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Complete 2025 pricing guide for hiring a fractional CTO
Hiring a Fractional CTO in the UK costs £85,000-£160,000 annually for 1-2 days per week, compared to £250,000-£350,000+ total cost (salary, benefits, equity) for full-time. You save 50-60% while accessing senior expertise (15-20+ years experience).
Based on 2 days/week at £850-£1,600/day rates
Cost: £850-£1,600/week | £3,400-£6,400/month | £42k-£80k/year
Best for: Established systems needing strategic oversight, architecture review, key decisions, and quarterly planning.
Cost: £1,700-£3,200/week | £7k-£13k/month | £85k-£160k/year
Best for: Growing engineering teams (5-15 engineers), active hiring, architecture evolution, and ongoing technical leadership.
Cost: £2,550-£4,800/week | £10k-£19k/month | £125k-£240k/year
Best for: Major architecture transformation, fundraising preparation, security certification, or scaling team from 10 to 30+ engineers.
| Cost Component | Fractional CTO (2 days/wk) | Full-Time CTO |
|---|---|---|
| Base Cost | £85k-£160k | £180k-£250k salary |
| Employer NI (13.8%) | £0 (contractor) | £25k-£35k |
| Pension (5-10%) | £0 | £9k-£25k |
| Benefits (health, life) | £0 | £5k-£15k |
| Equity (0.5-2%) | £0 typically | £50k-£500k value at exit |
| Recruitment Cost | £0-£5k (agency fee if used) | £36k-£50k (20% of salary) |
| Onboarding Time | 1-2 weeks to start | 3-6 months to hire + 3 months onboarding |
| Notice Period | 30-60 days | 3-6 months |
| TOTAL ANNUAL COST | £85k-£160k | £250k-£350k+ (excl equity) |
| SAVINGS: 50-60% vs Full-Time | ||
Use our interactive calculator to estimate fractional CTO costs for your situation:
Based on 2.5 days/week x 2 clients x 48 working weeks. CTO UK average day rate: £1100.
BetaThis calculator provides rough estimates for illustration only. Actual rates and salaries vary based on location, experience, industry, and market conditions. Consult with a qualified accountant for accurate financial planning.
While fractional CTOs cost £85k-£160k annually, the value delivered often exceeds 5-10x the investment:
Fractional CTOs help companies raise £2M-£20M+ by providing technical credibility, handling due diligence, and articulating technology strategy to investors. Investment: £50k-£100k for 6-12 months. Return: £2M-£20M raised.
Preventing bad architecture decisions, security breaches, or technical debt crises saves £100k-£1M+ in remediation costs. A fractional CTO's experience prevents expensive mistakes.
Proper technical leadership increases engineering velocity 30-50% through better processes, architecture, and decision-making. This accelerates time-to-market and revenue growth.
Fractional CTOs hire better engineers faster—saving 2-3 months per hire × £80k-£120k salary = £160k-£240k in avoided hiring mistakes and faster team growth.
✅ Fractional CTO is cost-effective when:
❌ Full-time CTO may be better when:
Do you need 1 day/week (oversight), 2 days/week (active leadership), or 3 days/week (intensive engagement)?
1 day = £42k-£80k/year | 2 days = £85k-£160k/year | 3 days = £125k-£240k/year
Begin with 1 day/week for 3 months (£10k-£20k pilot). Scale to 2-3 days if needed.
Budget for 2 days/week but be prepared to scale to 3 days during intensive periods (fundraising, security certification, major architecture work).
First 1-2 months may be more intensive as the CTO learns your context. Budget slightly higher initially.
Ready to hire? See our Fractional CTO Services page or learn more about what fractional CTOs do.
Considering becoming a fractional CTO? See our salary guide: How Much Do Fractional CTOs Earn?
Get matched with pre-vetted fractional CTOs who fit your budget and technical needs.