Calculator

IT Budget Calculator

Benchmark IT spend by industry, revenue, and headcount — with a category breakdown you can adjust.

Industry

Annual revenue ($)

Number of employees

Benchmark & allocation assumptions

Breach figures reference the IBM Cost of a Data Breach Report 2025 (global average ≈ $4.44M; healthcare ≈ $7.42M). IT-spend ranges reference Gartner-style industry benchmarks. These update annually — confirm against the latest published figures when you revise them.

[Benchmark] Healthcare: 4–7% of revenue (typical mid-market US firms; outliers exist)

Category split (Labor 40 / Software 20 / Security 15 / Hardware 15 / Cloud 10) is a heuristic modeling split, not a canonical Gartner taxonomy — many analysts treat security and cloud as cross-cutting rather than separate buckets.

Labor / staff (% of midpoint budget)

Software & SaaS (% of midpoint budget)

Security (% of midpoint budget)

Hardware (% of midpoint budget)

Cloud (% of midpoint budget)

Recommended annual IT budget (Healthcare)

$400,000 – $700,000

Midpoint per employee / year

$11,000

Category breakdown (at midpoint $550,000)

Labor / staff (40%)$220,000

Software & SaaS (20%)$110,000

Security (15%)$82,500

Hardware (15%)$82,500

Cloud (10%)$55,000

How this is calculated

[Benchmark] Budget range = annual revenue × industry IT-spend % (low–high). Category dollars = midpoint × your allocation percentages. Ranges reflect typical mid-market US firms; outliers exist. A growing or heavily regulated business often runs higher; security in particular is trending up.

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Most mid-market organizations know what they spend on IT — but not whether that number is right for their industry, size, or risk profile. Under-invest and security gaps compound; over-invest without a plan wastes budget on shelfware.

This calculator applies industry IT-spend benchmarks (as a percentage of revenue) to produce a recommended annual range, then splits the midpoint across labor, software, security, hardware, and cloud. Adjust the allocation percentages to match your strategy — a regulated healthcare org will weight security differently than a professional-services firm.

Benchmarks are a starting point, not a prescription. Pair this with the In-House vs. Managed Cost Calculator to sanity-check staffing spend, and talk to our team about a real three-year technology roadmap through professional services.