Wave vs Xero — Pricing, Plans, and Verified Costs (2026)
Wave starts at $19/mo. Xero starts at $25/mo. Wave is $6/mo cheaper on the entry tier than Xero.
Free accounting software from Canada, acquired by H&R Block for $537M in 2019. Positioned as the alternative to QuickBooks for freelancers and micro-businesses that can't justify a paid accounting subscription. Distinctive for its genuine forever-free accounting/invoicing (competitors moved everything to paid). Monetizes through payments (2.9% + 60¢), payroll ($20-$40/mo), and advisor services. Popular with side hustlers, freelancers, and micro-businesses under $50K annual revenue.
Cloud accounting from New Zealand, publicly traded, ~$18B market cap. Positioned as the alternative to QuickBooks outside the US (dominant in UK, Australia, and NZ). Distinctive for its bank feed depth (5,000+ banks worldwide) and its global accountant marketplace. Priced $15-$78/mo across three tiers. Recently added AI features and payments infrastructure to defend against Stripe's push into billing. Best choice if your accountant is outside the US.
All plans compared
| Tier role | Plan | Wave monthly | Wave annual | Xero monthly | Xero annual |
|---|---|---|---|---|---|
| Free / starter | Starter / — | Free | Free | — | — |
| Entry paid | Pro / Early | $19 | $15.83 | $25 | $25 |
| Mid tier | — / Growing | — | — | $55 | $55 |
| Pro / power | — / Established | — | — | $90 | $90 |
Tier names differ across vendors. Rows are aligned by tier role, not name. Full tier structures on each tool's page.
What each is best for
Wave is worth it if… US/Canada freelancers and solo entrepreneurs who want completely free accounting + invoicing + receipt scanning — particularly for early-stage founders bootstrapping before they need QuickBooks. Free forever for core accounting and invoicing; charges per transaction for payments and payroll.
Xero is worth it if… global SMBs (1-100 employees) that need cloud accounting + multi-currency support + strong bank feed automation — particularly if you're outside the US or scaling internationally where QuickBooks weakens. Early is entry tier (bank rec + basic invoicing); Growing removes invoice limits; Established adds multi-currency + expenses + projects.
Bottom line: Choose based on how you want to pay — Wave is freemium, Xero is per seat.
Choose Wave over Xero if…
Choose Wave if…
- You want fixed-price predictability (freemium, from $19/mo).
- You match the profile Wave is built for: US/Canada freelancers and solo entrepreneurs who want completely free accounting + invoicing + receipt scanning — particularly for early-stage founders bootstrapping before they need QuickBooks.
- You need a general-purpose finance & accounting option rather than a vertical-specific one.
Choose Xero if…
- You want fixed-price predictability (per seat, from $25/mo).
- You match the profile Xero is built for: global SMBs (1-100 employees) that need cloud accounting + multi-currency support + strong bank feed automation — particularly if you're outside the US or scaling internationally where QuickBooks weakens.
- You need a general-purpose finance & accounting option rather than a vertical-specific one.
At a glance
| Wave | Xero | |
|---|---|---|
| Free plan | Yes | No |
| Entry price | $19/mo | $25/mo |
| Enterprise available | No | Yes |
| Pricing model | Freemium | Per Seat |
| Last verified | September 19, 2026 | September 14, 2026 |
| Full pricing | View full pricing | View full pricing |
Pricing last verified September 19, 2026. Tracked daily.