Understanding Fractional CISO Pricing Models
Fractional CISO services don't follow a one-size-fits-all pricing approach. The cost varies based on engagement model, scope of work, expertise level, and your organization's specific needs. Understanding these pricing models helps you budget appropriately and choose the right engagement structure.
Monthly Retainer Pricing
The monthly retainer is the most popular fractional CISO pricing model, offering predictable costs and consistent support. Typical retainer tiers include:
Starter Tier (10-15 hours/month): £5,000-£10,000/month
Best for small businesses (20-100 employees) with basic security needs. At this level, your fractional CISO provides quarterly security reviews, policy development, basic compliance guidance, and ad-hoc consulting. This tier works when you need strategic oversight but don't require constant hands-on involvement.
Typical deliverables: Security policy framework, quarterly risk assessments, vendor security questionnaire reviews, annual security roadmap, board-level security reporting.
Standard Tier (20-30 hours/month): £10,000-£18,000/month
Best for mid-market companies (100-500 employees) actively building or maturing security programs. This is the most common engagement level, providing substantial strategic leadership without full-time costs.
Your fractional CISO delivers monthly security oversight, compliance management, incident response planning, vendor security reviews, security team guidance (if you have one), board reporting, and strategic planning. They become a regular part of your leadership team, attending key meetings and providing ongoing guidance.
Typical deliverables: Complete security program development, SOC 2 or ISO 27001 preparation, incident response plans, security awareness training programs, monthly security metrics dashboards, quarterly board presentations.
Premium Tier (30-40 hours/month): £18,000-£30,000/month
Best for larger organizations (500-1,000 employees) or those with complex compliance requirements (healthcare, financial services, government contractors). At this level, coverage approaches full-time, with daily availability for urgent issues.
Your fractional CISO provides comprehensive security leadership, manages security teams, handles extensive compliance work (multiple frameworks simultaneously), conducts regular security architecture reviews, and serves as the primary security liaison for customers, partners, and regulators.
Typical deliverables: Multi-framework compliance (SOC 2 + HIPAA, ISO 27001 + PCI-DSS, etc.), security team management and development, comprehensive GRC program, M&A security diligence support, regulatory response coordination.
Hourly Rate Structure
Some fractional CISO providers charge by the hour, which offers maximum flexibility but less predictability. Typical hourly rates:
- Junior-level (5-10 years experience): £150-£250/hour - Less experienced practitioners, good for straightforward compliance work
- Mid-level (10-15 years experience): £250-£350/hour - Solid expertise, appropriate for most mid-market organizations
- Senior-level (15+ years experience): £350-£500/hour - Deep expertise, industry-specific knowledge, board-level communication skills
- Specialized expertise (niche industries/regulations): £400-£600/hour - Experts in healthcare, financial services, critical infrastructure, or emerging areas like AI security
At 25 hours/month and £300/hour, your fractional CISO cost would be £7,500/month or £90,000 annually—still 60-70% cheaper than a full-time hire.
Project-Based Pricing
For defined initiatives with clear deliverables, project-based fractional CISO pricing provides budget certainty. Typical project costs:
SOC 2 Type I Certification: £20,000-£45,000
Includes gap assessment, control implementation guidance, policy development, evidence collection coordination, and audit management. Timeline: 3-6 months depending on starting maturity.
SOC 2 Type II Certification: £30,000-£65,000
Everything in Type I plus the extended 6-12 month observation period, ongoing evidence collection, and Type II audit management. Higher costs reflect the longer engagement and additional evidence requirements.
ISO 27001 Certification: £25,000-£55,000
Includes Information Security Management System (ISMS) development, risk assessment, Statement of Applicability (SoA) creation, control implementation, internal audit, and certification audit support. Timeline: 6-12 months.
HIPAA Security Program: £35,000-£70,000
Comprehensive HIPAA Security Rule implementation including risk analysis, gap remediation, policy and procedure development, workforce training, and business associate agreement management. Healthcare-specific expertise commands premium rates.
Security Program Buildout: £30,000-£75,000
Building a security program from scratch including security strategy, policies and procedures, security architecture review, vendor security program, employee awareness training, and incident response capabilities. Timeline: 4-8 months.
