SOC 2 costs: what nobody tells you upfront

"How much does SOC 2 cost?"

If you ask a consultant, they'll say "it depends." If you ask an auditor, they'll quote their fees. Neither gives you the full picture. And that's frustrating when you're trying to budget for something your biggest customer just asked for.

Here's an honest breakdown of what SOC 2 actually costs, where that money goes, and how to avoid the expensive mistakes we see companies make over and over again.

Why SOC 2 costs are so confusing

The problem with SOC 2 pricing is that there's no standard. One company might spend $40,000 total. Another company the same size might spend $150,000. Both end up with a SOC 2 report. So what's different?

It comes down to three things: how prepared you are when you start, how much scope you include, and who you hire to help. Companies that overspend almost always make mistakes in one of these areas. Companies that stay on budget understand them upfront.

Most people focus on auditor fees because that's the most visible cost. But auditor fees are actually the minority of what you'll spend. The real costs hide in the prep work, the tools, and the ongoing maintenance nobody tells you about until you're already committed.

The three buckets of SOC 2 costs

Auditor fees: about 30% of your total spend

This is what everyone quotes because it's a single line item with a clear number. Auditor fees for a Type 1 audit typically run between $15,000 and $25,000. Type 2 audits, which cover a longer observation period and are what most customers actually want, run between $25,000 and $50,000.

Several factors drive where you land in that range. Company size matters—more employees means more people to interview and more evidence to review. Complexity matters—a straightforward SaaS application costs less to audit than a company with multiple products, on-prem components, and complex integrations. The number of Trust Service Criteria you include matters—Security is required, but adding Availability, Confidentiality, Processing Integrity, or Privacy increases scope and cost.

The auditor's brand also affects pricing significantly. Big Four firms (Deloitte, PwC, EY, KPMG) charge premium rates, often 50-100% more than regional or boutique firms. Unless your customers specifically require a Big Four audit—and most don't—you can often get equivalent quality from smaller firms at much lower cost.

First-time audits also cost more than renewals. Auditors spend extra time understanding your environment the first year. By year two, they know your systems and the audit goes faster.

Readiness and remediation: about 40% of your total spend

This is where companies get surprised. Before an auditor can even start, you need to be ready. And getting ready costs money.

Gap assessment is the first step. You need to understand what controls you have in place versus what SOC 2 requires. Some companies do this internally, but most bring in outside help because their team doesn't know what auditors actually look for. A thorough gap assessment runs anywhere from $2,500 for a basic review to $15,000 or more for a detailed analysis with prioritized recommendations.

Policy documentation comes next. SOC 2 requires documented policies covering information security, access control, change management, incident response, risk management, and more. If you don't have these policies, someone needs to write them. If you do have them, they probably need updating. Companies either pay consultants $150-400 per hour to write policies, or they assign internal staff and absorb the time cost.

Control implementation is often the biggest line item in this category. The gap assessment tells you what's missing. Now you need to fix it. Maybe you need to implement MFA across all systems. Maybe you need a proper access review process. Maybe you need logging and monitoring that actually captures what auditors want to see. These fixes require either consultant time, internal engineering time, or new tool purchases—often all three.

Evidence collection is the final piece. Auditors don't take your word for it. They want screenshots, configuration exports, access logs, policy acknowledgments, training records, and dozens of other artifacts. Collecting this evidence takes time. Organizing it in a way auditors can actually use takes more time. Companies often underestimate this step and end up scrambling in the weeks before their audit.

Ongoing compliance: about 30% of your total spend

SOC 2 isn't a one-time project. Once you have your first report, you need to maintain compliance indefinitely. This ongoing cost catches many companies off guard.

Annual audits are required to keep your SOC 2 current. Most customers want to see a report that's less than a year old, which means you're paying for audits every year. The good news is that repeat audits typically cost less than the first one—maybe 70-80% of the initial price—because the auditor already knows your environment.

Continuous monitoring is the work between audits. Controls need to stay in place. Evidence needs to stay fresh. When things change—new systems, new processes, organizational changes—your compliance program needs to adapt. Someone needs to own this work, either a dedicated compliance manager or someone who takes it on as part of their job.

Tool costs add up over time. Many companies purchase GRC (Governance, Risk, and Compliance) platforms to help manage their compliance program. These tools automate evidence collection, track control status, and generate reports. They're genuinely useful, but they also cost $10,000 to $50,000 per year depending on the platform and your company size. We've seen companies buy these tools too early, before they have enough complexity to justify the cost.

Staff time is the hidden ongoing cost. Even with tools and established processes, someone needs to manage the program. They review access, collect evidence, respond to auditor requests, update policies, and coordinate with other teams. At a typical company, this takes 10-20 hours per week—not enough for a full-time role, but too much to ignore.

Where companies waste money

After helping dozens of companies through SOC 2, we've seen the same expensive mistakes repeated again and again.

Over-scoping is the most common. Companies include systems that don't need to be in scope because they don't understand how scope works. Your marketing website probably doesn't process customer data. Your corporate Slack probably doesn't belong in the cardholder data environment. Every system you include is a system you need to document, monitor, and defend during the audit. Tighter scope means lower costs.

