The RTI Stack-Tax Index
Every company pays for software twice.
Once for the subscription. Again for the people who keep it running.
Two bills. One software stack.
- The subscription
- Licenses
- Seats
- Subscriptions
- The people
- Setting up tools
- Administering them
- Supporting users
Together, the cost of running your software.
A worked example
One company. Both bills.
What these benchmarks mean for a software and tech company with 300 employees. This is an illustration at that company size, not a bill observed at an individual business.
Annual company account
Software subscriptions
$3.03M
People who run the stack
$5.49M
Annual operating cost
$8.53M
Software subscriptions $3.03M
People who run the stack $5.49M
Software waste — already included in subscriptions $1.43M
People estimate range $4.11M–$6.90M per year.
Total operating-cost range $7.14M–$9.93M per year.
Software subscriptions use an all-industry company-size benchmark. People costs use the Software & Tech estimate.
Sources: Vertice SaaS spend benchmark, 2025 (software); BLS Occupational Employment and Wage Statistics, 2025 (people).
See the example breakdown
| The bill | Per employee / year | Company / year |
|---|---|---|
| Software subscriptionsMeasured company-size benchmark, all industries. | $10,109 | $3.03M |
| Software waste — already included in subscriptionsUnused seats and above-baseline price increases. | $4,751 | $1.43M |
| People who run the stackModeled central estimate. Range $13,688–$22,986 per employee. | $18,311 | $5.49M |
- Annual revenue
- $91.46M
- Annual payroll
- $36.26M
Industry averages for firms with 50–499 staff. US Census Bureau, Statistics of US Businesses, 2022.
Software waste
Part of the first bill is waste.
Seats that go unused and price rises above the baseline, for each company size.
The score
The four measures behind the score.
Each company size is scored against its peers on four measures, out of 10. Pick a size to see which ones weigh on it most.
Score by measure
vs. median segment
Each measure’s score out of 10. The small chip is the gap to the median segment: red sits above the median, green below it.
Heaviest measures
- Unused Seats+3 vs median9/10
- Spend per Employee+3 vs median9/10
Leanest measures
- Price Increaseson the median6/10
- App Sprawl+2 vs median8/10
By industry
See the picture for your company size and industry.
The people bill varies a lot by industry. Choose a company size and industry to see both benchmarks.
Example selection
Software & Tech
Small (50–499) employees
US dollars per employee, per year
Software benchmark
$10,109
All-industry company-size benchmark.
People benchmark
$18,311
Range: $13,688–$22,986
Modeled central estimate.
Sources: Vertice SaaS spend benchmark, 2025 (software); BLS Occupational Employment and Wage Statistics, 2025 (people).
Software & Tech
$18,311
Range: $13,688–$22,986
All industries
$2,048
Range: $1,516–$2,602
The modeled people bill for Software & Tech is 8.9× the all-industry benchmark for this company size.
People costs are modeled from wages and attributed time. Software developers are excluded. Ranges show modeled low–high estimates; benchmarks describe groups, not an individual company.
Modeled central estimates · lines show the low–high range
Source: BLS Occupational Employment and Wage Statistics, 2025. People costs are modeled from wages and attributed time. Software developers are excluded.
The people bill, by company size and industry
Select a cell to see its range below. Central estimates in US dollars per employee, per year.
| Company size | Software & Tech | Financial Services | Manufacturing | Insurance | Professional Services | Public Sector | Education | Healthcare | Retail & E-commerce | Other |
|---|---|---|---|---|---|---|---|---|---|---|
| Micro (0–49) | ||||||||||
| Small (50–499) | ||||||||||
| Mid (500–2,499) | ||||||||||
| Upper Mid (2,500–9,999) | ||||||||||
| Enterprise (10,000+) |
Software & Tech
Small (50–499) employees
$18,311 per employee per year; range $13,688–$22,986.
The “Other” industry has no matching industry code in the wage survey, so its people bill is held back. A dash means no published estimate. These dollar amounts do not change the Stack Tax score or ranking.
The two bills
Software is measured by company size. The people bill also varies by industry.
The software benchmark has no industry split, so both rows use the same software figure. The people bill comes from the wage survey and varies by industry. All amounts are US dollars per employee, per year.
Micro (0–49) employees
All industries
$10,748
Software $10,109 (includes $4,367 waste) + people $639 · people range $473–$813
Software & Tech
$15,826
Software $10,109 (includes $4,367 waste) + people $5,717 · people range $4,274–$7,177
Small (50–499) employees
All industries
$12,157
Software $10,109 (includes $4,751 waste) + people $2,048 · people range $1,516–$2,602
Software & Tech
$28,420
Software $10,109 (includes $4,751 waste) + people $18,311 · people range $13,688–$22,986
Mid (500–2,499) employees
All industries
$11,853
Software $9,911 (includes $4,262 waste) + people $1,942 · people range $1,438–$2,468
Software & Tech
$27,273
Software $9,911 (includes $4,262 waste) + people $17,362 · people range $12,979–$21,795
Upper Mid (2,500–9,999) employees
All industries
$10,277
Software $8,673 (includes $4,076 waste) + people $1,604 · people range $1,187–$2,038
Software & Tech
$23,014
Software $8,673 (includes $4,076 waste) + people $14,341 · people range $10,720–$18,003
Enterprise (10,000+) employees
All industries
$7,944
Software $6,416 (includes $2,310 waste) + people $1,528 · people range $1,131–$1,941
Software & Tech
$20,076
Software $6,416 (includes $2,310 waste) + people $13,660 · people range $10,211–$17,147
Totals combine measured software spend and modeled people cost. Software waste is already part of the software bill. The people bill is the cost of running the stack; some of that work is necessary. Neither the total nor the people bill is an estimate of recoverable savings.
These are group benchmarks. Your own spending and tool use help show where to look next.
Where to look
Start with the parts of your stack worth questioning.
- Paid seats
- Which subscriptions are unused or barely used?
- Overlapping tools
- Where do teams pay for tools that do the same job?
- Renewals
- How quickly are prices rising?
- Operating work
- What does the team spend time setting up, administering, and supporting?
A smaller, simpler stack can give people more time for higher-value work. Understanding where the cost comes from is the starting point.
Self-assessment
Understand where your stack stands.
Tap your industry to start. In about 90 seconds you get your Stack Tax score, how much of your software spend is waste, and how you compare with firms your size. We'll ask who you are before we show it.
What industry is your company in?
Research on the Stack Tax index was commissioned by Supernal. Red Tape Index owns the research and determines the data, weights and rankings independently. The findings are openly available.