $19.40 a month during that period [1]. The discount "does not apply to any additional charges for add-ons, usage and payment fees" [1]. Prices are in USD and exclude tax, subscriptions "auto-renew monthly until they are cancelled," and if you upgrade you can only move to a cheaper plan one month later [1].
Xero payroll: In the US, payroll is Xero Payroll, powered by Gusto. It "costs $36 per month, plus $6 per employee or contractor," and Xero offers "two months for free to try Xero Payroll" [2]. It supports all 50 states at no extra cost and files W-2s and 1099s [2]. One catch: it "is not available to Xero's US mobile subscribers" [2]. Usage charges for Xero Payroll, Projects and Expenses are invoiced for the previous month [1].
Strengths: No per-user fees make Xero easy to budget as you add a bookkeeper, a co-founder or an operations hire. Payroll is built in rather than bolted on, and Growing has no invoice or bill caps for $59 [1].
Limitations: Early is tight. Twenty invoices and five bills a month will not last a business with regular vendor bills, so many buyers will land on Growing [1]. Multi-currency and project tracking sit only on Established at $97 [1], where QuickBooks and Zoho Books reach similar features on other tiers (see below). Xero does not list a free plan [1].
Best fit: A small team that wants several people in the books without paying per seat, and expects to add payroll. Growing is the plan most small businesses should price first.
QuickBooks Online — the default rival, priced by users
QuickBooks Online is the comparison most Xero buyers run, and its pricing works differently: each plan includes a fixed number of users [5].
Verified features: Simple Start adds automated bookkeeping, invoicing with QuickBooks Payments and bill pay with free ACH, with "$0.50/standard ACH transaction over monthly allotments" [5]. Plus adds budgets, project profitability, inventory and 40 classes and locations [5]. Advanced adds custom user permissions, workflow automation, Excel sync and priority support [5].
Pricing: List prices are $38 for Simple Start, $85 for Essentials, $140 for Plus and $340 for Advanced, with a promotion of "50% off for 3 months" [5]. Paid plans show a 30-day free trial [5]. There is also a $0 Free plan with 1 user, "2 invoices per month" and 1 connected bank [5].
Strengths: A real free tier and a deep ladder of plans; inventory and project profitability arrive on Plus [5].
Limitations: Users are capped: 1 on Simple Start, 3 on Essentials, 5 on Plus and 25 on Advanced [5]. A four-person team needs Plus at $140 list, against $59 for Xero Growing with no per-user fees [1]. The Free plan's two invoices a month is a trial of invoicing, not a working plan.
Best fit: Businesses whose accountant prefers QuickBooks, or teams that need inventory without moving to a higher Xero tier. For more options, see our guide to QuickBooks alternatives.
FreshBooks — client-based pricing for service businesses
FreshBooks prices its plans by how many clients you bill, which suits freelancers and agencies [6].
Verified features: Every plan covers invoicing, real-time expense tracking, estimates and card, ACH, Apple Pay and Google Pay payments [6]. Plus and above add proposals and client retainers [6].
Pricing: Lite is $23 a month, Plus $43 and Premium $70, with a custom-priced Select plan [6]. FreshBooks was running "80% Off for 4 Months" when checked [6]. Add-ons include Team Members at $11/mo per user, Advanced Payments at $20/mo and FreshBooks Payroll at "$40/mo plus $6/mo per user" [6]. There is a 30-day free trial with "no credit card required" [6].
Strengths: Lite is cheaper than Xero Early for a solo service business with a handful of clients, and the client-billing workflow is the product's focus.
Limitations: Client caps are firm: "Lite: 5 billable clients" and "Plus: 50 billable clients," counting both active and archived clients [6]. Extra team members cost $11 a month each [6], so FreshBooks gets more expensive than Xero as headcount grows. Its payroll base fee is $4 higher than Xero's [6] [2].
Best fit: Freelancers and small agencies with a stable, modest client list and one or two people in the account.
Zoho Books — the lowest paid entry point
Zoho Books undercuts Xero at almost every level and offers a free plan for small businesses [4].
Verified features: The Free plan includes invoices, quotes, expenses, bank reconciliation, recurring invoices, 1099 contractor tracking and "P&L, Balance Sheet & 50+ Reports" for "1 User + 1 Accountant" [4]. Standard adds sales tax tracking, bank feeds, 1099 e-filing and API access [4]. Professional adds purchase orders, multi-currency transactions and project profitability [4]. Zoho also offers to migrate you "for free" [7].
Pricing: The Free plan is $0 [4]. Standard is $15 per organization per month billed annually or $20 monthly, and Professional is $40 billed annually or $50 monthly [4]. Extra users cost $3 per user a month, or $2.5 billed annually [4].
