# Guide to Billing Software Cost and Pricing Models > Compare billing and invoicing software cost by pricing model, plan tier, and extra fees so you can budget for the tool with more confidence. Source: https://www.softwareadvice.com/resources/billing-and-invoicing-software-pricing-models --- 1 million+ businesses helped. Get advice Get Free Advice [Home](https://www.softwareadvice.com/) / [Resources](https://www.softwareadvice.com/resources/) / Guide to Billing and Invoicing Software Pricing Models # Guide to Billing and Invoicing Software Pricing Models By: [Preksha Buttan](https://www.softwareadvice.com/resources/author/pbuttan/) on June 15, 2026 On this page: - What is the cost of billing and invoicing software? - What affects billing and invoicing software pricing? - What are the different types of billing and invoicing software pricing models? - Common subscription pricing tiers for billing and invoicing software - What are the upfront and recurring costs associated with billing and invoicing software? - What are the additional costs associated with billing and invoicing software? - How to compare billing and invoicing software plans without underestimating cost - When should you choose a lower-tier, mid-tier, or high-end billing software plan? - FAQs: Billing and invoicing software pricing [Billing and invoicing software](https://www.softwareadvice.com/accounting/billing-invoicing-software-comparison/) pricing looks simple until you start comparing plans. One vendor charges per user, another charges a flat monthly fee, and a third offers a free plan that still comes with limits on invoices, users, or payment features. That makes it hard to know what you’ll actually pay once setup, integrations, support, and future upgrades enter the picture. This guide explains how billing and invoicing software pricing works so you can compare plans with a clearer budget in mind before you choose a product. TL;DR - **Pricing varies by model.** Most tools charge per user, per month or as a flat monthly rate. - **Starting price isn’t the full cost.** Setup, integrations, payment features, and support can raise your total spend. - **Plan fit depends on billing complexity**. Recurring invoices, approvals, and payment workflows often require higher tiers. - **Free plans still have limits**. Watch for caps on invoices, users, transactions, features, and support. - **Compare annual cost.** Add users, setup, add-ons, support, and likely upgrades before choosing a plan. ## What is the cost of billing and invoicing software? Billing and invoicing software pricing commonly follows two models: - **Per user, per month**: You pay for each team member who needs access. - **Flat rate, per month**: You pay one monthly fee for a set plan, often with limits on users, invoices, clients, or features. Per-user pricing suits businesses with a small number of users. Flat-rate pricing suits teams that need shared access and want a more predictable monthly fee. The table below shows the common price ranges[\*](#survey-methodology) for billing and invoicing software by pricing model and plan tier. **Pricing model** **Entry level** **Mid tier** **High end** Per user, per month $38 to $49 $66 to $119 $155 to $295 Flat rate, per month $39 to $200 $93 to $599 $200 to $999 A higher plan price often reflects more advanced billing features, such as automated payment reminders, recurring invoices, custom invoice templates, reporting, integrations, and premium support. Starting price alone does not show the full cost, so compare what each plan includes before you shortlist vendors. ## What affects billing and invoicing software pricing? Billing and invoicing software cost changes based on how many people use the system, how many invoices you process, and which features your team needs. A basic plan may cover invoice creation and payment tracking, while higher tiers often add automation, reporting, integrations, and support. Key pricing factors include: - **Number of users**: Per-user plans cost more as you add team members, accountants, approvers, or managers. - **Invoice volume**: Some plans limit how many invoices, clients, or transactions you can manage each month. - **Billing complexity**: Recurring invoices, payment schedules, late fees, and multicurrency billing often sit in higher tiers. - **Payment features**: Online payment options may include separate processing fees or require a higher plan. - **Integrations**: Connections with [accounting](https://www.softwareadvice.com/accounting/), [CRM](https://www.softwareadvice.com/crm/), [eCommerce](https://www.softwareadvice.com/category/4340-ecommerce/), or payment tools can add setup or subscription costs. - **Reporting needs**: Advanced reports, dashboards, and revenue tracking often cost more than basic invoice summaries. - **Support level:** Priority support, onboarding, training, and dedicated account assistance can raise the total cost. - **Customization**: