Disclaimer: Pricing and features mentioned are estimates based on publicly available data as of this writing. Xero changes its pricing regularly (typically every 18-24 months). Always log into your Xero account and visit Settings > Subscription for your exact, real-time fees.
Advanced reporting, deeper payroll integration (where applicable), and higher limits or inclusions for expenses and project tracking for multiple users.
It bundles core accounting with Xero’s premium add-ons, including advanced analytics, tracking for multiple employees, and automated payroll features (where locally supported). How Xero Fees Are Calculated
: No limits on the number of invoices, quotes, or bills. xero fees work
Historically, Xero charged per user. In recent years, they have moved toward .
While basic payroll is sometimes included, full-service payroll for more employees often requires an add-on, increasing the monthly subscription fee.
If you enable online payment buttons on your Xero invoices (via Stripe, PayPal, or GoCardless), you do not pay Xero directly for this feature. Instead, the respective payment gateway charges standard transaction fees (e.g., a percentage plus a flat cents fee per invoice paid). Billing Mechanics, Upgrades, and Cancellations Historically, Xero charged per user
| Payment Method | Fee on a £1,000 Invoice | Settlement Time | | :--- | :--- | :--- | | | £16.20 (1.5% + 20p) | 7-14 days | | Premium UK Credit Card (Stripe) | £21.20 (1.9% + 20p) | 7-14 days | | International Card (Stripe) | £25.20+ (2.5% + 20p) | 7-14 days | | Pay by Bank (Open Banking) | £5 – £10 (0.5%–1%) | Instant | | Direct Debit (GoCardless) | ~£10 (1% capped at £4) | 3-5 days |
: When customers pay invoices online through integrated partners like Stripe or GoCardless, transaction fees typically range from 2.4% to 4% . Important Billing Considerations
Xero frequently runs promotional campaigns offering 30% to 50% off for the first few months for new subscribers. you rent access to it monthly.
At its core, Xero operates on a Software-as-a-Service (SaaS) subscription model. You don't buy the software once; you rent access to it monthly. The "base" fee depends entirely on the complexity of your business needs.
Higher levels of the Premium plan typically scale based on the number of employees you need to pay through integrated payroll tools. Optional Add-ons That Increase Monthly Fees