How Much Does SOC 2 Compliance Really Cost? A Clear Guide

What is SOC 2?

SOC 2 (System and Organization Controls 2) is a framework that helps service organizations demonstrate their controls for security, availability, processing integrity, confidentiality, and privacy of customer data. Originally, these standards emerged as a safety-measure, a response to high-profile data breaches due to insecure third-party vendors. Developed by the American Institute of CPAs (AICPA), it has become the industry standard for SaaS companies and cloud providers.

Unlike prescriptive frameworks, SOC 2 is principle-based and grants organizations flexibility in implementing controls. The five Trust Services Criteria are:

1. Security - Protection against unauthorized access
2. Availability - Systems operate as agreed with honored SLAs
3. Processing Integrity - System processing is complete, valid, accurate, timely, and authorized
4. Confidentiality - Designated confidential information receives agreed protection
5. Privacy - Personal information handling aligns with privacy notices

The framework operates without explicit mandates; "SOC 2 doesn't mandate that businesses use a certain security tool or encryption technique." Organizations commit to comprehensive plans audited by third parties.

Types of SOC 2 reports

Two report types exist:

• Type I: Evaluates security control design at a specific point in time
• Type II: Assesses both design and operating effectiveness over 6-12 months

For younger organizations selling to mid-market buyers, a SOC 2 Type I report might be sufficient. However, Type II is typically necessary for enterprise work. Choosing SOC 2 Type II over SOC 2 Type I could potentially double or triple the cost.

What are the paths to become SOC 2 compliant?

In theory, SOC 2 compliance only requires an organization to meet the security tenets and other criterion, and then hire a SOC 2 auditing firm to provide them with the certification.

Organizations may pursue compliance through:

• Direct audit engagement
• External consultancies (preferred for holistic compliance motions and organizations genuinely interested in improving security posture)
• Compliance platforms like Drata, Vanta, or Secureframe (with minimum contracts starting around $10,000)

Companies need to readily produce or integrate their backends, logs, devices, and other surfaces to demonstrate adherence to standards. Organizations should meet with a compliance audit firm well before submitting for an audit.

What SOC 2-related products draw costs?

Companies typically purchase products addressing:

1. Secure Onboarding & Offboarding - Identity management through automated access management via HRIS integrations and SSO platforms and IT automation. Companies need automated processes to quickly grant and revoke employee access.
2. Logging, Monitoring & Alerting - Centralized tools like Datadog or Splunk to collect and monitor logs across infrastructure
3. Vulnerability Management - Scanning tools, patching workflows, and ticketing integrations
4. Identity & Access Management (IAM) - Providers like Okta, Azure AD, or AWS IAM for least-privilege access and MFA
5. Endpoint & Device Security - Software like Jamf or Intune for full-disk encryption, MDM enrollment, and malware protection

These costs better the business's security posture, helping minimize the possibility of a disastrous and expensive cyberattack.

What things impact SOC 2 compliance costs?

Type I vs Type II

Impact on Total Cost: Large

SOC 2 Type II involves significantly more thoroughness and work compared to SOC 2 Type I. Choosing SOC 2 Type II over SOC 2 Type I could potentially double or triple the cost. Type II is typically necessary for working with enterprises, especially for larger deals.

Company Size

Impact on Total Cost: Large

SOC 2 involves many per-seat costs. Compliance readiness software, password managers, MDM solutions, and other security products are typically priced per seat.

Existing Security Maturity

Impact on Total Cost: Moderate

Companies that valued security from the start may already have many SOC 2 provisions in place. Others may need significant engineering costs.

System Complexity

Impact on Total Cost: Moderate

Complex infrastructure with multiple microservices creates more vulnerability points requiring additional work to secure.

Using an External Service

Impact on Total Cost: Moderate

Whether using a compliance platform like Drata or Vanta or a SOC 2 consultancy, there is a cost to each which typically scales based on the company size. SOC 2 platforms like Drata or Vanta typically cost $10,000+ and scale with company size. Consultancies also add costs but provide more open-ended approaches for organizations wanting to improve compliance and security postures.

Choice of SOC 2 Auditor

Impact on Total Cost: Low

Different auditors have varying levels of strictness, but this has minimal impact on total costs.

Software Choices

Impact on Total Cost: Moderate to Low

SOC 2 requires purchasing software to meet certain tenets. Options vary in pricing, but bundling solutions can reduce overall expenditure.

How do you predict SOC 2 costs?

Security Software Tooling

Per-seat monthly costs include:

Category	Monthly Employee Cost	Mandatory or Optional	Examples
Password Manager	$2–11 per seat	Mandatory	Dashlane, 1Password
Mobile Device Management (MDM)	$4–20 per seat	Effectively Required	Jamf, Intune
Identity & Access Management	$4–10 per seat	Optional	Okta, Entra ID, Google Workspace
Logging Solutions	$15–20 per seat	Mandatory	Splunk, Datadog
Issue Tracking Solution	$7–15 per seat	Mandatory	Jira, Linear
Anti-Phishing Training	$2–6 per seat	Optional	KnowBe4, Hoxhunt

Following these numbers, a 50 person company would have a fee of around $1,700 - $4,100 per month for security tooling. Many organizations already utilize these products and might not directly attribute them to SOC 2 costs.

Platform or Consultancy Costs

Most businesses opt for platforms like Vanta or Drata (or hire consultants). Vanta and Drata have a price floor close to $10,000 for small startups, but can scale to low six-figure contracts for larger companies.

Time Costs

Additionally, beyond product or service purchases, IT team resources might be necessary for security stack changes and policy implementation.

SOC 2 Audit Costs

• Type I audit: A Type I audit, with its shorter timeline and narrower scope, usually costs between $10,000 and $25,000, including internal policies, infrastructure vetting, and penetration testing.
• Type II audit: A Type II audit has audit fees ranging from $30,000 to $60,000, but that does not even factor in the additional costs of evidence collection and auditor involvement that can balloon costs.

Type II audits have a multiplier effect on aforementioned costs.

What is the average price for SOC 2?

It is difficult to estimate a true average given multiple moving pieces. One of these that's publicly available is StrongDM's publicly documented SOC 2 audit. StrongDM invested $147,000 all-in on their SOC 2 Type I audit. Their breakdown included:

• SOC 2 auditor fees: $12,000–$17,000
• Lost productivity: $50,000–$75,000
• Legal: $10,000
• Staff training: $5,000
• Security tooling: $30,000

The strategic imperative: why SOC 2 compliance is beneficial in the long-run

If SOC 2 is treated as a checkbox requirement, then it's only a negative. However, if it's used as an opportunity to improve an organization's security posture, it'll materialize into long-term benefits.

Benefits include:

• Streamlined business processes leading to fewer issues
• Reduced likelihood of catastrophic cyberattacks that could cause massive churn, lost trust, and legal fees

The article positions Zip Security as addressing this philosophy through:

• Comprehensive Security Ecosystem
• Native Integration Architecture
• Continuous Compliance Philosophy
• Predictable, Growth-Friendly Pricing

The result? You achieve enterprise-grade security compliance without the enterprise-grade complexity or cost structure.