Custom invoice templates, workflows, fields, and approval rules may require a paid plan or setup fee. Before you compare plans, list the billing tasks your team handles every month. This makes it easier to see whether a low-cost plan covers your actual workflow or only the basics. ## What are the different types of billing and invoicing software pricing models? Billing and invoicing software vendors use different license models to decide how you pay for the product. The license model affects your billing schedule, ownership, setup responsibility, and long-term costs. ### 1\. Subscription license With a subscription license, you pay a recurring fee to access the software. Common examples include a monthly fee, an annual contract, or a per-user, per-month charge. For example, a vendor might charge one monthly fee for a basic invoicing plan, then charge a higher fee when you add more users, recurring billing, payment reminders, or advanced reports. Some vendors also offer annual billing at a lower monthly rate in exchange for a longer commitment. This model works best when you want: - Predictable recurring payments - Cloud access for your team - Vendor-managed updates and security fixes - The option to move between plans as needs change _**Before choosing**_ _a subscription plan, check the renewal terms, cancellation policy, and what happens when you add users or upgrade features._ ### 2\. Perpetual license With a perpetual license, you pay a one-time fee to buy the software license. This model appears more often with on premise systems that your business installs and manages internally. For example, a business might buy a billing system license once, then pay separately for setup, maintenance, security updates, technical support, or version upgrades. The upfront payment gives you long-term access to the product, but it does not cover every future cost. This model works best when you need: - More control over hosting and data storage - Internal ownership of the system - Custom setup for complex billing workflows - A long-term system with fewer vendor-led changes _**Before choosing**_ _a perpetual license, compare the one-time fee with the ongoing cost of IT support, maintenance, upgrades, and integrations._ ### 3\. Custom pricing With custom pricing, the vendor gives you a quote instead of listing a fixed plan price. The quote is based on your business size, number of users, invoice volume, billing workflows, integrations, and support needs. For example, a vendor may create a custom plan for a business that manages high invoice volumes, multiple entities, complex approval workflows, or advanced reporting requirements. Custom pricing is also common when the software requires hands-on implementation or dedicated support. This model works best when you need: - Pricing based on your exact setup - Support for complex billing workflows - Higher invoice or transaction limits - Custom integrations or implementation help _**Before choosing**_ _a custom-priced plan, ask the vendor for a full cost breakdown. Confirm what the quote includes, what costs extra, and what changes could raise the price later._ ### 4\. Modular pricing With modular pricing, you pay for a base product and add specific features or modules separately. This lets you start with core billing tools and pay extra for capabilities your team needs. For example, a vendor may charge separately for recurring billing, online payments, tax calculation, customer portals, advanced reporting, or accounting integrations. Two businesses using the same billing software can pay different amounts depending on which modules they add. This model works best when you want: - A lower starting cost - Control over which features you pay for - Room to add capabilities over time - A plan built around specific billing needs _**Before choosing**_ _modular pricing, check which features come with the base plan. Add-on costs can make the final price higher than a bundled plan if you need several modules._ ## Common subscription pricing tiers for billing and invoicing software Most subscription-based billing and invoicing software plans follow a tiered structure. Each tier gives you a different level of access, from basic invoice creation to more advanced billing controls, reporting, and support. The right tier depends on how your business bills customers, how many people need access, and how much control you need over payment workflows. - **Entry-level plans**: Best for freelancers, sole proprietors, and small teams with simple billing needs. These plans cover basic tasks, such as creating invoices, storing customer records, tracking payments, and using standard templates. They often limit users, invoice customization, reports, integrations, and automation. - **Mid-tier plans**: Best for growing businesses that manage repeat customers, higher invoice volume, or multiple billing workflows. These plans often add recurring invoices, automated