"What's a good ROI for cybersecurity?" This question comes up in nearly every security budget discussion. Unlike traditional business investments with clear revenue projections, cybersecurity ROI measures cost avoidance and risk reduction—making it harder to establish universal benchmarks.
However, based on 2025 industry research, real-world implementations, and analysis of thousands of security deployments, we can now provide realistic ROI expectations for different types of security investments. This guide will help you understand what constitutes excellent, good, and acceptable ROI for various security controls.
The ROI Spectrum: Setting Realistic Expectations
Before diving into specific technologies, it's important to understand the general ROI ranges and what they mean for your security budget decisions.
Excellent ROI (150%+ First Year)
- Payback period under 12 months
- Typically low-cost, high-impact controls
- Examples: MFA, email security, security awareness training
- Should be prioritized and implemented immediately
Good ROI (75-150% First Year)
- Payback period 12-18 months
- Moderate investment with substantial risk reduction
- Examples: EDR, SIEM, vulnerability management
- Strong candidates for budget approval
Acceptable ROI (25-75% First Year)
- Payback period 18-36 months
- Higher investment but strategic value
- Examples: vCISO, zero trust architecture, security operations
- Requires comprehensive business case but often necessary
Strategic ROI (0-25% First Year)
- Payback period 3+ years
- Focus on compliance, competitive advantage, or foundational capabilities
- Examples: Comprehensive security transformation, advanced threat hunting
- Justified by strategic necessity rather than immediate financial return
Any positive ROI with a payback period under 24 months is generally considered excellent in the cybersecurity domain.
Multi-Factor Authentication (MFA): The ROI Champion
Expected ROI: 150-200% First Year
Multi-factor authentication consistently delivers the highest ROI of any security control. The combination of low implementation cost and dramatic risk reduction makes MFA the gold standard for cybersecurity ROI.
Why MFA Delivers Exceptional ROI
Low Implementation Costs:
- Cloud-based MFA solutions start at $3-10 per user per month
- Modern identity platforms include MFA at no additional cost
- Minimal professional services required (1-2 weeks implementation)
- Low ongoing maintenance overhead
Dramatic Risk Reduction:
- Blocks 96-99% of account compromise attacks
- Prevents the majority of phishing attack success
- Stops credential stuffing and password spraying attacks
- Reduces help desk password reset requests by 40-60%
Real-World MFA ROI Example
A 200-employee organization implementing cloud-based MFA:
Investment Costs:
- Implementation: $5,000 (consulting + setup)
- Annual licensing: $12,000 ($5/user/month × 200 users)
- Year 1 total: $17,000
Risk Reduction Value:
- Annual Loss Expectancy (account compromises): $250,000
- Risk reduction: 97%
- Annual value: $242,500
Year 1 ROI: ($242,500 - $17,000) / $17,000 = 1,326%
Payback Period: 0.8 months (25 days)
This dramatic ROI is why security experts consider MFA non-negotiable. In fact, the refusal of an $18.3 million cyber insurance claim in 2025 specifically cited the lack of fully enforced multi-factor authentication across the organization.
Managed Detection and Response (MDR): Strong, Sustainable ROI
Expected ROI: 100-150% First Year
MDR services represent one of the best ROI propositions for small and mid-sized organizations that lack internal security operations capabilities. The 2025 research from Sophos reveals compelling ROI data for MDR services.
Why MDR Delivers Strong ROI
Comprehensive Risk Reduction:
- Organizations using MDR claim 97.5% less than those with endpoint protection alone ($75,000 vs. $3 million)
- Endpoint-only users typically claim 40X more due to cyberattacks than MDR users
- 47% of MDR users fully recover from significant attacks within one week
Predictable Costs:
- All-inclusive monthly or annual pricing
- No surprise professional services fees
- Predictable budgeting across multiple years
- Includes 24/7/365 monitoring and response
Real-World MDR ROI Example
A mid-sized manufacturing company (500 employees, 600 endpoints) implementing MDR:
Investment Costs:
- Onboarding and setup: $25,000
- Annual MDR service: $150,000
- Year 1 total: $175,000
Risk Reduction Value:
- Annual Loss Expectancy (breaches): $1,200,000
- Risk reduction: 92%
- Annual value: $1,104,000
Year 1 ROI: ($1,104,000 - $175,000) / $175,000 = 531%
Payback Period: 1.9 months
By Year 3, with only ongoing service costs, the cumulative ROI approaches 1,500%, demonstrating the long-term value of MDR investments.
