How much does pen testing cost?

Penetration testing, also known as pen testing or ethical hacking, is the practice of testing a computer system, network or web application to find security vulnerabilities that an attacker could exploit. Pen testing can be performed manually or using automated tools and can target a variety of assets including networks, web applications, mobile devices, cloud infrastructure and more.

Pen testing provides organizations with insight into their security posture and helps identify weaknesses before they can be exploited by real attackers. By proactively finding and fixing security flaws, organizations can strengthen their defenses and minimize their risk.

What is pen testing?

Penetration testing simulates the tactics and techniques used by hackers and cybercriminals to compromise systems and networks. The goal is to find vulnerabilities that could be leveraged for unauthorized access or to cause damage.

Some key characteristics of pen testing include:

  • Tests are conducted ethically and legally, with permission from the organization.
  • Tests aim to compromise security controls to identify risks.
  • Results provide remediation advice to fix vulnerabilities.
  • Tests can use manual techniques and/or automated tools.
  • Tests target networks, applications, devices, people and physical locations.

Pen testing provides proactive, hands-on evaluation of security defenses. It goes beyond automated scans by attempting real-world breaches based on hacker techniques.

Why is pen testing important?

There are several key benefits that make penetration testing a critical practice for organizations:

  • Find hidden risks – Pen testing often uncovers vulnerabilities that go undetected by other methods.
  • Test defenses – Penetration testing evaluates security controls under real attack scenarios.
  • Meet compliance – Pen testing can satisfy regulatory and industry compliance requirements.
  • Prioritize fixes – Tests identify which vulnerabilities should be fixed first based on risk.
  • Improve security – Fixing pen test findings strengthens defenses against threats.

Pen testing provides valuable, actionable results that reduce risk and improve security resilience.

What does pen testing cover?

Penetration tests can cover different areas based on the scope defined for an engagement. Some common components include:

  • Network testing – Testing wired and wireless networks for vulnerabilities.
  • Web app testing – Checking web applications and APIs for flaws.
  • Mobile app testing – Testing mobile apps on devices for weaknesses.
  • Social engineering – Attempting to manipulate people into divulging information.
  • Physical testing – Testing physical locations and security controls.
  • Cloud testing – Testing cloud infrastructure for misconfigurations.

The scope for a pen test depends on the organization’s environment and objectives. Tests can cover a single area, like web apps, or multiple facets of security.

What are the steps of pen testing?

A typical penetration test project includes these key phases:

  1. Planning – Defining the scope, goals, timeline, rules of engagement and success criteria.
  2. Reconnaissance – Gathering information on the target environment through open source research, social engineering and more.
  3. Scanning – Using automated tools to detect known vulnerabilities across the attack surface.
  4. Exploitation – Attempting to gain unauthorized access to systems by leveraging found vulnerabilities.
  5. Post-exploitation – Further compromising the environment through actions like privilege escalation or lateral movement.
  6. Reporting – Documenting findings, analysis, recommendations and other details from the test.

Throughout testing, pentesters utilize hacking techniques and tools that mimic real-world attacks. The final report provides remediation guidance to address discovered vulnerabilities and strengthen defenses.

What are the types of pen testing?

There are several classifications of penetration testing that describe the amount of information provided to testers before an engagement:

  • Black box – Testers are provided no insider knowledge beyond the organization name. They must “start from scratch” using reconnaissance to identify systems, applications and potential entry points. This simulates an external attacker.
  • White box – Testers are given full knowledge of the target environment, including network diagrams, IP addresses, source code and more. This provides visibility akin to an insider threat.
  • Grey box – Testers are provided with some details on the target environment, including partial network ranges or credentials, for example. This represents hybrid external/internal knowledge.

The chosen approach depends on the goals of testing and resources available. Black box tests present a more challenging scenario but provide a more accurate assessment of external defenses.

Who performs pen testing services?