payment reminders, online payment options, expanded templates, and more detailed reports. - **High-end plans**: Best for larger teams or businesses with complex billing needs, such as multi-entity billing, custom workflows, advanced permissions, deeper integrations, and higher usage limits. These plans often include premium support and stronger reporting tools for teams that need more control over billing operations. _**Before choosing**_ _a tier, compare the features your team needs now with the ones you’ll need as billing volume grows. A lower tier can work at first, but frequent upgrades or paid add-ons can raise the total cost over time._ ### Price comparison of top-rated billing and invoicing products The pricing table[\*\*](#survey-methodology) below compares publicly available pricing for top-rated billing and invoicing products. Use it as a starting point to see how pricing models, free plans, free trials, and paid tiers differ across vendors. **Subscription model** **Free version** **Free trial** **Entry level** **Mid tier** **High end** [**QuickBooks Online**](https://www.softwareadvice.com/product/393202-QuickBooks-Online/) Per user/ mo No Yes $38 $75 $115 [**Xero**](https://www.softwareadvice.com/accounting/xero-profile/) Per user/ mo No Yes $29 $50 $75 [**Wave**](https://www.softwareadvice.com/product/18767-Wave-Apps/) Per user/ mo Yes Yes NA NA $19 [**Odoo**](https://www.softwareadvice.com/crm/odoo-profile/) Per user/ mo Yes Yes $8.58\* $12.88\* NA [**FreshBooks**](https://www.softwareadvice.com/accounting/freshbooks-profile/) Flat rate/ mo No Yes $23 $43 $70 [**Paymo**](https://www.softwareadvice.com/project-management/paymo-profile/) Flat rate/ mo Yes Yes $9.90 $15.90 $23.90 [**HoneyBook**](https://www.softwareadvice.com/crm/honeybook-profile/) Flat rate/ mo No Yes $36 $59 $129 [**Elorus**](https://www.softwareadvice.com/accounting/elorus-profile/) Flat rate/ mo Yes Yes $9 $19 $39 _\*Converted from INR to USD_ _‘NA’ indicates that the respective pricing tier is not offered by the vendor._ ## What are the upfront and recurring costs associated with billing and invoicing software? Billing software costs go beyond the monthly plan. Some expenses come up before your team starts using the system, while others continue as your billing needs grow. **Upfront costs** cover the work required to set up the software. These costs often include customization, installation and setup, and integrations with tools such as accounting software, payment processors, CRM platforms, or ecommerce systems. **Types of upfront costs by software pricing model** Cost type **Perpetual license** **Subscription-based** **Free and open source** **Customization** Yes Yes Yes **Installation and setup** Yes Yes Yes **Integrations** Yes Yes Yes **Recurring costs** are ongoing expenses that keep the software running after setup. These costs can include maintenance, premium support, subscription fees, and IT support, depending on the pricing model you choose. **Types of recurring costs by software pricing model** Cost type **Perpetual license** **Subscription based** **Free and open source** Maintenance  Yes No Yes Premium support and services Yes Yes No Subscription fees No Yes No In-house or outsourced IT consultants No No Yes ### Common cost components by billing and invoicing software licensing model The pricing model you choose affects where costs show up. Subscription tools spread costs across monthly or annual payments, while perpetual and open source options often require more setup, hosting, maintenance, or IT work. **Cost type** **Subscription license** **Perpetual license** **Free and open source license** Upfront costs Initial setup, data migration, onboarding, invoice template setup, workflow configuration, and integrations with accounting, CRM, payment, or eCommerce tools One-time license purchase, installation, system configuration, server or private cloud setup, and data migration Free plans often have no upfront license fee. Open source tools still require setup, hosting, customization, security configuration, and implementation support Recurring costs Monthly or annual subscription fees, extra users, paid add-ons, payment features, integrations, and premium support plans Maintenance fees, security patches, version upgrades, technical support contracts, and server upkeep Hosting, maintenance, extensions, security updates, technical support, and internal or outsourced IT work Hidden costs Invoice or transaction limits, user training, payment processing fees, integration upkeep, custom reporting, and admin time Major upgrade fees, custom reporting, backups, system administration, internal IT staffing, and long-term maintenance Implementation effort, customization work, extension maintenance, integration fixes, training, and paid support services This cost split matters because the lowest plan price does not always lead to the lowest long-term spend. A subscription plan may