Xero vs QuickBooks pricing looks close on the surface, both offer a low tier under $30 and a higher tier past $100, but the plans don’t line up feature for feature, so the cheaper sticker price isn’t always the cheaper real cost. Here’s what each platform actually charges right now, standard rates with no introductory discount applied.
Last verified: September 2026.
Xero vs QuickBooks pricing, side by side
| Tier | Xero | QuickBooks Online |
|---|---|---|
| Entry level | Early: $25/mo | Simple Start: $38/mo |
| Mid tier | Growing: $55/mo | Essentials: $85/mo |
| Higher tier | Established: $90/mo | Plus: $140/mo |
| Top tier | Not offered at this level | Advanced: $340/mo |
Both companies run frequent introductory discounts, commonly 50-90% off for the first three to six months, so the price you’re quoted when signing up is often not the number above. Budget for the standard rate shown here, not the promotional one, since that’s what you’ll actually pay long-term.
Xero vs QuickBooks pricing: what the entry tier actually includes
Xero’s Early plan caps how many invoices and quotes you can send per month, a limit QuickBooks’ Simple Start doesn’t impose at its entry tier. For a business sending a high volume of invoices on a tight budget, that cap matters more than the $13/month price gap suggests. QuickBooks Simple Start costs more but doesn’t restrict invoice volume at all.
For the current QuickBooks Online tiers in more detail, see our full QuickBooks pricing breakdown.
Where user limits change the real cost
This is the biggest structural difference between the two. Xero includes unlimited users on every plan, no per-seat fee regardless of team size. QuickBooks Online caps included users per tier and charges extra to add more on the mid tiers. For a business planning to give several people access, Xero’s flat per-plan pricing can end up cheaper than it looks, even against a lower QuickBooks tier, once you count what extra QuickBooks users would cost.
Feature depth beyond the price tag
QuickBooks has a larger third-party app ecosystem and is more commonly requested by accountants and bookkeepers in the US, which matters if you’re planning to hand off books to a professional who already works in QuickBooks. Xero’s interface is generally considered more modern and less cluttered, and its reporting tools are strong even at the entry tier. Neither platform is objectively more powerful, they’re built around different workflows.
Inventory tracking is one concrete area where the tiers diverge. QuickBooks introduces inventory features at its Plus tier ($140/mo), while Xero’s inventory tools are more basic across its plans and geared toward simpler item tracking rather than the deeper cost-of-goods and multi-location tracking QuickBooks Plus and Advanced offer. A business with real inventory complexity should weigh this before deciding purely on the monthly price.
Bank reconciliation and bank feed connections work reliably on both platforms in the US, connecting to most major banks and credit unions without issue. Where they differ more is in how each platform’s mobile app handles day-to-day tasks like invoicing and expense capture on the go, worth testing directly with a trial on both before committing, since this is the part of the software you’ll touch most often.
How the introductory pricing actually plays out
Xero’s current offer runs 90% off for six months, dropping Established to $9/month temporarily before reverting to $90. QuickBooks typically runs 50% off for three months on comparable tiers. The math matters here: Xero’s promo is deeper but shorter relative to the eventual standard price, so a business signing up right before a rate increase (Xero has one scheduled for October 2026) should budget for the post-increase number, not the six-month promotional rate, when deciding if the platform fits long-term.
What neither price includes
Payroll runs as a separate cost on both, Xero’s payroll is powered by Gusto and billed accordingly, QuickBooks sells its own payroll add-on with its own per-employee pricing. Payment processing fees apply on both if you accept card payments through the platform. Add-on apps beyond the core plan carry their own subscription costs regardless of which platform you’re on.
For the fuller picture of what small business software costs beyond the base subscription, see our complete guide to small business software costs.
Which one actually costs less for your business
For a solo freelancer sending a moderate number of invoices, Xero’s Early tier is cheaper and the invoice cap rarely becomes a real problem. For a business planning to add several team members without paying per seat, Xero’s unlimited-user model usually wins even against a nominally cheaper QuickBooks tier. For a business that already works with an accountant who uses QuickBooks, or needs QuickBooks-specific integrations, the higher price can be worth it to avoid friction with that relationship.
Frequently asked questions
Is Xero cheaper than QuickBooks overall?
At the entry and mid tiers, yes, on the sticker price. Whether it stays cheaper depends on your invoice volume (Xero’s entry tier caps this) and how many users need access (Xero doesn’t charge per seat, QuickBooks does past the included limit).
Does Xero charge extra for additional users?
No, every Xero plan includes unlimited users at no extra cost, one of its clearest pricing advantages over QuickBooks for a growing team.
Which one has better introductory pricing right now?
Both run deep introductory discounts regularly, commonly 50-90% off for several months. Compare the standard rate each reverts to, not just the promotional headline, since that’s the number that matters for your actual budget.
Is switching from QuickBooks to Xero difficult?
Migrating historical data between the two takes real effort and isn’t fully seamless in either direction. Factor migration time into the decision if you’re already established on one platform, not just the ongoing subscription price.
Does Xero or QuickBooks handle inventory better?
QuickBooks, particularly at its Plus and Advanced tiers, offers deeper inventory tracking than Xero does at any tier. A business with meaningful inventory complexity often finds QuickBooks Plus worth its higher price over Xero specifically for this reason.
Which platform do accountants prefer in the US?
QuickBooks has a larger footprint among US-based bookkeepers and accountants, simply due to market share. If you already work with an accountant, ask which platform they use day to day before choosing, it can save friction later even if the other platform is cheaper.
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