Xero vs QuickBooks Online: cost comparison
Xero comes out lower in both examples (expected 5-year cost). Two small-business accounting subscriptions with published prices.
Same inputs for both systems: list prices, partner rate $150/hour, internal cost $60/hour, labelled assumptions for everything beyond licences. Prices verified 2026-10-11. Estimates, not quotes.
Licence pricing at a glance
| Item | Xero | QuickBooks Online |
|---|---|---|
| Default plan | Growing | Essentials |
| Price | USD 59 per month for the whole plan official | USD 85 per month for the whole plan official |
| Deployment | cloud | cloud |
| Multi-entity licensing | Xero plans are bought per organisation (offer terms refer to a customer's first organisation); multi-organisation discounts are not modelled | QuickBooks Online plans cover one company; Intuit sells multi-entity needs as Intuit Enterprise Suite, which is quote-priced |
Small team: 3 users, standard setup, 1 connector integration
| 5-year cost (USD, expected) | Xero | QuickBooks Online |
|---|---|---|
| Licences / subscriptions | $3,540 | $5,100 |
| Implementation | $4,125 | $4,125 |
| Add-ons / ISV apps | $0 | $0 |
| Integrations | $9,000 | $9,000 |
| Internal time + training | $4,680 | $4,680 |
| Run costs (support, hosting) | $825 | $825 |
| 3-year TCO | $17,701 | $18,637 |
| 5-year TCO | $22,169 $10,980–$34,290 | $23,729 $12,540–$35,850 |
| Plan used | Growing | Essentials |
Xero is lower by $1,560 (expected 5-year cost). The whole gap is licences ($3,540 vs $5,100 over 5 years); implementation, integrations, internal time and support are identical because the same inputs and assumptions apply to both. The low–high ranges overlap: implementation hours are a wide range for both, so a cheap project on the dearer system can cost less than an expensive project on the cheaper one. The licence difference is the firm part.
Growing company: 5 users, standard setup, 2 connector integrations
| 5-year cost (USD, expected) | Xero | QuickBooks Online |
|---|---|---|
| Licences / subscriptions | $3,540 | $8,400 |
| Implementation | $4,275 | $4,275 |
| Add-ons / ISV apps | $0 | $0 |
| Integrations | $18,000 | $18,000 |
| Internal time + training | $8,400 | $8,400 |
| Run costs (support, hosting) | $855 | $855 |
| 3-year TCO | $27,947 | $30,863 |
| 5-year TCO | $35,071 $16,140–$54,990 | $39,931 $21,000–$59,850 |
| Plan used | Growing | Plus |
Xero is lower by $4,860 (expected 5-year cost). The whole gap is licences ($3,540 vs $8,400 over 5 years); implementation, integrations, internal time and support are identical because the same inputs and assumptions apply to both. The low–high ranges overlap: implementation hours are a wide range for both, so a cheap project on the dearer system can cost less than an expensive project on the cheaper one. The licence difference is the firm part.
- 5 users exceed the Essentials plan limit of 3; using Plus.
What neither price includes
Xero
- Payroll (US: Xero Payroll powered by Gusto, from $36/month plus $6 per employee)
- Payment processing fees
- Inventory Plus and other App Store apps
- Accountant or bookkeeper fees
QuickBooks Online
- Payroll (sold as QuickBooks Workforce bundles)
- Payment processing fees
- Third-party apps
- Intuit Enterprise Suite for multi-entity groups
FAQ
Is Xero cheaper than QuickBooks Online?
Small team (3 users, standard setup, 1 connector integration): Xero is lower by $1,560 (expected 5-year cost). The whole gap is licences ($3,540 vs $5,100 over 5 years); implementation, integrations, internal time and support are identical because the same inputs and assumptions apply to both. The low–high ranges overlap: implementation hours are a wide range for both, so a cheap project on the dearer system can cost less than an expensive project on the cheaper one. The licence difference is the firm part. Growing company (5 users, standard setup, 2 connector integrations): Xero is lower by $4,860 (expected 5-year cost). The whole gap is licences ($3,540 vs $8,400 over 5 years); implementation, integrations, internal time and support are identical because the same inputs and assumptions apply to both. The low–high ranges overlap: implementation hours are a wide range for both, so a cheap project on the dearer system can cost less than an expensive project on the cheaper one. The licence difference is the firm part.
How are Xero and QuickBooks Online priced?
Xero: Growing at USD 59 per month for the whole plan (official). QuickBooks Online: Essentials at USD 85 per month for the whole plan (official).
Other comparisons with Xero or QuickBooks Online
Price sources: www.xero.com, quickbooks.intuit.com (full list on the Xero and QuickBooks Online pages). Verified 2026-10-11. Method and assumptions: methodology.