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What Does a Full-Time CMO Really Cost Compared to a Fractional One?
A CMO's salary is only part of what the role costs. Add bonus, benefits, equity, and recruiting, and compare the real first-year cost of a full-time hire with a fractional CMO retainer.
Full-time CMO
Percent of base salary.
Health insurance, retirement match, payroll taxes, and similar, as a percent of base.
Optional. Your estimate of the yearly value of any equity grant.
One-time, as a percent of first-year cash pay (base plus bonus). Use 0 if you hire without a recruiter.
Fractional CMO
Starting values are examples, not benchmarks. Replace them with real offers or quotes.
Year-one difference (full-time costs more)
$317,500
Fractional is 27% of the full-time year-one cost
Full-time CMO, year one
$437,500
including recruiting
Full-time CMO, each year after
$362,500
Fractional CMO, 12 months
$120,000
Recruiting fee (one-time)
$75,000
Year-one comparison at different retainers
Against a full-time year-one cost of $437,500, for 12 months of fractional work.
| Monthly retainer | Fractional cost | Difference | Share of full-time |
|---|---|---|---|
| $6,000 | $72,000 | $365,500 | 16% |
| $8,000 | $96,000 | $341,500 | 22% |
| $10,000 (yours) | $120,000 | $317,500 | 27% |
| $12,000 | $144,000 | $293,500 | 33% |
| $15,000 | $180,000 | $257,500 | 41% |
| $20,000 | $240,000 | $197,500 | 55% |
What goes into the full-time number
- Base salary and bonus: the cash compensation in the offer.
- Benefits and payroll taxes: health insurance, retirement match, employer payroll taxes, and similar costs, entered as a percent of base.
- Equity: optional. Your own estimate of the yearly value of the grant, if you want it counted.
- Recruiting fee: a one-time cost, entered as a percent of first-year cash pay. It applies to year one only, which is why the calculator shows year one and later years separately.
The formulas
- Full-time, each year = base + bonus + benefits and payroll taxes + yearly equity value.
- Full-time, year one = the yearly cost + recruiting fee.
- Fractional = monthly retainer × months of engagement.
What the number doesn't capture
This is a cost comparison, not a recommendation. A full-time CMO is fully dedicated to your company and builds the team day to day. A fractional CMO brings the same level of experience part-time, usually for a few days a week or a set number of hours, alongside other clients. It also leaves out costs that are harder to price: the months a search takes, ramp-up time, and the cost of a hire that doesn't work out.
Fractional tends to fit when you need senior strategy and leadership now but not a full-time seat yet, such as before a raise, during a reset, or while you build the team a future CMO will run. If you want to know more about how that works, see what a fractional CMO does.
Need help turning these numbers into a growth strategy?
Calculators can help you understand the numbers. Building a repeatable growth engine requires the right strategy, positioning, execution, and measurement. Robert Gilbreath works with founders and leadership teams to develop practical go-to-market and marketing growth programs.
Discuss your growth strategy