Over-tooling comes next. Companies buy expensive GRC platforms before they need them. For a first SOC 2 with a small team, you might be better off with spreadsheets and a well-organized shared drive. The fancy tools make sense when you have multiple frameworks, larger teams, or more complex environments. For many companies, that's year two or three, not day one.

Over-consulting is paying Big Four rates for work that doesn't require Big Four expertise. Writing an acceptable use policy doesn't require a partner from Deloitte. Collecting screenshots for evidence doesn't require $400-per-hour consultants. Know what actually requires expertise (gap assessment, audit readiness review, complex technical controls) versus what you can do yourself or delegate to less expensive help.

Under-preparing might be the most expensive mistake of all. Companies that go into an audit with gaps end up paying for it twice. First, the auditor spends extra time investigating and documenting the gaps, which increases audit hours and fees. Second, you get exception findings in your report—documented failures that customers will ask about. Some companies then rush through remediation and schedule a re-audit, paying for even more auditor time. It's almost always cheaper to fix gaps before the audit than after.

Where you can actually save money

The flip side of those mistakes is that there are legitimate ways to reduce SOC 2 costs without cutting corners on quality.

Right-size your scope from the beginning. Start with Security only—that's the only required Trust Service Criteria. Add Availability if your customers actually ask for it (many will). Skip Confidentiality, Processing Integrity, and Privacy unless you have a specific reason to include them. You can always add criteria in future audits if customer demand justifies it.

Do the simple stuff yourself. Policy templates are widely available, and with some customization they work fine for most companies. Basic evidence collection—screenshots of MFA configuration, exports of user access lists, copies of training records—doesn't require consultants. Save the expensive help for the work that actually requires expertise.

Get a readiness assessment before engaging auditors. This seems like an extra cost, but it usually saves money. Knowing your gaps before the audit means you can fix them on your timeline, without the pressure of auditor deadlines. It also means fewer surprises during the audit, which translates to fewer auditor hours and lower fees.

Use a smaller auditor unless your customers require otherwise. Regional and boutique CPA firms with SOC expertise often do the same quality work as Big Four firms at significantly lower cost. Ask your customers which auditors they'll accept—most will be flexible—and get quotes from multiple firms.

Negotiate audit timing strategically. Auditors have busy seasons and slow seasons. If you can be flexible about when your audit happens, you may be able to negotiate better rates during slower periods. Similarly, multi-year agreements sometimes come with discounts.

Realistic total costs for a typical company

To give you concrete numbers, here's what SOC 2 typically costs for a 50-person SaaS company going through the process for the first time:

Ongoing annual costs after year one typically run 40-60% of the first year total, depending on how much you can do internally versus with outside help.

The wide range reflects real variation we see in the market. A company that's well-prepared, keeps scope tight, uses a boutique auditor, and does much of the work internally lands near the low end. A company that goes in unprepared, includes everything in scope, hires Big Four, and outsources all the work lands near the high end. Most companies fall somewhere in the middle.

Frequently asked questions

Should we do Type 1 or Type 2 first?

Type 1 is a point-in-time audit that says your controls existed on a specific date. Type 2 covers a period (usually 6-12 months) and says your controls operated effectively throughout that period. Most customers want Type 2, but many companies start with Type 1 to get something in hand faster. If you're in a hurry, do Type 1 first, then transition to Type 2 for subsequent audits.

How long does the whole process take?

From "we need SOC 2" to "we have a report," most companies take 6-12 months. The breakdown is roughly: 1-2 months for readiness assessment and planning, 2-4 months for remediation and control implementation, 3-6 months for the Type 2 observation period, and 2-4 weeks for the actual audit. Type 1 is faster because there's no observation period.

Do we need a compliance platform?

Not necessarily, especially for your first SOC 2. Many companies successfully complete their first audit with spreadsheets and organized folders. Compliance platforms like Vanta, Drata, and Secureframe add value when you have multiple frameworks, larger teams, or want to automate evidence collection. But they also cost $10,000-50,000 per year. For a first audit, that money might be better spent on readiness consulting.

Can we do this without any outside help?

Technically yes, but it's usually not cost-effective. Companies that try to do everything internally often spend more in employee time than they would have spent on targeted consulting help. The areas where outside expertise adds the most value are gap assessment, complex technical controls, and audit preparation. The areas you can handle internally are policy drafting, basic documentation, and evidence collection.

Before you spend anything else

If you're early in the SOC 2 process, the best thing you can do is get clear on scope and gaps before engaging auditors or buying tools. That's what our SOC 2 Scope Snapshot provides: Trust Service Criteria selection, system boundary definition, control mapping, and gap analysis. $2,490, 10 business days, and you'll know exactly what you're dealing with.

For more on the compliance process, see our guides on writing security policies that work and vendor risk management basics.

The bottom line: SOC 2 costs more than the auditor fee you'll see quoted. Plan for readiness work, tool costs, and ongoing maintenance. The best way to control costs is to right-size your scope, know your gaps before engaging auditors, and save expensive consulting for the work that actually requires expertise. Most 50-person SaaS companies should budget $60,000-100,000 for year one, with ongoing costs of $30,000-50,000 annually after that.