How Much Does Cybersecurity Cost for Small Business?

Cybersecurity feels like an expense you can put off until your business is "big enough" to be a target. That thinking is exactly what makes small businesses the favorite prey of cybercriminals. According to industry data, 43% of cyberattacks target small businesses, and the average cost of a data breach for a small company ranges from $120,000 to $1.24 million. Those numbers make the cost of prevention look very reasonable.

This guide breaks down what cybersecurity actually costs for small businesses in 2026, from basic protections anyone can implement to comprehensive security programs. We also cover the cost of doing nothing, because that number is far scarier than any security budget. For a deeper look at website-specific security, see our guide on website security for small businesses.

Cybersecurity Costs at a Glance

| Protection Level | Monthly Cost | Annual Cost | What You Get | |-----------------|-------------|-------------|-------------| | Basic (DIY) | $10 to $50 | $120 to $600 | Antivirus, firewall, basic monitoring | | Standard | $50 to $200 | $600 to $2,400 | Managed antivirus, email security, backups | | Comprehensive | $200 to $500 | $2,400 to $6,000 | SIEM, incident response, employee training | | Managed Security (MSSP) | $500 to $2,000+ | $6,000 to $24,000+ | Full outsourced security operations |

These are per-business costs for a typical small business with 5 to 25 employees. Per-employee pricing is common, typically $5 to $30 per user per month for many tools.

Essential Cybersecurity Costs

Antivirus and Endpoint Protection ($3 to $15/Device/Month)

Every device that connects to your business network needs protection:

| Solution | Monthly Cost (Per Device) | Key Features | |----------|--------------------------|--------------| | Microsoft Defender for Business | $3/user/month | Built into Microsoft 365, endpoint detection | | Bitdefender GravityZone | $4 to $8/device/month | Advanced threat detection, ransomware protection | | CrowdStrike Falcon Go | $5 to $10/device/month | Cloud-native, AI-powered detection | | SentinelOne | $6 to $12/device/month | Autonomous threat response | | Norton Small Business | $5 to $10/device/month | Familiar interface, reliable protection |

For a 10-person business with 15 devices, endpoint protection typically costs $45 to $225 per month. Our review of the best cybersecurity software for small businesses compares leading options in detail.

Firewall ($0 to $300/Month)

Firewalls control network traffic to block unauthorized access:

• Software firewall (built into OS): Free. Windows Firewall and macOS firewall are adequate for basic protection.
• Cloud-based firewall (Cloudflare, etc.): $0 to $50/month depending on features.
• Hardware firewall appliance: $200 to $2,000 one-time purchase. Models from Fortinet, SonicWall, and Ubiquiti provide stronger network protection.
• Managed firewall service: $100 to $300/month for a provider that configures, monitors, and maintains the firewall for you.

For businesses with a physical office and network, a hardware firewall ($300 to $800 for a small business model) is a worthwhile one-time investment.

Email Security ($2 to $10/User/Month)

Email is the number one attack vector for small businesses. Phishing, malware attachments, and business email compromise cause the majority of breaches:

• Built-in email filtering (Gmail, Microsoft 365): Included with your email subscription. Provides solid baseline protection.
• Advanced email security (Proofpoint Essentials, Mimecast, Barracuda): $2 to $6/user/month for additional phishing protection, attachment sandboxing, and impersonation detection.
• Microsoft Defender for Office 365: $2 to $5/user/month add-on for Microsoft 365 users.

For a 10-person team, email security costs $20 to $100 per month on top of your email subscription.

Password Management ($3 to $8/User/Month)

Weak and reused passwords are responsible for a staggering number of breaches:

| Solution | Monthly Cost (Per User) | Key Features | |----------|------------------------|--------------| | 1Password Business | $8/user/month | Vault sharing, admin controls, travel mode | | Dashlane Business | $8/user/month | Dark web monitoring, VPN included | | Bitwarden Teams | $4/user/month | Open source, self-hosting option | | LastPass Business | $7/user/month | SSO integration, admin console | | Keeper Business | $4/user/month | Zero-knowledge encryption, compliance tools |

For more on choosing the right tool, see our review of the best password managers for small businesses.

