One of the first questions small business owners ask when considering outsourced IT support is simple:
How much is this actually going to cost every month?
The frustrating answer is usually, “It depends.”
That’s technically true, but it isn’t very helpful.
At Peak Line IT, we work primarily with small and growing businesses, so we can give you a much more realistic idea of what managed IT support may cost based on the size and complexity of your company.
For many small businesses, managed IT support falls somewhere around $100 to $175 per user per month, depending on what is included. Smaller environments may also have a minimum monthly service cost because monitoring, cybersecurity, backups, Microsoft 365 administration, and support infrastructure still need to be maintained regardless of whether a company has five employees or fifty.
Here is what that can look like in the real world.
Managed IT Cost for a 10-Employee Business
A business with around 10 employees will often spend approximately:
$1,250 to $2,000 per month
A fairly straightforward 10-person office might include:
- 10 users
- 10–12 computers
- Microsoft 365
- Business email
- Endpoint security
- Managed backups
- Windows updates and patching
- Remote IT support
- Basic network and Wi-Fi support
- Employee onboarding and offboarding
- Microsoft 365 administration
- Printer and scanner support
For a small company without an internal IT department, this can effectively provide an outsourced IT department for a predictable monthly cost.
The price can increase if the company has multiple locations, specialized software, extensive compliance requirements, servers, a large number of mobile devices, or needs frequent onsite support.
Managed IT Cost for a 20-Employee Business
A company with approximately 20 employees will often fall around:
$2,250 to $3,500 per month
This is one of the most common sizes where managed IT starts to make a lot of sense.
At 20 employees, technology problems begin consuming a surprising amount of employee time. Password resets, Microsoft 365 problems, computer issues, security alerts, new employee setups, printer problems, software vendors, backups, and network problems all have to be handled by somebody.
A typical 20-user managed environment might include:
- Help desk and remote support
- Computer monitoring and maintenance
- Microsoft 365 administration
- Email security
- Endpoint protection
- Cybersecurity monitoring
- Backup and disaster recovery
- Network and Wi-Fi support
- Employee onboarding and offboarding
- OneDrive and SharePoint assistance
- Printer and scanner support
- Vendor coordination
- Mobile device support
- Regular technology reviews
A business with 20 employees and one office will generally cost less to support than a 20-person company operating from four locations with servers, specialized applications, extensive mobile devices, and regulatory requirements.
That is why employee count is a good starting point—but not the entire pricing formula.
Managed IT Cost for a 50-Employee Business
For a business with approximately 50 employees, managed IT might fall around:
$5,500 to $8,000+ per month
At this size, the IT provider usually becomes much more involved in the day-to-day operation of the company.
In addition to normal support, a 50-person business may need:
- New employee provisioning
- Employee termination procedures
- Microsoft 365 licensing management
- Identity and access management
- Cybersecurity monitoring
- Advanced email protection
- Multiple backup systems
- Network management
- Multiple office locations
- Mobile device management
- Vendor management
- Technology purchasing
- Security policies
- Quarterly technology reviews
- Strategic planning
- Disaster recovery planning
A more complicated 50-user organization can exceed this range, particularly when there are multiple locations, significant compliance requirements, servers, specialized line-of-business applications, or extensive onsite support needs.
Why Managed IT Pricing Is Usually Based on Users and Devices
Most modern IT companies no longer price support strictly by the hour.
Instead, managed IT is generally priced around the number of users, computers, devices, locations, and services being managed.
At Peak Line IT, adding another managed employee will typically add roughly $110 to $130 per month, depending on the service level.
An additional computer that does not represent another user may add approximately $40 to $60 per month.
Smartphones and tablets that need ongoing management may add around $15 per device per month.
This approach makes IT costs much easier to predict.
Instead of wondering how large the next repair invoice will be, the business has a relatively consistent monthly technology budget.
What Should Be Included in Managed IT Pricing?
This is where comparing IT providers gets difficult.
Two companies may both quote "$150 per user," but they may include completely different services.
A comprehensive managed IT agreement should address more than simply fixing computers when they break.
Depending on the plan, services may include:
Help Desk and Remote Support
Employees need somewhere to call when Outlook stops working, a printer disappears, a computer slows down, or they simply cannot figure something out.
Day-to-day support should be one of the core services provided.
Computer Monitoring and Maintenance
Managed computers should be monitored for problems and kept current with operating system and security updates.
The goal is to identify problems before they turn into downtime.
Cybersecurity
Modern managed IT should include some level of endpoint security, threat monitoring, identity protection, and security configuration.
Antivirus alone is no longer a complete cybersecurity strategy.
