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Calcimator

Advisor Fee Impact

Illustrative ending balance difference from advisory fees vs same gross return without fee drag.

Inputs

$

Results

Ending (after fees)

$2,871,746.00

≈ 7 average U.S. homes

Ending (no fee drag)$3,806,128.00
Difference$934,382.00
How to Use This Calculator
  1. Enter your starting investable portfolio value.
  2. Set the number of years you plan to remain invested.
  3. Enter the expected gross annual return before advisor fees.
  4. Set the total advisory fee percentage (AUM-based fees are typically 0.5-1.5% per year).
  5. Review the portfolio ending value with and without the fee drag, and the total wealth foregone due to fees over the entire period.
  6. Use this to decide whether a low-cost index fund approach or robo-advisor could improve long-term outcomes.

How the result changes with Gross return (before fee)

Gross return (before fee)Ending (after fees)
2%$673,924.00
7%$2,871,746.00
13%$14,979,961.00
18%$55,532,325.00

What each input means

Starting portfolio
Investable assets today.
Years invested
Projection horizon.
Gross return (before fee)
Assumed annual return before advisor fee.
Total advisory fee
All-in advisory fee drag per year.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Starting portfolio = 500000, Years invested = 30, Gross return (before fee) = 7, Total advisory fee = 1 = 4 input(s) provided
  2. Calculate Ending
    Ending = pv * pow(1 + netWithFee, years)
    2871746 = $2,871,746
  3. Calculate Ending
    Ending = pv * pow(1 + gross, years)
    3806128 = $3,806,128
  4. Calculate Difference
    Difference = pv * pow(1 + gross, years)
    934382 = $934,382

Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.

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