Decoding the SOC 2 Certification Cost: A Comprehensive Guide

If you’re asking about the SOC 2 certification cost, you’re not alone. It’s one of the first questions businesses have, and while the answer isn’t a single number, a typical first-year investment can range from $20,000 to $200,000. The total investment is a mix of audit fees, preparation work, tools, and your own team’s time.

Think of it less like buying a product off the shelf and more like a strategic project. The final price tag depends on your company’s size, complexity, and how prepared you are. This guide will break down every component of the SOC 2 certification cost, giving you a clear picture of what to budget for. If you’re new to SOC 2, start with our go-to guide to understanding SOC 2 to ground the cost discussion.

The Big Picture: What’s a Realistic Total SOC 2 Budget?

For many companies, the total first-year SOC 2 certification cost can range from $20,000 to $200,000 when done without automation. A more detailed breakdown for a mid-sized tech company suggests a first-year budget could land anywhere between $80,000 and $350,000, covering everything from readiness assessments to the final audit.

The first year is always the most expensive because it includes foundational work like creating policies, implementing new tools, and fixing security gaps. After that, you’ll have annual maintenance and renewal audit costs, which are typically lower.

Breaking Down the Core SOC 2 Audit Cost

The most direct expense is the fee you pay a licensed CPA firm to perform the audit and issue your report. This is a significant part of the overall SOC 2 certification cost, but it’s not the only one.

SOC 2 Type 1 vs. Type 2 Audit Cost

Your choice between a Type 1 and Type 2 report directly impacts the price.

• Type 1 Audit Cost: A Type 1 report is a snapshot, checking if your security controls are designed correctly at a single point in time. Because it’s a quicker evaluation, it’s less expensive. For small to mid sized companies, a Type 1 audit typically costs between $7,500 and $15,000.

• Type 2 Audit Cost: A Type 2 report is more comprehensive. It observes your controls in action over a period of time, usually 3 to 12 months, to prove they are operating effectively. This longer observation period means more work for the auditor, making it more expensive. A Type 2 audit often costs 30% to 50% more than a Type 1, with fees for small and medium businesses commonly falling between $20,000 and $40,000.

How Auditor Selection Impacts Your Bill

Not all audit firms charge the same. The firm you choose can dramatically change your SOC 2 audit cost.

• Boutique vs. Big Four: A smaller, specialized CPA firm might charge between $5,000 and $15,000 for a simple Type 1 audit. In contrast, hiring a “Big Four” firm (Deloitte, PwC, EY, KPMG) can easily push audit fees past $150,000. While their reports carry significant weight, you pay a premium for the brand recognition. If you’re evaluating external support, compare the top SOC 2 compliance companies and their specialties.

Key Factors That Drive Your SOC 2 Certification Cost

Beyond the audit itself, several key variables determine your final spending. Understanding these drivers helps you budget more accurately and find opportunities to save.

Company Size and Complexity

This is one of the biggest factors. A large enterprise with multiple products, locations, and complex cloud infrastructure has far more controls to test than a small startup. More systems, employees, and processes mean more evidence to gather and review, which increases the auditor’s time and your cost. An enterprise might spend $150,000 or more on the same Type 2 audit that would cost a small business around $20,000.

Scope (The Trust Services Criteria)

SOC 2 is built on five Trust Services Criteria (TSCs): Security, Availability, Confidentiality, Processing Integrity, and Privacy. If you’re aligning SOC 2 with broader programs, see our no-nonsense guide to cybersecurity compliance.

• Security is mandatory for every SOC 2 audit.

• The other four are optional.

Each additional TSC you include in your audit scope requires more controls to be tested, directly increasing the workload and the price. For example, one audit firm quoted $20,000 for a Security only audit versus $26,000 for an audit covering Security, Availability, and Confidentiality. Carefully selecting only the TSCs your customers require is a smart way to manage your SOC 2 certification cost.

Your Project Timeline

A rushed timeline often leads to higher costs. If you need a SOC 2 report in under three months to close a deal, you might have to pay extra for expedited services from consultants and auditors. On the other hand, letting the project drag on for over a year accumulates hidden costs in the form of your internal team’s time and lost productivity. A prolonged timeline can also mean lost revenue from customers who won’t sign without a SOC 2 report.

Pre Audit Expenses: The Hidden Costs of Preparation

For most companies, the work you do before the auditor arrives is the most resource intensive part of the process. These preparation and remediation costs can sometimes exceed the audit fee itself.

Readiness and Risk Assessments

• Readiness Assessment: Also known as a gap analysis, this is a practice run. An expert reviews your environment against SOC 2 requirements to find any weaknesses. A professional readiness assessment typically costs around $15,000.

• Risk Assessment: This is a mandatory part of SOC 2. It involves identifying and evaluating security risks to your organization. To structure your approach, consider established risk management frameworks. If you hire an external consultant to lead this process, expect to pay between $10,000 and $20,000.

Penetration Testing and Vulnerability Scans

While not strictly mandatory for every audit, a penetration test (pen test) is highly recommended. Engineering teams that implement automated security reviews in CI/CD often surface and remediate issues earlier, reducing pen-test rework and audit risk.