Strengths: Multi-currency on Professional at $50 a month, against $97 for Xero Established [4] [1]. Annual invoice limits are generous, from 1,000 on Free to 5,000 on Standard [4].
Limitations: The Free plan only stays free "as long as your revenue for the financial year does not exceed the threshold of $50K" [4]. Standard includes 3 users, so larger teams pay per user, unlike Xero [4].
Best fit: Price-sensitive teams, especially those that need multi-currency without paying for a top-tier plan.
Wave — free invoicing, paid Pro
Wave is the low-cost option a sole proprietor often checks before paying for Xero [3].
Verified features: The Starter plan lets you "Create unlimited estimates, invoices, bills, and bookkeeping records" [3]. Pro adds auto-imported and auto-categorized bank transactions, unlimited receipt capture and automated late payment reminders [3].
Pricing: Starter is $0 [3]. Pro is "$19 USD/month" or "$190 USD/year" [3]. Card payments on Starter cost "2.9% + $0.60 per credit card transaction," while Pro drops the fixed fee to "2.9% + $0**" [3]. Payroll and bookkeeping help are sold as add-ons [3].
Strengths: No invoice or bill caps on the free plan [3], which makes it more generous than Xero Early for simple invoicing.
Limitations: Bank transaction import is a Pro feature [3], and the feature set is lighter than Xero Growing for teams that need budgets, forecasting or multi-currency.
Best fit: Solo owners and side businesses that mainly send invoices. Our roundup of home business accounting software covers more options at this end.
How to choose a Xero plan, and when a rival is cheaper
Start with three numbers: invoices and bills per month, people who need access, and payroll headcount.
- Fewer than 20 invoices and 5 bills a month: Xero Early at $27 works [1], but Wave's free Starter has no such caps [3], and Zoho Books Free costs nothing while revenue stays under $50K [4].
- More volume, two to ten users: Xero Growing at $59 with no per-user fees [1] is usually cheaper than QuickBooks, where five users means Plus at $140 [5].
- Multi-currency or project costing: Xero puts both on Established at $97 [1]; Zoho Books Professional covers both for $50 monthly [4].
- Payroll: A five-person team on Xero Growing pays $59 plus $36 plus 5 x $6, or $125 a month at list prices [1] [2]. FreshBooks Payroll would add $40 plus $6 per user on top of a client-capped plan [6].
If your finance workflow is tied to a CRM or client portal, a custom CRM that syncs with your accounting tool may matter more than the ledger you pick.
FAQ
How much does Xero cost per month in the US?
Xero's US plans cost $27 a month for Early, $59 for Growing and $97 for Established, in USD before tax [1]. New US customers can get 80% off the base plan for the first three months [1].
What does Xero payroll cost?
Xero Payroll, powered by Gusto, costs $36 per month plus $6 per employee or contractor, and Xero offers two months free to try it [2]. It covers all 50 states [2].
Is Xero cheaper than QuickBooks Online?
At list prices, Xero Early ($27) is cheaper than QuickBooks Simple Start ($38), and Xero Growing ($59) is cheaper than QuickBooks Essentials ($85) [1] [5]. QuickBooks offers a $0 Free plan, which Xero does not list, and caps users per plan while Xero charges no per-user fees [5] [1].
What are the limits on the Xero Early plan?
Early lets you send quotes and 20 invoices and enter 5 bills, and the invoice limit covers both approving and sending [1]. It has a 30-day cash flow forecast, and auto-reconcile is a $5.00 monthly add-on [1].
Which Xero plan has multi-currency?
Multiple currencies are included only in Established, at $97 a month [1].
Our recommendation
For most small US businesses comparing Xero plans, Growing at $59 a month is the one to price first: it removes Early's invoice and bill caps and charges no per-user fees [1]. Choose Early only if your volume is very low, and add Xero Payroll when you hire [2]. If you are a solo owner who mainly invoices, Wave or Zoho Books Free will cost less [3] [4]; if you need multi-currency on a budget, Zoho Books Professional is cheaper than Xero Established [4] [1].
Sources
- Pricing Plans | Xero US — checked 2026-11-10
- Payroll Software for Small Businesses | Xero US — checked 2026-11-10
- Wave Pricing - Wave Financial — checked 2026-11-10
- Pricing | Zoho Books — checked 2026-11-10
- QuickBooks Online Pricing & Free Trial | Official Site — checked 2026-11-10
- FreshBooks Pricing, Lite, Plus and Premium Packages - FreshBooks — checked 2026-11-10
- Powerful Accounting Software for Your Business | Zoho Books — checked 2026-11-10
