Understanding IT Pricing: What Small Businesses Should Expect to Pay
According to Kaseya’s 2026 State of the MSP Report, 55% of MSPs surveyed said their typical customer spends under $25,000 per year, while 41% reported typical spending of $25,000 or more annually.
While these numbers paint a general picture, the truth is that IT pricing varies greatly depending on the service and pricing model being used. What you pay for hourly support, for example, is going to be different than what you get out of a fully comprehensive MSP plan.
That’s why, in this guide, we’re breaking down what influences IT pricing, the main service and pricing models you’ll encounter, and what you can expect when paying for IT support.
Key takeaways
- Break-fix, fully managed, and co-managed IT services offer different levels of coverage and responsibility.
- Providers may charge hourly, per user, per device, or through a flat-rate monthly agreement.
- Your employees, devices, infrastructure complexity, compliance requirements, and expected response time all affect your IT bill.
- A flat-rate MSP gives you a predictable cost while also offering your business proactive support without having to maintain an entire in-house IT department by yourself.
The Different Types of IT Support
While every provider does things a little differently, here are the three main options you’ll encounter when looking for IT support and what you can typically expect to pay for each.
Break-Fix ($75-$200/hour)
Break-fix support is reactive in nature. That means you call when something goes wrong and pay for the time it takes to resolve the issue.
While this model may seem affordable at first, it can leave some serious gaps in your coverage, especially during emergencies. For example, a provider may charge $75 per hour for standard support, but the price could jump for overnight or emergency work.
This makes break-fix more difficult to predict and budget for compared to other IT services.
Fully Managed IT Services ($125-$250/user/month)
Fully managed IT services provide comprehensive support through an ongoing monthly agreement. This could include a 24/7 helpdesk, proactive maintenance, security monitoring, backup systems, and more.
While upfront it may seem more expensive than a pay-as-you-go service, consistent support and monitoring can help identify and resolve issues before they become major disruptions, while ongoing security services protect your business from cyber threats.
Not only that, but a predictable monthly IT expense is far easier to plan around than break-fix support.
Co-Managed IT
Co-managed IT is designed for businesses that already have an internal IT department but need a little more help.
For example, an internal IT employee may handle the day-to-day support while an outside provider helps with cybersecurity or larger projects.
We didn’t list a cost because co-managed IT depends heavily on how labor and responsibilities are divided between your internal team and outside provider. Some businesses may lean more heavily on their internal team, bringing the cost down compared to those who rely more on their outsourced provider, especially regarding 24/7 monitoring and support.
What About In-House IT?
While In-house IT support may make sense for some organizations, it can be far less affordable than it may first seem. That’s because an in-house IT team is ultimately your responsibility. You need to locate, interview, and then hire a full-time employee. And once you get them, you’ll have to pay for:
- Salary
- Insurance
- Benefits
- Office space
- Equipment
- Payroll taxes
- Recruiting
- Training
- Admin costs
Adding all of it together comes out to roughly $70,000-$120,000+ annually, per technician.
Then there’s the fact that a single IT employee can’t provide 24/7/365 support by themselves. If they’re sick, on vacation, or quit, you’ll need another way to protect your business.
IT Pricing Models Explained
While a service model defines the type of support, a pricing model explains exactly how you pay for it.
Here are the most common types:
Hourly IT Pricing
Common with break-fix, this IT pricing model charges based on how long it takes to fix an issue or complete a project.
Prices can vary wildly depending on the complexity of the job, the technical expertise required, whether the request is an emergency, or whether the provider charges extra for after-hours support.
This creates a bill that’s difficult to predict. A month of fairly low IT expenses could be immediately followed by a cyber incident that drains your IT budget in a matter of weeks.
Per-User IT Pricing
With per-user, you pay a fixed monthly fee for each employee receiving support, regardless of how many devices they use.
This model works well for businesses where employees regularly switch between different devices. Instead of paying to cover every laptop, phone, or server, you just pay for the one employee using them all. It is a very popular managed IT pricing model for small to medium-sized businesses.
Per-Device Pricing
Per-device pricing charges a monthly fee based on the number of supported devices, such as laptops, phones, servers, and other network equipment.
This model works for businesses with equipment that is used by multiple employees. That said, this model can get expensive fast as your business grows and continuously adds more and more devices to your environment.
Flat-Rate Managed IT
Seen frequently with managed service providers (MSPs), this model offers comprehensive IT support for a flat monthly fee based on your number of employees.
The exact price will vary based on the included services, but many cover basic monitoring and maintenance, 24/7 support, cybersecurity tools, backup software, and more.
While more expensive than other pricing models, it offers predictability and broader coverage across your business, without you needing to worry about paying for every supported device or whether you’ll have coverage during a surprise issue.
