CMMC Certification Costs: What Every Business Should Know

How Much Does CMMC Certification Cost in 2025?

Is your organization looking to get CMMC certified? You're not alone. With assessments rolling out in early 2025, defense contractors everywhere are trying to figure out exactly what this investment will look like. Fair warning: the numbers aren't small.

The Department of Defense expects contractors will invest about $4 billion in implementation over the next 20 years. For small businesses aiming for Level 2 certification, we're talking north of $100,000. And if your organization needs Level 3 certification? You're looking at initial investments around $2.7 million, plus substantial annual costs.

You also need to factor in the timeline, too. You'll need 12-18 months to prepare, plus another 9-15 months of waiting time for assessment due to the current shortage of qualified assessors.

Whether you're a new supplier or a major defense contractor, let's break down the real costs of CMMC certification and help you plan your investment strategically.

Key Factors Influencing CMMC Certification Costs

The Department of Defense recommends companies allocate at least 0.5% of their revenue to security measures. While certification costs typically range from tens of thousands to over $100,000, this investment enables organizations to compete for defense contracts while maintaining the security standards required to protect sensitive government information.

The CMMC certification process involves four main cost components:

• Nonrecurring Engineering (NRE) Costs: One-time expenses for implementing security controls, including system upgrades and initial configurations
• Recurring Engineering (RE) Costs: Ongoing expenses for maintaining controls, such as software maintenance and security updates
• Assessment Costs: Fees for C3PAO certification at Level 2 or government-led assessments at Level 3
• Affirmation Costs: Expenses related to annual compliance confirmations

The certification process also involves several key financial considerations that vary based on your organization's size, complexity, and current security maturity. Understanding these cost drivers early in the process allows for more effective budget planning and resource allocation.

To properly assess your organization's requirements, consider:

1. Your desired CMMC level
2. Current security infrastructure maturity
3. Scope of controlled unclassified information (CUI)
4. Internal resource availability
5. Timeline requirements

1. Your Desired CMMC Level

The level of CMMC certification your organization needs will significantly impact your certification costs. Under the current CMMC 2.0 framework, there are three levels, streamlined from the previous five-level model in an effort to simplify the process and better align with national cybersecurity standards.

The cost implications vary significantly based on your required level, with Level 1 being the most cost-effective due to its self-assessment requirement. Level 2 introduces variable costs depending on whether your contract allows for self-assessment or requires a C3PAO assessment. Level 3, being the most rigorous and requiring government-led assessments, typically involves the highest costs due to its advanced security requirements.

CMMC 2.0 Levels and Assessment Types

LEVEL	DESCRIPTION	ASSESSMENT TYPE
Level 1: Foundational	Basic cyber hygiene practices to protect FCI	Annual self-assessment
Level 2: Advanced	Protects CUI; includes all NIST SP 800-171r2 practices	Triennial self-assessment or C3PAO assessment
Level 3: Expert	Protects CUI against APTs; includes NIST SP 800-172	Triennial government-led assessment

Note: While you may find references to CMMC Levels 4 and 5 online, these levels were eliminated when the DoD streamlined the framework to CMMC 2.0. The security requirements previously associated with these higher levels have been partially incorporated into the current Level 3 requirements, specifically focusing on protection against advanced persistent threats.

2. Current Security Infrastructure Maturity

Organizations with mature cybersecurity programs or existing compliance certifications (such as ISO 27001 or NIST SP 800-171) may find their path to CMMC certification less costly. These organizations have already invested in many of the foundational security controls required by CMMC and may only need to make incremental adjustments, reducing both the time and financial burden of certification.

3. Scope of Controlled Unclassified Information (CUI)

The volume and sensitivity of Controlled Unclassified Information (CUI) directly impact the complexity and cost of CMMC certification. Organizations handling larger volumes of CUI or more sensitive data are required to implement more rigorous security controls, adding to the costs of technology upgrades, process adjustments, and assessments.

4. Internal Resource Availability

When planning your CMMC certification budget, take a hard look at your internal team's capabilities and availability. Having experienced IT staff, documentation specialists, and cybersecurity experts on your payroll can significantly reduce the need for expensive consultants.