Endpoint Detection and Response (EDR): Solid Mid-Tier ROI
Expected ROI: 75-100% First Year
EDR platforms provide strong ROI for organizations with some internal security expertise. The technology has matured significantly, making implementation more straightforward and reducing total cost of ownership.
Why EDR Delivers Good ROI
Quantifiable Risk Reduction:
- Organizations using EDR/XDR claim one-sixth that of organizations with only endpoint protection ($500,000 vs. $3 million)
- In one documented case study, a $435,000 EDR solution reduced annual risk by $1 million, delivering 330% ROSI
Enhanced Detection Capabilities:
- Detects 85-95% of endpoint threats
- Reduces dwell time from months to hours
- Provides forensic capabilities for faster investigation
- Enables proactive threat hunting
Real-World EDR ROI Example
A healthcare organization (250 employees, 300 endpoints) implementing EDR:
Investment Costs:
- EDR licenses: $75,000 (3-year prepaid)
- Implementation services: $30,000
- Year 1 training: $15,000
- Year 1 total: $120,000
Risk Reduction Value:
- Annual Loss Expectancy: $800,000 (high due to HIPAA requirements)
- Risk reduction: 88%
- Annual value: $704,000
Year 1 ROI: ($704,000 - $120,000) / $120,000 = 487%
Payback Period: 2.5 months
Years 2-3 ROI: (Higher due to no implementation costs)
The key difference between EDR and MDR ROI is the requirement for internal security staff to monitor and respond to EDR alerts. Organizations without dedicated security operations should consider MDR instead.
Virtual CISO (vCISO): Strategic ROI with Broader Value
Expected ROI: 50-75% First Year
vCISO services often show lower immediate ROI compared to technology solutions, but they deliver strategic value that traditional ROI calculations cannot fully capture. The role focuses on security program development, risk management, and executive leadership.
Why vCISO ROI Differs from Technology Investments
Lower Risk Reduction Percentage:
- vCISO services are advisory rather than protective
- Value comes from guiding technology investments and security strategy
- Benefits materialize over 12-24 months
- ROI compounds as the security program matures
Cost Comparison:
- Full-time CISO salary: $180,000-300,000+ (plus benefits, equity)
- vCISO services: $60,000-120,000 annually (part-time engagement)
- Access to multiple experts rather than single hire
- Immediate availability versus 6+ month hiring process
Real-World vCISO ROI Example
A SaaS company (150 employees) engaging vCISO services:
Investment Costs:
- vCISO services: $90,000 annually (15 hours/month)
- Year 1 total: $90,000
Quantifiable Value:
- Risk reduction from improved security posture: 40%
- Annual Loss Expectancy: $600,000
- Risk reduction value: $240,000
Additional Value (Hard to Quantify):
- Cyber insurance premium reduction: $15,000 annually
- Faster SOC 2 Type II certification: $50,000 value
- Prevention of non-compliance fines
- Executive-level security expertise and decision support
Year 1 ROI (Direct Only): ($240,000 - $90,000) / $90,000 = 167%
Payback Period: 4.5 months
When including insurance savings and compliance acceleration, the effective ROI exceeds 300% in Year 1.
The strategic value of vCISO services becomes even clearer when compared to the cost and time required to hire a full-time CISO. Organizations save $100,000+ in first-year costs while gaining immediate access to seasoned expertise.
Email Security Gateway: High ROI, Fast Payback
Expected ROI: 175-250% First Year
Email remains the primary attack vector, with phishing accounting for 16% of data breaches in 2025 according to IBM's Cost of a Data Breach Report. Advanced email security solutions deliver outstanding ROI by stopping threats before they reach users.
Real-World Email Security ROI Example
A financial services firm (300 employees) implementing advanced email security:
Investment Costs:
- Email security platform: $18,000 annually
- Implementation: $8,000
- Year 1 total: $26,000
Risk Reduction Value:
- Annual Loss Expectancy (phishing): $350,000
- Risk reduction: 96%
- Annual value: $336,000
Year 1 ROI: ($336,000 - $26,000) / $26,000 = 1,192%
Payback Period: 0.9 months
Security Information and Event Management (SIEM): Variable ROI
Expected ROI: 80-120% First Year
SIEM implementations show more variable ROI depending on organization size, complexity, and internal capabilities. The technology provides essential visibility but requires expertise to maximize value.
