Managed IT Cost Calculator for Canadian Businesses (2026)
Reviewed by Samad Mokrini, founder of IT Cares. Last reviewed October 2026. Estimates only, not a quote. Want a precise number? IT Cares gives a free assessment.
Worked example: 25 users
Here is the arithmetic behind the quick answer, so you can check it and change the inputs.
- In-house, one systems administrator: salary 70,000 to 95,000. Overhead of 25 percent at the low end and 35 percent at the high end gives 87,500 to 128,250. Add tooling of about 11,700 to 18,300 (25 users at roughly 467 to 733 each) and training of 3,000 to 8,000. Total: about 102,200 to 154,600 per year.
- MSP with security: 25 users at 130 to 200 per user per month, times 12. Total: 39,000 to 60,000 per year.
All figures are estimates in Canadian dollars before tax. Software licences, hardware and recruitment are left out on both sides.
The calculator
Set your headcount, the in-house role you would hire and the MSP service level. The results show a low to high range, because the sources do. Nothing you enter leaves your browser.
In-house IT
Managed IT (MSP)
Co-managed (illustration)
Assumptions and sources
Every default in the calculator is listed here. Most come from one Canadian provider's published 2026 comparison, so they are vendor-authored estimates that we have not independently verified. Check local pay against Job Bank Canada wage data for your region before relying on the salary rows.
| Input | Range used | Source and notes |
|---|---|---|
| Help desk salary | 48,000 to 65,000 | GAM Tech, in-house IT vs managed IT provider 2026 cost comparison. Canadian MSP, self-declared estimates. |
| Systems administrator salary | 70,000 to 95,000 | |
| Network administrator salary | 75,000 to 100,000 | |
| IT manager salary | 95,000 to 140,000 | |
| Overhead on salary | 25% to 35% | |
| In-house tooling | About 467 to 733 per user per year | GAM Tech lists 35,000 to 55,000 for a 75-person firm. We divided by 75, which is our simplification. |
| Training | 3,000 to 8,000 per IT employee per year | GAM Tech. |
| MSP per user per month | 80 to 130 basic, 130 to 200 with security, 180 to 275 comprehensive | GAM Tech tiers. A second Canadian provider, F12.net, says 150 to 200 is common. |
| Co-managed illustration | One internal hire plus half the MSP fee | Our assumption for illustration only. It is not a market price. |
These are not TechCare prices. TechCare Canada does not publish a rate card here, and no tier above is our offer.
MSP cost by team size (annual, CAD, estimate)
This table needs no JavaScript. Each cell is the monthly per-user range multiplied by users and by 12.
| Users | Basic (80 to 130) | With security (130 to 200) | Comprehensive (180 to 275) |
|---|---|---|---|
| 10 | 9,600 to 15,600 | 15,600 to 24,000 | 21,600 to 33,000 |
| 25 | 24,000 to 39,000 | 39,000 to 60,000 | 54,000 to 82,500 |
| 50 | 48,000 to 78,000 | 78,000 to 120,000 | 108,000 to 165,000 |
| 75 | 72,000 to 117,000 | 117,000 to 180,000 | 162,000 to 247,500 |
Hidden costs on both sides
- Recruitment: the same provider guide cites 5,000 to 15,000 per hire, which is not in the annual figures above.
- Turnover and gaps: a vacancy leaves you uncovered while you hire.
- Licences and hardware: Microsoft 365, backup and security software are bills in both models. See Microsoft 365 pricing in Canada.
- MSP onboarding and out-of-scope work: ask for setup fees, project rates and after-hours charges in writing.
- Downtime: the cost of an outage or ransomware event often dwarfs the monthly fee.
When in-house IT wins
Managed IT is not always the cheaper or better choice. In-house tends to win when you have a large user count and enough work to keep several specialists busy, when your environment is highly specialized, when you run on-site systems that need hands-on presence every day, or when regulation or contracts require employees rather than a vendor. Between the two sits co-managed IT, which keeps your staff and adds an MSP for the gaps.
How to get comparable quotes
Ask each provider to quote the same scope: number of users and devices, help desk hours, after-hours response, security tooling included, backup and restore testing, onboarding fee, contract length, and exit terms. Ask whether prices are in Canadian dollars and before tax. Our guides on choosing an IT provider and managed IT services cost in Canada go further, and MSP vs in-house IT compares the models.
Method and limits
The calculator multiplies salary by one plus the overhead rate, adds tooling per user and training per employee, and compares the result with the per-user MSP fee times 12. It shows low and high values together because the underlying sources are ranges. It does not model recruitment, turnover, licences, hardware, onboarding fees, tax or the value of coverage hours. It is a planning aid, not a quote. Reviewed by Samad Mokrini, founder of IT Cares.
Frequently asked questions
How much does managed IT cost per user in Canada?
Published market ranges vary by service level. One Canadian provider guide we reviewed lists about 80 to 130 per user per month for basic cover, 130 to 200 with security, and 180 to 275 for comprehensive cover. Another provider says 150 to 200 is common. These are provider-authored estimates, so confirm the currency and what is included.
What does an IT employee really cost in Canada?
Salary is only part of it. Using ranges from a Canadian provider guide, a systems administrator earns roughly 70,000 to 95,000, and overhead for benefits and payroll costs adds about 25 to 35 percent. Add tools, training and recruitment, and the fully loaded cost is meaningfully higher than the salary. Confirm local pay with Job Bank Canada wage data.
Is managed IT cheaper than one IT hire?
Often at small headcounts, but not always. At 25 users our example shows an MSP with security at about 39,000 to 60,000 a year against about 102,000 to 155,000 for one in-house generalist. The comparison is not like for like: the MSP covers more hours and skills, while an employee knows your business and can be on site.
What costs are not in the calculator?
Software licences you buy in both cases (such as Microsoft 365), hardware, one-time MSP onboarding fees, project work outside the contract, recruitment and turnover costs, downtime, and tax. These can move the real total in either direction.
What about co-managed IT?
Co-managed IT keeps one or more internal staff and adds an MSP for the gaps. The calculator shows an illustration using half the MSP per-user fee, which is our assumption, not a market price. Read our co-managed IT guide for how the split works.
Does the cost include security and Law 25 compliance?
Only where the plan says so. Basic plans often exclude advanced security, and no IT plan makes you compliant on its own. Law 25 and PIPEDA duties stay with your organization, so ask what evidence and reporting a provider supplies.
Get a precise IT cost quote
This is an estimate. IT Cares sends a free, no-pressure assessment with exact pricing for your team and tools.
FAQ
Is managed IT cheaper than hiring in-house in Canada?
For most businesses under about 40 staff, an MSP is cheaper than a full-time IT hire once you include salary, benefits, tools and the coverage gap when one person is sick or on vacation. Larger teams may justify in-house or a hybrid. The calculator compares your case.
How much do managed IT services cost per user in Canada?
Canadian MSP pricing typically runs about $120–$240 per user per month, help desk and patching at the low end, full security and Law 25/PIPEDA compliance support at the high end.