Xero vs Gusto
Accounting pricing comparison · 2026 · Updated May 2026
Xero pricing ranges from $25–$90/month, while Gusto ranges from $35–$180/month. Xero is typically 31% more affordable, though your actual cost depends on tier and team size.
Sources & confidence
Every dollar amount and contract clause below traces back to a sourced fact. We don't manufacture composite scores.
Plans at a glance
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What users say
Aggregated, with sample sizes. We use whichever review platform has data.
Xero and Gusto are not really competitors — they're partners. Gusto is Xero's official US payroll provider and the recommended integration for US businesses running payroll. Most US Xero customers use both: Xero handles the books, Gusto runs payroll, and the two sync automatically with payroll journals flowing into Xero.
Pricing is additive, not either-or. Xero costs $25-$90/month flat for accounting. Gusto starts at $49/month + $6/employee for the Simple plan, scaling to $180/month + $22/employee for Premium. A typical 5-person small business pays Xero Growing ($55) + Gusto Simple ($79) = $134/month for the full accounting + payroll stack.
Plan-by-Plan Pricing
| Plan | Xero | Gusto |
|---|---|---|
| Early | $25 /month | $49 /month |
| Growing | $55 /month | $80 /month |
| Established | $90 /month | $180 /month |
| Contractor Only | — | $35 /month |
Cost at Scale
Total cost of ownership — licenses, implementation, and hidden costs included.
Xero
8 scenariosGusto
5 scenariosMarket Intelligence
Xero
- Median annual cost
- $564
- Based on
- 147 deals
Gusto
- Median annual cost
- $1,368
- Based on
- 62 deals
Contract Terms
| Term | Xero | Gusto |
|---|---|---|
| Auto-renewal | — | — |
| Cancellation | — | — |
| Minimum commitment | — | — |
| Price escalation | 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. | — |
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Our Verdict
Use both Xero and Gusto if you're a US business with employees. Xero alone does not run US payroll — there's no native payroll feature. Gusto is the cleanest integration, with two-way sync, automatic tax filing, and direct deposit included on every plan. Gusto Simple at $49/month + $6/employee is the standard starting point.
Use Xero alone if you're contractor-only (no W-2 employees) — Xero's built-in 1099 handling on US plans covers contractor payments and year-end filing without needing Gusto. Once you hire your first W-2 employee, add Gusto.
Alternatives to Gusto with Xero include OnPay ($40/month + $6/employee), SurePayroll ($29.99 + $5/employee), or ADP RUN (custom pricing). Gusto has the tightest Xero integration and the cleanest small-business UX.
Frequently Asked Questions
01 Does Xero include US payroll?
No. Xero discontinued its native US payroll product in 2018 and now partners with Gusto as the recommended US payroll provider. Xero's UK, Australian, and New Zealand editions include native payroll, but US customers must use Gusto, OnPay, ADP, or another integrated provider.
02 How much does Xero plus Gusto cost together?
Xero is $25-$90/month flat. Gusto Simple starts at $49/month + $6/employee, Plus is $80/month + $12/employee, Premium is $180/month + $22/employee. A 5-person business on Xero Growing + Gusto Simple pays $55 + $49 + (5 × $6) = $134/month. A 25-person business on Xero Established + Gusto Plus pays $90 + $80 + (25 × $12) = $470/month.
03 Why doesn't Xero just include payroll?
Xero exited US payroll in 2018 due to the complexity of state-level tax compliance across 50 states (each with different filing schedules, withholding tables, and unemployment insurance rules). Rather than maintain that compliance work, Xero partnered with Gusto, which is purpose-built for US payroll tax filing. The integration is tighter than most third-party payroll connections.
04 Can I use a different payroll provider with Xero?
Yes. Xero integrates with OnPay ($40 + $6/employee), SurePayroll ($29.99 + $5/employee), Patriot ($17 + $4/employee), and ADP RUN through the app marketplace. Patriot is the cheapest at small scale; ADP makes sense at 50+ employees. Gusto remains the default choice for most small businesses due to UX and integration depth.
05 Does Gusto offer health insurance and benefits with Xero integration?
Yes — Gusto Plus and Premium include benefits administration: health insurance, 401(k), HSA/FSA, and commuter benefits. The benefits sync into Xero as deductions on payroll journals, automatically reconciling to the correct accounts. Stand-alone benefits brokers integrated with Xero include Justworks and Rippling, but those are full PEOs with different pricing models.