What is the difference between SOC 2 Type I and Type II?

SOC 2 Type I assesses whether your security controls are suitably designed at a single point in time. SOC 2 Type II assesses whether those controls actually operated effectively over a 6-12 month period. Type II is significantly more rigorous, costs 2-3x more, and takes 9-18 months to complete. Most enterprise customers require Type II.

Do I need SOC 2 Type I or Type II?

It depends on your customers. Enterprise customers in financial services, healthcare, and government typically require SOC 2 Type II. Mid-market SaaS buyers often accept Type I initially. If you are closing enterprise deals, target Type II. If you need to unblock sales quickly, get Type I first and start the Type II observation period immediately afterward.

How much does SOC 2 Type II cost compared to Type I?

SOC 2 Type I typically costs $15,000-$80,000. SOC 2 Type II typically costs $30,000-$200,000+. The difference comes from higher audit fees (auditors must review months of evidence), longer observation periods requiring more compliance tooling, and greater internal staff time. Annual maintenance is also higher for Type II.

SOC 2 Type I vs Type II

Requirements, cost, duration, and how to decide which you need. Use the cost calculator to model both options for your company size.

Updated 26 March 2026

Criterion	Type I	Type II
Audit scope	Point-in-time assessment - controls are evaluated as they exist on a single date	Operating effectiveness - controls must work consistently over a 6-12 month observation period
Duration	2-6 months from kick-off to report	9-18 months from kick-off to report
Typical cost (startup)	$15,000 - $50,000	$35,000 - $120,000
Typical cost (mid-market)	$30,000 - $80,000	$60,000 - $200,000
Audit fee	$8,000 - $40,000	$15,000 - $80,000
Observation period	None required	Minimum 6 months (12 months typical)
Evidence requirements	Policies and design documentation as of audit date	Continuous operational evidence: logs, access reviews, change records, incidents
Customer acceptance	Accepted by many mid-market and growth-stage buyers	Required by enterprise buyers in regulated industries
Trust level	Demonstrates controls exist and are designed correctly	Demonstrates controls work consistently in practice
Annual renewal	Typically renewed annually (same point-in-time process)	Typically renewed annually with a new 12-month observation period
Compliance tooling need	Moderate - primarily for evidence gathering and policy management	High - continuous monitoring, automated evidence collection required
Best for	Fast-moving startups needing a report to unblock sales, early-stage SaaS companies	Companies selling to enterprise, regulated industries, or seeking long-term compliance programs

Trust Services Criteria

All SOC 2 reports must include the Security criteria. The others are optional. Most startups choose Security only or Security + Availability.

CCRequired

Security (Common Criteria)

Controls over logical and physical access, system operations, change management, and risk mitigation. Required in all SOC 2 reports.

Key Controls

✓Multi-factor authentication
✓Role-based access control
✓Encryption at rest and in transit
✓Security monitoring and alerting
✓Incident response process
✓Vendor risk management

AOptional

Availability

Controls ensuring the system is available for operation as committed. Relevant for SaaS products with uptime SLAs.

Key Controls

✓Infrastructure redundancy
✓Backup and recovery procedures
✓Capacity monitoring
✓Incident response for availability events
✓Maintenance window communication

COptional

Confidentiality

Controls protecting confidential information from unauthorised disclosure. Relevant for companies handling sensitive client data.

Key Controls

✓Data classification policy
✓Encryption of confidential data
✓Confidentiality agreements
✓Access restrictions to confidential data
✓Secure disposal of confidential information

PIOptional

Processing Integrity

Controls ensuring system processing is complete, valid, accurate, timely, and authorised. Most relevant for financial processing systems.

Key Controls

✓Input validation controls
✓Processing error detection
✓Output reconciliation
✓Transaction authorisation workflows

POptional

Privacy

Controls governing collection, use, retention, and disposal of personal information. Relevant for companies processing personal data at scale.

Key Controls

✓Privacy notice and consent management
✓Data subject rights processes
✓Personal data inventory
✓Retention and disposal policies
✓Privacy incident response

Which Type Do You Need?

The right answer depends on who your customers are and what your timeline looks like.

Startup with first enterprise prospect asking for SOC 2

Start Type I immediately

Get a report in 3-4 months to close the deal. Start the Type II observation period straight away so you can progress to Type II within 12 months.

Series B company selling to financial services

Target Type II directly

Financial services buyers typically require Type II. Starting with Type I adds 3-6 months without producing the report they need.

Mid-market SaaS with multiple enterprise prospects

Type I now, Type II within 12 months

Type I unblocks most deals. Communicate to prospects that Type II is underway. Use Type I completion to start the observation period.

Company that already has SOC 2 Type I

Upgrade to Type II

If you already have policies and controls in place, start the observation period now. Most of your readiness costs are already sunk.

Healthcare or government contractor

Type II mandatory

Regulated sectors require evidence of operating effectiveness over time. Type I is rarely sufficient.

Company primarily selling to SMBs

Type I may be sufficient long-term

SMB buyers rarely scrutinise audit type. Type I provides credibility and security signal at lower cost and effort.

SOC 2 Type I Cost Summary

$15k - $80k

First year, excluding internal staff time

Gap assessment$3k - $15k
Policy development$5k - $25k
Compliance tooling$5k - $28k
Penetration test$8k - $35k
Audit fee$8k - $40k

Calculate Type I for your company →

SOC 2 Type II Cost Summary

$30k - $200k+

First year, excluding internal staff time

Gap assessment$3k - $27k
Policy development$5k - $63k
Compliance tooling$8k - $40k/yr
Penetration test$8k - $35k
Audit fee$15k - $80k

Calculate Type II for your company →

Not sure which type to start with?

Use the calculator to compare Type I vs Type II costs for your exact company size and maturity.

Open the Calculator →

Also see: SOC 2 certification timeline and compliance tools comparison