United States · USD · 2026
How Much Does a Fractional Executive Cost in the US?
Full-time C-suite executives cost 28–35% more than their base salary once you add FICA, health insurance, and 401(k) match. Fractional executives are 1099 contractors - you pay none of that.
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Employer FICA contributions(7.65%), health insurance premiums (averaging $7,000–$12,000/year for employer-sponsored plans), and 401(k) match (typically 3–6% of salary) add28–35% above base. A fractional executive engaged as an independent contractor sidesteps all of it — no W-2, no benefits, no employer tax burden.
→ Health Insurance:Employer typically covers 70–80% of premiums — averaging $7,000–$12,000/yearper employee (KFF 2025)
→ 401(k) Match:Typically 3–6% of salary — $9,000–$18,000/year on a $300K base
→ State Unemployment(FUTA/SUTA): 0.6–6% on first $7,000–$56,000 of wages, depending on state
→ Paid Leave:Average 10–15 days PTO + federal holidays for executive roles
A $300,000 base salary executive in the US typically costs$380,000–$420,000+ in total employer cost. Fractional executives are 1099 — thecompany pays zero employer taxes, no benefits, and no insurance.
Fractional vs Full-Time Executive CostComparison — United States (USD)
Source note: Built In (2026), Robert Half Salary Guide (2026),BLS Employer Cost data (2025). True employer cost includes FICA 7.65%, health insurance, 401(k) match, and paid leave. All figures USD.
The ROI of going fractional
1. Save up to 70%. Compared to a full-time CFO hire including employer taxes and benefits
2. Zero W-2 obligations. Fractional executives are 1099 contractors - no FICA, no health insurance, no 401(k) match required
3. Days not months. Fractionus matches you with a vetted fractional executive in days, not the 90–120 day timeline of a traditional executive search
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FAQs
Everything you need to know about fractional executive costs in the US.
A: Fractional executive retainers in the US typically range from $8,000 to $22,000 per month (USD), depending on the role and scope. Fractional CFOs and CHROs start at the lower end ($8,000–$14,000/month), while fractional CTOs, CMOs, and CROs with full strategic leadership responsibility can reach $18,000–$22,000/month
A: A fractional CMO in the US typically charges $8,000 to $22,000 per month on retainer. Built In's 2026 data shows the average CMO base salary is $225,908 —but with employer FICA, health insurance, and 401(k) match, the true employer cost is $270,000–$320,000+. A fractional CMO retainer annualises to$96,000–$264,000 — a saving of 40–65%.
A: A fractional CFO in the US typically costs $8,000 to $18,000 per month. For fundraising-specific engagements, project fees of $20,000–$60,000 are common for a 2–3 month scope. Robert Half's 2026 Salary Guide shows full-time CFO starting salaries at $250,000–$400,000 for growth companies — with employer costs, that's $320,000–$540,000+.
A: Fractional executives engaged through Fractionus are independent contractors —classified as 1099, not W-2. This means the company pays zero employer FICA, provides no health insurance, contributes no 401(k) match, and has no state unemployment tax obligations on that individual.
A: Senior fractional executives in the US typically charge $1,500 to $3,500 per day, depending on role, seniority, and geography. San Francisco and NewYork-based executives tend to sit at the higher end of this range.
A: Top-tier management consulting firms in the US bill $3,000–$10,000+ per day for senior partner time, with minimum engagements of $250,000–$1,000,000+. A fractional executive works at a fraction of that cost, is embedded in your team, and is accountable for outcomes — not just recommendations.
A: Yes, modestly. San Francisco, New York, and Seattle-based fractional executives tend to command a premium over those in secondary markets. However, most fractional work is delivered remotely, which has significantly compressed geographic rate differences.
A: Most fractional executive engagements in the US run between 6 and 18 months.Shorter project-based engagements (3–4 months) are common for fundraising-specific CFO work. Some businesses transition their fractional executive to a full-time hire once growth justifies the headcount.
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