Gusto vs Xero
Gusto and Xero are both accounting & finance tools aimed at small businesses. Xero costs less, from $27/mo versus $35/mo for Gusto.
| Pricing | Paid · $35 | Paid · $27 |
| Starting price | $35/mo | $27/mo |
| Free plan | No | No |
| Free trial | — | 30 days |
| Built for | Small businesses | Small businesses |
| Platforms | web, ios, android | web, ios, android |
| Country | US · 2011 | NZ · 2006 |
| Rating | — | — |
Choose Gusto if
US small businesses up to about 100 employees.
- Very easy payroll for small teams
- Benefits administration included
- Friendly UX and good support
Look elsewhere if: Non-US employers or companies needing deep HRIS/IT (Rippling).
Choose Xero if
Small businesses outside the US and teams with many users who need books access.
- Unlimited users on all plans
- Excellent reconciliation experience
- Strong in UK, ANZ and international markets
Look elsewhere if: Very small freelancers (Wave, FreshBooks) or Turkish e-invoice compliance (Paraşüt).
Gusto vs Xero pricing
Gusto
- Simple$49/mo+ $6/person; single-state payroll
- Plus$80/mo+ $12/person; multi-state payroll, time and PTO
- Premium$180/mo+ $22/person; HR experts, compliance, priority support
- Contractor Only$35/mo+ $6/contractor; base fee sometimes waived as promo
Xero
- Early$27/mo20 invoices, 5 bills; 90% off first 6 months until Nov 2 2026
- Growing$59/moUnlimited invoices and bills
- Established$97/moMulti-currency, projects, analytics
Gusto · Key features
- Full-service US payroll with tax filings
- Health benefits, 401(k) and workers' comp
- Onboarding with offer letters and e-signature
- Time tracking, PTO and scheduling
- Contractor payments in 120+ countries
- Compliance alerts and HR resources
Cons
- US employees only
- Costs rise with headcount
- Limited HR depth for larger companies
Xero · Key features
- Bank reconciliation with smart matching
- Invoices, quotes and online payments
- Bills, expenses and Hubdoc document capture
- Multi-currency accounting (Established)
- Projects, inventory and fixed assets
- Analytics, short-term cash flow and reporting
Cons
- Early plan limits are tight
- US payroll requires integrations
- Multi-currency only on the top plan
Gusto vs Xero: FAQ
Which is cheaper, Gusto or Xero?
Xero starts at $27/mo and Gusto at $35/mo. Both prices are checked on the vendors' own pricing pages.
Do Gusto and Xero have a free plan?
Gusto has no free plan. Xero has no free plan, a 30-day free trial.