QuickBooks Online vs Xero
Accounting pricing comparison · 2026 · Updated April 2026
QuickBooks Online pricing ranges from $20–$275/month, while Xero ranges from $25–$90/month. Xero is typically 27% more affordable, though your actual cost depends on tier and team size.
Sources & confidence
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Plans at a glance
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Contract terms
The fine print, surfaced. Green = buyer-friendly. Each clause backed by a quoted source.
What users say
Aggregated, with sample sizes. We use whichever review platform has data.
QuickBooks Online and Xero are the two dominant cloud accounting platforms for small and mid-sized businesses. QuickBooks Online (QBO) is the market leader in North America, with deep integrations into the US tax and banking ecosystem. Xero is the leading platform in Australia, New Zealand, and the UK, and is gaining ground in North America with its unlimited-user pricing model and accountant-friendly interface.
QuickBooks Online starts at $35/month (Simple Start) and goes up to $235/month (Advanced). Xero starts at $20/month (Starter) and tops out at $78/month (Premium), though payroll add-ons can increase the total. The pricing gap is significant — QBO typically costs more but offers more built-in US-specific tax features.
Plan-by-Plan Pricing
| Plan | QuickBooks Online | Xero |
|---|---|---|
| Solopreneur | $20 /month | $25 /month |
| Simple Start | $38 /month | $55 /month |
| Essentials | $75 /month | $90 /month |
| Plus | $115 /month | — |
| Advanced | $275 /month | — |
Cost at Scale
Total cost of ownership — licenses, implementation, and hidden costs included.
QuickBooks Online
4 scenariosXero
8 scenariosMarket Intelligence
QuickBooks Online
- Median annual cost
- $900
- Based on
- 309 deals
Xero
- Median annual cost
- $564
- Based on
- 147 deals
Contract Terms
| Term | QuickBooks Online | Xero |
|---|---|---|
| Auto-renewal | Yes | — |
| Cancellation | Cancel anytime; charges for current billing month are non-refundable | — |
| Minimum commitment | Monthly commitment only — no annual option available | — |
| Price escalation | Annual increases of ~11-17% each summer. No grandfathering — all existing subscriptions move to new pricing. | Xero has implemented multiple price increases in recent years, with changes typically happening around the beginning of the year or in the second half of the year. For example, a significant price increase occurred on July 1, 2024, and another was implemented on September 13, 2023. Additionally, there were price adjustments in March 2023 and September 15, 2022. |
| Can downgrade | Yes | — |
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Our Verdict
Choose QuickBooks Online if you're a US-based business that wants the deepest integration with US payroll (QuickBooks Payroll), US banking connections, and access to the largest pool of QuickBooks-certified bookkeepers and accountants in North America. QBO's ecosystem advantage is hard to overstate for US businesses.
Choose Xero if you want to save on per-user costs (Xero includes unlimited users at all tiers, QBO charges per user), work internationally, or prefer Xero's cleaner interface. At $37/month for Standard with unlimited users, Xero can be significantly cheaper for teams of 3+. Xero also migrates cleanly from QBO if you decide to switch.
Frequently Asked Questions
01 How much does QuickBooks Online cost in 2026?
QuickBooks Online plans are: Simple Start at $35/month (1 user), Essentials at $65/month (3 users), Plus at $99/month (5 users), and Advanced at $235/month (25 users). Annual billing saves approximately 50% in the first year on promotional pricing. Payroll is a separate add-on.
02 How much does Xero cost in 2026?
Xero's plans are: Starter at $20/month, Standard at $37/month, and Premium at $78/month. All tiers include unlimited users, which is a key cost advantage over QuickBooks Online for growing teams.
03 Is Xero or QuickBooks easier to use?
Both have modern, cloud-native interfaces. QuickBooks Online has a slight usability advantage for US users due to its bank feed matching and US tax form support. Xero has a cleaner, more modern UI that many users prefer, particularly for reconciliation workflows.
04 Can I migrate from QuickBooks Online to Xero?
Yes. Xero offers a QBO migration tool and step-by-step migration guides. The process typically takes a few hours for small businesses. Chart of accounts, contacts, and transaction history can be migrated, though some customization is required.
05 Which is better for businesses with multiple users?
Xero is significantly better for multi-user businesses. All Xero plans include unlimited users at no additional cost. QuickBooks Online limits users by plan and charges per additional user — a team of 5 on QBO Plus costs $99/month vs $37/month on Xero Standard.