Financial Advisor Fee Calculator — Compare AUM, Flat & Hourly Fees [2026]
Calculate how much you pay a financial advisor by fee type: AUM percentage, flat fee, hourly, or performance-based. See the long-term impact on your portfolio.
Industry standard: 0.5%–1.5%. Enter the annual percentage.
Fee Summary
$5,000
Annual Fee
$417
Monthly Cost
1.00%
Fee as % of Portfolio
Long-Term Compounding Impact
Assumes 7.00% annual return. Portfolio value at year end.
| Year | Without Fees | With Fees | Cumulative Fees | Cost to You |
|---|---|---|---|---|
| 1yr | $535,000 | $530,000 | $5,000 | $5,000 |
| 5yr | $701,276 | $669,113 | $28,185 | $32,163 |
| 10yr | $983,576 | $895,424 | $65,904 | $88,152 |
| 20yr | $1,934,842 | $1,603,568 | $183,928 | $331,274 |
| 30yr | $3,806,128 | $2,871,746 | $395,291 | $934,382 |
"Cost to You" = the difference in portfolio value due to fee drag on compounding — always larger than total fees paid.
What is Financial Advisor Fee Calculator?
How to Use Financial Advisor Fee Calculator
Select your fee type: AUM (percentage of assets under management), Flat Annual Fee, Hourly Rate, or Performance-Based. Enter your portfolio value and the relevant fee (percentage or dollar amount). For hourly, enter estimated hours per year. The calculator shows your annual fee, monthly cost, and a long-term projection table showing how fees compound over 1, 5, 10, 20, and 30 years — and how much more your portfolio would be worth without the fees.
How Financial Advisor Fee Calculator Works
Common Use Cases
- Comparing whether an AUM-based advisor or flat-fee advisor is more cost-effective for your portfolio size
- Calculating how much you are currently paying your financial advisor per year in dollar terms
- Projecting the long-term cost of a 1% AUM fee vs managing investments yourself
- Negotiating fees with a financial advisor using concrete cost figures
- Deciding between a fee-only advisor, commission-based advisor, or robo-advisor by cost comparison
- Understanding how much of your investment returns are consumed by advisory fees over time
Frequently Asked Questions
What is a reasonable financial advisor fee?▼
AUM fees typically range from 0.5% to 1.5% annually, with 1% being the industry standard. Flat fees commonly range $2,000–$7,500/year for comprehensive planning. Hourly rates range from $150–$400/hour. Anything above 1.5% AUM warrants careful scrutiny of the value provided.
Is a 1% financial advisor fee worth it?▼
For a $1M portfolio at 1% AUM, you pay $10,000/year. Over 30 years at 7% return, this costs roughly $500,000+ in foregone compounding. Whether it's "worth it" depends on behavioral coaching value (preventing panic selling), tax planning, estate planning, and whether the advisor generates enough alpha to offset fees.
What is an AUM fee?▼
AUM stands for Assets Under Management. An AUM fee is a percentage of your total invested portfolio that you pay your advisor annually. If you have $200,000 invested and pay 1% AUM, your annual fee is $2,000 — regardless of whether the market went up or down.
What is a fee-only financial advisor?▼
A fee-only financial advisor charges only direct fees (AUM, flat, or hourly) and does not earn commissions from selling financial products. Fee-only advisors are considered fiduciaries, meaning they are legally required to act in your best interest. This structure eliminates conflicts of interest from product sales.
How do I calculate what I pay my financial advisor?▼
Check your advisory agreement for the fee type. For AUM, multiply your current portfolio value by the percentage. For flat fees, it's stated directly. Many advisors also charge separately for financial planning services on top of AUM fees — add all components together for your total annual cost.
What is a performance-based fee?▼
A performance fee (also called a "carried interest" or "incentive fee") is a percentage of investment gains above a certain threshold (hurdle rate). For example, 20% of returns above 6%. Performance fees align advisor incentives with client success but can lead to excessive risk-taking. They are more common in hedge funds and private equity than retail advisory.
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