Toast vs Square for Restaurants: Which POS Actually Costs Less?
August 24, 2026 · 12 min read
Toast and Square are the two POS systems every independent operator shortlists, and both sales pitches hide the same thing: what you will actually pay. Toast quotes processing rates privately. Square publishes everything but gates restaurant features by plan. We pulled both companies' pricing pages on August 24, 2026, re-checked them on October 18, 2026, and ran the full year-one math for a typical 2-terminal casual restaurant so you can compare real numbers, not marketing.
The Verdict
Toast for full-service depth. Square for flexibility and no contract.
At $60K/month in card sales, the two platforms land within about $500/year of each other all-in. Software fees are noise; payment processing is roughly 90% of what you pay either company. So the real decision is features and lock-in, not sticker price.
Toast is built only for restaurants: native kitchen displays, handhelds, deep third-party delivery integrations, and offline mode that keeps a busy Friday service running. The trade: a contract that typically runs 2 to 3 years, with any early-termination fee set by your agreement, and a processing rate Toast quotes privately per restaurant.
Square for Restaurants is month to month, publishes every rate, includes free online ordering, and starts at $0. The trade: the KDS sits behind the $49/mo Plus plan, and coursing and 24/7 phone support behind the $149/mo Premium plan. If you are still modeling your numbers, run them through our restaurant budget template before you sign anything.
Toast vs Square at a Glance
Re-verified against both companies' published pricing pages on October 18, 2026. Toast is the one number you cannot fully verify: it publishes only headline processing percentages, not your quoted rate.
| Category | Toast | Square |
|---|---|---|
| Software pricing | Starter Kit $0/mo (1 location, up to 2 terminals); Point of Sale from $69/mo; Build Your Own custom | Free $0/mo; Plus $49/mo per location; Premium $149/mo per location; Pro custom above $250K/yr |
| In-person processing | Only headline percentages published (2.49% hardware upfront, 3.09% pay-as-you-go, Toast shop page); full rate custom-quoted, reported at 2.49% + 15¢ and 3.09% + 15¢ and up (NerdWallet, Aug 2026) | Published: 2.6% + 15¢ (Free), 2.5% + 15¢ (Plus), 2.4% + 15¢ (Premium) |
| Hardware | Proprietary Android devices. Countertop Starter Kit $1,203, Handheld Starter Kit $1,113, Toast Go 3 $599, Tap reader $149 (NerdWallet, Aug 2026) — countertop + one handheld = $1,802. Or $0 upfront on pay-as-you-go. Snapshot: Toast was advertising 60% off hardware and 0% financing in August 2026 | Register $899, Handheld $399, Terminal $299, Stand $149, Reader $59. Runs on iPads too |
| Contract / lock-in | Typically 2–3 years (per NerdWallet, Aug 2026); exact term and any early-termination fee are set in your agreement | Month to month. No long-term contract, cancel anytime |
| Offline mode | Full offline mode advertised on every plan; orders and card payments queue and sync | Offline payments supported, but queued payments expire if you don't reconnect within 24 hours |
| Kitchen display (KDS) | Native Toast KDS, sold as hardware + monthly device fee | Square KDS app: $30/mo per device on Plus, $20/mo on Premium. Not available on Free |
| Online ordering | Online ordering is a paid add-on, priced by quote (NerdWallet, Aug 2026) | Square Online included on every plan, including Free (online rate applies) |
| Payroll & team | Toast Payroll bundle: $69/mo + $9 per employee (promo; list $90) | Square Payroll: $35/mo + $6 per person paid; Shifts for scheduling |
| Third-party delivery | DoorDash / Uber Eats / Grubhub integrations as a paid add-on, injected straight into the KDS | Delivery-partner orders (e.g. DoorDash) flow into the Orders tab; deeper sync via app marketplace |
| Reporting | Restaurant-native: menu mix, labor vs sales, xtraCHEF food-cost add-ons | Strong sales reporting on all plans; close-of-day reports and coursing on paid tiers |
| Support | 24/7/365 phone support on every plan, including Starter Kit | Free: weekday phone (first 90 days) + chat/email; Plus: weekday phone 6am–6pm PT; Premium: 24/7 phone |
Sources: pos.toasttab.com/pricing and squareup.com restaurant pricing + hardware pages, both checked October 18, 2026. Toast publishes only headline processing percentages and no hardware price list or contract term, so those come from NerdWallet's Toast review, updated August 6, 2026 — the same source we cite on our Toast vs Clover comparison.
