CMMC cost is not a single invoice. It is a portfolio of workstreams that span people, process, and technology, plus the operational effort needed to sustain controls over time.
When CFOs ask "how much will CMMC cost?", they're usually looking for a single number. But CMMC Level 2 implementation is more like building an IT modernization program than buying a product. The investment depends on your starting point, organizational complexity, and how you sequence the work.
This guide breaks down the real cost components so you can build a realistic budget.
Phase 1: Discovery and Gap Assessment
Typical cost: $5,000-$15,000
Timeline: 2-4 weeks
What you get:
- Current environment analysis (cloud, network, endpoints, applications)
- Control gap identification across all 14 NIST 800-171 domains
- SPRS score calculation
- Risk assessment and prioritization
- Remediation roadmap with phased milestones
- High-level budget estimate for implementation
This phase is where you learn where you actually stand. Many organizations think they're "70% ready" and discover they're closer to 40%. Better to know now than after investing in the wrong areas.
Cost drivers:
- Organization size (user count, locations, system complexity)
- Existing documentation quality
- Assessor travel if on-site visits are needed
Why this matters: A quality gap assessment prevents wasted effort. Teams that skip this step often implement controls that weren't required while missing critical gaps.
Phase 2: Remediation and Implementation
This is where the bulk of investment goes. Break it into sub-categories:
Cloud and Infrastructure Migration
Typical cost: $15,000-$60,000 (one-time)
What's included:
- Microsoft 365 GCC High tenant setup and migration
- Azure Government deployment (if applicable)
- Data migration with zero downtime
- Security baseline configuration
- User training and change management
Cost drivers:
- Number of users (licensing is higher for GCC High)
- Data volume and complexity
- Custom applications that need reconfiguration
- Integration dependencies
If you're on commercial M365 handling CUI, GCC High migration is non-negotiable for Level 2. This is often the single largest line item.
Security Tooling
Typical cost: $10,000-$40,000 (setup) + $3,000-$12,000/month (ongoing)
What's included:
- SIEM deployment (Microsoft Sentinel, Splunk, or similar)
- Endpoint detection and response (EDR)
- Vulnerability scanning
- Mobile device management (Intune or equivalent)
- Data loss prevention (DLP)
- Multi-factor authentication (MFA) infrastructure
Cost drivers:
- Log volume (affects SIEM licensing)
- Endpoint count
- Detection rule complexity
- Integration with existing tools
Many organizations already have some of these tools but haven't configured them for CMMC compliance. Configuration matters as much as tool selection.
Policy and Documentation
Typical cost: $8,000-$25,000
What's included:
- System Security Plan (SSP)
- Plan of Action & Milestones (POA&M)
- Security policies (access control, incident response, acceptable use, etc.)
- Standard operating procedures
- Employee handbooks and training materials
Cost drivers:
- Documentation starting point (existing vs. from scratch)
- Customization depth (template-based vs. environment-specific)
- Policy approval cycles
Good documentation reflects your actual environment and operations. Generic templates fail under C3PAO scrutiny.
Technical Implementation Labor
Typical cost: $25,000-$80,000
What's included:
- Network segmentation and access control configuration
- Identity and authentication hardening
- Logging and monitoring setup
- Backup and recovery validation
- Encryption implementation
- System hardening across endpoints and servers
Cost drivers:
- System diversity and complexity
- Technical debt and legacy systems
- Internal IT capacity (co-managed vs. fully outsourced)
- Geographic distribution
This is where controls become real. You're not just writing policy—you're configuring firewalls, building detection rules, hardening endpoints, and establishing evidence collection workflows.
Phase 3: Validation and Audit Preparation
Typical cost: $10,000-$30,000
Timeline: 4-8 weeks
What's included:
- Mock C3PAO assessments
- Evidence package review and organization
- Staff interview preparation
- Gap remediation from mock findings
- Final readiness validation
Why this matters: Organizations that skip mock assessments have much higher C3PAO failure rates. Assessors are thorough. They will test your controls, review configurations, and interview staff. Mock assessments expose weaknesses before the real audit.
Cost drivers:
- Number of mock assessment rounds needed
- Remediation complexity from mock findings
- Evidence maturity
Phase 4: C3PAO Assessment
Typical cost: $15,000-$35,000
Timeline: 2-4 weeks (scheduling + assessment + report)
What's included:
- C3PAO selection and scheduling
- Assessment execution (document review, technical validation, interviews)
- Finding remediation (if any)
- Certification issuance
Cost drivers:
- C3PAO rates vary by firm
- Organization size (affects assessment scope)
- Assessment complexity
- Geographic location (travel costs)
The C3PAO fee itself is only part of this phase. Your internal team's time supporting the assessment (evidence gathering, interview participation, technical demonstrations) is significant.
