Payroll · United Kingdom
Xero pricing: what it actually costs per employee
On its cheapest published plan, Xero costs £31 a month for 10 employees, which is £3.10 per employee per month.
At 5 employees the same plan works out at £4.70 per employee — the headline figure of £1.50 assumes the base fee is spread over more people.
Price status: Published list price · Last verified 2026-08-20 · Last recorded change none since we started tracking
What the vendor publishes
| Plan | Base / month | Per employee / month | Conditions as published |
|---|---|---|---|
| Ignite (+ Payroll add-on) | £16 | £1.50 | Regular base price "£16"/mo excl VAT; payroll add-on "£1.50 per person". New customers get "80% off for the first 6 months" on the base plan (standard price recorded, promo excluded). |
| Grow (+ Payroll add-on) | £37 | £1.50 | Includes 1 employees. Regular base price "£37"/mo excl VAT; includes 1 person on payroll, "£1.50 per additional person". |
| Comprehensive (+ Payroll add-on) | £50 | £1.50 | Includes 5 employees. Regular base price "£50"/mo excl VAT; includes 5 people on payroll, "£1.50 per additional person". |
| Ultimate (+ Payroll add-on) | £65 | £1 | Includes 10 employees. Regular base price "£65"/mo excl VAT; includes 10 people on payroll, "£1 per additional person". |
What that works out at per employee
Vendors quote a per-employee fee and a base fee separately. What you actually pay per employee is both of them divided by your headcount, so the smaller your team, the further the real figure sits above the advertised one. This table is Xero's published prices put through that division.
| Plan | 1 | 5 | 10 | 25 | 50 | 100 | 250 |
|---|---|---|---|---|---|---|---|
| Ignite (+ Payroll add-on) | £17.50 | £4.70 | £3.10 | £2.14 | £1.82 | £1.66 | £1.56 |
| Grow (+ Payroll add-on) | £37.00 | £8.60 | £5.05 | £2.92 | £2.21 | £1.85 | £1.64 |
| Comprehensive (+ Payroll add-on) | £50.00 | £10.00 | £5.75 | £3.20 | £2.35 | £1.93 | £1.67 |
| Ultimate (+ Payroll add-on) | £65.00 | £13.00 | £6.50 | £3.20 | £2.10 | £1.55 | £1.22 |
Columns are employee counts. Scroll sideways on a phone.
No other adjustment is applied. We do not add estimated tax-filing fees, discounts, or promotional pricing. The full method is at Method.
Who this suits, and who it does not
- If price is the only thing you are deciding on, Sage Payroll is cheaper at 10 employees (£24 against £31) — see its figures.
- If your headcount is under 5, the base fee of £16 dominates the bill. Check the per-employee column at your actual size before comparing anything.
- If you are not ready to decide, wait. Published prices change without notice and the figures here are only as current as 2026-08-20. Confirm on the vendor's own page before you sign.
Where to check this yourself
Go to XeroUnpaid link — we are not yet paid for this and open its pricing page. Everything above comes from https://www.xero.com/uk/pricing/, read on 2026-08-20.
Related
- Xero compared with Sage Payroll
- Xero compared with Staffology
- Alternatives to Xero
- Work out your own cost with the calculator
- What payroll software costs, and where the money goes
Written by Kaz, independent publisher. No commercial relationship with the companies named unless it is listed on the disclosure page.
Page last updated: 2026-09-06. Sources: vendor pricing pages only. Figures checked between 2026-08-20 and 2026-09-06. I have not used these products. Nothing here is a personal test result.
Ranking method and formulas: Method. Listing position on this site is not for sale.
Corrections: contact form.