What Does SOC 2 Cost in 2026?

The number-one question we get from founders: "How much does SOC 2 actually cost?" The honest answer is "it depends," but we can give you real ranges based on what we've seen across dozens of engagements.

The Three Cost Buckets

Every SOC 2 program has three cost components:

1. Compliance partner fees — the team that builds your controls, writes policies, automates evidence, and manages the program. That's us.
2. Auditor fees — the CPA firm that issues the actual SOC 2 report. This is a pass-through cost we don't mark up.
3. Internal time — your team's hours spent in workshops, reviewing policies, and answering auditor questions.

FencePencil Fees

We charge a one-time setup fee plus a monthly retainer:

• Setup: $15,000 — covers control design, policy drafting, evidence automation wiring, and auditor matchmaking.
• Monthly retainer: $2,500/mo — covers continuous monitoring, quarterly access reviews, evidence refresh, policy updates, and auditor liaison.

The retainer continues after your report ships. SOC 2 is not a one-and-done — controls need to operate continuously, and your next audit will check the full observation period.

Auditor Pass-Through

We introduce you to vetted, fixed-fee auditors from our network. Typical ranges:

| Report Type | Auditor Fee Range | |------------|------------------| | Type I (point-in-time) | $12,000 – $25,000 | | Type II (observation period) | $20,000 – $40,000 |

These fees go directly to the auditor. We negotiate fixed-fee quotes so you know the number before you commit.

Internal Time

Plan for 40–60 hours of your team's time over the first 3 months:

• Week 1–2: Scoping workshops (4–6 hours) — we learn your stack, draw control boundaries
• Week 3–6: Policy reviews (8–12 hours) — you review and approve the policies we draft
• Ongoing: Quarterly access reviews, responding to auditor questions (2–4 hours/quarter)

We do the heavy lifting. Your team's job is to review, approve, and answer questions about your business context — not to become compliance experts.

Total Year 1 Cost

For a typical Series A SaaS company going straight to Type II:

| Component | Low | High | |-----------|-----|------| | FencePencil setup | $15,000 | $15,000 | | FencePencil retainer (12 months) | $30,000 | $30,000 | | Auditor (Type II) | $20,000 | $40,000 | | Internal time (~50 hrs × $100/hr) | $5,000 | $5,000 | | Total Year 1 | $70,000 | $90,000 |

Year 2 drops significantly — no setup fee, and your audit is typically smoother (lower auditor quote) because everything is already documented and automated.

Where Companies Overspend

1. Buying a GRC platform and doing it themselves — Vanta or Drata costs $15K–$50K/yr for the software alone, and you still need someone to do the work. Many companies end up hiring a $150K+/yr compliance lead on top of the software.

2. Over-scoping the audit — if your auditor is testing controls you don't need (Processing Integrity when you don't process transactions, Privacy when you're B2B-only), you're paying for unnecessary work. We scope aggressively to keep it tight.

3. Starting with Type I, then pivoting to Type II — Type I is a useful stepping stone for a specific deal, but if you know you need Type II, go straight there. Running both back-to-back costs more than just starting Type II.

How Fast Can You Get a Report?

• Type I: 4–6 weeks from kickoff to issued report
• Type II: 6 weeks to audit-ready + 3–12 month observation period + 4–6 weeks for the audit itself

The observation period is the bottleneck. We start it the same week as your Type I so you're not waiting.

Next Steps

Use our compliance cost calculator to get a personalized estimate, or book a scoping call to talk through your specific situation.