How to budget for IT support: A complete guide to hiring an MSP company in 2026

Technology has become the foundation of how modern businesses operate. Whether you're sending emails, managing customer information, processing payments, or securing sensitive data, your company relies on technology every minute of the day. Because of this, knowing how to properly budget for IT support is essential—not just to avoid unexpected costs, but to protect your business, improve productivity, and ensure long-term growth.

For many small and mid-sized organizations, the smartest approach is to partner with a Managed Service Provider (MSP). MSPs deliver technical expertise, cybersecurity protection, and ongoing support that most SMBs struggle to maintain using internal

staff alone. But the big question is always the same:

How much should you budget for IT support when hiring an MSP?

This comprehensive guide breaks everything down so you can make informed, confident financial decisions for your business.

Why Outsourcing IT to an MSP Makes Sense Financially

Before diving into numbers, it’s important to understand why MSPs have become the preferred IT solution for organizations with 5–50 employees.

Hiring a full-time IT employee can cost between $70,000 and $120,000 per year, not including benefits, training, PTO, certifications, and the cost of tools they need to do the job. Even then, one internal technician cannot provide the same expertise, coverage, or specialization as an entire MSP team.

An MSP provides:

• Access to senior-level engineers

• 24/7 monitoring and proactive maintenance

• Cybersecurity tools and compliance support

• Fast remote and onsite support

• Strategic IT roadmap and planning

  
  

All for a predictable, fixed monthly cost.

This makes budgeting easier and helps prevent expensive emergencies or downtime that could cost thousands—or even tens of thousands—of dollars in lost productivity.

Step 1: Assess What Type of IT Support Your Business Actually Needs

Every company has different needs. Some only require basic helpdesk support, while others must meet strict compliance or cybersecurity standards. Budgeting starts with understanding where your business fits.

1. Basic IT Support (Entry-Level Needs)

This level typically includes:

• Helpdesk troubleshooting

• Basic updates and patching

• Antivirus software

• Email and computer support

• Limited network maintenance

  
  

Budget expectation: $75–$125 per user per month

This level is best for very small businesses with minimal technology reliance or low cybersecurity risk.

2. Standard Managed IT + Cybersecurity (Most SMBs)

Today’s threat landscape requires stronger protections. This tier adds:

• Next-generation cybersecurity tools

• Firewall monitoring and configuration

• Proactive system updates

• Server and applicattion support

• Network performance monitoring

• Backup management

• Remote and onsite support

• Microsoft 365 or Google Workspace support

  
  

Budget expectation: $150–$225 per user per month

This is the most common level for businesses between 5–50 employees since it provides a balanced foundation of security, productivity, and reliability.

3. Advanced Security & Compliance (High-Risk Industries)

Designed for legal, medical, financial, real estate, insurance, and regulated businesses. Includes:

• SOC/SIEM monitoring

• Managed Detection & Response (MDR/XDR)

• Zero Trust security framework

• Advanced firewall security

• Vulnerability scans

• Compliance documentation and audits

• Quarterly strategy meetings

  
  

Budget expectation: $225–$300+ per user per month

These businesses cannot afford downtime, breaches, or fines, so a higher level of protection is necessary.

Step 2: Understand the Key Factors That Influence Your MSP Budget

Not every business will have the same MSP costs. Several factors determine your monthly budget, and knowing these ahead of time helps avoid surprises.

The Number of Employees or Devices You Support

Most MSP pricing is based on:

• Per-user

• Per-device

• Or both

  
  

More devices or employees = higher support and security requirements.

The Current State of Your IT Environment

If your network or computers are out of date, you may need a one-time remediation project. This might include:

• Replacing outdated firewalls

• Upgrading aging computers

• Rebuilding backups

• Cleaning up security risks

• Documenting the entire network

  
  

The cleaner and more standardized your IT environment, the lower your long-term support costs will be.

Industry Compliance Requirements

Businesses in regulated industries face higher risks and responsibilities. Compliance frameworks require additional software, monitoring, documentation, and security practices.

