Cybersecurity Budget Calculator
Calculate recommended cybersecurity budget allocation based on your industry, company size, risk profile, and compliance requirements. Get detailed breakdowns for personnel, technology, training, and incident response.
Organization Profile
Different industries have different security budget benchmarks
Full-time equivalent employees
Used to calculate percentage-based security budget
Leave at minimum if unknown - we'll calculate without it
Security Posture
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Compliance Requirements
Select all that apply to your organization
Strategic Security Planning
Get C-level security guidance to align your security investments with business goals.
What Is a Cybersecurity Budget Calculator
A cybersecurity budget calculator estimates the appropriate security spending for an organization based on industry benchmarks, organizational size, regulatory requirements, risk profile, and security maturity. Security budgets typically range from 3-10% of the overall IT budget, but the right number depends on many factors specific to each organization.
Underspending on security leads to breaches, compliance failures, and business disruption. Overspending diverts resources from business growth. This tool helps CISOs and IT leaders build defensible budget proposals grounded in industry benchmarks and risk-based analysis.
Industry Benchmarks
| Industry | Security as % of IT Budget | Security per Employee | Key Drivers |
|---|---|---|---|
| Financial Services | 8-14% | $2,500-$4,000 | Regulatory requirements, high-value targets |
| Healthcare | 5-10% | $1,500-$2,500 | HIPAA, PHI protection, ransomware targeting |
| Technology | 5-8% | $2,000-$3,500 | IP protection, customer data, competitive advantage |
| Government | 8-15% | $2,000-$3,000 | Compliance mandates, nation-state threats |
| Retail | 4-7% | $1,000-$2,000 | PCI DSS, payment data, customer trust |
| Manufacturing | 3-6% | $800-$1,500 | OT security, supply chain, IP protection |
Budget Allocation by Category
| Category | Typical Allocation | Components |
|---|---|---|
| People | 40-50% | Security team salaries, training, certifications |
| Technology | 25-35% | Tools, platforms, licenses, cloud security services |
| Managed Services | 10-20% | MSSP, MDR, consulting, penetration testing |
| Compliance | 5-10% | Audits, assessments, certifications |
| Incident Response | 3-5% | Retainers, tabletop exercises, insurance |
Common Use Cases
- Annual budget planning: Calculate a defensible security budget based on organizational size, industry, and risk profile for the upcoming fiscal year
- Board presentation: Present budget requests with industry benchmarks and risk-based justification that resonates with non-technical board members
- Gap analysis: Compare current spending against benchmarks to identify underinvestment areas
- M&A integration: Estimate the security budget increase needed when acquiring a company with a different security maturity level
- Startup security planning: Determine appropriate security investments for growing companies at different stages (seed, Series A, growth)
Best Practices
- Use risk-based budgeting, not benchmarks alone — Benchmarks provide a starting point, but your budget should reflect your specific threat landscape, asset value, and regulatory requirements.
- Invest in people first — The most expensive tools are useless without skilled staff to operate them. Prioritize hiring, training, and retaining security talent.
- Build incrementally — Don't try to fund a complete security program in year one. Build capabilities incrementally, starting with the highest-risk gaps identified in your risk assessment.
- Include incident response costs — Budget for incidents that will happen despite prevention: IR retainers, forensic tools, communication costs, and legal counsel.
- Track spend-to-risk-reduction — Measure the security improvements (reduced incidents, faster detection, fewer findings) that result from budget investments. This builds credibility for future requests.
References & Citations
- IBM Security and Ponemon Institute. (2024). Cost of a Data Breach Report 2024. Retrieved from https://www.ibm.com/security/data-breach (accessed January 2025)
- Gartner. (2023). Gartner Forecasts Global Security and Risk Management Spending to Grow 14% in 2024. Retrieved from https://www.gartner.com/en/newsroom/press-releases/2023-09-28-gartner-forecasts-global-security-and-risk-management-spending-to-grow-14-percent-in-2024 (accessed January 2025)
Note: These citations are provided for informational and educational purposes. Always verify information with the original sources and consult with qualified professionals for specific advice related to your situation.
Key Security Terms
Understand the essential concepts behind this tool
Frequently Asked Questions
Common questions about the Cybersecurity Budget Calculator
Industry averages range from 10-15% of total IT budget, with highly regulated sectors (financial services, healthcare) allocating 15-20%. Gartner research suggests organizations spend 5.6% of IT budget on security on average, but this is increasing. Your allocation depends on risk tolerance, regulatory requirements, current security posture, and threat landscape. High-risk industries justify higher percentages.