Fractional Executive Day Rate Calculator NZ
This fractional executive day rate calculator starts from the salary a company would pay to fill the role full time, and works out what a day of your time should cost them when you work for them for only part of the week. A full-time salary does not divide straight into a day rate. An employee is paid for every working day of the year, including leave, and the employer pays costs on top of the salary, such as the compulsory KiwiSaver employer contribution, which you now have to fund for yourself. As a fractional chief financial officer, chief operating officer or other senior leader you also carry the gaps between clients, your own equipment, insurance and professional development, none of which an employee pays for. You enter the equivalent salary, the on-costs you want to replace as a percentage, the premium you are adding for working fractionally, the working days in a full-time year and the days a week the client wants. The calculator gives you the day rate, the hourly equivalent at eight hours a day, the monthly retainer for that many days a week and the annual fee to the client. The on-costs start at the employer KiwiSaver minimum of 3.5%. The premium and the working days are your own choices, not market figures, so set them to suit your situation.
From the same team as Calculate.co.nz
Your Timesheets at jobtracker.co.nz logs your hours on a week grid or a timer that keeps counting when your phone locks, free on every plan. Career and Timesheets turns those hours into projects and rates, fixed fees and retainers, numbered invoices with GST only when you are registered, expenses and mileage, and the tax to set aside, from $4.99 a month billed yearly.
Log your hours freeHow it works
The salary is divided by the working days in a full-time year to give the salary's value per day. That figure is raised by the on-costs you are replacing, then by your fractional premium, to give the day rate. The hourly equivalent is the day rate divided by eight. The monthly retainer is the day rate times your days a week, times 52 weeks, divided by 12 months, so every month is billed the same. The annual fee to the client is the day rate times the days a week you work for them, scaled to the same full-time year: your days a week times the full-time working days, divided by five. All figures exclude GST, which is added on top if you are registered.
Worked example
A finance leader is asked to work two days a week for a company that would pay $220,000 for a full-time chief financial officer. Over 220 working days the salary is worth $1,000.00 a day. Adding 3.5% for the employer KiwiSaver contribution she now funds herself takes it to $1,035.00, and her 25% fractional premium makes the day rate $1,293.75. That is $161.72 an hour over an eight hour day, a retainer of $11,212.50 a month, and $113,850 a year to the client for 88 days of her time.
| Step | Amount |
|---|---|
| $220,000 over 220 working days | $1,000.00 |
| Plus 3.5% on-costs | $1,035.00 |
| Plus 25% fractional premium: day rate | $1,293.75 |
| Hourly equivalent, day rate / 8 | $161.72 |
| Monthly retainer at 2 days a week | $11,212.50 |
| Annual fee, 88 days | $113,850 |
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