This directly impacts the budget.

Cybersecurity Expectations

Cybersecurity is now one of the most significant drivers of IT cost—not because MSPs want to charge more, but because cyberattacks are increasingly targeted at small businesses. Modern security requires multiple layers, such as:

• EDR/MDR protection

• Email filtering

• MFA

• Vulnerability scanning

• DNS filtering

• Data loss prevention

  
  

Your MSP budget must reflect the risk your business carries.

Step 3: Establish a Realistic Monthly MSP Budget

Below is a more detailed breakdown of what most companies should expect to spend.

Standard Managed IT (Support + Basic Cybersecurity)

Budget range: $150–$200 per user/month

Premium Managed IT (Advanced Cybersecurity + Strategy)

Budget range: $200–$275 per user/month

Fully Managed IT + Security Operations Center (SOC)

Budget range: $275–$350+ per user/month

Sample Budget for a 20-Employee Company

Service Level	Monthly Cost	Annual Cost
Standard ($150/user)	$3,000	$36,000
Premium ($225/user)	$4,500	$54,000
Enterprise ($300/user)	$6,000	$72,000

By comparison:

Hiring one internal IT employee could cost $90,000–$140,000/year, not including tools, cybersecurity, and benefits.

Step 4: Include One-Time Remediation and Onboarding Costs

Most MSP engagements begin with a stabilization project. This allows them to clean up issues, reduce risks, and bring your environment up to industry standards.

Common One-Time Costs Include:

• Security hardening

• Documentation and asset inventory

• Network cleanup

• Firewall or Wi-Fi configuration

• Backup validation

• Standardization of devices

  
  

Typical range:  $2,500–$15,000 depending on environment size and complexity.

This is not an “extra fee”—it ensures the MSP can support your business properly and securely.

Step 5: Budget for Hardware, Licensing, and Future Upgrades

A complete IT budget includes more than monthly MSP services. You’ll also want to allocate funds for:

✔ Device replacements (every 3–4 years)

✔ Network upgrades (every 4–7 years)

✔ Microsoft 365 or Google Workspace licensing

✔ Backup storage and cloud subscriptions

✔ Security software renewals

Industry best practice:Most SMBs set aside 10–15% of annual revenue for technology-related expenses.

This ensures your business stays secure, efficient, and competitive.

Step 6: Choose an MSP That Matches Both Your Budget AND Your Business Goals

When comparing MSP proposals, don’t focus solely on price. Instead, look for long-term value. The right MSP becomes a strategic partner—not just a vendor—guiding your business through growth, technology planning, and cybersecurity challenges.

Evaluate MSPs based on:

• Their response time guarantees

• Technology standards and cyber stack

• How proactive they are vs. reactive

• IT documentation quality

• Onsite support availability

• Strategic planning (QBRs)

• Transparency of pricing

• No hidden fees or surprise charges

  
  

A low-cost provider might look attractive, but if they respond slowly or fail to protect your environment, the long-term financial impact could be far more expensive.

A Simple Formula for Calculating Your Annual IT Budget

Use this formula to estimate your yearly costs:

Annual IT Budget = (Users × Monthly MSP Fee × 12) + Hardware/Software + One-Time Remediation Costs

Example for 25 users:

• MSP Support ($225 × 25 × 12): $67,500

• Hardware/software upgrades: $15,000

• Initial remediation: $5,000

  
  

Estimated annual budget: $87,500

Compared to hiring one internal IT employee (salary + taxes + benefits + tools), this is typically 50–60% less expensive and far more comprehensive.

Final Thoughts

Budgeting for IT support doesn’t have to be complicated. With the right MSP partner, your technology becomes predictable, secure, and fully aligned with your business goals. Instead of reacting to problems, you gain a proactive team that monitors your systems, prevents threats, and helps your business operate at peak efficiency.

A well-planned IT budget is not only a financial decision—it’s a strategic investment in your company’s productivity, security, and long-term success.