There are several options for obtaining penetration testing services, including:

  • In-house testing – Building an internal pen testing team with trained security professionals.
  • Outsourcing providers – Hiring third-party security firms that specialize in pen testing.
  • Freelancers – Engaging individual hacker contractors to perform tests.
  • Managed services – Using ongoing pen testing services from a provider to regularly test environments.
  • Creative Studios – Hiring offensive security experts that provide pen testing bundled with other services.

Outsourcing to qualified third-party pen testing providers is a common choice for many organizations. However, building in-house capabilities also has advantages.

How much does a pen test cost?

Penetration testing costs vary based on several key factors:

  • Size of scope – The breadth of testing activities included in the engagement.
  • Duration – The length of time allotted for performing the end-to-end test.
  • Type of testing – Black box testing typically takes more effort than white box and costs more.
  • Tester experience – Senior tester rates are higher than junior testers.
  • Geographic location – Testing firms in regions with higher costs of living charge higher rates.

Prices also depend on whether you choose freelancers, boutique firms, large providers or in-house staff. According to industry research, average costs fall in these ranges:

Test Type Average Cost
Network Pen Test $1,500 – $15,000+
Web App Pen Test $2,000 – $20,000+
Mobile App Pen Test $2,500 – $25,000+
Social Engineering $500 – $5,000+

Managed pen testing services that provide ongoing testing over months or years normally incur monthly or annual costs ranging from $5,000 up to $100,000+ depending on the provider, scope of services and client size.

What impacts pen testing pricing?

Several factors influence what organizations pay for penetration testing services:

Testing scope

The scope, size and complexity of systems included in testing is a main driver of costs. Testing a single web app requires less time and effort than comprehensively testing an entire enterprise IT environment. Scope directly correlates to time and resources required.

Testing types

Black box testing with no insider knowledge provided is more expensive than white box testing with full transparency into systems. Grey box testing falls somewhere in between. The more visibility and access provided, the less time it takes testers to perform an assessment.

Tester skill level

Junior penetration testers command lower rates, while highly experienced experts and industry veterans charge higher premiums for their specialized knowledge.

Testing tools

Leveraging advanced automated penetration testing tools and subscriptions increases costs, as providers must cover licensing fees. Extensive hands-on manual testing requires less tools investment.

Reporting/analytics

Basic reporting at the end of a project is standard. Charging higher prices allows providers to provide extra features like interactive dashboards, tracking and analytics across program engagements.

Location

Penetration testers based in regions with higher costs of living and wages, like the United States and Europe, often have higher rate structures.

Provider type

Overhead costs differ between freelancers, boutique firms, large cybersecurity vendors and global IT consultancies, impacting price levels.

Industry expertise

Expertise in specialized vertical industries like finance, healthcare and technology allows firms to charge higher rates for niche experience.

How can I get the best pen testing value?

Organizations can maximize their return on investment in penetration testing and get the most value from their budget by following these tips:

  • Clearly define the scope and objectives for testing based on business risks.
  • Select providers with expertise that matches your technical environment and industry.
  • Start with a smaller scoped pilot to evaluate providers before larger testing.
  • Use longer term managed pen testing services to test more frequently at lower incremental cost.
  • Provide transparent visibility into environments to reduce time and effort.
  • Carefully compare the pricing and services included from different vendors.
  • Look for providers offering value-adds like remediation verification at no extra cost.
  • Give preference to fixed fee pricing rather than hourly billing.

Choosing the right provider and service plan for your organization’s needs and priorities is key for maximizing penetration testing return on investment.

Conclusion

The cost for penetration testing engagements ranges widely from just over $1,000 to $100,000+ depending on the scope, duration, testing types and provider you choose. While pen testing requires budget, it returns immense value by reducing security risk and strengthening defenses against threats and data breaches.

To gain the most value from your penetration testing investment, clearly define objectives, find the right provider for your needs and take advantage of longer term managed services where feasible. With the right partnership and program in place, you can contain costs while maximizing your return on investment through ongoing pen testing.