When are flat‑fee or hourly advisors more cost‑effective?

Flat or hourly arrangements often cost less for larger portfolios or when you need project‑based planning. For example, a $5,000 annual flat fee equals 0.50% on a $1M portfolio—half the cost of a 1.0% AUM model.

Do advisor fees include fund expense ratios?

Advisor fees are separate from fund expenses. If your advisor charges 0.80% and your funds average 0.15% in expense ratios, your all‑in cost is ~0.95% before any trading costs or taxes.

What does “fee‑only fiduciary” mean?

Fee‑only fiduciaries are compensated solely by client fees (no commissions) and must put clients’ interests first. This reduces conflicts of interest versus commission‑based models.

How do fees impact long‑term outcomes?

Fees compound like returns. Paying 1.0% vs 0.25% on a $500k portfolio growing at 7% over 25 years can mean a six‑figure difference in ending value. Lower costs generally improve the odds of meeting goals.

Financial Advisor Fee Calculator

Calculate and compare financial advisor fees including AUM percentage, flat fees, and hourly rates. See the lifetime cost impact of different fee structures on your wealth.

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Financial Advisor Fee Calculator

Compare the long-term cost of hiring a financial advisor versus managing investments independently. See how fees compound over decades and evaluate whether professional advice justifies the cost.

Your Portfolio

Initial Portfolio Value

$0$100000000

Annual Contribution

$0$500000

Time Horizon

1 years50 years

years

Expected Annual Return

0%20%

Advisor Fee Structure

AUM Fee Percentage

0%5%

DIY (Self-Managed) Costs

Expense Ratio

0%1%

Platform Fee

$0$1000

30-Year Cost Comparison

With Financial Advisor

Final Portfolio Value

$4,883,435

Total Contributed

$1,250,000

Investment Gains

$4,246,156

Total Fees Paid

$612,721

DIY (Self-Managed)

Final Portfolio Value

$6,250,830

Total Contributed

$1,250,000

Investment Gains

$5,036,825

Total Fees Paid

$35,995

Cost of Advisor

Difference

$1,367,395

21.9% less wealth

Fees as % of Gains

14.4%

Of your investment growth

Break-Even Alpha

9.23%

Extra return needed to justify cost

Portfolio Growth Over Time

Is a Financial Advisor Worth It?

What You Pay For

Portfolio Management: Asset allocation, rebalancing, and investment selection
Financial Planning: Retirement planning, tax strategies, and estate planning
Behavioral Coaching: Preventing panic selling and emotional investing
Tax Optimization: Tax-loss harvesting, Roth conversions, and withdrawal strategies

Advisor Alpha

Studies suggest good advisors add 1.5% - 3% annual value through behavioral coaching, tax optimization, and strategic planning. Your break-even alpha is 9.23%, meaning your advisor needs to add at least this much extra return to justify their fees.

When DIY Makes Sense

You have time and interest to manage investments
You can stick to a plan during market volatility
You understand tax-efficient investing
Your portfolio is relatively simple

When an Advisor Makes Sense

Complex financial situation (business owner, high income, inheritance)
You lack time or interest in managing investments
You need help with comprehensive financial planning
You tend to make emotional investment decisions
You value peace of mind and professional guidance

Key Financial Terms

Understand the essential concepts behind this calculator

Fee-Only Advisor

Financial advisor paid only by client fees, not commissions. Fiduciary duty to act in your best interest. No conflicts from product sales.

Learn more →

View all financial terms in our glossary →

Frequently Asked Questions

Common questions about the Financial Advisor Fee Calculator

Many advisors charge around 1.0% per year on the first $1M, with tiered breakpoints above that (e.g., 0.8% from $1–3M). Over 30 years, a 1.0% fee can reduce ending wealth by 20–30% versus a low‑fee alternative, depending on returns.

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⚠️ Important Disclaimer

This Financial Advisor Fee Calculator provides estimates for educational and informational purposes only. Actual results may vary significantly based on individual circumstances, market conditions, regulatory changes, and other factors beyond the scope of this calculator.

The calculations and projections provided are based on assumptions and historical data that may not reflect future performance.Past performance does not guarantee future results.

This tool is not financial advice, tax advice, legal advice, or investment advice. For personalized guidance tailored to your specific situation, please consult with qualified professionals including:

Certified Financial Planner (CFP)
Certified Public Accountant (CPA) for tax matters
Licensed attorney for legal matters
Registered Investment Advisor (RIA) for investment decisions

Data Accuracy: All data sources, statistics, and rates were verified as accurate as of October 2025. Tax rates, market conditions, and other financial data change over time. Always verify current rates and consult official sources.

No Warranties: While we strive for accuracy, we make no warranties or guarantees regarding the accuracy, completeness, or reliability of any information provided. Use this tool at your own risk.