Gusto vs BambooHR
HR/HRIS pricing comparison · 2026 · Updated April 2026
Gusto pricing ranges from $35–$180/month, while BambooHR ranges from $6–$25/employee/month. BambooHR is typically 84% more affordable, though your actual cost depends on tier and team size.
Gusto and BambooHR are two of the most popular HR platforms for small and mid-sized businesses, but they approach human resources from different angles. Gusto started as a payroll-first platform and has expanded into benefits administration, hiring, and HR management, making it especially strong for companies that prioritize seamless payroll processing. BambooHR takes an HR-first approach, excelling at employee data management, performance tracking, and organizational tools, with payroll available as an add-on. Both platforms serve the SMB market well, but the right choice depends on whether payroll or broader HR management is your primary need.
Plan-by-Plan Pricing
| Plan | Gusto | BambooHR |
|---|---|---|
| Simple | $49 /month | $10 /employee/month |
| Plus | $80 /month | $17 /employee/month |
| Premium | $180 /month | $25 /employee/month |
| Contractor Only | $35 /month | — |
Cost at Scale
Total cost of ownership — licenses, implementation, and hidden costs included.
Gusto
5 scenariosBambooHR
5 scenariosMarket Intelligence
Gusto
- Median annual cost
- $1,368
- Based on
- 62 deals
BambooHR
- Median annual cost
- $17,045
- Average negotiated discount
- 9.79%
Contract Terms
| Term | Gusto | BambooHR |
|---|---|---|
| Auto-renewal | — | Yes |
| Cancellation | — | Typically 30 days written notice before annual renewal |
| Minimum commitment | — | Annual contracts standard; multi-year discounts available |
Our Verdict
Choose Gusto if payroll is your top priority and you want an all-in-one platform that handles payroll, taxes, benefits, and basic HR without needing separate systems. Gusto's payroll engine is widely regarded as best-in-class for SMBs, with automatic tax filing, multi-state support on the Plus plan, and contractor payment capabilities. Starting at $49/month base plus $6/employee, it's competitively priced for businesses where payroll accuracy and compliance matter most.
Choose BambooHR if you need a dedicated HR management system with strong employee database, performance management, and organizational tools. BambooHR's per-employee pricing ($10–$22/employee/month) scales predictably, and its Pro tier includes performance reviews, compensation planning, and custom workflows. It's the better choice for companies that already have a payroll provider or want deeper HR functionality beyond just running payroll.
Frequently Asked Questions
01 Is Gusto cheaper than BambooHR?
It depends on your team size. Gusto charges a base fee ($49–$180/month) plus a per-employee fee ($6–$22/employee), while BambooHR charges per employee ($10–$22/employee/month) or a flat $250/month for 25 or fewer employees. For a 10-person team, Gusto Simple costs about $109/month while BambooHR Core costs about $100/month. As headcount grows, the cost difference narrows, and the better value depends on which features you actually need.
02 Does BambooHR include payroll?
BambooHR offers payroll as an add-on rather than including it in its base plans. This means you can use BambooHR purely for HR management and pair it with a separate payroll provider if preferred. In contrast, Gusto includes full-service payroll in every plan, making it the more integrated option if payroll is essential to your workflow.
03 Which is better for performance management?
BambooHR has the edge for performance management. Its Pro plan ($22/employee/month) includes built-in performance reviews, compensation planning, employee goals, and assessment tools. Gusto's Plus plan includes basic performance reviews, but BambooHR's implementation is more mature and feature-rich, with customizable review cycles, peer feedback, and detailed performance reporting.