Fractional CTO vs Full-Time: The Cost Model
The real loaded math behind a CTO hire — and the line where full-time stops being a luxury.
About this resource
The loaded-cost math founders miss when deciding between a full-time and a fractional CTO. Covers the fully-loaded cost of each, when each one is genuinely the right call, and the most expensive early hire — plus how to avoid it.
What you'll walk away with
- A $250K base is really $320K+ once loaded — pricing off base alone understates your burn by 25–30%.
- Equity is the bigger line: a CTO-level hire often costs 1–2% of the company on top of cash.
- Fractional typically runs 6–10 hrs/week at around $200/hr — roughly $5K–$8K/month, with a 30-day exit and no severance.
What's inside
- 01The true cost of full-time
- 02What you actually need by stage
- 03The fractional math
- 04When full-time is the right call
WHO THIS IS FOR
Seed to Series B founders deciding whether to hire full-time, stay fractional, or wait.
Written by Ganesh Kompella, fractional CTO and CPO. Based on 75+ engagements across healthcare, fintech, and SaaS — these are the frameworks we actually use with clients, not a summary of someone else's.
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