Check how quickly the one-time cost of moving to an outsourced SOC or MDR service is recovered by the yearly cost you avoid compared with an in-house option.
This calculator compares two ways of getting the same security outcome: building or keeping it in-house, or buying it as a managed service. It tells you how long the one-time cost of switching takes to recover, and the net saving over the years you choose.
Net yearly saving. Estimate what the in-house option would cost each year for the same coverage: salaries and benefits for the people needed (24/7 coverage needs several people, not one), training, tool licences and the hardware or cloud costs of a log platform. Subtract the yearly outsourced fee. Enter only the difference. If the outsourced service is more expensive, this calculator is not the right test; compare risk reduction instead.
Formula. Net cost = one-time cost − funding. Each year's saving grows by the percentage you enter. Payback is reached when cumulative savings equal the net cost. Net saving = sum of yearly savings over the horizon − net cost.
Worked example (illustrative). Transition cost $20,000, no funding, net saving $30,000 in year one growing 3% a year. Payback ≈ $20,000 ÷ $30,000 ≈ 0.67 years. Over three years: $30,000 + $30,900 + $31,827 − $20,000 = $72,727.
Limits. The figures are illustrative. The calculator ignores risk transfer, the value of faster response, and exit costs. Read in-house SOC versus outsourced cost before relying on the result.
Cost Estimates, Worked Examples and Best-Fit Checklists
In-house 24/7 security monitoring versus outsourced MDR or SOC for Canadian SMEs: cost lines, a payback example and non-cost factors.