cost less to start, but paid add-ons and usage limits can raise the total. A free or open source tool may remove license fees, but setup and maintenance still require a budget. ## What are the additional costs associated with billing and invoicing software? Billing software expenses do not stop at the subscription or license fee. Some costs appear during setup, while others show up when your team adds users, connects tools, or handles more billing activity. Include these costs in your budget before you commit: - **Data migration**: You may need to move customer records, invoice history, payment records, tax details, and product or service catalogs from spreadsheets or older systems into the new platform. Poorly organized data can increase cleanup time and setup cost. - **Training**: Your billing team, finance staff, managers, and approvers need to know how to create invoices, track payments, apply discounts, manage refunds, and read reports. Role-based training reduces errors and speeds up adoption. - **Payment processing fees**: Vendors may charge separate fees for online payments, card transactions, ACH transfers, or payment gateway use. These fees can add up if your business processes a high volume of invoices. - **Integrations**: Connections with accounting software, CRM systems, eCommerce platforms, payment processors, or tax tools may require paid add-ons, setup work, or ongoing maintenance. - **Custom templates and workflows**: Some businesses need branded invoices, approval rules, custom fields, tax settings, or recurring billing workflows. These requirements may require a higher plan or paid configuration. - **Support and onboarding**: Basic support may be included, but priority support, guided setup, dedicated account assistance, and onboarding sessions can cost extra. - **Compliance and security setup**: If your business handles sensitive customer or payment data, you may need stronger access controls, audit trails, data backups, or security reviews before rollout. _Before finalizing a vendor, ask for a complete cost breakdown. The base plan tells you where pricing starts, but these additional costs show what your business is more likely to pay after setup and daily use._ ## How to compare billing and invoicing software plans without underestimating cost The lowest-priced plan is not always the most cost-effective choice. A better plan comparison starts with your billing workload, then checks whether each plan can support it without forcing frequent upgrades. Use these steps to compare plans more accurately. **Step 1: Define your billing workload** Start with the number of invoices you send each month, the number of customers you bill, and the payment methods you accept. Also note whether you manage one-time invoices, recurring invoices, deposits, refunds, credits, discounts, or tax rules. **Step 2: Match access to user roles** List who needs access to the system and what they need to do. A billing specialist may need full access, while a manager may only need approvals or reports. This step helps you avoid paying for full user seats when limited access is enough. **Step 3: Check what each tier unlocks** Compare the features that sit behind higher tiers. Pay close attention to recurring billing, automated reminders, custom templates, customer portals, online payments, reporting, and integrations. **Step 4: Add setup and add-on costs** Include one-time and recurring extras in your plan comparison. These can include data migration, onboarding, payment processing, premium support, advanced reporting, and integrations with accounting, CRM, eCommerce, or tax tools. **Step 5: Compare the annual cost** Calculate what each plan will cost over 12 months. Include the base plan, expected users, add-ons, setup, support, and any upgrade you may need as billing volume grows. **Decision point** **What to check** **What it tells you** Billing workload Invoice volume, customer count, billing frequency, and payment methods Whether the plan can support your daily billing needs User access Full users, approvers, managers, and view-only roles Whether per-user pricing will raise costs Feature access Recurring billing, reminders, templates, reports, and integrations Whether you need a higher tier from the start Extra fees Setup, migration, support, payment processing, and add-ons Whether the listed plan price reflects your real cost Growth fit Expected users, invoices, customers, and locations over the next year Whether the plan will stay affordable as needs change ## When should you choose a lower-tier, mid-tier, or high-end billing software plan? Choose a billing software plan based on billing complexity, not just business size. A small business with recurring invoices, multiple payment methods, and approval rules may need a higher tier than a larger business with simple invoice needs. Use the plan tier as a fit check: **Choose this tier** **When it makes sense** **Watch