This document discusses the impact of security overhead traffic from IPSec VPN on network performance through an OPNET simulation. Three scenarios were modeled: 1) without IPSec, 2) with IPSec using DS1 links, and 3) with IPSec using higher bandwidth DS3 links. The results show that applying IPSec VPN significantly increased server CPU utilization and network delay due to the additional encryption overhead. Increasing the link bandwidth in the third scenario helped reduce this impact by allowing more network capacity for the additional IPSec traffic.