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Microsoft 365 vs Xero

A detailed comparison of Microsoft 365 and Xero in 2026. Compare pricing plans, features, and find out which productivity service is right for you.

Microsoft 365

Office apps suite with cloud services

Microsoft 365 is a productivity and collaboration service that provides office apps suite with cloud services. Founded in 1988 and headquartered in Redmond, Washington, Microsoft 365 offers 3 pricing plans. Plans start from $6/month. Key features include Word, Excel, PowerPoint, Outlook. Microsoft 365 is a popular choice for users looking for quality productivity subscriptions.

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Xero

Cloud accounting software for small businesses

Xero is a financial and accounting service that provides cloud accounting software for small businesses. Founded in 2006 and headquartered in Wellington, New Zealand, Xero offers 3 pricing plans. Plans start from $13/month. Key features include Bank reconciliation, Invoicing, Payroll, Projects. Xero is a popular choice for users looking for quality finance subscriptions.

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Feature Comparison

Side-by-side comparison of features and capabilities

FeatureMicrosoft 365Xero
Starting Price$6/mo$13/mo
Plans Available33
Year Founded19882006
HeadquartersRedmond, WashingtonWellington, New Zealand
Word
Excel
PowerPoint
Outlook
OneDrive 1TB
Teams
Bank reconciliation
Invoicing
Payroll
Projects
Expenses
Multi-currency

Pricing Comparison

Compare all available plans and pricing tiers

Microsoft 365 Pricing

Basic
$6/mo

$72/yr

Personal
$6.99/mo

$69.99/yr

Family
$9.99/mo

$99.99/yr

Xero Pricing

Starter
$13/mo
Standard
$37/mo
Premium
$70/mo

Frequently Asked Questions

Is Microsoft 365 or Xero better in 2026?

Both Microsoft 365 and Xero are excellent productivity services. Microsoft 365 offers Word and Excel, while Xero features Bank reconciliation and Invoicing. The best choice depends on your specific needs and budget.

How much does Microsoft 365 cost compared to Xero?

Microsoft 365 starts at $6/month, while Xero starts at $13/month. Both offer multiple pricing tiers to fit different budgets.

Can I track both Microsoft 365 and Xero subscriptions?

Yes! TrackMySubscriptions lets you track all your subscriptions in one place, including Microsoft 365 and Xero. Get renewal alerts, spending analytics, and never miss a payment — 100% free.

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