Advisor fee calculator: 1% of assets vs a flat fee
See what a 1% advisory fee costs in dollars over 10, 20 or 30 years, and how it compares with a flat planning fee, using the medians fee-only advisors publish.
Over 20 years, the flat fee leaves
$313,378
more in your portfolio than 1% of assets.
- Paid at 1%
- $297,781
- Paid as a flat fee
- $90,000
- Portfolio at 1%
- $2,191,123
- Portfolio, flat fee
- $2,504,501
Source: Wellspent fee report medians; your inputs
Data
| Year | No advisory fee | 1% of assets | $4,500 flat fee |
|---|---|---|---|
| 0 | $1,000,000 | $1,000,000 | $1,000,000 |
| 5 | $1,276,282 | $1,216,653 | $1,251,416 |
| 10 | $1,628,895 | $1,480,244 | $1,572,294 |
| 15 | $2,078,928 | $1,800,944 | $1,981,825 |
| 20 | $2,653,298 | $2,191,123 | $2,504,501 |
How this works
Each year the portfolio grows at the return you set and the fee comes out. The percentage fee is charged on the balance at the start of each year, so it grows as the portfolio grows. The flat fee is paid from the portfolio too, and rises each year by the rate you set. Taxes and contributions aren't modeled.
The defaults are the US medians fee-only advisors publish on their own websites: 1% for the first tier of assets and $4,500 a year for ongoing planning (fee report). Many firms charge less than 1% above $1M to $2M, so try a lower rate for larger portfolios.
See what a typical advisor costs on $500K, $1M, $2M, $3M or $5M.