• Penetration Test Cost: A typical pen test for a mid sized company costs between $5,000 and $15,000.

• Vulnerability Assessment Cost: This involves using tools to regularly scan for known vulnerabilities. The cost is often bundled into security software subscriptions.

General Preparation and Remediation

This is the cost of fixing the gaps you find. If your security posture is already strong, these costs might be minimal. But if you need to implement new systems like centralized logging, data encryption, or backup solutions, preparation and remediation costs can range from $10,000 to over $80,000.

People and Tools: The Ongoing Investment

Achieving SOC 2 compliance requires a combination of the right technology and the right people, both of which have associated costs.

Compliance Tools and Automation

Modern compliance automation platforms are a game changer for managing the SOC 2 certification cost. These tools help automate evidence collection, monitor controls, and streamline the audit process.

• Compliance Tool Cost: Subscription fees can range from $7,000 per year for a startup to $50,000 or more annually for large enterprises. See our roundup of the top compliance automation tools for 2025 to compare features and price points.

• The ROI of Automation: While these tools have an upfront cost, they drastically reduce the manual labor required from your team. Solutions like Targhee Security use AI to automate repetitive tasks like answering security questionnaires, which cuts down on internal time and consulting fees.

Consultant Fees

If your team lacks SOC 2 experience, you may hire consultants for guidance. They can help with readiness assessments, policy writing, and project management. Consultant fees can range from $5,000 to $20,000 for targeted help, but can reach into the tens of thousands for more extensive engagements.

Internal Team Time

Don’t forget the cost of your own employees’ time. Your engineers, IT staff, and security personnel will spend hundreds of hours preparing for the audit. This “opportunity cost” is significant, as their time is diverted from revenue generating activities. In fact, some compliance teams spend up to 60% of their time on repetitive compliance tasks.

Security Awareness Training

SOC 2 requires you to train your employees on security best practices. The cost for training programs and platforms typically ranges from $2,000 to $8,000 per year for a medium sized business.

Cyber Insurance (An Indirect Cost)

While not a direct SOC 2 requirement, having a cyber insurance policy is a common risk management practice. For small businesses, average annual premiums are around $1,740.

Special Case: SOC 2 Certification Cost for Startups

For startups, the SOC 2 certification cost can feel intimidating, but it’s often more manageable. With a smaller infrastructure and fewer employees, the scope is naturally limited. A typical all in SOC 2 cost for a small business or startup might fall between $10,000 and $25,000.

Startups can keep costs down by:

• Starting with a Type 1 audit.

• Limiting the scope to just the Security TSC.

• Leveraging automation platforms that offer startup friendly pricing.

Keeping Costs Down: Annual Maintenance and Automation

SOC 2 is not a one time project. Your report is typically valid for 12 months, so you need to budget for ongoing compliance.

Annual Maintenance Costs

This includes the fee for your yearly renewal audit plus any costs for ongoing monitoring, testing, and training. For many companies, annual maintenance costs range from $10,000 to $60,000.

How Automation Slashes Your SOC 2 Certification Cost

Automation is the single most effective way to control your ongoing SOC 2 certification cost. Compliance platforms can reduce manual effort, prevent costly errors, and speed up audit preparation.

• Studies show that AI can automate up to 70% of routine compliance tasks.

• Automated systems can cut audit preparation time by an average of 40%.

By streamlining evidence collection and centralizing documentation, platforms can significantly lower the hours your team spends on compliance. If you’re looking to make your SOC 2 process more efficient and cost effective, you can schedule a demo with Targhee Security to see how automation can help.

Frequently Asked Questions about SOC 2 Certification Cost

1. What is a realistic total SOC 2 certification cost for a first timer?
For a small to mid sized company getting its first SOC 2 report, a realistic all in budget is typically between $30,000 and $100,000, depending heavily on your starting security posture and the audit scope.

2. Is a SOC 2 Type 2 report always more expensive than a Type 1?
Yes. A Type 2 audit involves a longer observation period (3 to 12 months), which requires significantly more effort from the auditor. This makes the audit fee about 30% to 50% higher than a Type 1.

3. Can I get SOC 2 certified for under $20,000?
It is possible for a very small startup with a simple environment and a strong existing security setup. This would likely involve a Type 1 audit with a limited scope, heavy use of internal resources, and leveraging affordable automation tools.

4. How much does the SOC 2 audit itself cost?
The fee paid directly to the CPA firm for the audit can range from as low as $7,500 for a simple Type 1 to over $60,000 for a complex Type 2. For large enterprises using top tier firms, this fee can exceed $150,000.

5. How can I reduce my overall SOC 2 certification cost?
The best ways to reduce costs are to carefully limit your audit scope to only what is necessary, invest in automation to reduce manual labor, and start preparing early to avoid rush fees and costly remediation work.

6. Do I have to pay for SOC 2 every year?
Yes. A SOC 2 report is only valid for one year. You must undergo a renewal audit annually to maintain compliance, which involves recurring audit fees and maintenance costs.