Incident Response & Remediation: £15,000-£100,000+
Emergency response to active incidents including forensics coordination, containment strategy, remediation oversight, stakeholder communication, and post-incident improvements. Cost varies dramatically based on incident severity and scope.
Average Fractional CISO Cost Breakdown by Company Size
Your fractional CISO cost correlates strongly with company size and complexity:
Small Businesses (20-100 employees)
Average monthly cost: £7,500
Range: £5,000-£12,000
Typical hours: 10-20 hours/month
At this size, your needs are primarily strategic: policy development, basic compliance, vendor security, and incident response planning. Your fractional CISO provides governance and guidance while your IT team (or MSP) handles implementation.
Common engagement focus: SOC 2 Type I, basic security policies, vendor risk management, cyber insurance preparation, customer security questionnaire responses.
Mid-Market Companies (100-500 employees)
Average monthly cost: £14,000
Range: £10,000-£22,000
Typical hours: 20-35 hours/month
Mid-market organizations have more complex needs: multiple compliance frameworks, security team oversight, M&A activity, customer security demands, and board reporting. Your fractional CISO balances strategic direction with tactical involvement.
Common engagement focus: SOC 2 Type II, ISO 27001, security team development, compliance automation implementation, third-party risk management, security architecture evolution.
Larger Organizations (500-1,000 employees)
Average monthly cost: £22,000
Range: £18,000-£30,000
Typical hours: 30-45 hours/month
Larger organizations approaching the threshold where full-time makes sense still benefit from fractional arrangements during transitions, for specialized expertise, or to complement internal security teams. Your fractional CISO often manages multiple frameworks, coordinates cross-functional programs, and provides executive-level reporting.
Common engagement focus: Multi-framework compliance, regulatory examination support, security transformation programs, CISO succession planning, security team scaling, advanced threat program development.
Fractional CISO ROI vs Full-time CISO Salary
Full-Time CISO Total Compensation
The true cost of a full-time CISO extends well beyond base salary:
- Base Salary: £180,000-£300,000 (depends on location, industry, company size)
- Bonus: £27,000-£75,000 (typically 15-25% of base)
- Benefits: £25,000-£40,000 (pension, healthcare, life insurance)
- Recruitment fees: £36,000-£60,000 (typically 20% of first-year salary, one-time)
- Onboarding cost: £10,000-£20,000 (training, equipment, productivity ramp)
Total first-year cost: £290,000-£520,000
Ongoing annual cost (years 2+): £250,000-£450,000
Fractional CISO Investment
Monthly cost: £12,000
Annual cost: £144,000
For a typical mid-market engagement (25 hours/month at £12,000), your annual investment is £144,000.
The Math
Annual savings: £106,000-£296,000
That represents a 42-67% cost reduction compared to full-time hiring.
Over three years:
- Full-time CISO: £850,000-£1,400,000 (including year 1 recruitment costs)
- Fractional CISO: £432,000 (36 months × £12,000)
- Three-year savings: £418,000-£968,000
Hidden Costs to Consider
Beyond direct compensation, full-time CISOs create additional costs that fractional CISO arrangements avoid:
Replacement risk: Average CISO tenure is 24-36 months. When your CISO leaves, you face another recruitment cycle, knowledge loss, program disruption, and potential security gaps during transition. With a fractional CISO, transitions are managed within the firm.
Training and development: Full-time employees expect professional development (conferences, certifications, training). Budget £5,000-£15,000 annually. Fractional CISOs invest in their own development.
Tools and software: CISOs need security tools, GRC platforms, and threat intelligence. While you'll need some regardless, fractional CISOs often bring tool relationships and bulk licensing. Potential savings: £10,000-£30,000 annually.
Management overhead: Full-time CISOs require performance reviews, bonus calculations, benefits administration, and career development discussions. Fractional arrangements are purely transactional contracts.
Factors That Affect Fractional CISO Cost
Industry Specialization
Fractional CISO costs vary by industry due to specialized expertise requirements:
Healthcare/HIPAA: Premium of 15-25%
HIPAA compliance complexity, OCR audit risk, and specialized healthcare security knowledge command higher rates.
Financial Services: Premium of 20-30%
Regulatory scrutiny (FCA, PRA), PCI-DSS requirements, and sophisticated threat landscape justify premium pricing.