But let's be realistic - most organizations need a balanced approach. Your IT team might excel at system configurations and security implementations, but you may still need outside help for specialized tasks like CUI scoping or compliance documentation. The trick is to be honest about your team's expertise and bandwidth.

Trying to handle everything in-house when you're understaffed or lack specific expertise can lead to costly mistakes and delays.

5. Timeline Requirements

Getting your CMMC certification timeline right can make or break both your budget and contract opportunities. With assessments starting in 2025, you're looking at a significant time investment: 12-18 months for preparation, plus another 9-15 months waiting for an available assessor.

Your timeline can affect costs in several ways:

• Rush jobs typically mean paying premium rates for consultants and resources
• Extended timelines can lead to higher cumulative consulting fees
• Missed deadlines might cost you valuable contract opportunities
• Insufficient preparation time often results in failed assessments and expensive re-work

We recommend aligning your certification timeline with both your business goals and contract requirements. Start by looking at your upcoming DoD contracts and work backwards - this helps ensure you've allocated enough time and resources without unnecessarily extending the process and inflating costs.

What are the soft costs for CMMC Certification?

Soft costs for CMMC Certification refer to the expenses incurred in preparation for the audit, which are essential for ensuring compliance but are not part of the direct audit fees. These costs typically include internal resource allocation or the hiring of external consultants to guide the process.

Soft Costs for CMMC Certification:

• Consulting services
• Training
• Documentation preparation
• Assessment services
• Process development
• Policy writing
• Internal staff time

What are the hard costs for CMMC Certification?

Hard costs for CMMC Certification encompass the direct expenses required to bring IT systems and facilities up to CMMC standards, as well as the costs of the audit itself. These are typically fixed, one-time investments in tangible assets and services that have clearly defined market prices.

Unlike soft costs which can vary significantly based on organizational readiness and internal capabilities, hard costs tend to be more predictable and easier to budget for, though they often require larger upfront capital expenditure.

Hard Costs to Prepare for CMMC Certification:

• Technology purchases and upgrades (servers, workstations, networking equipment)
• Security software licenses (antivirus, SIEM, vulnerability scanners)
• Compliance-specific software (GCC High, FedRAMP solutions)
• Physical security improvements (cameras, access control systems)
• Infrastructure upgrades (firewalls, network segmentation)
• Backup and disaster recovery systems
• Encryption tools and solutions

Hard Costs for the CMMC Audit:

• C3PAO assessment fees
• Third-party auditor fees
• Certification processing fees
• Documentation platform licenses
• Travel expenses for auditors (if required)
• Facility rental costs (if needed for audit activities)
• Required remediation verification costs

These hard costs primarily fall under Nonrecurring Engineering (NRE) costs for initial implementation and Assessment Costs for the certification process itself.

Cost Breakdown by Certification Levels

CMMC certification costs vary significantly based on organizational size and certification level, following the principle that higher security requirements command greater investment. The Department of Defense classifies organizations into two categories: small entities (fewer than 500 employees or less than $7.5M in revenue) and large entities (500+ employees or $7.5M+ in revenue).

Estimated CMMC 2.0 Costs by Level and Entity Size

CMMC Level	Assessment Type	Small Entities	Large Entities	Frequency
Level 1	Self-Assessment	$6K	$4K	Annual
Level 2	Self-Assessment	$37K	$49K	Annual for select programs
Level 2	Certification Assessment	$105K	$118K	Every 3 years
Level 3	Initial Implementation	$2.7M	$4.1M	One-time
Level 3	Recurring Costs	$490K	$21.1M	Annual
Level 3	Certification Assessment	$10K+	$41K+	Every 3 years

 

Level 1 certification, focused on basic cybersecurity hygiene, represents the most accessible entry point. At roughly $5,000-$6,000 for small entities and $4,000 for larger organizations, this level requires annual self-assessments and fundamental safeguarding practices.

Level 2 certification represents a significant step up in both requirements and investment. Organizations must implement 110 NIST SP 800-171 practices and undergo triennial third-party assessments. The DoD notes that these estimates assume organizations have already implemented basic security requirements under existing FAR and DFARS clauses.

