Type 1 vs Type 2
What each type actually costs
Cost-only comparison of Type 1 (point-in-time) vs Type 2 (operating effectiveness over 6-12 months). Plus the math on when 'Type 1 first' is worth its premium.
| Line | SOC 2 Type 1 | SOC 2 Type 2 |
|---|---|---|
| What you get | Point-in-time controls assessment | Operating effectiveness over 6-12 months |
| Audit fee (boutique) | $8k-$15k | $15k-$25k |
| Audit fee (mid-tier) | $12k-$25k | $22k-$50k |
| Audit fee (national / Big-4) | $25k-$50k | $50k-$100k+ |
| Readiness + tooling | $5k-$15k | $10k-$25k |
| Internal time | 150-250 hrs | 250-400 hrs Year 1 |
| Total Year 1 (typical) | $15k-$40k | $30k-$80k |
| Time to report | 3-4 months | 9-15 months |
| Trust with enterprise buyers | Limited; some accept it | Standard, broadly accepted |
Path
Type 1 only
Total cost
$15k-$40k
Timeline
3-4 months
When it makes sense
One waiting deal, low pipeline density, limited runway. Often re-done as Type 2 later.
Path
Type 2 only (skip Type 1)
Total cost
$30k-$80k
Timeline
9-15 months
When it makes sense
Default for most B2B SaaS teams. Lower 18-month cost than doing both sequentially.
Path
Type 1 then Type 2
Total cost
$45k-$110k
Timeline
15-18 months
When it makes sense
When you need a report immediately AND will need Type 2 within a year. ~20-30% premium vs going straight to Type 2.
The Type-1-first cost trap
Doing Type 1 then Type 2 generally costs 20-30% more than going straight to Type 2
Worth it if you have an active deal that closes the moment a report exists. Not worth it if you can wait 9-12 months. The decision rule: if a single waiting deal is bigger than 2x the Type 1 cost, do Type 1 first; otherwise skip ahead.
For the broader budgeting view see /spending-paths and /audit-fees for fee tiers by firm category.