Microsoft 365 Administration
Microsoft 365 has become the backbone of many small businesses.
An IT provider may manage:
- User accounts
- Licenses
- Exchange Online
- Outlook
- OneDrive
- SharePoint
- Teams
- Security settings
- Multifactor authentication
- Email protection
Backup and Disaster Recovery
Microsoft 365 and your computers should have an appropriate backup strategy.
The right solution depends on how important the data is and how quickly the business needs to recover after a failure.
Employee Onboarding and Offboarding
When someone joins the company, IT may need to prepare:
- Email accounts
- Microsoft licenses
- Computers
- Security software
- File access
- Shared mailboxes
- Mobile devices
When somebody leaves, access needs to be removed quickly and securely.
Network and Wi-Fi Support
Internet connections, wireless access points, firewalls, switches, VPNs, and office networks all eventually need attention.
A managed IT relationship should make it clear who is responsible for these systems.
Vendor Management
Small businesses often have numerous technology vendors.
Internet providers, copier companies, software developers, phone companies, Microsoft, website vendors, and equipment manufacturers may all point fingers at each other when something stops working.
A good IT provider helps coordinate those vendors rather than making the business owner troubleshoot the problem.
What Isn't Usually Included in the Monthly Fee?
Even comprehensive managed IT agreements usually have some exclusions.
Large one-time projects may be quoted separately.
Examples include:
- Office moves
- Major network replacements
- Microsoft 365 migrations
- Server replacements
- Large cybersecurity projects
- New office installations
- Major cloud migrations
- Large-scale hardware deployments
At Peak Line IT, project and out-of-scope work is generally billed around $150 per hour when it is not included in the managed agreement.
New managed environments may also have an onboarding or transition fee.
A typical onboarding project might be around $2,500, although the actual cost depends on the size and condition of the environment.
Onboarding may include documentation, security configuration, installing management software, reviewing Microsoft 365, deploying endpoint protection, configuring backups, documenting networks, and transitioning away from the previous IT provider.
Managed IT vs. Hiring an Internal IT Employee
Managed IT should also be compared with the alternative.
A business with 20 or 30 employees probably does not need a full internal IT department, but it still needs many of the same capabilities.
Hiring even one experienced IT employee means paying for:
- Salary
- Payroll taxes
- Health benefits
- Retirement benefits
- Paid time off
- Training
- Certifications
- Software and management tools
And one employee still cannot realistically be available all the time or specialize in every technology the company uses.
For many smaller businesses, outsourced managed IT provides access to broader technology experience and professional management tools without the expense of building an internal IT department.
Break-Fix IT vs. Managed IT
Some businesses prefer to call an IT company only when something breaks.
That can appear less expensive at first.
The problem is that the incentive is backwards.
Under break-fix support, the IT company gets paid when something goes wrong.
Under managed IT, the provider earns a predictable monthly fee and has an incentive to prevent problems.
A properly managed environment should experience fewer emergencies because computers are maintained, security is monitored, backups are checked, and problems can often be addressed before employees even notice them.
We've written a full comparison of the two models: Managed IT vs. Break-Fix: Which One Does Your Business Actually Need?
How Much Should Your Business Budget?
A reasonable starting point is:
5–10 employees: roughly $1,000–$2,000 per month
10–20 employees: roughly $1,500–$3,500 per month
20–50 employees: roughly $2,500–$8,000+ per month
These are planning ranges rather than quotes.
The real number depends heavily on your number of computers, offices, mobile devices, Microsoft 365 environment, cybersecurity requirements, backup needs, applications, and expected level of support. For a broader look at what small businesses pay across support models, see How Much Does IT Support Cost for a Small Business?
The Cheapest IT Provider Is Not Always the Cheapest Option
IT support is ultimately about reducing business interruption and risk.
Saving $500 per month on an IT agreement becomes irrelevant very quickly if:
- Ten employees cannot work for half a day
- A ransomware attack encrypts company files
- An employee's Microsoft 365 account gets compromised
- Critical data cannot be restored
- A new employee waits two days for a working computer
- A terminated employee still has access to company systems
The better question is not simply:
"What does IT support cost?"
It is:
"What level of IT support does our business need, and what will technology problems cost us if they aren't managed properly?"
Get a Real IT Support Price for Your Business
If you're a small business in Delaware County, Chester County, Philadelphia, Montgomery County, Bucks County, or the surrounding Greater Philadelphia area, Peak Line IT can review your current environment and give you a straightforward estimate.
We'll look at your users, computers, Microsoft 365 environment, security, backups, network, locations, and support needs.
You'll know what is included, what isn't, and what your monthly IT costs would actually look like.