Level 3 certification, designed for contractors handling the most sensitive information, requires substantial investment:

• Implementation costs reach into millions
• Requires additional NIST SP 800-172 controls
• Includes comprehensive government-led assessments
• Demands ongoing maintenance and compliance monitoring

The DoD is currently exploring cost reimbursement options, particularly for C3PAO services, though organizations should budget for full certification costs until such programs are formalized.

Hidden Costs and Long-Term Financial Commitments

Getting CMMC certified isn't just about writing a check for the assessment and calling it a day. It's more like buying a house: the down payment is just the beginning. There are plenty of ongoing costs and commitments that can catch you off guard if you're not prepared. That's why it's crucial to understand the full financial picture before diving in.

Think of your organization's size as the foundation of your cost estimate. If you're running a large operation, you're naturally going to be looking at bigger numbers across the board. More employees mean more training sessions to coordinate, more complex IT systems to manage, and more infrastructure to secure.

On the flip side, while smaller organizations might see lower total costs, they often feel the pinch more on a per-employee basis. Ever heard the saying "less is more"? Well, less isn't always cheaper depending on the business. Fixed costs can take a bigger bite out of a smaller company's budget, making the per-employee cost of CMMC certification significantly higher for smaller organizations.

Many of these ongoing expenses represent Recurring Engineering (RE) costs, which include:

Technology Investments

• Migration to compliant cloud environments
• Implementation of endpoint protection
• Multi-factor authentication systems
• Log monitoring tools
• Regular system upgrades and maintenance

Employee Training

• Initial security awareness programs for all personnel
• Role-specific training for system administrators and security staff
• Regular refresher courses and updates
• New hire onboarding programs
• Documentation of training completion and competency

The recurring nature of CMMC certification creates several long-term financial commitments across two main categories:

Assessment and Documentation

• Triennial certification renewals
• Regular internal assessments
• Potential remediation costs between certifications
• Documentation updates and maintenance

Continuous Monitoring and Improvement

• Investment in security monitoring tools
• Dedicated security personnel
• System and network upgrades
• Incident response capabilities

Additional financial considerations include potential increases in cybersecurity insurance premiums and opportunity costs from redirected resources. These expenses, while less visible, can significantly impact an organization's bottom line over time.

7 Tips to Reduce CMMC Certification Costs

Reducing the costs of CMMC certification can feel like a daunting task, but with strategic planning and the right approach, it’s possible to streamline the process and save money. The key is to focus on efficiency, prioritize your resources, and make smart decisions about where to invest.

Here are some practical tips to help reduce CMMC certification costs without compromising on compliance:

1. Reduce Your Compliance Boundary Isolate CUI to a separate enclave to minimize compliance scope. Rather than implementing solutions like Microsoft GCC High company-wide, focus security measures on systems that handle CUI.
2. Choose User-Friendly Solutions Select platforms that integrate with familiar tools and require minimal training. The more intuitive the solution, the less you'll spend on external consultants and training.
3. Verify CMMC Credentials Choose technology solutions with proven CMMC compliance (e.g., FIPS 140-2 encryption) and successful assessments. This reduces the risk of costly remediation later.
4. Use Pre-Made Documentation Take advantage of existing templates for System Security Plans (SSP), policies, and POA&Ms instead of creating documentation from scratch.
5. Select Experienced Consultants Work with consultants who know your technology stack. Consider using the same C3PAO for both self-assessment and official certification to leverage their familiarity with your systems.
6. Time Your Assessment Strategically Plan your C3PAO assessment timing around your budget cycle, but remember the DoD can audit at any time.
7. Budget for Time Investment Account for internal resource time spent on preparation, implementation, and maintenance when planning your CMMC budget.

Conclusion

Whether you're a major defense contractor or a small business in the supply chain, this isn't just another compliance requirement—it's a strategic imperative that will determine your ability to compete in the defense marketplace.

With an estimated 8,350 medium and large entities required to meet CMMC Level 2, the investment reflects the critical importance of protecting Controlled Unclassified