Setting the right rate is one of the most difficult challenges for professionals entering the fractional world. Find out how to correctly calculate your hourly or monthly rate, what factors to consider, and how to strike the balance between the value you deliver and the realities of the Romanian market.
One of the toughest topics for any professional stepping into the fractional model is rate-setting. Unlike traditional employment, where salary benchmarks and market standards are relatively clear, the fractional space is more flexible—and sometimes confusing. How do you set a fair rate? How can you ensure it reflects both the value you bring and the realities of the Romanian market?
The first step is understanding the difference between price and value. A fractional rate shouldn’t just be an extrapolation of your previous salary. If a full-time CFO earns €10,000 per month, that doesn’t automatically mean you should charge €5,000 for half the time. The fractional model doesn’t sell time—it sells impact. A single well-made decision by a fractional CFO could save a company hundreds of thousands of euros or attract crucial funding. Therefore, the rate should reflect delivered value, not just hours worked.
Another important factor is experience level. Professionals with decades in international corporations can charge much higher rates than those at the start of their executive journey. In Romania, where the fractional market is still emerging, rates vary widely—from a few hundred euros per day for middle-management roles to several thousand euros per month for top executives.
The structure of collaboration also shapes the calculation. Some companies prefer a monthly retainer—a fixed fee for a predefined number of days. Others choose daily or project-based rates. The right structure depends on context: for long-term relationships, a retainer provides stability to both sides; for short-term interventions, a daily rate may be more suitable.
It’s essential to account for your own costs. As a fractional, you are essentially a small entrepreneur. You carry expenses such as taxes, insurance, digital tools, and sometimes travel. Your rate must cover these costs while leaving you a healthy margin. Many professionals underestimate these early on and end up feeling overworked and underpaid.
The market is another benchmark. In Romania, fractional rates are still forming, but you can look at two references: executive salaries for full-time roles and the fees charged by senior consultants. Typically, a fractional sits in between—more expensive than a consultant (due to leadership responsibility), but more affordable than a full-time executive.
An often-overlooked element is framing the rate. The way you present your fee matters enormously. If you explain it in terms of value (“This rate reflects my experience in securing over €20 million in investments”), companies are more likely to understand. If you only state it as a monthly figure, it risks sounding arbitrary.
You should also be prepared for flexibility. Sometimes, for a promising startup, it may be wiser to accept a lower cash rate in exchange for a mixed package that includes equity. Other times, with a stable but struggling company, you may structure a performance-based fee. Flexibility doesn’t mean compromise—it means adapting to context.
A practical tip for calculation is to start with your desired annual income and divide it by the realistic number of working days you’re willing to dedicate as a fractional. Then add a risk and value factor. For example, if you aim to earn €100,000 annually and can work 150 days, your base daily rate is about €670. If you bring rare expertise and deliver fast impact, your rate can easily be doubled.
In Romania, where many entrepreneurs are just beginning to understand the model, clear communication is crucial. You need to explain not just “how much it costs,” but also “what the company gets.” A startup may hesitate to pay €3,000 per month for a Fractional CFO, but if they realize that this role could help secure multi-million funding, the perspective shifts completely.
In conclusion, calculating a fractional rate is not a fixed formula—it’s an exercise in balancing value, market, costs, and context. It takes courage to ask for a fair fee and wisdom to adapt it. Most importantly, remember: you’re not selling time, you’re selling impact. And when the impact is real and visible, it will always justify the price.
Photo: Canva
