Downtime can cost small businesses between $137 to $427 per minute, with larger organizations facing average losses of $300,000 per hour. These staggering figures highlight why understanding the average cost of IT support for small business has become essential for survival and growth in 2025. When evaluating IT support costs, small businesses face a wide range of pricing options. Hourly technical support typically ranges from $75 to $150 per hour, while on-demand IT services can cost anywhere from $75 to $300 per hour. For comprehensive managed IT services, businesses should expect to invest between $125 and $220 per computer-using employee monthly. Consequently, a typical 40-employee company might spend approximately $5,000 per month for complete IT coverage.

In this guide, we'll break down exactly what you should expect to pay for different levels of IT support in 2025. We'll examine various pricing models, help you understand where your money goes, and reveal the hidden costs that many small businesses overlook until it's too late. Additionally, we'll explore how the right IT support strategy can protect your business from being among the many small companies that are 350% more susceptible to phishing attacks than their larger counterparts.

Understanding IT Support Costs in 2025

Most small businesses across the US allocate between 2-7% of their annual revenue for IT services in 2025. For many organizations, this translates to monthly expenditures ranging from $1,000 to $3,400 for outsourced IT assistance. According to Gartner, specifically, the average allocation hovers around 3-5% of total revenue.

What small businesses typically spend on IT

When broken down by business size, a company with 10 employees typically spends $1,000-$3,000 monthly on managed IT services. Furthermore, this scales up significantly—a 25-user company might invest $2,000-$3,000 monthly, whereas a 50-user organization could expect costs between $5,000-$7,000. For businesses with 100 users, monthly expenses often reach $10,000-$14,000.

Per-user pricing models remain common in 2025, with most managed services costing between $100-$300 per user monthly. Hourly support rates generally fall between $100-$200 per hour for standard services. However, emergency support can command premium rates of $200-$350 per hour.

Why IT support costs vary so widely

Several factors contribute to the significant variation in IT support pricing. First, geographic location plays a substantial role—businesses in metropolitan areas typically pay 20-50% more than those in rural regions. Second, the complexity of your IT infrastructure directly impacts costs; networks with numerous devices, databases, and software systems require more management time.

Response time requirements also affect pricing dramatically. Organizations requiring rapid response times—such as guaranteed same-day fixes—will pay premium rates. Likewise, adding advanced cybersecurity tools like endpoint detection and response can increase costs by $15-$30 per user monthly.

The role of business size and industry

Beyond company size, industry-specific requirements create meaningful cost differences. Financial services organizations typically spend between 4.4% and 11.4% of revenue on IT support, compared to discrete manufacturing companies that allocate just 1.4% to 3.2%.

Healthcare providers face particularly high costs due to strict compliance regulations for patient data protection. Similarly, financial institutions must maintain specific security protocols that increase overall IT expenditures. High-growth startups often require more flexible solutions as they expand rapidly, further affecting their IT budgets.

Even within similar-sized businesses, operational complexity creates significant cost variations. Companies managing intricate operations or handling sensitive data invariably pay more for appropriate protection and management.

IT Support Pricing Models Explained

Understanding various IT support pricing models allows small businesses to choose options that align with their operational needs and budget constraints. Let's examine the most common pricing structures available in 2025.

Hourly support: Pay-as-you-go

The break/fix model operates on an hourly basis, with businesses paying only when they need assistance. Small companies typically face rates between $75 and $250 per hour for standard IT support. Initially, this approach seems cost-effective for organizations with minimal technology needs. Nevertheless, expenses can spike unpredictably during emergencies, with rates potentially exceeding $300 per hour for urgent assistance.

Monthly contracts: Predictable billing

Monthly IT support contracts offer fixed-fee structures ranging from $500 to $2500 monthly depending on business size. Essentially, this model provides consistent support with predictable billing cycles, making budgeting more straightforward. These agreements often include proactive monitoring to prevent technical issues before they disrupt operations.

Managed IT services: All-inclusive plans

Comprehensive managed services provide all-encompassing IT coverage for a consistent monthly fee. These packages typically cost between $125 and $220 per user monthly. For a typical 40-employee company, this translates to approximately $5000 per month. In essence, this model delivers the functionality of a full corporate IT department without maintaining an in-house team.

