Xero vs Wave
Accounting pricing comparison · 2026 · Updated May 2026
Xero pricing ranges from $25–$90/month, while Wave ranges from $0–$199/month. These products use different pricing models (Per-seat subscription vs ), so a direct price comparison isn't meaningful — costs depend on usage volume and mix.
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 Wave both target small businesses, but they sit at opposite ends of the price spectrum. Wave's Starter plan is genuinely free for invoicing and basic accounting — no transaction caps, no user limits — making it the default for solo entrepreneurs and side-hustle businesses. Xero starts at $25/month for the Early plan but offers double-entry bookkeeping with bank reconciliation rules, the 1,000+ app marketplace, and unlimited users on every tier.
The decision usually comes down to scale: Wave is unbeatable for solo operators with simple needs, while Xero earns its monthly fee once you have employees, multiple bank accounts, or need integrations with payroll, ecommerce, or inventory tools.
Plan-by-Plan Pricing
| Plan | Xero | Wave |
|---|---|---|
| Early | $25 /month | Free /month |
| Growing | $55 /month | $19 /month |
| Established | $90 /month | $199 /month |
Market Intelligence
Xero
- Median annual cost
- $564
- Based on
- 147 deals
Wave
- Median annual cost
- $500
- Based on
- 226 deals
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Our Verdict
Choose Wave if you're a freelancer, consultant, or sole proprietor with basic accounting needs and want to keep monthly software costs at zero. The Starter plan ($0/month) handles invoicing, expense tracking, and basic reports for businesses under ~$100K revenue. Wave Pro at $19/month adds receipt capture and unlimited bank connections.
Choose Xero if you have employees, run multiple bank or credit accounts, need bank reconciliation rules, or plan to integrate payroll (Gusto), inventory, or ecommerce tools. The Growing plan at $55/month with unlimited invoices, unlimited users, and the full app marketplace is where most 2-10 person businesses land. Xero's Established plan ($90/month) adds multi-currency and project tracking that Wave does not offer at any price.
Frequently Asked Questions
01 Is Wave really free?
Yes — Wave Starter is genuinely free with no transaction limits, no user caps, and no time-limited trial. You only pay if you use Wave Payments (2.9% + 30¢ per card transaction, 1% for bank/ACH), Wave Payroll ($20-$40/month base), or upgrade to Wave Pro ($19/month) for receipt scanning and unlimited bank connections.
02 How much does Xero cost compared to Wave?
Xero starts at $25/month (Early), $55/month (Growing), and $90/month (Established). Wave is $0 for the Starter plan or $19/month for Pro. Annual cost: Wave Starter is $0, Wave Pro is $228, Xero Early is $300, Xero Growing is $660, and Xero Established is $1,080.
03 Can Wave handle the same things Xero can?
No. Wave covers invoicing, expense tracking, basic reports, and bank connections — but lacks bank reconciliation rules, project tracking, multi-currency, inventory, and a meaningful app marketplace. Xero offers all of those, plus integrations with 1,000+ third-party tools (Gusto, Stripe, Shopify, Hubdoc, etc.).
04 Should I move from Wave to Xero?
Move when you hire your first employee, add a second bank or credit account, need to track projects or multi-currency invoices, or hit ~$100K-$200K annual revenue. Below those thresholds, Wave's free tier is hard to beat. Xero offers a free QuickBooks-style data migration through MoveMyBooks but Wave imports require manual CSV work.
05 Does Wave have an app marketplace like Xero?
No — Wave has a tiny integration list (Zapier and a few payroll partners). Xero has 1,000+ direct integrations including Gusto, Stripe, Shopify, BILL, Ramp, Hubdoc, Dext, and most major US banks. If you plan to connect accounting to ecommerce, payroll, or AP automation, Xero is the only realistic choice.