What Can Affect IT Pricing?
These service and pricing models form a decent baseline of what you can expect, but several other factors can influence what you actually end up paying.
Infrastructure Complexity
The more complex your environment, the more costly it will likely be to maintain. For example, a business with a dozen modern computers, a simple network, and cloud-based software will typically be easier to manage than a business with outdated computers, proprietary software, and multiple servers.
Health of Your Hardware
Older machines may need more frequent repairs and can introduce security risks when manufacturers stop providing updates and security support.
That means your IT provider may need to spend more time keeping your technology working, increasing your bill. In some cases, they may even recommend replacing your old hardware, saving you money in the long run by reducing the costs needed to keep it running.
Response Times and Service Level Agreements (SLAs)
How fast your provider can respond can also affect your monthly agreement. A provider that can guarantee faster response times may charge more, as meeting those expectations requires more staffing and resources. And if you need a provider that offers support 24/7/365, that can also impact your IT pricing. A strong SLA outlines what you can expect from your provider.
Compliance Needs
Depending on your industry, you may be required to follow regulatory compliance frameworks such as HIPAA. That may mean investing more in specific cybersecurity functions, prepping your business for audits, and generally organizing your company’s data, all things that may increase the cost of your IT.
Out of Scope Projects
While some IT providers claim they are “all-inclusive,” that may not be entirely true. Long-term projects like server installations or office moves may fall outside of their typical covered services, adding to your monthly IT budget.
Before you sign a contract, make sure you understand what exactly falls out of scope for the provider in question.
So, What Can You Expect to Pay for Fully Managed IT Services?
We’ve talked a lot about ranges and different service models. But let’s give a concrete example of what you can expect when it comes to paying for fully managed IT support.
Let’s say you’re a small business of 15 employees looking for a new managed service provider. You find an MSP that offers flat-rate coverage for $3,000 per month. That agreement includes 24/7/365 monitoring, a live-service help desk, cybersecurity features, and compliance support.
That ends up looking like this:
- Monthly cost: $3,000
- Annual cost: $36,000
- Cost per employee: $200 per month
That may seem like a large number, but as we’ve mentioned earlier, an in-house IT technician can cost upwards of $100,000 per year, and hourly support can be unpredictable.
With a managed service provider, you’re getting an entire team of IT pros without having to hire, manage, or train them yourself. You pay a predictable monthly fee and enjoy the benefits.
Of course, it’s important that you distinguish between your IT support budget and your overall IT budget – yes, these are two different things. The 2026 IT Budget Checklist goes over budgeting for your tech more broadly, including hardware, software, cloud services, cybersecurity, and IT support.
At the end of the day, knowing what you’re paying for – and what you aren’t – means easier IT budgeting while keeping your tech in tip-top shape.
The 20 MSP Makes IT Pricing Easy
If you’re going to be hiring an IT provider, you hire the people who do it right.
At The 20 MSP, we offer our all-inclusive, fully managed IT services at a flat-rate fee so you can budget without surprises. Our support covers everything from a 24/7 live-service helpdesk, proactive monitoring, cybersecurity tools, compliance assistance, and much more.
If you’re looking to get the most out of your IT budget, then let’s talk.
FAQ
What are the main types of IT support?
The three main types of IT support are break-fix, managed IT, and co-managed IT. Of these, fully managed IT support provides the most comprehensive coverage, while co-managed IT support is flexible for those who already have an internal IT team.
What is the best IT pricing model for a small business?
It comes down to your business, but per-user pricing is the most popular for small businesses. That’s because it offers predictable costs and works well for modern workplaces where employees use multiple devices.
Is it cheaper to hire an in-house IT person or an MSP?
For many small businesses, hiring an MSP is more cost-effective than hiring a dedicated in-house IT person. You gain access to an entire team of IT pros without needing to hire them or worry about benefits, paid time off, or other employment costs.
What factors affect IT pricing?
Among the many factors affecting IT pricing, complexity, hardware age, SLAs, and compliance requirements play a large role in your monthly service agreement.
How much does a managed service provider cost?
It depends on the provider, but you can expect to pay anywhere between $125-$250 per user per month for fully managed IT services.
About The 20 MSP
As a leading provider of managed IT services, The 20 MSP serves thousands of businesses nationwide, providing each one with white-glove service, secure and streamlined IT infrastructure, and 24/7/365 support. We believe in building lasting relationships with clients founded on trust, communication, and the delivery of high-value services for a fair and predictable price. Our clients’ success is our success, and we are committed to helping each and every organization we serve leverage technology to secure a competitive advantage and achieve new growth.
