IT Budget Worksheet
Print this worksheet and fill in your own numbers to build a complete, categorized IT budget. The benchmark ranges below help you sanity-check the total against your revenue.
ClayGen Consulting
IT Budget Worksheet
How to use this worksheet
- Enter your annual revenue and your target IT percentage to set a budget envelope.
- Fill in each line item below with your current or planned annual spend. Include everything, not just the managed-services bill.
- Total the line items and compare against your envelope and the benchmark.
- Add a 10 to 15% contingency line so unexpected hardware failures and price increases are manageable rather than catastrophic.
- Revisit quarterly so the budget tracks the business as it changes.
Step 1: Set your budget envelope
| Input | Your figure | Notes |
|---|---|---|
| Annual revenue | Your business revenue for the year | |
| Target IT % of revenue | 3 to 6% typical; 5 to 7% for regulated sectors | |
| Budget envelope (revenue x target %) | Your rough annual IT budget ceiling |
Benchmark examples: a $1.5M business at 3 to 6% lands near $45,000 to $90,000; a $3M business near $90,000 to $180,000; an $8M business near $240,000 to $480,000.
Step 2: Plan your line items
| Category | What it covers | Annual budget |
|---|---|---|
| Hardware and devices | Laptops, desktops, monitors, docks, peripherals, mobile (plan a 3 to 5 year refresh) | |
| Software and licensing | Microsoft 365, line-of-business apps, accounting, industry platforms | |
| Managed IT services | Monitoring, help desk, maintenance, patching, vendor coordination | |
| Cybersecurity | EDR, email filtering, MFA, security awareness training, cyber insurance | |
| Cloud and infrastructure | Cloud hosting, backup and disaster recovery, internet, network gear, servers | |
| Projects and upgrades | Network refreshes, migrations, office moves, new implementations | |
| Reserve and contingency | 10 to 15% of the total for unplanned failures and price changes | |
| Total annual IT budget | Sum of the rows above |
Step 3: Check your fixed-versus-variable mix
Predictable fixed costs make budgeting possible. Note which lines are fixed (flat monthly managed fees, subscriptions) versus variable (break-fix hourly work, emergency replacements). The more you shift into fixed, the easier the budget is to forecast.
| Cost type | Examples | Your annual total |
|---|---|---|
| Fixed (predictable) | Managed services, subscriptions, leases | |
| Variable (reactive) | Break-fix labour, emergency hardware, rush fees |
Step 4: Turn the budget into a plan
A budget answers "how much." Pair it with a roadmap that answers "on what, and when." Map your projects line to quarterly milestones so spending is deliberate, not reactive.
For the full explanation behind these numbers, read IT Budget Planning for Small Businesses. To sequence the spend across the year, use our 12-Month IT Roadmap Template and read Why Your Business Needs an IT Roadmap. ClayGen builds budgets like this as part of IT consulting.
Prepared by ClayGen Consulting, claygen.ca. This resource is general information, not legal, tax, or accounting advice. Confirm the requirements that apply to your business with your advisors and the relevant regulator before relying on it.
Want a hand putting this into practice?
ClayGen helps Ontario businesses turn templates like this into a working plan. No pressure, no obligation, just a real conversation about your environment.
Book a Free Consultation