1. The package and your time
Payroll tax: as an employee the employer paid half of it; as a consultant you pay all of it, roughly 7.65 percent of revenue extra in the US. Time off and non-billable share come off 260 working days before any rate is set.
2. Your clients (optional)
Test whether a real or planned mix of retainers meets your target and fits your capacity. Leave empty to see rates only.
Enter a salary, then click Calculate.
Result
Retainer prices at your day rate
| Days per month | List price | Retainer price | Effective day rate |
|---|
Your client mix
| Client | Days per month | Monthly | Annual |
|---|
What this does not cover
- Income tax. Everything is before income tax; take-home means the pay you want after the costs listed.
- Equity and bonuses from the old job. Enter the cash you want to replace; equity upside is not valued.
- Slow or missed payment and gaps between engagements beyond the sold share you enter.
- Market rates. The rate is what your own numbers need, not what a client will pay. Check it against what comparable people charge.
- Contracts. Scope, termination and liability belong to a written agreement reviewed by a lawyer.
Common questions
How do I price a fractional executive engagement?
Work out the revenue that replaces the full-time package: take-home pay, the benefits you now buy yourself and your business costs, grossed up for the payroll tax you now pay. Divide by the days you will actually sell in a year, not the days in the year. That is the day rate; a retainer is some number of days a month at that rate.
How much should a fractional CFO charge per day?
There is no single number. A useful check is the multiple of an employee's daily pay: fractional work carries unsold days, admin, benefits and tax the employer used to carry, so a day rate under about 1.5 times a full-time employee's daily pay usually fails to cover them. The calculator shows your multiple.
What share of my time is billable?
Most fractional executives lose a fifth or more of their working days to admin, proposals and finding the next client, plus time off. Enter your own figure; the calculator charges the cost of those days to the days you do sell.
Should I discount a monthly retainer?
A discount for committed months can be worth it if it replaces gaps between clients, but it lowers your effective day rate. Enter a discount and the calculator shows the effective rate and what the client mix then earns.
Is this tax or financial advice?
No. It does arithmetic on the numbers you enter. It is not tax, legal or financial advice, and it does not model income tax, equity or collection risk.