Multi-Factor Authentication ($0 to $6/User/Month)

MFA adds a second verification step beyond passwords, blocking 99% of automated attacks:

• Free MFA apps (Google Authenticator, Microsoft Authenticator): $0. Effective but lack centralized management.
• Business MFA (Duo Security, Okta): $3 to $6/user/month. Centralized management, hardware key support, and conditional access policies.
• Hardware security keys (YubiKey): $50 to $75 per key (one-time). The strongest form of MFA.

Backup and Recovery ($5 to $30/Device/Month)

Backups are your last line of defense against ransomware, hardware failure, and data loss:

• Cloud backup (Backblaze, Carbonite, Acronis): $5 to $15/device/month for automatic cloud backup.
• Microsoft 365 backup (Veeam, Datto SaaS Protection): $3 to $8/user/month for backing up email, OneDrive, and SharePoint data.
• Server and full-system backup: $30 to $100/month depending on data volume.
• Local backup (NAS device): $300 to $1,000 one-time for a network-attached storage device, plus $0 ongoing (your responsibility to manage).

SSL Certificate and Website Security ($0 to $50/Month)

If you have a website, its security is part of your cybersecurity posture:

• SSL certificate: Free (Let's Encrypt) to $200/year (extended validation).
• Web application firewall: $0 to $30/month (Cloudflare, Sucuri).
• Malware scanning: $5 to $25/month (Sucuri, SiteLock).
• Website backup: $5 to $20/month.

Advanced Cybersecurity Costs

Employee Security Training ($2 to $10/User/Month)

Your employees are both your biggest vulnerability and your first line of defense:

• Free training resources: Google's Phishing Quiz, NIST Cybersecurity resources, and KnowBe4's free tools provide basic awareness.
• Managed training platforms (KnowBe4, Proofpoint Security Awareness): $2 to $8/user/month. These provide ongoing training modules, simulated phishing tests, and compliance tracking.
• One-time training sessions: $500 to $2,000 per session from a cybersecurity consultant.

Simulated phishing campaigns are particularly effective. Platforms like KnowBe4 send realistic phishing emails to your team and track who clicks, then provide targeted training for those who fall for them.

Security Information and Event Management (SIEM) ($100 to $500/Month)

SIEM tools collect and analyze security data from across your systems to detect threats:

• Cloud SIEM (Blumira, Arctic Wolf): $100 to $500/month for small business packages.
• Microsoft Sentinel: Usage-based pricing, typically $100 to $300/month for small deployments.

SIEM is a more advanced investment that makes sense once you have basic protections in place and need visibility into security events across your organization.

Vulnerability Scanning and Penetration Testing ($500 to $5,000/Year)

Regular security assessments identify weaknesses before attackers do:

• Automated vulnerability scanning (Qualys, Nessus): $200 to $2,000/year depending on scope.
• Penetration testing (ethical hacking): $1,000 to $5,000 per engagement for a small business network and website. Recommended annually.
• Website vulnerability scanning: $100 to $500/year through services like Sucuri or Intruder.

Cyber Insurance ($500 to $5,000/Year)

Cyber insurance covers financial losses from data breaches, ransomware, and other cyber incidents:

• Basic cyber liability policy: $500 to $1,500/year for $500,000 to $1 million coverage.
• Comprehensive policy: $1,500 to $5,000/year for broader coverage including business interruption, regulatory fines, and breach notification costs.
• Factors affecting price: Industry, revenue, number of records stored, security measures in place, claims history.

Many insurers offer lower premiums to businesses that demonstrate strong security practices (MFA, employee training, regular backups).

Managed Security Service Provider (MSSP) ($500 to $2,000+/Month)

For businesses that want comprehensive security without building an in-house team, MSSPs handle everything:

• What they provide: 24/7 monitoring, threat detection and response, vulnerability management, security consulting, incident response, compliance support.
• Typical costs: $500 to $2,000/month for small businesses with 10 to 50 employees.
• Per-employee pricing: Some MSSPs charge $30 to $80/employee/month.

MSSPs make sense for businesses that handle sensitive data (healthcare, financial services, legal) or operate in regulated industries where compliance is mandatory.

