Question 1

How much does a fractional executive cost per month?

Accepted Answer

Fractional executive monthly costs range from £2,500–£30,000 depending on the role, seniority, and time commitment. A CFO at 2 days/week typically costs £6,000–£20,000/month, a CTO £7,000–£16,000/month. These figures are well below the all-in cost of a permanent hire (salary + employer costs + search fees).

Question 2

How do you calculate the full-time equivalent cost?

Accepted Answer

Full-time equivalent costs include the executive's base salary plus employer National Insurance (13.8%), pension contributions (3-12%), benefits (£3,000–£8,000), office costs (£6,000–£12,000/year), and amortised recruitment fees (25-35% of salary). This 1.42× loading factor gives the true cost of a permanent hire for accurate comparison.

Question 3

What affects fractional executive day rates?

Accepted Answer

Day rates vary by role seniority (CFOs command higher rates than CMOs), company stage (scale-up rates exceed early-stage), sector complexity (fintech, AI, regulated industries pay premiums), geographic location (London +10-20%), and engagement intensity (transformation work commands higher rates than BAU).

Question 4

How much can I save with a fractional executive vs permanent hire?

Accepted Answer

Fractional executives typically deliver 40-60% cost savings vs permanent hires when you factor in the full-time equivalent loading (1.42×), recruitment fees (£30k–£100k+), and the ability to scale up/down as needed. A fractional CFO at 2 days/week (£6k–£20k/month) compares to £300k–£400k+ total annual cost for permanent.

Question 5

Are these rates inside or outside IR35?

Accepted Answer

Day rates in this calculator assume outside-IR35 engagement (genuine independence, multiple clients, control over delivery). Inside-IR35 day rates would be 15-25% lower due to additional tax and NI. IR35 status depends on engagement structure — we assess every brief for IR35 compliance.

Question 6

Do fractional executives work monthly retainers or day rates?

Accepted Answer

Both models exist. Day rates (£600–£2,500/day) suit project-based or irregular work. Monthly retainers (£3,000–£14,000/month) suit ongoing strategic roles with predictable time commitment. Many fractional executives prefer retainers for cashflow predictability; companies prefer them for budgeting.

Question 7

How do interim executive rates compare to fractional?

Accepted Answer

Interim executives (full-time, fixed-term) typically charge 20-40% more per day than fractional executives due to full-time commitment and shorter engagement periods. Interim CFO rates run £650–£1,500/day vs fractional CFO at £700–£2,500/day, but interims work 5 days/week not 1-3 days.

Question 8

What's included in a fractional executive's day rate?

Accepted Answer

Day rates cover the executive's time, expertise, and strategic input — they're responsible for their own equipment, insurance, and business costs. Some fractional executives include light travel in their day rate; extensive travel or overnight stays are typically charged separately or built into project pricing.

Fractional executive rates by role and engagement

Rate calculation

Rate calculation methodology

Interactive rate comparison

Interactive rate comparison across all executive roles

Monthly cost breakdown

Monthly cost breakdown by engagement model

Frequently asked questions

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