Government/Defense Contractors: Premium of 25-35%
NIST 800-171, CMMC, security clearance requirements, and stringent compliance need specialized expertise.
General Tech/SaaS: Baseline pricing
While technically demanding, tech companies have simpler regulatory requirements (usually SOC 2/ISO 27001).
Compliance Requirements
Your compliance needs significantly impact fractional CISO cost:
Single framework (SOC 2 OR ISO 27001): Standard pricing
Multiple frameworks (SOC 2 + ISO 27001): +20-30%
Highly regulated (HIPAA + SOC 2 + state privacy laws): +30-50%
More frameworks mean more controls, more evidence collection, more audit management—all requiring additional time.
Security Maturity
Starting from zero costs more than maintaining an existing program:
Greenfield (no existing program): Higher initial cost, decreasing over time
Expect first 6 months to be intensive (30-40 hours/month), tapering to ongoing steady state (15-25 hours/month).
Existing program needing optimization: Moderate, steady cost
Less initial lift, more consistent monthly engagement.
Mature program requiring oversight: Lower cost
Primarily strategic guidance and governance rather than hands-on building.
Geographic Location
While remote work has reduced geographic pricing dispersion, some location premium persists:
London: +10-20% premium
Southeast England: +5-10% premium
Other UK regions: Baseline
Remote/fully virtual: -5-10% discount possible
Engagement Urgency
Timeline affects fractional CISO pricing:
Routine engagement (4+ weeks notice): Standard pricing
Expedited (1-2 weeks): +15-25%
Emergency/breach response (immediate): +50-100%
Fractional CISOs maintain capacity for regular clients. Rush engagements require juggling existing commitments or declining other work.
Hidden Costs When Hiring a Fractional CISO
While fractional CISO costs are transparent, supporting expenses exist:
Security Tool Investments
Your fractional CISO will likely recommend security tools and platforms:
- GRC platform (Vanta, Drata, Secureframe): £10,000-£50,000/year
- SIEM/log management: £15,000-£100,000/year
- Vulnerability scanning: £5,000-£25,000/year
- Security awareness training: £3,000-£15,000/year
- Endpoint protection upgrade: £20-£80 per user annually
Total typical first-year security stack: £35,000-£150,000 depending on company size and maturity.
Audit and Assessment Costs
Your fractional CISO guides compliance, but third-party audits are separate:
- SOC 2 Type I audit: £8,000-£20,000
- SOC 2 Type II audit: £12,000-£35,000
- ISO 27001 certification audit: £10,000-£25,000
- Penetration testing: £8,000-£40,000 annually
Internal Resource Time
Your team must support the fractional CISO:
- IT team implementing technical controls (10-20 hours/month)
- HR supporting security awareness training (5-10 hours/month)
- Legal reviewing policies and contracts (5-10 hours/month)
- Finance providing compliance evidence (5-10 hours/month)
Budget for 25-50 hours of internal team time monthly. At loaded cost of £60/hour, that's £1,500-£3,000/month in opportunity cost.
How to Budget for Fractional CISO Services
Year 1 Budget
Your first year with a fractional CISO typically costs more due to security program buildout:
- Fractional CISO fees (higher initial hours): £15,000/month × 6 months = £90,000
- Fractional CISO fees (ongoing): £12,000/month × 6 months = £72,000
- Security tool investments: £50,000
- Compliance audits: £25,000
- Penetration testing: £15,000
Total Year 1 budget: £252,000
Year 2+ Budget
Ongoing years cost less as the program matures:
- Fractional CISO fees: £12,000/month × 12 = £144,000
- Security tool subscriptions: £50,000
- Annual compliance audits: £25,000
- Penetration testing: £15,000
Total Year 2+ budget: £234,000
Budget Justification for Leadership
When presenting fractional CISO budget to executives:
Risk reduction: "This investment reduces our breach risk by 60-80% based on industry data. The average breach costs £3.2M (IBM Cost of Data Breach Report). Our £234K investment provides 13:1 ROI if it prevents a single breach."
Revenue enablement: "SOC 2 certification unlocks £2M+ in blocked enterprise deals. The £90K investment to achieve it delivers immediate 22:1 ROI."
Cost comparison: "A full-time CISO costs £300K+. We're getting equivalent expertise for £144K—a 52% cost savings while maintaining flexibility."