Real-World SIEM ROI Example
A technology company (500 employees) implementing SIEM:
Investment Costs:
- SIEM platform: $120,000 annually
- Implementation and tuning: $80,000
- Security analyst (partial allocation): $60,000
- Year 1 total: $260,000
Risk Reduction Value:
- Annual Loss Expectancy: $1,500,000
- Risk reduction: 65% (improved detection and response)
- Annual value: $975,000
Year 1 ROI: ($975,000 - $260,000) / $260,000 = 275%
Payback Period: 3.2 months
SIEM ROI varies significantly based on proper tuning, staffing, and integration with other security tools. Organizations without security analysts may see lower ROI or should consider managed SIEM services.
Security Awareness Training: Exceptional ROI
Expected ROI: 200-300% First Year
Security awareness training consistently ranks among the highest ROI security investments, particularly when combined with phishing simulation.
Real-World Training ROI Example
A legal services firm (180 employees) implementing comprehensive training:
Investment Costs:
- Training platform: $9,000 annually
- Implementation and customization: $5,000
- Year 1 total: $14,000
Risk Reduction Value:
- Annual Loss Expectancy (human-related incidents): $280,000
- Risk reduction: 75%
- Annual value: $210,000
Year 1 ROI: ($210,000 - $14,000) / $14,000 = 1,400%
Payback Period: 0.7 months (21 days)
Factors That Improve or Reduce ROI
Several organizational factors can significantly impact the ROI of security investments:
Factors That Improve ROI
- Higher initial risk profile (more to gain from risk reduction)
- Regulatory industry with potential fines (healthcare, finance)
- Existing security incidents or breaches (demonstrated risk)
- Mature IT infrastructure (easier integration)
- Executive buy-in and user adoption (maximizes effectiveness)
- Cyber insurance requirements (premium reductions)
Factors That Reduce ROI
- Low initial risk perception (underestimating threat)
- Poor implementation or user adoption
- Lack of integration with existing tools
- Insufficient staffing for monitoring and response
- Overpriced solutions with unnecessary features
- Unrealistic risk reduction expectations
When ROI Alone Isn't Enough
While ROI is important, some security investments should proceed even with lower financial returns:
Compliance-Driven Investments
- HIPAA, PCI-DSS, GDPR requirements
- Regulatory penalties exceed investment costs
- Required for business operations in regulated industries
Competitive Requirements
- Customer contract requirements (SOC 2, ISO 27001)
- Industry baseline expectations
- Competitive differentiation in security-conscious markets
Foundational Capabilities
- Basic network security and access controls
- Identity and access management
- Security operations foundations
- Incident response capabilities
These strategic investments may show lower immediate ROI but enable business growth, customer acquisition, and risk management maturity.
Setting ROI Expectations with Executives
When presenting security ROI to leadership, set appropriate expectations:
For Quick Wins (MFA, Email Security, Training):
- "We'll see payback in under 6 months with 150%+ first-year ROI"
- Emphasize immediate risk reduction and low investment
For Platform Investments (EDR, SIEM, MDR):
- "Expect 12-18 month payback with 75-150% first-year ROI"
- Highlight ongoing value and risk reduction over multiple years
For Strategic Investments (vCISO, Security Program):
- "Plan for 18-24 month payback with 50-75% first-year ROI plus strategic benefits"
- Emphasize compliance, competitive advantage, and long-term risk management
For Foundational Capabilities:
- "ROI is difficult to quantify precisely, but these investments are necessary for business operations and risk management"
- Focus on regulatory requirements, customer expectations, and cyber insurance eligibility
The Bottom Line: What Good ROI Looks Like
Based on 2025 industry data and real-world implementations, here are the ROI benchmarks you should expect:
- Exceptional ROI: 150%+ first year, payback under 12 months (MFA, email security, training)
- Strong ROI: 75-150% first year, payback 12-18 months (EDR, MDR, SIEM)
- Good ROI: 25-75% first year, payback 18-36 months (vCISO, security program, zero trust)
- Strategic Investment: 0-25% first year, justified by necessity (compliance, foundational capabilities)
Any security investment with positive ROI and payback under 24 months represents an excellent business decision. Focus on implementing quick wins first, then layer in platform investments, followed by strategic capabilities.
The key is to match investments to your organization's risk profile, budget constraints, and security maturity. Start with high-ROI, low-cost controls like MFA and email security, then gradually build comprehensive security capabilities that deliver sustained value over multiple years.
Ready to evaluate the ROI of your security investments? Use our Cybersecurity ROI Calculator to compare different solutions, analyze payback periods, and generate executive summaries with realistic benchmarks for your industry and organization size.
