Actual Budget
Xero
| Feature | Actual Budget | Xero |
|---|---|---|
| Pricing | Free / from $0/mo | From $15/mo |
| Free Plan | ✓ Yes | ✗ No |
| Rating | 4.5 / 5 | 4.4 / 5 |
| Best For | budget-conscious-individuals, self-hosters, ynab-migrants, privacy-focused-budgeters | small-businesses, accountants, international-companies, uk-businesses |
| Founded | 2019 | 2006 |
| Envelope Budgeting | ✓ | ✗ |
| Bank Sync | ✓ | ✗ |
| Reports | ✓ | ✗ |
| Goal Tracking | ✓ | ✗ |
| Rules | ✓ | ✗ |
| Scheduled Transactions | ✓ | ✗ |
| Self Hostable | ✓ | ✗ |
| Invoicing | ✗ | ✓ |
| Bank Reconciliation | ✗ | ✓ |
| Reporting | ✗ | ✓ |
| Payroll Addon | ✗ | ✓ |
| Projects | ✗ | ✓ |
| Expenses | ✗ | ✓ |
| Multi Currency | ✗ | ✓ |
✓ Actual Budget Pros
- Open-source with no subscription fees
- Local-first with optional sync
- Beautiful and fast interface
- Bank sync via SimpleFIN/GoCardless
✗ Actual Budget Cons
- Self-hosting required for sync features
- Smaller community than YNAB
- Mobile experience less polished than native apps
✓ Xero Pros
- Beautiful, modern interface
- Unlimited users on all plans
- Strong in UK, Australia, NZ markets
- Excellent bank reconciliation
✗ Xero Cons
- Fewer integrations than QuickBooks in US
- Payroll is a paid add-on
- Inventory management is basic
The Verdict
Actual Budget is built for budget conscious individuals and self hosters, with a focus on envelope-budgeting and bank-sync. Xero targets small businesses and accountants and leads with invoicing and bank-reconciliation.
On pricing, Actual Budget is the clear winner for budget-conscious users — starting at $0/mo compared to $15/mo for Xero. That $15/mo difference adds up quickly for growing teams.
Actual Budget has a free plan, which gives it a meaningful edge for individuals and small teams exploring their options. Xero requires a paid subscription from day one.
This is a genuinely close comparison. If you can, sign up for both free trials (where available) and run a one-week test with your actual team tasks before deciding.