Is $100/user/month a good price for managed IT?

$100/user/month is at the lower end of the benchmark range for a small business. At that rate, verify exactly what's included in the security stack. A proposal at $100/user that includes EDR, managed backup, email filtering, MFA enforcement, and after-hours coverage is a fair deal. A proposal at $100/user that includes only basic monitoring and helpdesk is missing the security components that most businesses need — the true cost with add-ons will be $130–$150/user or more.

Why do healthcare businesses pay more for managed IT?

Healthcare businesses pay a premium because HIPAA compliance requires specific technical controls that standard managed IT doesn't include: PHI-encrypted backup (not just any backup), BAA management, audit logging of PHI access, HIPAA-specific security awareness training, and annual Security Rule risk assessments. These are real costs the MSP incurs — a healthcare MSP charging standard rates is either absorbing those costs unsustainably or not actually delivering them.

IT Support Per User Cost: What You Should Be Paying in 2026

Quick answer In 2026, all-inclusive managed IT support costs $85–$175/user/month for most small and mid-size businesses. Add $20–$75/user/month for compliance-regulated industries (healthcare, financial services, defense contractors). Add $15–$40/user/month for co-managed IT alongside an internal IT team. The most common pricing mistakes: comparing quotes with different scope (one includes security tools, one doesn't), and not accounting for compliance premiums.

Managed IT pricing is opaque by design — most MSPs don't publish rates, and they adjust pricing based on what they think you'll pay. Here's what companies are actually paying in 2026, benchmarked across hundreds of real engagements.

Standard Managed IT: Per-User Benchmark Rates

These are all-inclusive per-user rates — helpdesk, monitoring, security stack (EDR, email filtering, backup, patch management, MFA), and after-hours coverage:

Under 10 users: $135–$200/user/month. Small accounts cost more per user because the MSP's overhead isn't amortized across a large base.
10–25 users: $110–$175/user/month. More efficient for the MSP, reflected in slightly lower rates.
25–100 users: $90–$155/user/month. Mid-market pricing, some volume negotiation possible.
100–500 users: $75–$130/user/month. Significant volume discounts available; dedicated account management standard.
500+ users: $60–$110/user/month. Enterprise rates; co-managed with internal IT team often more cost-effective.

Compliance Industry Premiums

Compliance-regulated industries pay more because compliance-specific tooling and advisory costs are real:

Healthcare (HIPAA): +$20–$55/user/month for encrypted email, EHR-aware backup, BAA management, annual risk assessments, and HIPAA training.
Financial services (GLBA): +$25–$60/user/month for SIEM, DLP, GLBA Safeguards Rule documentation, and examination readiness.
Defense contractors (CMMC): +$40–$100/user/month for CMMC implementation, SSP maintenance, POA&M management, and assessment preparation.
Legal (bar association requirements): +$15–$35/user/month for client file encryption, matter-specific access controls, and bar cybersecurity compliance documentation.

Co-Managed IT Rates

Co-managed IT supports an internal IT team rather than replacing it. The MSP typically handles security monitoring, backup, patch management, and after-hours coverage while the internal team handles day-to-day helpdesk.

Co-managed rates: $40–$80/user/month for the MSP layer, on top of internal IT staff costs. The breakeven point — where co-managed beats fully managed — is typically around 50–100 users with one IT staff member.

What Drives Pricing Above or Below Benchmark

Factors that push your cost above the midpoint:

Complex environment (multiple locations, on-premise servers, legacy software)
Compliance requirements (HIPAA, CMMC, GLBA)
High-security industry (defense, finance, legal, healthcare)
Remote or distributed workforce
Specialized software requiring deep MSP expertise (ERP, EHR, engineering CAD)

Factors that push your cost below the midpoint:

Cloud-only environment (no on-premise servers)
Stable, low-growth headcount
Multi-year contract commitment
Standard, commodity software stack (Microsoft 365, Google Workspace only)

Red Flags in Pricing

Proposals significantly below benchmark are almost always cheap because something important is missing. The most common omissions: no EDR (just antivirus), no managed backup (just backup software that runs silently), no after-hours coverage (just a voicemail box), or no compliance tooling for regulated industries.

Ask any MSP quoting below $85/user/month to show you line by line what's included in security. The security gap between cheap proposals and benchmark proposals is where most businesses get hurt.