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Xero shifts to tiered pricing model for developers

December 15, 2025
in Accounting
Reading Time: 3 mins read
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Xero shifts to tiered pricing model for developers
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Small business accounting platform Xero plans to shift third party app developers from a revenue share commercial model to a new tiered pricing structure based on API usage and connections. The change is scheduled for March 2026. The new pricing is a flat monthly fee based on tiers and includes a set allotment of data consumption via the Xero APIs. 

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There will be Starter, Core, Plus, Advanced and Enterprise tiers under this new plan. Monthly fees range from $0 for Starter users to $895 for Advanced users (for Enterprise users, price will be negotiated on application). The number of connections will range from five for Starter users to 10,000 for Advanced users to no limit for Enterprise users. Different tiers will also have a “monthly Xero API usage” statistic for “egress GBs,” or the number of gigabytes going from Xero to the end user. Starting at the Core tier, users are allotted 10 egress GBs per month, followed by 50 for Plus users and 250 for Advanced users (Enterprise users will negotiate volume on application). With these data allotments will also come an overage cost of $1.50 per excess gigabyte. Prices do not include tax. 

Exempted from the new pricing model are bespoke integrations for accountant and bookkeepers built for their own practice or a single client; custom connections; financial services applications in banking, credit and payments that operate on different commercial contracts; apps that solely convert data from other accounting platforms into Xero; and franchise apps built specifically for franchise networks. If they wish, users can request to downgrade two times per year to account for seasonality.

All tiers will have access to developer tools, the AI toolkit, the developer dashboard, open APIs, webhooks, access to the App Launcher in Xero navigation, and API Egress reports. All tiers will also have rate limits of 5,000 per day per organization (except for the Starter tier, which will have 1,000). Certain premium features, as well as some options for developer support and marketing/growth assistance, will only be available at higher tiers. 

As part of the move, no new apps will be added to Xero App Store Subscriptions or Commercial Billing models beginning Dec. 4, 2025. Apps created between Dec. 4, 2025 and March 2, 2026 that developers want to publish on the Xero App Store will begin on an interim billing solution basis. Those apps will then be migrated to the new model when migration begins in March. Existing apps will be migrated to the new pricing model beginning March 2, 2026. Apps will receive 30 days prior notice to their migration. Apps created on or after March 2, 2026 will move directly to the new pricing model.  

“As the Xero ecosystem grows, the new tiering model and usage based pricing is designed to meet app partners where they are in their app development journey, making it easier to access benefits, and making it clearer to forecast and control their pricing as they grow and scale,” said an email statement from Xero. “Tiers have been designed to enable early innovation and create an accessible entry point for app partners just getting started. … We’re actively helping app partners optimize connections and egress via dashboards, our API Egress Usage report, and enablement content so they can understand their usage requirements, and forecast and control their costs.”  

With these changes also come new terms of use agreements surrounding AI. Specifically, users will be prohibited from using API data to train AI and machine learning models, and no apps can use bots or browser extensions that undermine Xero’s security controls or simulate user actions. Xero said this will enable users to benefit from AI while, at the same time, protecting customer data and encouraging responsible use. 

“Our Developer Platform policy updates are focused on customer trust and data stewardship at scale,” said the Xero statement. “The updated Developer Platform Terms reinforce this commitment, including a prohibition on using data obtained via Xero’s APIs to train AI/ML models and clarifications around the use of certain automated tools. We’re enabling a solution that will scale to meet our joint customer needs, while also prioritizing the protection and responsible use of customer data.”

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