Fractional Non-Fictional Blog
Let’s be real — not every business needs (or can justify) a full-time CIO or CTO. But every business needs smart tech leadership. That’s where fractional comes in.
Why consider fractional vs. full-time?
10/16/2025
Blogs
Before diving into numbers, here are the key strategic tradeoffs:
Fractional models are especially attractive when the business needs C-level input but doesn’t yet justify—or cannot yet afford—the full cost of a dedicated executive.
Typical cost ranges
These figures are estimates (2025 era, U.S.-centric) and will vary depending on geography, industry, complexity, and the candidate’s pedigree.
Full-time CIO / CTO
For a medium-sized business (say 50–500 employees, or revenues from $10M to $200M), a full-time CIO or CTO’s base salary often ranges between $190,000 to $300,000+ annually, depending on complexity, vertical, responsibilities, etc.
On top of base salary, you’ll likely offer bonuses, benefits, stock or equity incentives, health insurance, retirement match, paid time off, recruiting/hiring overhead, and management costs. A common rule of thumb is that the “loaded cost” is 20–40% over base salary (or more, depending on how rich benefits are).
Therefore, a $200,000 base salary might translate into a total employer cost of $240,000 – $280,000+.
Thus, for many SMBs, a full-time executive is a major line item, often one of the highest in the organization.
Fractional CIO / CTO
(Fractional executives charge in variable models):
Hourly rates: Many fractional CTOs/CIOs charge between $150 to $500 per hour, depending on their experience, specialization, and market demand.
Retainer / monthly engagements:
Some fractions start at $2,000 to $10,000 per month depending on time commitment and scope.
More intensive fractional CTOs might charge $10,000 to $25,000 per month, particularly if they are deeply embedded and taking on “semi-operational” roles.