Security system installation costs range from $500–$1,500 for a basic residential alarm system to $5,000–$20,000+ for a commercial access control and video surveillance system. Hardware, labor, and ongoing monitoring all factor into the customer's total cost. This calculator builds a complete security installation estimate covering equipment, wiring, programming, and setup.
Control panel (DSC, Honeywell, 2GIG): $150–$400. Door/window contact sensors: $20–$60 each. Motion detectors (PIR): $30–$80 each. Keypad: $80–$200. Siren/strobe: $40–$100. Central monitoring connection: $0 upfront (revenue comes from monthly monitoring fees). A typical 3-bedroom home needs 8–15 sensors plus panel, keypad, and motion — total hardware: $600–$1,200 at contractor pricing.
IP camera (interior, 4K): $80–$200 at contractor pricing. PTZ camera (exterior, commercial): $200–$600. NVR (16-channel): $400–$800. Access control reader (card/fob): $150–$350 per door. Electric strike or magnetic lock: $150–$400 per door. A 10-camera commercial system with 4-door access control runs $4,000–$12,000 in equipment before labor, programming, and ongoing support contracts.
Security installation labor: $60–$100/hr for experienced technicians in most markets. Low-voltage wiring (Cat6, coax, alarm wire) production rate: 100–200 ft/hr in finished walls; 300–500 ft/hr in unfinished or new construction. Programming and commissioning: 2–5 hours for residential, 4–16 hours for commercial systems. Always include a training walkthrough time in your quote — customers who understand their system generate fewer callbacks.
Monthly recurring revenue (MRR) from monitoring is the most valuable asset a security company can build. Residential monitoring: $25–$60/month. Commercial monitoring with video verification: $50–$150/month. At $40/month per account, 50 monitoring accounts generate $2,000/month in predictable revenue. When selling equipment at cost or near cost to lock in monitoring contracts, model the lifetime value (LTV) of each account before setting your acquisition price.