How Much Does SOC 2 Compliance Cost?

SOC 2 costs fall into three categories: the audit fee paid to the CPA firm, the cost of readiness work and remediation to close control gaps before the audit, and the ongoing cost of the tooling and staff time needed to keep controls operating. For most small and mid-size SaaS companies, a first SOC 2 report costs $20,000 to $80,000 all-in, with Type II audits and larger organizations running higher.

Cost by Report Type

SOC 2 Type I

Audit fee: $8,000 – $25,000 Readiness and remediation: $5,000 – $30,000

Type I evaluates control design at a single point in time, so there’s no observation period to manage. It’s the faster and cheaper path to a first report, and many companies use it to satisfy early customer requests while preparing for a Type II audit.

SOC 2 Type II

Audit fee: $15,000 – $60,000+ Readiness and remediation: $10,000 – $50,000 Observation period: Typically 3–12 months, during which controls must operate continuously and generate evidence

Type II is more expensive and takes longer because the auditor is testing whether controls actually worked over time, not just whether they exist. It’s also the report most enterprise customers expect to see. See what SOC 2 is for how Type I and Type II differ.

Audit Fee Factors

CPA firm fees vary based on:

• Number of Trust Services Criteria in scope: Security alone costs less to audit than Security plus Availability, Confidentiality, and Privacy
• System complexity: More products, environments, and data flows mean more evidence to review
• Company size: More employees and infrastructure generally means more control instances to sample
• Auditor reputation and firm size: Larger, more recognized audit firms typically charge more than smaller boutique firms

Readiness and Remediation Costs

Before the audit, most organizations need to close gaps between their current controls and SOC 2 requirements:

• Gap assessment: $3,000 – $15,000 if using outside consultants
• Policy and procedure development: $5,000 – $20,000
• Technical control implementation (MFA, encryption, logging, access reviews, vendor management): highly variable depending on starting maturity, from a few thousand dollars to $50,000+ for organizations building controls from scratch

Ongoing Compliance Costs

Maintaining SOC 2 readiness year over year requires:

• Compliance automation platform (evidence collection, control monitoring): $5,000 – $25,000/year
• Annual Type II audit (recurring): the same range as the initial Type II audit fee above
• Internal time: ongoing control operation, evidence review, and vendor and access management, typically owned by engineering or IT leadership rather than a dedicated compliance hire at smaller companies

The Cost of Not Having a SOC 2 Report

SOC 2 isn’t legally mandated, so there’s no regulator or fine attached to skipping it. The cost shows up elsewhere:

• Stalled or lost enterprise deals: Security reviews are a standard part of enterprise procurement, and many buyers won’t proceed without a current report
• Longer sales cycles: Without a report, prospects often require lengthy custom questionnaires and calls with your engineering team in place of a document they can simply read
• Competitive disadvantage: If competing vendors already have SOC 2 reports, buyers may eliminate you from consideration before you’re aware you lost the deal

Total Cost Estimates by Company Size

How Espresso Labs Reduces Your SOC 2 Costs

Espresso Labs implements and continuously operates the technical controls SOC 2 auditors test, including access management, encryption, logging, vulnerability management, and incident response, and maintains the audit evidence automatically as a byproduct of daily operations rather than a scramble before each audit cycle. Most organizations reduce the internal engineering time spent on SOC 2 readiness by 50–70% compared to building and maintaining the program in-house.