If you're building integrations with Xero's accounting API, understanding the new pricing structure is essential for budgeting and architectural decisions. While Xero's API was historically free with minimal restrictions, the company introduced a significant change in December 2025 with a tiered pricing model taking effect March 2, 2026. This guide breaks down the new pricing, compares it to alternatives like QuickBooks and Sage, and provides practical strategies for managing costs.

What changed and why it matters

Xero announced its new API pricing on December 4, 2025, ending what industry analyst Heather Smith called the "all-you-can-eat Xero data buffet." Previously, developers could access Xero's APIs entirely free by billing customers directly outside the Xero App Store—a common practice that helped build Xero's ecosystem of 500+ apps serving 4.6 million global subscribers.

The new model introduces charges based on two key metrics: the number of connected Xero organizations (tenants) and monthly data egress (data downloaded from Xero's APIs). This shift affects every developer building Xero integrations, from bootstrapped startups to enterprise software providers.

Xero's tiered pricing structure

All prices are in Australian Dollars, tax exclusive.

Tier	Monthly Fee	Max Connections	Monthly Egress	Overage Rate	Daily API Limit
Starter	$0 AUD	5	Unlimited	N/A	1,000/org
Core	$35 AUD	50	10 GB	$2.40/GB	5,000/org
Plus	$245 AUD	1,000	50 GB	$2.40/GB	5,000/org
Advanced	$1,445 AUD	10,000	250 GB	$2.40/GB	5,000/org
Enterprise	Custom	Unlimited	Custom	Custom	5,000/org

For US-based developers, the Advanced tier translates to approximately $895 USD/month or $10,740 USD annually.

Key pricing mechanics

Connections represent unique Xero organizations linked to your app via OAuth. Each customer authorizing your app counts as one connection. Pricing is measured at the app level—separate apps cannot share connection counts.

Data egress measures gigabytes downloaded from Xero's APIs monthly. All GET requests count toward your allowance, with one exception: the Organisation endpoint is excluded, recognizing its common use as a connectivity check.

Data ingress (uploads to Xero) remains unlimited and free at all tiers—only data pulled from Xero counts against your allowance.

Premium features locked behind Advanced tier

Three capabilities require the $1,445/month Advanced tier minimum:

• Journals endpoint: Full double-entry bookkeeping data for balance sheet reconciliation and advanced reporting
• Xero Practice Manager (XPM) API: Integration with Xero's practice management system for accountants
• Bulk Connections: Connect multiple Xero organizations in a single OAuth flow

For developers building reconciliation tools, reporting solutions, or apps serving accounting firms, this creates a $17,340 AUD annual minimum before writing a single line of business logic.

How Xero compares to alternatives

The accounting API landscape is shifting toward usage-based pricing, but significant differences exist between platforms. Understanding these can help you make informed decisions about where to invest your development resources.

QuickBooks (Intuit App Partner Program)

QuickBooks launched similar tiered pricing in July 2025, but with a fundamentally different approach that's more favorable for read-heavy applications.

Tier	Monthly Fee	CorePlus Credits	Overage Rate	Key Benefit
Builder	$0	500,000/month	Blocked at limit	Development & testing
Silver	$300 USD	1 million	$3.50/1,000 calls	Premium API access
Gold	$1,700 USD	Higher allocation	Better rates	Dedicated support
Platinum	$4,500 USD	75 million	$0.25/1,000 calls	Best rates, early access

What makes QuickBooks different:

1. Core calls (writes) are unlimited and free across all tiers—creating invoices, customers, and bills costs nothing
2. CorePlus calls (reads) are metered, but the free tier offers 500,000 monthly calls before blocking
3. Premium APIs are accessible at Silver tier ($300/month), not locked behind a $1,445/month paywall
4. Overage charges are per-call, making costs more predictable than per-gigabyte egress billing

Practical comparison: A developer making 1 million API reads monthly would pay approximately $300/month on QuickBooks (Silver tier) versus potentially much more on Xero depending on data volume per call. QuickBooks' per-call model is easier to forecast than Xero's egress-based billing.

Sage Business Cloud Accounting API

Sage takes the most developer-friendly approach in the market: completely free API access with no usage-based charges.

From Sage's developer documentation: "The Sage Business Cloud Accounting API is free to use, we just ask you to register and then you can start to innovate!"

Sage API details:

• Cost: $0 (free)
• Rate limits: Applied at the client application level, not per-call charges
• Coverage: Full access to Accounting and Start products
• Authentication: OAuth 2.0 with standard access token flow
• Geographic availability: UK, US, Canada, France, and other markets

The tradeoff: Sage's market share is smaller than Xero or QuickBooks, particularly in Australia and New Zealand where Xero dominates. Your customer base will ultimately determine whether Sage coverage is sufficient.

FreshBooks

FreshBooks also maintains free API access for developers, making it another cost-effective option for teams building accounting integrations.

MYOB (Australia-focused)

MYOB uses flat subscription pricing without per-call charges:

Tier	Monthly Fee	Features
Developer Access	$110 AUD	Basic API access
DeveloperPartner	$220 AUD	Enhanced features
Premium DeveloperPartner	$630 AUD	Full access

Advantage: Predictable costs regardless of API usage volume.

Disadvantage: Higher baseline commitment than Xero's free Starter tier for small-scale projects.