Per-user vs. per-device pricing

Per-user pricing charges a fixed rate for each employee regardless of how many devices they use, ranging from $110 to $400 per user monthly. In contrast, per-device pricing bases costs on the number of supported hardware units, typically between $50 and $250 per device monthly. Notably, per-user models work better for environments where staff use multiple devices, whereas per-device pricing benefits companies with shared workstations.

Tiered support levels

Tiered pricing structures offer different service packages (basic, standard, premium) at escalating price points. Basic managed services may start around $37 per user monthly, while premium tiers can exceed $200 per user monthly. This approach allows businesses to select appropriate coverage levels based on their technical requirements and available resources.

Cost Breakdown by Support Type

Breaking down IT support expenses reveals substantial cost variations across different service types in 2025. Each option presents distinct financial implications for small businesses seeking the right balance of service and affordability.

Break/fix services: $75–$250/hour

Traditional break/fix support operates on a reactive basis, with businesses paying $75-$250 per hour for technical assistance only when issues arise. For emergency situations requiring immediate attention, rates can escalate to $300 per hour. Although this approach eliminates monthly commitments, unexpected system failures can quickly drain budgets, with downtime potentially costing small businesses up to $300,000 per hour.

Basic managed services: $37–$100/user/month

Entry-level managed services typically cost $37-$100 per user monthly. These plans generally include basic monitoring, software updates, and limited support hours. For a 40-employee organization, this translates to approximately $1,500-$4,000 monthly. Such packages represent a significant step up from break/fix models by offering preventative maintenance alongside basic support.

Full managed services: $125–$220/user/month

Comprehensive managed IT services range between $125-$220 per user monthly. These all-inclusive packages provide 24/7 helpdesk support, proactive maintenance, security monitoring, and system backups. Most small businesses with approximately 40 employees invest around $5,000 monthly for complete coverage. This model effectively delivers functionality comparable to a corporate IT department without maintaining in-house staff.

Co-managed IT support: Combining in-house and outsourced

Co-managed solutions blend internal IT capabilities with external expertise, typically costing $70-$100 per user monthly. This hybrid approach allows businesses to maintain control over strategic functions while outsourcing specialized or routine tasks. Medium-sized organizations often find this model balances cost-effectiveness with operational control.

In-house IT team: Salaries, tools, and training

Employing internal IT staff incurs base salaries between $60,000-$150,000 annually per specialist. Benefits typically add another 20% to these figures. Additional expenses include essential tools like ticketing systems, network monitoring software, and MDM solutions ($16,000+ upfront). Moreover, the IT sector experiences an 18% global turnover rate, with replacement costs reaching 100-300% of the departing employee's salary.

Hidden Costs and Long-Term Risks

Beyond the obvious monthly fees, small businesses face significant hidden IT expenses that can threaten their very survival. These unseen costs often dwarf the visible price tags of support services.

Downtime and lost productivity

The financial impact of system failures is staggering, with small businesses losing between $137 and $427 per minute of downtime. For a typical three-hour outage, costs can range from $24,660 to $76,860. In fact, 82% of businesses have experienced unexpected downtime in recent years. These figures include not just immediate revenue losses but also missed opportunities, reduced employee productivity, and potential reputation damage.

Cybersecurity incidents and data loss

The average cost of a data breach for small businesses ranges from $120,000 to $1.24 million. Even more alarming, 60% of small companies close within six months of experiencing a cyber attack. Beyond immediate financial damage, breaches average 287 days to detect and contain, with nearly 40% of small businesses reporting critical data loss from attacks.

Overlapping software subscriptions

Approximately 30% of software license costs are wasted through insufficient management. Studies show that 53% of SaaS applications go underutilized or completely unused, with organizations averaging 7.6 duplicate subscriptions. This waste occurs when departments purchase solutions without checking if existing subscriptions are available.

Lack of strategic IT planning

Poor planning leads to emergency support needs that command premium rates up to $300 per hour. Without strategic planning, businesses face frequent outages that cost 16 times more than companies with proactive approaches. Strategic planning prevents service interruptions, expensive emergency repairs, and the potentially devastating reputation damage from customer-facing failures.

Conclusion

For small businesses, IT support is not just an expense—it’s a critical investment in continuity, security, and growth. With downtime costing hundreds per minute, proactive solutions are essential. Calanceus offers tailored managed IT services, including 24/7 support, monitoring, and security-focused strategies to prevent costly disruptions. By partnering with Calanceus, small businesses gain reliable protection, improved efficiency, and a competitive edge in today’s digital marketplace.