ERP OperationsFree Interactive Tool

Security Operations Center Cost Calculator: Build vs MDR by Coverage Model

This free SOC cost calculator sizes the real annual cost of running a security operations center in-house, by analyst tier, coverage window, and tooling spend, then puts that number next to what a managed detection and response (MDR) provider would charge for the same scope. Enter your tier 1, tier 2, and tier 3 headcount, pick a coverage model, and add your current tooling budget and any MDR quote you have received. The output most CISOs care about is the delta: at what point does building your own SOC actually cost less than outsourcing detection and response, and does that math change if you move from 8x5 to 24x7 coverage.

Your numbers

Tier 1 analysts (triage)

FTE

Frontline analysts who triage alerts and escalate confirmed incidents.

Tier 2 analysts (investigation)

FTE

Analysts who investigate escalated alerts and coordinate containment.

Tier 3 / SOC lead (threat hunting)

FTE

Senior staff running threat hunting, tuning, and team leadership.

Average loaded salary per analyst

$/yr

Blended fully loaded cost including benefits and payroll tax; SOC analysts typically run $95k-$140k base.

Coverage model

24x7 needs roughly 4.2x the headcount of 8x5 to cover 168 weekly hours instead of 40, once you account for shift handoff and weekends.

Annual tooling cost (SIEM, SOAR, threat intel)

$/yr

License, ingest, and platform cost for the tools your analysts work in.

Equivalent MDR monthly fee

$/mo

Quoted monthly fee from a managed detection and response provider covering the same asset scope.

Your results

Total annual in-house SOC cost

$3,630,000

Labor plus tooling, the true all-in cost of running the SOC yourself.

Base analyst headcount

Analysts needed to staff one shift of business-hours coverage.

FTEs required for chosen coverage

Headcount needed once your coverage window (8x5, 16x5, or 24x7) is applied.

Annual labor cost

$3,380,000

Fully loaded salary cost for the required headcount.

Annual MDR cost

$180,000

Annualized cost of the managed detection and response alternative.

Annual cost difference (in-house minus MDR)

$3,450,000

Positive means in-house costs more than MDR; negative means in-house is cheaper at this scale.

Planning estimate only. Actual staffing needs vary with alert volume, asset count, and shift redundancy for PTO and turnover. Validate against your own alert-per-analyst ratio before finalizing headcount.

Get your SOC build-vs-MDR analysis

We will email you a staffing model broken out by tier and coverage window, benchmarked against current MDR pricing for your asset scope, and a Netray security architect will follow up with a 30-minute review.

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What actually drives SOC staffing cost

SOC cost is overwhelmingly a labor cost problem, not a tooling problem. Tooling (SIEM, SOAR, threat intel feeds, EDR consoles) typically runs 20 to 35 percent of total SOC spend for a mid-size program; the rest is salary. The variable that changes the math fastest is coverage window, because staffing a single analyst seat for true 24x7 coverage takes roughly four times the headcount of staffing the same seat for business hours only, once you account for nights, weekends, holidays, and backup coverage during PTO.

Tier 1 triage headcount usually dominates total FTE count in a mature SOC.
Tooling cost scales with log volume and asset count, not headcount, so it does not shrink as you add analysts.
Analyst attrition in SOC roles runs high; budget training and backfill time, not just base salary.
Threat hunting (tier 3) is the first function organizations cut under budget pressure, and the first one attackers exploit.

8x5 vs 16x5 vs 24x7: the coverage multiplier that changes everything

A single analyst seat covering 8x5 business hours needs about 40 hours of coverage per week. The same seat covered 24x7 needs 168 hours per week, a 4.2x multiplier once shift overlap and handoff time are included. Most enterprises do not need full 24x7 in-house coverage from day one; a common progression is 8x5 with an on-call escalation path, moving to 16x5 as alert volume grows, and only building true 24x7 once alert volume or regulatory requirements (defense contracts, critical infrastructure) demand it.