Phase 5: Ongoing Operations
Typical cost: $8,000-$25,000/month
What's included:
- Continuous monitoring and alerting
- Evidence collection and organization
- Quarterly internal assessments
- Change management aligned with CMMC controls
- Security operations (incident triage, vulnerability management)
- Annual re-assessment preparation
Why this is often underestimated: Many organizations treat CMMC as a one-time project. But certification must be maintained. Controls need ongoing monitoring, evidence must be collected continuously, and your security posture must remain audit-ready.
Cost drivers:
- Managed services vs. internal staff
- Control automation maturity
- Incident volume and complexity
- Change frequency in your environment
Total Cost Summary
Small Organization (10-25 users)
- One-time implementation: $50,000-$100,000
- Ongoing operations: $8,000-$15,000/month
Mid-Market Organization (25-100 users)
- One-time implementation: $80,000-$175,000
- Ongoing operations: $12,000-$20,000/month
Larger Organization (100+ users)
- One-time implementation: $150,000-$300,000+
- Ongoing operations: $18,000-$30,000/month
Hidden Costs to Plan For
Staff Time
Your internal team will spend significant time on CMMC implementation:
- IT staff for technical implementation
- Management for policy reviews
- All staff for training and interviews
Budget 10-20% of one FTE for project oversight, more during peak implementation periods.
Business Disruption
Migration to GCC High, network changes, and new security controls will cause some disruption. Plan for:
- User training and support spikes
- Application compatibility testing
- Workflow adjustments
Remediation Surprises
Gap assessments sometimes reveal unexpected findings:
- Legacy systems that need replacement
- Shadow IT that must be secured or decommissioned
- Third-party integrations that don't meet security requirements
Keep a 15-20% contingency budget for unexpected remediation work.
How to Reduce Total Cost
1. Integrate with Existing IT Projects
If you're already planning cloud migration, endpoint upgrades, or security improvements, align them with CMMC implementation. This reduces duplicate effort and total disruption.
2. Phase Implementation
You don't need to fix everything simultaneously. Phase work by risk:
- High-risk controls first (CUI access, logging, incident response)
- Medium-risk controls second (configuration management, physical security)
- Lower-risk controls last (remaining documentation, process formalization)
3. Use Automation
Controls that can be automated reduce ongoing operational cost:
- Automated evidence collection
- Configuration management tools
- Security orchestration and automated response (SOAR)
- Compliance dashboards
4. Start Early
Rushing to meet a contract deadline increases cost dramatically. Teams that start 12 months before they need certification spend less than teams that start 4 months out.
5. Get It Right the First Time
Failed C3PAO assessments are expensive:
- Additional C3PAO fees for reassessment
- Remediation work under time pressure
- Potential contract delays or losses
Thorough preparation, including mock assessments, reduces this risk significantly.
What's Worth the Investment
Worth It:
- GCC High migration: If you handle CUI, this is mandatory. Do it well.
- Quality SIEM deployment: Logging and monitoring are foundational to incident response.
- Mock assessments: These prevent real assessment failures.
- Evidence automation: Reduces long-term operational burden.
Be Careful:
- Over-specified tooling: You don't need enterprise-grade everything for a 30-person company.
- Consultant dependency: Build internal capability so you're not dependent on external help forever.
- Premature optimization: Implement required controls first, optimize later.
Return on Investment
CMMC isn't just a compliance cost—it has business value:
Contract eligibility: Without certification, you cannot bid on or maintain DoD contracts requiring CMMC. Lost revenue far exceeds compliance costs.
Reduced breach risk: Proper implementation significantly reduces your risk of data breach, which averages $4.45M in remediation costs.
Operational efficiency: Well-implemented controls often improve IT operations, reduce downtime, and streamline incident response.
Competitive advantage: Being certified earlier than competitors can win you contracts and prime contractor relationships.
Building Your Budget
Here's a practical approach to budgeting:
- Start with gap assessment ($5K-$15K) to understand actual scope
- Get detailed implementation proposal based on your specific gaps
- Build phased budget across 6-9 months, not lump sum
- Include ongoing operations in financial planning from day one
- Plan for contingency (15-20% buffer for surprises)
The best budget is one that's realistic about your starting point and honest about ongoing operational costs. Underfunding CMMC implementation creates false starts, technical debt, and assessment failures.
Final Thoughts
CMMC Level 2 is a significant investment, but it's the price of doing business in the defense industrial base. Organizations that approach it as an IT modernization initiative with compliance benefits tend to achieve better outcomes than those treating it as pure overhead.
Budget quality matters more than budget size. A well-planned $120K implementation will outperform a rushed $200K implementation every time.
Focus on building sustainable operations, not just passing an assessment. That mindset will serve you well through the initial certification and the continuous compliance work that follows.