for** Entry-level plan You send simple invoices, track payments, and need only a few users Limits on invoice volume, templates, reports, payment options, and integrations Mid-tier plan You manage recurring invoices, repeat customers, payment reminders, and more billing activity Add-on fees for advanced reports, online payments, support, or extra users High-end plan You need custom workflows, role-based access, multi-entity billing, deeper integrations, or priority support Higher cost, setup time, and features your team may not use right away - **An entry-level** plan works when your billing process is simple and stable. Choose this tier if your team sends standard invoices, tracks paid and unpaid balances, and needs only basic customer records. - **A mid-tier plan** fits better when manual follow-ups start taking too much time. Choose this tier if you need recurring billing, automated reminders, online payment options, or more detailed reports. - **A high-end plan** makes sense when billing has become more complex than invoice creation. Choose this tier if your team needs approval workflows, custom permissions, advanced reporting, or integrations across accounting, CRM, eCommerce, or payment systems. _**Remember**__: Don’t upgrade only because a higher tier has more features. Upgrade when the lower tier slows billing work, creates manual follow-up, or blocks a workflow your team already uses._ ### What are the best billing and invoicing software packages? Do the billing and invoicing tools listed in this guide fit your budget? If yes, the next step is to compare what each product offers beyond price. Review features, pricing models, user ratings, and verified reviews on our [billing and invoicing software category page](https://www.softwareadvice.com/accounting/billing-invoicing-software-comparison/). This will help you shortlist products that match your budget, billing workflows, and growth plans. ## FAQs: Billing and invoicing software pricing **What is billing and invoicing software?** Billing and invoicing software helps businesses create invoices, send them to customers, track payments, and manage billing records in one system. Many tools also support recurring invoices, payment reminders, online payments, customer records, and reports that show paid, unpaid, and overdue invoices. **What is the cost of billing software?** Billing software cost depends on the pricing model, plan tier, number of users, invoice volume, and features included. Entry-level plans usually cost less, while higher tiers cost more because they include advanced reporting, automation, integrations, higher usage limits, and premium support. **What is the cost of replacing legacy billing software?** The cost of replacing legacy billing software depends on data migration, setup, integrations, training, and the new pricing model. Moving from an older on-premise system to a cloud-based tool can also add costs for cleanup, implementation, user access, and support during the switch. **How much does medical billing software cost?** Medical billing software pricing depends on practice size, claims volume, billing features, clearinghouse connectivity, and electronic health record integrations. It often has different cost drivers than general billing software because it supports healthcare-specific workflows such as claims management, patient billing, insurance verification, and compliance needs. * * * ### Survey methodology **\*Category price ranges** To determine the category's price ranges and averages, we consider the pricing of products that meet the below-mentioned criteria. - Qualify as billing and invoicing software by meeting our category definition: ‘Billing and invoicing software helps companies generate and send invoices and collect payments. These applications enable the efficient processing of complex accounts across multiple customers and product lines, incorporating contract data and customer relationship management tools. They are designed to work with accounting applications.” - Offer core billing and invoicing software features: invoice creation, invoice history and online invoicing  - Have pricing information publicly available. **\*\*For our pricing table**, we identify up to nine products including both pricing models. We select products featured in Software Advice’s Best Software research, which also have publicly available pricing data. In categories where too few products have publicly available pricing details, we will source products from the research’s candidate list, which comprises products eligible to appear (with at least 20 reviews in the last 2 years and average rating of at least 4/5) but not included in the final list (due to their scores not placing them among the top 25 products). For categories with no available Best Software research, we source products from Software Advice’s directories with at least 20 reviews in the last 2 years and average rating of at least 4/5.