Competitive requirement: "75% of companies our size have CISO-level oversight. We're falling behind competitors and creating customer doubt."
Fractional CISO Contract Considerations
Engagement Terms
Typical fractional CISO contract terms:
Contract length: Initial 6-12 month term with 30-60 day notice for termination after initial period. This protects both parties while allowing flexibility.
Hour banking: Some contracts allow hour banking (unused hours roll over month-to-month) while others use "use it or lose it" monthly allocations. Banking provides flexibility but can create tracking complexity.
Overage rates: When you exceed monthly hour allocation, expect hourly rates for overages (typically 120-150% of blended retainer rate). Clear overage pricing prevents surprise bills.
Expenses: On-site visit travel, conference attendance on your behalf, and specialized tool subscriptions may be pass-through expenses. Define what's included vs. extra.
Service Level Expectations
Your fractional CISO contract should define:
Response time: How quickly will they respond to urgent issues? (2-4 hours for critical, 24 hours for routine is typical)
Availability: What hours are they available? Are weekends/holidays extra?
Meeting attendance: Which recurring meetings will they attend? (Board presentations, security committee meetings, etc.)
Deliverables: What specific deliverables are expected? (Monthly reports, quarterly roadmap updates, policy documents, etc.)
Comparing Fractional CISO Providers
Independent Consultants vs. Firms
Independent Fractional CISOs:
- Typically cost less (no firm markup)
- Direct relationship with the practitioner
- Personal accountability
- Risk if they become unavailable (illness, overcommitment)
- Rates: £150-£500/hour depending on experience
Fractional CISO Firms:
- Higher cost due to firm margin (20-40% markup)
- Continuity if your assigned CISO leaves
- Broader expertise across firm practitioners
- More formal processes and deliverables
- Rates: £200-£600/hour
Getting Accurate Quotes
When soliciting fractional CISO pricing, provide:
- Company size (employees, revenue)
- Industry and regulatory requirements
- Current security maturity (none, basic, moderate, advanced)
- Specific goals (compliance certification, program build, incident response, etc.)
- Preferred engagement model (retainer, project, hybrid)
- Timeline and urgency
Vague inquiries get vague quotes. Detailed requests enable accurate pricing.
Maximizing Fractional CISO Value
Get the most from your fractional CISO investment:
Prepare for Meetings
Your fractional CISO's time is limited. Come to meetings with agendas, specific questions, and decisions ready. Don't waste hours on information gathering that could be handled asynchronously.
Empower Them
Give your fractional CISO authority to make decisions within their domain. If they need executive approval for every policy or control decision, you'll burn hours unnecessarily.
Provide Access
Ensure they have access to systems, documentation, and people. Access delays waste billable hours.
Assign an Internal Point Person
Designate someone (CTO, VP Engineering, or senior IT) as the internal security champion who coordinates with your fractional CISO. This prevents duplication and ensures continuity.
Leverage Their Expertise
Your fractional CISO has built processes across dozens of companies. Don't reinvent the wheel—use their templates, frameworks, and proven approaches.
Conclusion: Understanding Fractional CISO Costs
Fractional CISO pricing ranges from £5,000-£30,000 monthly depending on hours, expertise, and complexity. For most mid-market organizations, expect to invest £12,000-£15,000/month for meaningful security leadership.
While this represents a significant investment, it delivers 50-70% cost savings compared to full-time hiring while providing equivalent expertise. When you factor in compliance enablement, breach risk reduction, and customer confidence, the ROI is compelling.
The key is matching engagement level to your needs. A £5,000/month starter package won't achieve SOC 2 certification in 4 months. A £25,000/month premium engagement is overkill for basic policy development. Work with your fractional CISO to righten the engagement based on current priorities, then adjust as needs evolve.
Related Fractional CISO Resources
Continue exploring fractional CISO topics:
- Fractional CISO Hub - Complete guide to fractional CISO services, pricing, jobs, and resources
- What is a Fractional CISO? - Learn about fractional CISO responsibilities, services, and engagement models
- vCISO vs Full-Time CISO - Cost comparison and decision framework
- Fractional CISO Services - What services are included at different price points
- How to Set Your Rates - Pricing strategies for fractional CISO practitioners