Total Cybersecurity Budget Examples

Minimal Protection (5-Person Business)

| Item | Annual Cost | |------|------------| | Antivirus (5 devices) | $240 to $480 | | Password manager (5 users) | $240 to $480 | | Free MFA (Google Authenticator) | $0 | | Cloud backup (5 devices) | $300 to $900 | | Email security (included in M365) | $0 | | Total | $780 to $1,860/year |

Standard Protection (15-Person Business)

| Item | Annual Cost | |------|------------| | Endpoint protection (20 devices) | $960 to $2,400 | | Password manager (15 users) | $720 to $1,440 | | Business MFA (15 users) | $540 to $1,080 | | Email security (15 users) | $360 to $720 | | Cloud backup | $600 to $1,800 | | Employee training platform | $360 to $1,440 | | Cyber insurance | $750 to $2,000 | | Hardware firewall | $400 to $800 (one-time) | | Total | $4,690 to $11,680/year |

Comprehensive Protection (25-Person Business)

| Item | Annual Cost | |------|------------| | Managed endpoint protection | $3,000 to $6,000 | | MSSP or SIEM | $6,000 to $12,000 | | Password manager + MFA | $2,400 to $4,200 | | Email security | $600 to $1,800 | | Employee training | $600 to $2,400 | | Backup and recovery | $2,000 to $5,000 | | Vulnerability scanning | $500 to $2,000 | | Annual pen test | $2,000 to $5,000 | | Cyber insurance | $1,500 to $4,000 | | Total | $18,600 to $42,400/year |

The Cost of Doing Nothing

The most expensive cybersecurity strategy is having none at all:

Average ransomware payment for small businesses: $50,000 to $200,000 (and paying does not guarantee data recovery).

Average data breach cost for small businesses: $120,000 to $1.24 million (including investigation, notification, legal fees, lost business, and recovery).

Business closure rate: 60% of small businesses that suffer a significant cyberattack close within six months.

Downtime costs: Even a minor incident that takes your systems offline for a day or two costs thousands in lost productivity and revenue.

Regulatory fines: Businesses handling health, financial, or consumer data face fines for inadequate security. HIPAA violations can cost $100 to $50,000 per incident.

Compared to these numbers, spending $2,000 to $10,000 per year on cybersecurity is straightforward risk management.

How to Prioritize Your Security Budget

If your budget is limited, invest in this order:

1. Password manager and MFA. These two tools prevent the majority of account compromise attacks. Cost: $5 to $15/user/month.
2. Endpoint protection. Modern antivirus and endpoint detection on every device. Cost: $3 to $10/device/month.
3. Email security. Advanced phishing protection if your email provider's built-in filtering is insufficient. Cost: $2 to $6/user/month.
4. Backups. Automated cloud backups of all critical data and systems. Cost: $5 to $15/device/month.
5. Employee training. Regular security awareness training and phishing simulations. Cost: $2 to $8/user/month.
6. Cyber insurance. Financial protection against incidents your defenses do not catch. Cost: $500 to $3,000/year.
7. Network security. Hardware firewall and network monitoring for businesses with physical offices. Cost: $300 to $800 one-time plus $0 to $100/month.
8. Advanced monitoring. SIEM, vulnerability scanning, and penetration testing. Cost: $200 to $500/month.

How to Save on Cybersecurity

1. Bundle with Microsoft 365. Microsoft 365 Business Premium ($22/user/month) includes endpoint protection, email security, MFA, and more. For Microsoft shops, this is excellent value.
2. Use free tiers wisely. Cloudflare's free plan, Google Authenticator, and built-in OS firewalls provide real protection at zero cost.
3. Automate where possible. Automated patching, automated backups, and automated training reduce the labor component of security.
4. Focus on the basics first. The majority of small business breaches are caused by weak passwords, phishing, and unpatched software. Addressing these three issues eliminates most of your risk.
5. Get a security assessment. Many cybersecurity firms offer free or low-cost initial assessments that identify your biggest vulnerabilities, letting you invest where it matters most.

The Bottom Line

Most small businesses should budget $1,000 to $10,000 per year for cybersecurity, depending on their size, industry, and risk level. At a minimum, every business needs endpoint protection, a password manager, multi-factor authentication, and regular backups. These basics cost $50 to $200 per month and prevent the vast majority of attacks.

The key insight is that cybersecurity is not optional spending. It is risk management. The question is not whether you can afford cybersecurity. It is whether you can afford the consequences of not having it.