Written by Aravind Srinivas, early engineer at Rupa Health and Founder & CEO of HyperNest Labs.

What Does a Fractional CTO Cost?

Fractional CTO costs vary widely — from $5,000 to $25,000+ per month. This guide breaks down what drives pricing and what you should expect at each tier.

In this article

Typical Pricing Ranges

TierMonthly CostHours/WeekBest For
Advisory$3K-$6K2-5 hrsStrategic guidance, check-ins
Light$6K-$12K8-12 hrsArchitecture, hiring support
Standard$12K-$18K15-20 hrsActive leadership, some hands-on
Intensive$18K-$25K+25-32 hrsNear full-time, critical periods

Common Pricing Models

1. Monthly Retainer (Most Common)

Fixed monthly fee for a set number of hours or deliverables. Provides predictable costs and guaranteed availability. This is the most common model for ongoing fractional CTO engagements.

2. Hourly Rate

Typically $200-$500/hour depending on experience. Good for project-based work or when needs are unpredictable. Can get expensive if hours aren't managed carefully.

3. Project-Based

Fixed fee for specific deliverables (e.g., "Build hiring process and make first 3 hires: $30K"). Clear scope, but requires well-defined outcomes.

4. Equity + Cash

Lower monthly fee in exchange for equity (typically 0.25%-1%). Aligns incentives but dilutes ownership. More common when the fractional CTO might convert to full-time.

What Affects Pricing

  • Experience level: 15+ years with exits vs. 8 years in big tech
  • Domain expertise: Healthcare, fintech, AI specialists command premiums
  • Geographic location: SF/NYC-based often charge more
  • Hands-on vs. advisory: Writing code costs more than reviewing it
  • Startup stage: Pre-seed may get lower rates than Series A
  • Scope of work: Managing vendors and team vs. just strategy
  • Commitment length: 6-month commitments may get discounts

What You Get at Each Tier

Advisory ($3K-$6K/month)

  • Weekly or bi-weekly calls
  • Architecture review
  • Strategic advice on major decisions
  • Async availability for urgent questions

Light ($6K-$12K/month)

  • Everything in Advisory
  • Hiring process design and interviews
  • Code/architecture reviews
  • Vendor evaluation
  • Basic technical due diligence prep

Standard ($12K-$18K/month)

  • Everything in Light
  • Leading engineering team meetings
  • Some hands-on coding/prototyping
  • Security and compliance oversight
  • Investor/board technical updates

Intensive ($18K-$25K+/month)

  • Everything in Standard
  • Near full-time availability
  • Significant hands-on development
  • Full technical leadership
  • On-call for critical issues

Hidden Costs to Watch For

  • Overage fees: Some contracts charge extra for hours beyond the retainer
  • Travel costs: On-site visits may not be included
  • Tool/software costs: They may recommend tools you need to pay for
  • Scope creep: Unclear scope leads to unexpected costs
  • Transition costs: Bringing in their own contractors or tools

Calculating ROI

A fractional CTO provides ROI through:

  • Faster hiring: Finding the right engineer 2 months faster saves $30K+ in recruiting costs
  • Avoiding bad hires: One bad senior hire costs $150K+ to unwind
  • Better architecture: Avoiding a rewrite saves 6-12 months of engineering time
  • Fundraising support: Passing technical due diligence can make or break a round
  • Team productivity: Proper processes can 2x team velocity

A $15K/month fractional CTO who prevents one $150K mistake in 6 months has paid for themselves twice over.

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