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What is a reasonable IT budget per employee per month for an SMB?

A practical rule of thumb is to budget per employee, not as a percentage of revenue. For office work, we typically see a range covering licenses, hardware depreciation, management and connectivity combined.

Try this first

  1. 1Count per employee: M365 or Google Workspace license, security layer (EDR plus MFA), backup, MDM, and a share of connectivity and firewall.
  2. 2Add hardware depreciation over 3 or 4 years, so laptop plus dock plus monitor divided by lifetime in months.
  3. 3Add a management layer, whether that is a retainer with an external partner or an internal IT person divided by headcount.
  4. 4Plan a buffer for incidents, projects and upgrades, in our experience 10 to 20 percent on top of the run-rate.

When to bring us in

If you are unsure your per-employee budget fits your sector and risk profile, we are happy to take a quick look.

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