The real cost of SOC2 compliance in 2025 - beyond the auditor fees

The real cost of SOC2 compliance in 2025 - beyond the auditor fees

The cost of achieving SOC 2 compliance in 2025 extends far beyond the auditor’s invoice. In reality, that fee represents only a fraction of the total expenses. When accounting for preparation, tools, training, remediation work, and ongoing maintenance, the full budget typically ranges between $30,000 and $150,000. For smaller tech startups, costs usually fall in the $30,000–50,000 range, while larger organizations with complex IT infrastructures often exceed $100,000 in total spending.

What SOC 2 is and why it’s so expensive?

SOC 2 is an attestation report developed by the AICPA to evaluate how effectively a company’s internal controls operate against the Trust Services Criteria (TSC) — Security, Availability, Confidentiality, Processing Integrity, and Privacy.

There are two main types of audits: Type 1, which evaluates the design of controls at a single point in time, and Type 2, which tests their operational effectiveness over a specific period — typically from six to twelve months.

A SOC 2 report remains valid for one year, which means companies must renew their certification annually. The typical cost is around $10,000–25,000 for Type 1 and $20,000–40,000 for Type 2.

The preparation phase – a hidden but critical expense

Before the actual audit begins, most organizations invest in a readiness assessment. This pre-audit process identifies control gaps and areas that need improvement, significantly reducing the likelihood of delays or nonconformities later on.

The average cost of this readiness phase is $10,000–25,000, but it often saves far more in time and remediation costs. During this stage, companies typically create or update security policies, implement multi-factor authentication (MFA), inventory their assets, and deploy mobile device management (MDM) solutions.

Failing to address these elements early on can extend the audit timeline and drive up the total cost of compliance.

What drives the final cost?

Several factors determine the overall cost of SOC 2 compliance. The most significant include company size, system complexity, number of TSC categories covered, organizational readiness, and auditor selection.

Each additional TSC increases the number of controls and evidence requirements, potentially raising costs by 20–30%. Furthermore, Type 2 audits are notably more expensive than Type 1 because they require ongoing evidence collection rather than a one-time evidence review. This translates into more work for both the auditor and internal teams, longer preparation cycles, and higher project costs overall.

Where the money really goes?

Although the auditor’s invoice is the most visible line item, it rarely accounts for the majority of the total cost. A complete SOC 2 initiative involves a wide range of investments that extend across technology, people, and processes.

The most common expense categories include:

• Audit fees – $10,000–25,000 for Type 1 or $15,000–50,000 for Type 2, depending on scope and the auditor’s firm;

• Readiness or gap assessment – $10,000–25,000;

• GRC and automation tools – $6,000–25,000 per year;

• MDM systems – roughly $48 per user annually;

• Vulnerability scanning tools – $6,000–25,000 per year;

• Penetration testing – $3,000–20,000;

• Security awareness training – from $25 per employee up to $15,000 for comprehensive programs;

• Legal and compliance support – $5,000–10,000;

• Internal labor – typically 100–500+ hours, often equating to $50,000–75,000 when a project lead dedicates half of their time over a six-month period.

In short, SOC 2 compliance costs are not driven by a single vendor invoice but by a combination of smaller, interconnected expenses that together form a mature information security management system.

The growing impact of automation and GRC platforms

In 2025, automation remains one of the most effective strategies for reducing SOC 2 costs. Modern GRC platforms integrate directly with cloud, HR, and IT systems, allowing organizations to cut compliance expenses.

Automated evidence collection, continuous monitoring, and ready-to-use policy templates streamline preparation, reduce manual work, and minimize human error.

Additionally, many providers now offer bundled packages that combine platform subscriptions with auditing services.

While automation and integrated GRC (Governance, Risk, and Compliance) platforms bring significant efficiency gains, they also introduce notable risks that organizations should carefully assess.

One key concern is that many of these platforms provide generic policy and control templates that are not fully tailored to the specific operational, regulatory, and risk environment of the organization undergoing SOC 2 attestation. Over-reliance on such standardized materials can result in gaps between the platform’s predefined controls and the organization’s actual processes, leading to nonconformities or incomplete evidence during the audit. This misalignment may ultimately jeopardize the validity of the SOC 2 report or expose the organization to compliance deficiencies.

Another critical risk arises when the same vendor provides both the GRC platform and the auditing service. This dual role creates a potential conflict of interest, as the auditor’s independence and objectivity could be compromised by commercial or operational ties to the technology provider. Such situations undermine the fundamental assurance principles that SOC 2 is built upon.

Recognizing this risk, the AICPA (American Institute of Certified Public Accountants) has acknowledged the growing interdependence between automated compliance tools and auditing engagements. In response, it has issued a consultation on a proposed new standard aimed at reinforcing auditor independence when technology providers are also involved in the compliance process. This development underscores the importance of maintaining clear boundaries between compliance facilitation and independent attestation activities.

Example cost scenarios

SOC 2 costs vary widely depending on company size, audit scope, and control maturity. Below are some realistic 2025 scenarios:

• Startup (up to 25 employees, Security only, Type 1) – readiness: $10,000–15,000, audit: $7,000–15,000, automation tools: $6,000–15,000 per year, training and legal support: $5,000–10,000.Total: approximately $20,000–40,000.

• Mid-size SaaS company (Security + Availability, Type 2, 6–12 months) – readiness: $10,000–20,000, audit: $15,000–30,000, tools: $10,000–30,000, penetration test: $5,000–15,000, training and legal: $10,000–25,000.Total: between $60,000 and $100,000+.

• Large enterprise (complex architecture, 3–5 TSCs) – full annual cycle cost often exceeds $120,000–150,000.

How to keep costs under control?

The most effective way to manage SOC 2 costs is to limit the audit scope initially — focusing on the Security category — and expand to additional TSCs only when required by clients or partners.

Maintaining a high level of readiness throughout the year is equally important. Regularly updating policies, conducting vendor reviews, and monitoring incidents help shorten audit duration and reduce remediation costs.

Moreover, automating evidence collection and standardizing environments — such as unified account management, centralized logging, and consistent security policies — are among the simplest ways to achieve long-term cost efficiency in future audits.

Final thoughts

SOC 2 compliance is an investment that goes far beyond a one-time audit. In 2025, the total cost averages $30,000–150,000, with auditor fees accounting for only a small share of the total.

The most significant expenses arise from preparation, tools, training, and internal labor. However, organizations that embrace automation, narrow their audit scope, and maintain ongoing readiness can reduce total costs.

Ultimately, SOC 2 has evolved from a mere enterprise requirement into a strategic trust asset — one that strengthens credibility, supports customer confidence, and fuels sustainable business growth.