Platform comparison summary

Platform	Free Tier	Entry Paid	Pricing Model	Writes	Best For
Xero	5 connections	$35 AUD/mo	Egress + connections	Free	ANZ market focus
QuickBooks	500K reads/mo	$300 USD/mo	Per API call (reads)	Free	NA market, write-heavy apps
Sage	Full access	N/A	Free	Free	Cost-sensitive projects
MYOB	None	$110 AUD/mo	Flat subscription	Included	Predictable budgeting
FreshBooks	Full access	N/A	Free	Free	Small business focus

Strategies for navigating Xero's pricing

If Xero integration is essential for your product (particularly in Australia, New Zealand, or UK markets), several optimization strategies can significantly reduce costs.

1. Implement webhooks instead of polling

Xero pushes real-time notifications when data changes. Configure your HTTPS endpoint to receive events, eliminating constant API calls. This alone can reduce call volume by 90% or more compared to periodic polling.

// Instead of polling every 15 minutes for invoice changes:
GET /api.xro/2.0/Invoices?where=UpdatedDateUTC>=DateTime(2025,01,01)

// Subscribe to webhook events and react to changes:
POST https://your-app.com/webhooks/xero
// Xero sends: { "events": [{ "resourceId": "...", "eventType": "UPDATE" }] }

2. Use batch requests

Create up to 50 items per single API call. Creating 350 invoices becomes 7 API calls instead of 350—a 98% reduction. Each batch counts as one call regardless of items included.

3. Filter queries aggressively

Use the where parameter to request only relevant records:

// Instead of fetching all invoices:
GET /api.xro/2.0/Invoices

// Request only what you need:
GET /api.xro/2.0/Invoices?where=Status!="DELETED"&&InvoiceDate>=DateTime(2025,01,01)

The summaryOnly=true parameter returns lightweight responses when full details aren't needed, reducing egress by 50-80%.

4. Leverage If-Modified-Since headers

Store your last successful sync timestamp and include it in subsequent requests:

GET /api.xro/2.0/Contacts
If-Modified-Since: Thu, 01 Jan 2025 00:00:00 GMT

This retrieves only changed records, reducing both calls and egress dramatically.

5. Cache static data locally

Chart of Accounts, Tax Rates, Currencies, and Tracking Categories rarely change. Cache them for hours and invalidate via webhooks. Contact information can reasonably cache for 15-30 minutes.

6. Audit and clean up connections

Before March 2026 migration, review your connected organizations. The new "Manage Your Connections" feature lets you disconnect inactive connections to potentially qualify for a lower tier.

Cost scenarios and tier selection

Small invoicing app (50 customers)

• Tier needed: Core ($35 AUD/month)
• Annual cost: $420 AUD (~$260 USD)
• Headroom: 10 GB monthly egress, 5,000 calls/day per org

Mid-market reporting tool (500 customers)

• Tier needed: Plus ($245 AUD/month)
• Annual cost: $2,940 AUD (~$1,820 USD)
• Headroom: 50 GB monthly egress, well-optimized apps should avoid overage

Reconciliation tool requiring Journals endpoint

• Tier needed: Advanced ($1,445 AUD/month) — mandatory for Journals access
• Annual cost: $17,340 AUD (~$10,740 USD)
• Note: The premium endpoint access drives the requirement regardless of connection count

Transition timeline

Date	Milestone
December 4, 2025	New terms apply to new developers immediately
March 2, 2026	New pricing takes effect for existing developers
July 1, 2026	Mandatory deadline for XASS customer transitions

There is no grandfathering of the previous pricing model. Existing developers receive at least 30 days' notice before their individual app migration.

When to consider alternatives

Xero may not be the right choice if:

• You need Journals or XPM access but can't justify $17,340/year — QuickBooks provides comparable functionality at lower tiers
• Your product is read-heavy (analytics, reporting, dashboards) — QuickBooks' per-call model or Sage's free access may be more economical
• You're bootstrapping and need minimal upfront costs — Sage and FreshBooks offer completely free API access
• Cost predictability is paramount — MYOB's flat subscription eliminates usage-based surprises

Xero remains compelling if:

• Your customers are concentrated in ANZ or UK markets where Xero dominates
• Your product is write-heavy (invoicing, expense capture, data entry) where egress costs are minimal
• You need fewer than 5 connections and can operate within the free Starter tier
• You're already invested in the Xero ecosystem with certification and marketplace presence

Building for multiple platforms

Given the pricing volatility across accounting platforms, consider building integrations through a unified API layer rather than direct integrations. This provides:

1. Hedge against pricing changes — switch traffic between providers as economics shift
2. Broader market coverage — support customers regardless of their accounting software choice
3. Reduced maintenance burden — single integration point versus maintaining multiple direct integrations

Unified APIs like Apideck, Merge, or Codat abstract away individual platform differences while providing access to Xero, QuickBooks, Sage, and others through a single interface.

Conclusion

Xero's API pricing shift represents a fundamental change in the economics of building accounting integrations. The free Starter tier remains viable for MVPs and small-scale testing, but production applications—particularly those requiring premium endpoint access—face significant new costs.

For developers evaluating their options:

• Optimize aggressively if Xero is essential — webhooks, caching, and filtered queries can dramatically reduce costs
• Compare alternatives carefully — Sage's free access and QuickBooks' per-call model may offer better economics depending on your use case
• Consider unified APIs — hedge against platform-specific pricing changes while expanding market coverage

The transition deadline of March 2, 2026 gives existing developers time to optimize, evaluate alternatives, and forecast tier requirements accurately. Use this window to make informed decisions about your integration strategy.

Disclaimer: Xero pricing is separate from Apideck pricing if you're integrating via our Unified Accounting API. Pricing information accurate as of January 2026 and subject to change.