What Each Actually Costs in 2026
Toast pricing
Toast's pricing page (re-checked October 18, 2026) lists three plans: the Starter Kit at $0/month for new single-location restaurants running up to 2 terminals, with a hardware kit at no upfront cost; Point of Sale from $69/month where you buy your own hardware; and Build Your Own at custom pricing. A payroll bundle runs $69/month + $9 per employee (promotional, list $90). The catch: the $0 plan is funded by processing. Toast does not list a processing rate on its pricing page — its Starter Kit shop page names only headline percentages (2.49% with hardware bought upfront, 3.09% pay-as-you-go), and the full rate, per-transaction fee included, is quoted per restaurant. NerdWallet's Toast review (updated August 6, 2026), which we use as the primary source for every unpublished Toast figure on this site, puts it at 2.49% + 15¢ when you pay for hardware upfront and 3.09% + 15¢ and up on the pay-as-you-go Starter Kit. The same review puts Toast's contract at two to three years; leaving early can trigger a termination fee set by your agreement. Get your quoted rate and your term in writing before signing.
Square for Restaurants pricing
Square publishes everything. Plans (per Square's restaurant pricing page, October 18, 2026): Free at $0/month, Plus at $49/month per location, Premium at $149/month per location, and a custom Pro tier if you process over $250K/year. The Square KDS app costs $30/mo per device on Plus and $20/mo on Premium (not available on Free); the Kiosk Lite iPad app is $50/mo on Plus and $30/mo on Premium, and full Square Kiosk software is $99/mo per device on either.
| Payment type | Free ($0/mo) | Plus ($49/mo) | Premium ($149/mo) |
|---|---|---|---|
| Tap, dip, or swipe (in person) | 2.6% + 15¢ | 2.5% + 15¢ | 2.4% + 15¢ |
| Online / Square Online orders | 3.3% + 30¢ | 2.9% + 30¢ | 2.9% + 30¢ |
| Manually keyed / card on file | 3.5% + 15¢ | 3.5% + 15¢ | 3.5% + 15¢ |
Square hardware (list prices, squareup.com, October 18, 2026): Register (2nd gen) $899, Handheld $399, Terminal $299, Stand $149, Square Kiosk $1,999 with counter stand, contactless Reader $59. You own it outright, and it resells — useful if you switch later.
Worked Example: Year-1 Cost, 2-Terminal Casual Restaurant, $60K/Month
Assumptions: $60,000/month in card sales, $25 average check (2,400 card transactions/month), two devices — one countertop station and one handheld — and no kiosk. Toast publishes neither its full rates nor its hardware prices, so both come from NerdWallet's Toast review (updated August 6, 2026), the primary source we use for every unpublished Toast figure; Square rates are its own published ones. Our Toast vs Clover page runs the same price list over a larger three-device setup ($2,401), so its Toast hardware line is deliberately higher. Numbers exclude taxes, add-ons, and the occasional keyed-in card. This is the kind of line item that belongs in your operating budget — and in your startup cost plan if you haven't opened yet.
Toast — Point of Sale plan, hardware bought upfront
| Software$69/mo base; extra device fees may apply | $828 |
| HardwareCountertop Starter Kit $1,203 + Toast Go 3 handheld $599 (NerdWallet, Aug 2026) | $1,802 |
| Processing2.49% + 15¢ (NerdWallet, Aug 2026) on $720K/yr, 28,800 txns | $22,248 |
Toast — Starter Kit, pay-as-you-go
| Software$0/mo, single location, up to 2 terminals | $0 |
| HardwareIncluded, $0 upfront | $0 |
| Processing3.09% + 15¢ and up — this models the 3.09% floor | $26,568 |
Square — Plus plan ($49/mo)
| Software$49/mo per location | $588 |
| Hardware2 Square Registers at $899 each | $1,798 |
| Processing2.5% + 15¢ published, in person | $22,320 |
Square — Free plan ($0/mo)
| Software$0/mo, no KDS app available | $0 |
| Hardware2 Square Registers at $899 each | $1,798 |
| Processing2.6% + 15¢ published, in person | $23,040 |
Processing Fee Estimator
Enter your monthly card volume and average check. We apply each platform's in-person rate, then add a year of software fees.
