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In 2025, cybersecurity is no longer a “nice-to-have”—it’s a minimum cost of doing business. Threats are more sophisticated, attacks are happening more often, and small businesses are the prime target. In fact, over 50% of cyberattacks now hit companies with fewer than 100 employees, and the average recovery cost for a small business breach has climbed above $120,000.
That raises the question every business owner eventually asks:
“How much should my business actually budget for cybersecurity?”
This article breaks down real numbers, what affects the cost, what’s worth paying for, and how to build a budget that protects your business without draining your wallet.
Cyberattacks have evolved dramatically. A decade ago, most attacks came from amateurs or automated bots. Today, businesses face:
Ransomware gangs using AI to target smaller entities
Phishing attacks personalized using public and stolen data
Credential stuffing from massive data leaks
Insider threats, both intentional and accidental
Supply chain attacks that infect businesses through third-party vendors
The technology you need to defend yourself has grown more advanced too. Tools that were once “enterprise-only” are now becoming essential for small businesses: endpoint detection and response (EDR), zero-trust access, secure cloud backups, identity monitoring, and more.
But here’s the good news:
Cybersecurity is still far cheaper than recovering from a breach.
Spending even a few hundred dollars per month on prevention can save tens of thousands in recovery costs later.
Most business analysts, financial advisors, and insurance providers recommend:
And of that budget…
Let’s put real numbers behind that:
| Annual Business Revenue | Recommended Security Budget (Yearly) | Monthly Equivalent |
|---|---|---|
| $250,000 revenue | $11,000–$20,000 | $900–$1,700/mo |
| $500,000 revenue | $22,000–$40,000 | $1,800–$3,300/mo |
| $1,000,000 revenue | $45,000–$80,000 | $3,800–$6,700/mo |
But that’s industry averages, not what MOST small businesses actually spend.
Let’s get practical.
If you have 5–50 employees, don’t store extremely sensitive data (medical, legal, financial), and just need solid protection, here’s the average breakdown:
This typically includes:
Advanced endpoint security
24/7 monitoring
Patch & update management
Cloud backups
Email security & anti-phishing
Multi-factor authentication management
Employee training
Network support
Incident response planning
This range covers MOST small businesses.
Not every business needs the same level of protection. Four main factors change the cost dramatically:
Some industries require higher compliance (and therefore higher spend):
Healthcare (HIPAA)
Finance (GLBA)
Legal
Insurance
Government contractors
Real estate firms handling large escrow funds
If you’re in one of these, your budget will be on the higher end.
Every employee = another device, another email account, another potential vulnerability.
A 10-person team is far easier (and cheaper) to secure than a 30-person team.
Remote and hybrid workers require:
Secure VPN / ZTNA
Device hardening
Multi-location network protections
Cloud security controls
All of this adds to cost, but it’s essential.
This is the one nobody talks about.
Some business owners want:
✔️ Full monitoring
✔️ Daily backups
✔️ Zero-trust access
✔️ 24/7 response
✔️ Compliance-ready security
Others want:
“Just the basics, enough to keep us safe”
More security = more cost, but less chance of disaster.
Many small businesses under-budget cybersecurity because:
“It won’t happen to us.”
“We’re too small.”
“We don’t have anything worth stealing.”
But attackers don’t think like that.
They look for:
Old software
Weak passwords
Unprotected networks
Outdated firewalls
Free antivirus
No monitoring
No backups
And they AUTOMATE these attacks.
This is why 60% of small businesses that suffer a major breach shut down within 6 months.
Underspending saves money today…
…but it increases your risk tomorrow exponentially.
If you’re trying to plan the perfect budget, here’s the minimum modern stack:
Endpoint Detection & Response (EDR)
Cloud backup with immutable storage
Secure email filtering
Password management
Multi-factor authentication
Security monitoring
Patch & update management
DNS filtering
Firewall & network protection
Employee cybersecurity training
This is the “bare minimum” to stay safe in 2026.
Most small businesses waste money by hiring “just IT support” and then outsourcing security separately.
In 2025, the two are fused together.
Every IT decision has a security risk attached.
Every security tool needs IT management.
Bundling them reduces cost and risk.
Here’s a simple rule:
This gives you:
Fully managed IT
24/7 protection
Backups
Monitoring
Fast support
Real security
For a 10-person business at average market rates (not our rates), that’s:
$2,000–$3,500 per month
$24,000–$42,000 annually
Exactly in line with industry best practices.
Cybersecurity is no longer a “luxury”.
It’s not a “future investment”.
It’s not something you cut when times are tight.
In 2026, cybersecurity will be:
✔️ Cheaper than the cost of a breach
✔️ Essential for protecting your reputation
✔️ Required for cyber insurance
✔️ Critical for keeping employees productive
✔️ Expected by customers and partners
If you’re not budgeting properly today, you’re risking the entire company tomorrow.
Partner with industry-leading experts to protect your data, reputation, and future. Get proactive, enterprise-grade cybersecurity tailored to your business.
