Average IT Budget: How Much Should a Company Spend on IT?
The average IT budget is 5.49% of revenue (Deloitte, 2022 data), ranging from 2% to 10% depending on industry and company size. Here is what a typical IT budget looks like in dollars, and how much a company should spend.
Average IT Budget as % of Revenue (2026)
5.49%
Across all industries, the most recent measured figure. Most companies fall between 2% and 10%. Source: Deloitte Global Technology Leadership Study (2022 data).
What is the average IT budget for a company?
The average IT budget is 5.49% of annual revenue (Deloitte, 2022 data). In dollars it scales with revenue, so the average IT budget by company revenue is roughly:
~$549K
$10M revenue
~$2.75M
$50M revenue
~$5.5M
$100M revenue
~$27.5M
$500M revenue
Figures apply the 5.49% cross-industry average to each revenue point. Your exact figure depends on industry and size: see the by industry and by company size breakdowns, or run the calculator for a tailored number.
Sources: Deloitte Global Technology Leadership Study for the cross-industry percentage of revenue, Flexera State of Tech Spend Report for the by-industry figures, and Gartner's published forecast for worldwide IT spending totals. Company-size and per-employee figures are this site's model, not published data. Gartner IT Key Metrics Data, Avasant and IDC publish deeper benchmarks; those are paid products we do not hold and do not reproduce. Compiled August 2026. Full methodology and source list.
How much should a company spend on IT?
A healthy range is 4-8% of revenue, centred on the 5.49% cross-industry average. Below 3% usually signals underinvestment, particularly in security and cloud infrastructure. Above 12% points to either inefficiency or a digitally intensive business model such as pure-play SaaS or fintech.
Three factors move the right number for your business: industry (financial services 7-10%, manufacturing 2-5%), company size (smaller firms spend a higher percentage), and growth stage (rapid scaling needs ahead-of-curve investment). Start from your industry benchmark, then adjust.
Sources: Deloitte Global Technology Leadership Study for the cross-industry percentage of revenue, Flexera State of Tech Spend Report for the by-industry figures, and Gartner's published forecast for worldwide IT spending totals. Company-size and per-employee figures are this site's model, not published data. Gartner IT Key Metrics Data, Avasant and IDC publish deeper benchmarks; those are paid products we do not hold and do not reproduce. Compiled August 2026. Full methodology and source list.
Average IT Budget by Company Revenue
| Annual Revenue | Typical IT Spend % | Average IT Budget | Key Characteristics |
|---|---|---|---|
| $1M-$10M | 6-10% | $60K-$1M | SaaS-first, minimal team, MSP likely needed |
| $10M-$50M | 5-8% | $500K-$4M | First IT hires, security catch-up phase |
| $50M-$250M | 5-7% | $2.5M-$17.5M | IT governance forming, FinOps starting |
| $250M-$1B | 4-6% | $10M-$60M | Enterprise tooling, digital transformation |
| $1B+ | 3-5% | $30M+ | Scale economics, AI investment wave |
Sources: Deloitte Global Technology Leadership Study for the cross-industry percentage of revenue, Flexera State of Tech Spend Report for the by-industry figures, and Gartner's published forecast for worldwide IT spending totals. Company-size and per-employee figures are this site's model, not published data. Gartner IT Key Metrics Data, Avasant and IDC publish deeper benchmarks; those are paid products we do not hold and do not reproduce. Compiled August 2026. Full methodology and source list.
Average IT Budget by Company Size
The average IT budget percentage falls as a company grows, because fixed infrastructure and licensing costs spread across more revenue. Startups run the highest ratio; large enterprises the lowest.
| Company Size | Average IT Spend (% of revenue) | Why |
|---|---|---|
| Startup (1-50 employees) | 6.9% avg | Highest ratio: fixed SaaS and security costs spread over little revenue |
| SMB (51-250 employees) | 4-7% | First dedicated IT hires or an MSP contract; security catch-up |
| Mid-market (251-1,000 employees) | 6-8% | IT governance and FinOps forming; digital transformation spend |
| Enterprise (1,001-5,000 employees) | 4-6% | Enterprise platforms and compliance tooling at scale |
| Large Enterprise (5,000+ employees) | 3.7% avg | Lowest ratio: economies of scale on infrastructure and licensing |
Sources: Deloitte Global Technology Leadership Study for the cross-industry percentage of revenue, Flexera State of Tech Spend Report for the by-industry figures, and Gartner's published forecast for worldwide IT spending totals. Company-size and per-employee figures are this site's model, not published data. Gartner IT Key Metrics Data, Avasant and IDC publish deeper benchmarks; those are paid products we do not hold and do not reproduce. Compiled August 2026. Full methodology and source list.
IT Budget as % of Revenue
The ratio metric in depth, by revenue band and what moves it up or down.
IT Budget by Industry
Industry-specific benchmarks from 2% to 10% of revenue.
Average IT Spend Per Employee
$9,000 to $14,000 per employee. Full per-FTE map by size and industry.
Frequently Asked Questions
What is the average IT budget for a company?
How much should a company spend on IT?
What is the average IT budget as a percentage of revenue?
How much do companies spend on IT on average per employee?
What is a typical IT budget for a small business?
Why does the average IT budget percentage fall as companies grow?
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Use the IT Budget Calculator