| Platform & plan | Est. processing /mo | All-in /yr (+ software) |
|---|---|---|
| Toast — Point of Sale ($69/mo)* | $1,854 | $23,076 |
| Toast — Starter Kit pay-as-you-go (models the 3.09% floor; quotes go higher)* | $2,214 | $26,568 |
| Square — Free | $1,920 | $23,040 |
| Square — Plus ($49/mo) | $1,860 | $22,908lowest |
| Square — Premium ($149/mo) | $1,800 | $23,388 |
* Toast publishes only headline percentages, not per-transaction fees. These use NerdWallet's Toast review (updated August 6, 2026): 2.49% + 15¢ when you buy hardware upfront, and 3.09% + 15¢ and up on pay-as-you-go. The pay-as-you-go row models that 3.09% floor, so a real quote lands at or above the figure shown — treat it as a best case, not an estimate. Square rates are published in-person rates as of October 18, 2026. Excludes hardware, add-ons, online and keyed transactions.
Strengths and Weaknesses
Restaurant-only platform: coursing, seat management, item countdowns, and handhelds that survive a Friday rush
Offline mode on every plan: orders, tickets, and card payments keep going out when the internet drops, then sync when it returns
24/7/365 phone support even on the $0 Starter Kit
Deep ecosystem: payroll, scheduling, xtraCHEF food-cost tracking, delivery integrations in one stack
Only headline processing percentages are published; your actual rate is custom-quoted, so you cannot comparison-shop from the website
Contracts typically run 2–3 years (NerdWallet, August 2026), and leaving early can cost a termination fee
Proprietary hardware is worthless outside Toast; paid add-ons (online ordering, loyalty, payroll) stack up fast
Every rate published; month to month, cancel anytime
Free plan is genuinely usable for counter service, with free Square Online ordering included
Cheaper, resellable hardware — a full 2-terminal setup for under $1,800
Payroll at $35/mo + $6/person is roughly half Toast's bundle for a 10-person team
KDS locked behind the $49/mo Plus plan; coursing and 24/7 phone support need the $149/mo Premium plan
Offline payments expire if you don't reconnect within 24 hours
Full-service depth (bar tabs, coursing) is newer and thinner than Toast's
Which One Should You Pick?
Choose Toast if…
- You run full service: table management, coursing, and kitchen routing are daily life, not nice-to-haves.
- Third-party delivery is a big revenue line and you want DoorDash/Uber Eats orders firing straight to the KDS.
- You track margins tightly — pairing xtraCHEF-style invoice data with a food cost calculator habit is where Toast's reporting earns its fees.
- You negotiated your processing quote down and got it in writing.
Choose Square if…
- You're counter service, a café, food truck, or a new concept that may pivot — no contract means no exit penalty.
- You want free built-in online ordering instead of a paid add-on; it's one of the cheapest ways to grow sales without commission apps.
- You run a small team and want scheduling and payroll cheap — Square Shifts plus Payroll undercuts Toast's bundle (build rotas free with our employee schedule template).
- Predictable, published rates matter more to you than squeezing the last 0.1% via negotiation.
Switching Costs: Read This Before You Sign
The real price of a POS shows up when you leave it. Leaving Toast mid-contract can mean an early-termination fee — the amount is set by your agreement, so get it in writing before you sign — plus any unpaid hardware balance, and the proprietary terminals have no second life. Leaving Square costs nothing in penalties, and the iPads and Registers resell.
Either direction, budget the soft costs: rebuilding the full menu with modifiers (plan 10–20 hours), retraining staff (a slow Monday, not a Friday), re-entering recipes and vendors, and exporting customer/gift-card data — gift card liabilities are the migration item operators most often forget. Historical sales reports rarely transfer cleanly; download a year of CSVs before your access ends.
Worth a Look Before You Decide
| Clover | Fiserv-backed, sold through banks and resellers — hardware is polished, but pricing varies wildly by reseller, so quotes need the same scrutiny as Toast's. |
| SpotOn | Toast-like restaurant feature set with a reputation for negotiable processing and more flexible terms; strong for independents who want a rep who answers the phone. |
| Lightspeed Restaurant | iPad-based with strong inventory and multi-location reporting; a fit for bars and hospitality groups that outgrow Square but don't want Toast hardware. |
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