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Software · head to head

Loom vs Xero

Loom logo

Loom

Software

Record instantly, share anywhere

From
Free
Rated
-
Full reviewWebsite
Xero logo

Xero

Software

Beautiful accounting software

From
$13/month
Rated
-
Full reviewWebsite

The short version

  • Only Loom has a free tier, so it costs nothing to try first.
  • Each has a real cost: Loom free tier capped at 25 total videos with 5-minute maximum recording length per video; Xero the Early plan caps you at 20 invoices and 5 bills per month, and the invoice limit counts both approving and sending
  • They diverge on capability: Loom covers Screen & camera recording, Xero covers Bank reconciliation.

Where they differ

Only the attributes on which Loom and Xero actually diverge.

Attributes where Loom and Xero differ
AttributeLoomXero
Starting priceFree$13/month
Pricing modelfreemiumsubscription
Free tierYesNo
PlatformsWebWeb, Ios, Android, Api
Founded20152006

Identical on both: user rating (Not yet rated), category (Unknown).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Loom

  • Screen & camera recording
  • Instant sharing
  • Video editing
  • Viewer analytics
  • Comments & reactions
  • Transcription
  • Custom CTAs
  • Drawing tools

Only in Xero

  • Bank reconciliation
  • Invoicing
  • Bill payment
  • Expense claims
  • Financial reporting
  • Inventory tracking
  • Project tracking
  • Mobile apps

Both cover

  • SOC2

What people use each for

The jobs each tool is most often brought in to do.

Loom

  • Asynchronous video communication and screen recordingnot Xero
  • Product demonstrations and tutorialsnot Xero
  • Meeting transcription and documentationnot Xero
  • Team communication and knowledge sharingnot Xero

Xero

  • Small business bookkeeping, invoicing and bank reconciliationnot Loom
  • Bill payment and purchase order managementnot Loom
  • Sharing books with an accountant or bookkeepernot Loom

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Loom

  • Free tier capped at 25 total videos with 5-minute maximum recording length per video
  • Free tier limited to 50 workspace members
  • AI features (auto-meeting recaps, auto-notes, auto-editing) only available on paid Business+AI and Enterprise tiers
  • Video branding (Loom logo) appears on free and Business plan videos; only removed on Business+AI tier

Xero

  • The Early plan caps you at 20 invoices and 5 bills per month, and the invoice limit counts both approving and sending
  • Invoices created by connected app partners count against the Early plan invoice limit
  • Multiple currencies, project time and cost tracking, employee expense and mileage claims and industry benchmarking are restricted to the top Established plan at $90 per month
  • Cash flow forecasting is capped at 30 days on Early and 60 days on Growing, with 180 days only on Established
  • Payroll is not included in any plan and costs an extra $36 a month plus $6 per employee or contractor through Gusto
  • Inventory Plus is a paid optional add-on rather than part of any plan
  • The advertised 90% off applies only to the first 6 months, after which the regular $25, $55 or $90 monthly price auto-renews
  • The introductory discount excludes add-ons, usage charges and payment fees
  • Payment fees apply to online invoice payments and to bill payments other than standard domestic ACH, and are billed on top of the subscription
  • Subscriptions are billed monthly with no annual payment option, and after upgrading you must wait one month before downgrading to a cheaper plan
  • Xero states subscription prices are increasing from October 1, 2026

Pricing, plan by plan

Loom

Free

No published plan breakdown. See the Loom review.

Xero

$13/month
  • Early$13/month
    • Send 20 invoices
    • Enter 5 bills
    • Reconcile bank transactions
  • Growing$37/month
    • Unlimited invoices & bills
    • Bulk reconcile transactions
    • Short-term cash flow
  • Established$70/month
    • Everything in Growing
    • Use multiple currencies
    • Track projects

Which should you pick?

Choose Loom if

  • You need screen & camera recording.
  • You want to start without paying.
  • You also want instant sharing.
Loom review

Choose Xero if

  • You need bank reconciliation.
  • You work on Web, Ios, Android, Api.
  • You also want invoicing.
Xero review

Questions people ask

Is Loom or Xero better?
Neither clearly leads. Loom starts at Free and Xero at $13/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Loom or Xero?
Loom has a free tier; the other does not. Paid plans start at Free for Loom and $13/month for Xero.
Does Loom or Xero run on more platforms?
Loom runs on Web. Xero runs on Web, Ios, Android, Api.
Can I use Loom for free?
Yes. Loom has a free tier, so you can try it without paying. Xero starts at $13/month.
What is Loom best used for?
Loom is most often used for asynchronous video communication and screen recording, product demonstrations and tutorials, meeting transcription and documentation, team communication and knowledge sharing. Of those, asynchronous video communication and screen recording and product demonstrations and tutorials are not what Xero is typically brought in for.
What can Loom do that Xero cannot?
Loom covers Screen & camera recording, Instant sharing, Video editing, Viewer analytics. Xero covers Bank reconciliation, Invoicing, Bill payment, Expense claims. Both handle SOC2.
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