Daryl Teo / Fractional CTO cost
Most fractional CTOs in Australia charge a monthly retainer, and the price follows the time commitment. Advisory arrangements of a few hours a month start from around $1,500 a month. Roughly one day a week typically runs $8,000 to $12,000 a month, two days a week $15,000 to $22,000, and an embedded CTO working three or more days a week $25,000 or more. A full-time CTO commonly costs $250,000 to $320,000 in base salary, before superannuation, bonuses, equity and recruitment fees.
| Engagement | Time | Typical monthly cost |
|---|---|---|
| Advisory | A few hours a month | From $1,500 |
| One day a week | About 4 days a month | $8,000 to $12,000 |
| Two days a week | About 8 to 9 days a month | $15,000 to $22,000 |
| Embedded or interim | Three days a week or more | $25,000 or more |
These are typical market rates for experienced fractional CTOs in Australia, not a fixed price list. At one or two days a week they work out to roughly $1,700 to $2,800 a day.
You already have a capable tech lead or engineering manager and need a senior sounding board: a second opinion on architecture or vendor choices, preparation for a board meeting or raise, or someone to pressure-test the roadmap once a month.
You need technology decisions made and owned, but the team is small. Typical situations are an early product build, the first engineering hires, overseeing an external development agency, or setting the direction for an AI initiative.
There is a team to lead. Usually five or more engineers, a delivery program that has stalled, or a platform that needs rework while the business keeps running on it.
Technology leadership is close to a full-time load for a defined period: covering a CTO departure while you recruit, keeping things running while your CTO is on leave, preparing for investment or sale, or a major rebuild.
The biggest factor by far. Most fractional CTOs price by days per week or month, so the rates above track the time involved more than anything else.
Advising a team costs less than leading it. Owning hiring, vendor contracts, security and board reporting is more work and more accountability than reviewing decisions someone else makes.
Some fractional CTOs will also write code or build systems. That time is usually priced on top of the leadership retainer, so raise it early if you need it.
Regulated industries such as financial services and healthcare, large legacy systems, security incidents and fixed deadlines like a due diligence process all push the price up.
Ongoing leadership is usually a monthly retainer. Defined pieces of work such as technical due diligence, an AI strategy or a technology roadmap are often quoted as a fixed fee instead.
| Option | Annual cost | Additional costs |
|---|---|---|
| Fractional, one day a week | $96,000 to $144,000 | None |
| Fractional, two days a week | $180,000 to $264,000 | None |
| Full-time CTO | $280,000 to $360,000 | Bonus, equity, recruitment fees, leave cover |
A full-time CTO in Australia commonly earns $250,000 to $320,000 in base salary. Add 12% superannuation and the base cost is $280,000 to $360,000 a year, before bonuses, equity, an executive search fee (commonly 20 to 30 percent of first-year salary) and the months it takes to recruit.
A fractional CTO at one day a week costs roughly a third to a half of that. You get the same level of seniority for the decisions that need it, and you don't pay for a full working week.
The comparison changes as the time commitment grows. An embedded fractional CTO at $25,000 or more a month costs about as much as a full-time hire. If you need that level of involvement with no end date, that is usually the signal to recruit a full-time CTO. A fractional CTO can help you define the role and run the hiring process.
I scope each engagement to the outcome you need and quote after an initial conversation. There is no minimum term: an engagement can run for a single month or continue as an ongoing arrangement.
I work across technology strategy, engineering leadership, AI adoption and technical due diligence. See services or recent work.
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