We may earn a commission if you buy through links on this page. It never changes a score or a ranking. How we make money
Paid plans start at $7/mo.
Xero starts at $7 per month for Lite, but that plan caps invoices and quotes at five. Starter costs $32, Standard $54 and Premium $82 per month. The pricing page lists monthly billing with auto-renewal, a 30-day free trial and an 80% discount for new customers’ first three months. No annual billing is listed. Check the invoice and bill limits, plus any add-ons or payment fees, before treating the entry price as your likely cost.
01Every plan, line by line
| Plan | Billed annually | Billed monthly | Built for |
|---|---|---|---|
| Lite | — | $7 | Micro-businesses and side hustles |
| Starter | — | $32 | Sole traders and new businesses |
| Standard | — | $54 | Self-employed and growing businesses |
| Premium | — | $82 | Established businesses of all sizes |
Add-ons and overages
- Auto-reconciliation: optional $5/month on Starter
- Employee expense and mileage claims: from $4/month
- Project time and cost tracking: from $7/month
- Online invoice payment fees apply; additional fees may apply to some Stripe accounts managed by Xero
02What the plan grid doesn't tell you
Invoice and bill caps
Lite includes 5 invoices and quotes; Starter includes 20 invoices and quotes and 5 bills. Check whether those limits fit your workload.
Reconciliation add-on
Auto-reconciliation is optional on Starter for $5/month. It is included with Standard and Premium.
Expense and project add-ons
Employee expense and mileage claims start at $4/month; project time and cost tracking starts at $7/month.
Payment fees
Online invoice payment fees apply. Additional fees may apply to some Stripe accounts managed by Xero; amounts are not published here.
03Which plan should you buy?
| If you are… | Get | Why |
|---|---|---|
| Micro-businesses and side hustles | Lite | At $7/month, it includes bank reconciliation and real-time reports, but limits you to 5 invoices and quotes. |
| Sole traders and new businesses | Starter | At $32/month, it includes 20 invoices and quotes, 5 bills and a 30-day cash flow forecast. |
| Growing businesses needing more controls | Standard | At $54/month, it adds bulk reconciliation, a 60-day cash flow forecast, 3 budgets and included auto-reconciliation. |
04Is Xero worth the money?
Xero is worth considering if you want accounting software with AI tools, phone-based quotes and invoices, expense tracking and connections to 1,000+ apps. The catch is that the $7 entry plan has a five-invoice cap, while several useful capabilities cost more or sit on higher tiers. For a category price comparison, we can’t call Xero cheaper or more expensive without matched competitor prices and plan limits. Compare your required features against the full monthly rate, not just the introductory discount.
Xero pricing FAQ
How much does Xero cost monthly?
The listed monthly prices are $7 for Lite, $32 for Starter, $54 for Standard and $82 for Premium. The pricing page lists a 30-day free trial and an 80% discount for new customers’ first three months. Plans bill monthly and auto-renew; no annual billing is listed.
Is Xero or QuickBooks cheaper?
We can’t determine that from the published pricing information because it does not include QuickBooks prices or plan limits. Compare each product’s regular monthly price, included invoice and bill allowances, add-ons and introductory offers. Xero’s listed plans range from $7 to $82 per month before applicable fees.
Why is Xero so expensive?
The price rises from $7 for Lite to $82 for Premium as plan inclusions change. Lite and Starter have invoice limits, and Starter also caps bills at five. Auto-reconciliation costs an extra $5/month on Starter, while expense claims and project tracking are separate add-ons.
What are the disadvantages of Xero?
The listed plans have invoice and bill caps, and add-ons can increase the monthly cost. Online invoice payment fees apply, with possible additional fees for some Stripe accounts managed by Xero. Plans auto-renew monthly, and the pricing page does not list annual billing.