Financial Advisor Fee Calculator: Compare Costs
Advisor fees vary widely. Know about advisor costs with our financial advisor fee calculator, which also estimates investment growth.
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Financial advisor fees can range widely, and if you’re not careful, they may eat away at your long-term returns. Our financial advisor fee calculator will show you how much you might pay under two common advisor fee models — and how those fees may affect your total investment growth. Keep in mind, though, that in exchange for fees, the right financial advisor can offer a great deal of value, including things such as:
A personalized investment strategy.
Help with goal-setting, judgment calls and life decisions.
Advice on which specific investments to choose or avoid.
Guidance on complex financial situations or problems.
Help and support handling unexpected events and changes.
» Looking for an advisor? See our roundup of the best financial advisors.
How to use the financial advisor fee calculator
Enter an initial investment amount. If you’re considering a financial advisor who charges a fee based on your assets under management, your first fee typically is based on this beginning balance.
Enter a time horizon. This will allow you to see how fees may affect your investment growth over time.
Select the type of advisor fee. The financial advisor fee calculator allows you to compare the impact of paying an AUM fee or a flat annual fee.
Enter the fee. If you are comparing financial advisor fees, you can plug it into the calculator as a percentage or as a dollar amount, if you’re paying a flat fee. If you’re not at that stage, you can estimate how much a financial advisor costs. Advisors who charge flat fees cost $4,484 on average in 2024, according to Envestnet, a company that develops software for the wealth management industry. Those who charge AUM fees charge about 1.05% on average (though robo-advisors typically charge closer to 0.25%).
Enter annual contributions. Assuming you’ll add to your investments each year, how much you’ll pay in fees will change if your advisor charges an AUM fee.
Input an estimated rate of return. In addition to growth through annual contributions, the calculator takes into account potential returns on your investments.
How financial advisor fees could affect returns
The financial advisor fee calculator takes into account that advisors charge fees annually. Also, if your advisor charges an AUM fee, your fee may change if the value of your investments changes. The calculator will show you:
Estimated gross balance: This is the estimated value of your investments at the end of the period. It includes any annual contributions, as well as annual returns. It does not include any fees paid.
Estimated net balance: This is the estimated value of your investments at the end of the period minus annual fees.
Fees paid: This is the total amount you’d pay in fees to your financial advisor over the given timeframe.
Total cost of fees: This is the difference between your estimated gross balance and your estimated net balance. This accounts for investment earnings you’d lose because paying annual fees reduces your investment balance each year.