8x5 coverage: 1x headcount multiplier, viable when after-hours alerts route to an on-call rotation.
16x5 coverage: 2x multiplier, common for mid-market manufacturers with global sites but no regulatory 24x7 mandate.
24x7 coverage: 4.2x multiplier, typically required for defense contractors, critical infrastructure, and any CMMC Level 2+ scope.

Build vs MDR: when outsourcing wins

MDR pricing is usually quoted as a flat monthly fee scaled to asset or endpoint count, which makes it predictable and easier to budget than variable in-house headcount cost. MDR tends to win economically below roughly 15 to 20 analyst-equivalent FTEs of demand, because the provider spreads tooling and tier 3 threat hunting cost across many customers. Above that scale, or when your data cannot leave your network for compliance reasons (ITAR, CMMC, classified programs), in-house or a hybrid model usually becomes the better economic and control tradeoff.

MDR generally wins on pure cost below roughly a 15-20 FTE-equivalent SOC.
In-house wins on data residency and control, which matters most for defense and regulated manufacturing.
Hybrid (in-house tier 1, MDR or co-managed tier 2/3) is the fastest-growing model for mid-market enterprises.

Tooling cost nobody budgets for

First-year SOC budgets consistently underestimate three costs: SIEM ingest volume growth as log sources are onboarded, SOAR playbook development time, and threat intel feed licensing that renews at a higher rate in year two. Budget a 20 to 30 percent tooling cost increase in the second year of any new SOC build, and treat the first-year tooling quote as a floor, not a ceiling.

How Netray helps you decide

Netray helps aerospace, defense, and discrete manufacturing clients scope the build-versus-MDR decision against their actual compliance obligations, not a generic industry average. We benchmark your alert volume and asset count against comparable programs, model the coverage window your contracts actually require (CMMC, ITAR, customer flow-down clauses), and help you structure a hybrid model when full in-house 24x7 is not yet justified.

Frequently Asked Questions

How many analysts do I need for 24x7 SOC coverage?

Take the headcount needed for a single 8x5 shift and multiply by roughly 4.2. That factor accounts for covering 168 hours a week instead of 40, plus shift handoff overhead and backup coverage during vacations and sick leave. A team that needs 3 analysts for business-hours coverage typically needs 12 to 13 FTEs for true around-the-clock coverage, split across tiers rather than all tier 1.

Is MDR cheaper than building an in-house SOC?

Usually yes below roughly a 15 to 20 analyst-equivalent scale, because MDR providers spread tooling and senior threat-hunting cost across many customers. Above that scale, or when compliance requirements restrict where data and alerts can be processed, in-house or hybrid models often become more economical and give you direct control over detection logic and escalation.

What does a SOC analyst cost in loaded salary in 2026?

Tier 1 analysts typically run $85,000 to $110,000 loaded, tier 2 investigators $110,000 to $145,000, and tier 3 leads or threat hunters $140,000 to $180,000, all including benefits and payroll tax. Blended across a typical tier mix, budget roughly $120,000 to $135,000 per FTE for planning purposes.

What tooling costs should I include in a SOC budget?

Include SIEM licensing and ingest cost, SOAR platform fees, EDR console licensing if not bundled elsewhere, threat intelligence feed subscriptions, and case management or ticketing integration. Tooling typically runs 20 to 35 percent of total SOC spend, with SIEM ingest cost usually the largest single line item as log volume grows.

When does a hybrid SOC model make sense?

A hybrid model, where in-house staff own tier 1 triage and business context while an MDR or co-managed provider covers tier 2/3 and off-hours, makes sense when you need faster context on your own environment than a pure MDR provides but cannot yet justify full 24x7 in-house staffing. It is the most common model for mid-market manufacturers growing into a formal security program.

Get a SOC staffing model benchmarked against current MDR pricing for your exact coverage requirement.

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