Pre-seed / Seed5-25 ppl
5-yr TCO: $61k-$146k
Year 1
$20k-$45k
Year 2
$11k-$27k
Year 3
$10k-$25k
Year 4
$10k-$25k
Year 5
$10k-$25k
← Ledger home/ Sub-ledger 08
5-year TCO
SOC 2 annual cost and the 5-year picture
Year 1 is the worst. Year 2 drops 40-55% as gap assessment, policy build and most readiness work do not recur. Steady-state Year 3+ runs around 50% of Year 1 for most teams.
Why Year 2 is cheaper
Year 2 typically lands at 45-60% of Year 1 spend
- No gap assessment (the auditor already knows your environment)
- No policy writing from scratch (refresh only)
- Most tooling gaps are closed (capex absorbed in Year 1)
- Engineering opportunity cost drops 60-80% (controls already exist; evidence is now run-rate)
- Audit fee itself drops 20-30% in subsequent years
5-year trajectory by stage
Series A25-75 ppl
5-yr TCO: $107k-$260k
Year 1
$35k-$80k
Year 2
$19k-$48k
Year 3
$18k-$44k
Year 4
$18k-$44k
Year 5
$18k-$44k
Series B / C75-300 ppl
5-yr TCO: $183k-$423k
Year 1
$60k-$130k
Year 2
$33k-$78k
Year 3
$30k-$72k
Year 4
$30k-$72k
Year 5
$30k-$72k
Late stage / Enterprise300+ ppl
5-yr TCO: $275k-$715k
Year 1
$90k-$220k
Year 2
$50k-$132k
Year 3
$45k-$121k
Year 4
$45k-$121k
Year 5
$45k-$121k
Year 2+ recurring lines
| Line | Range | Note |
|---|---|---|
| Recurring CPA audit (Type 2 renewal) | $15k-$45k/yr | Subsequent-year audits drop 20-30% off Year 1. |
| GRC platform subscription | $7k-$25k/yr | Same as Year 1; rare to drop tiers once embedded. |
| Annual penetration test | $5k-$15k/yr | Required for most engagement letters; same scope can be repriced down. |
| Annual access reviews + control attestations | 30-60 hrs / yr internal | Roughly $3k-$9k of fully-loaded internal time. |
| Quarterly vulnerability scans | Often included with platform | $2k-$8k/yr if standalone. |
| Policy refresh + training renewal | $1k-$4k/yr | Mostly per-seat training SaaS plus minor legal review. |
| Headcount-growth premium | $50-$150 per new FTE | Larger teams = bigger samples = more audit hours. |