Robo-Advisor vs Self-Managed Calculator

Compare total fees and returns between robo-advisor and self-managed index fund portfolios.

Financial Disclaimer

This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.

Inputs

Portfolio value ($)

Years invested

Robo advisory fee (%)

DIY fund expense ratio (%)

Expected gross return (%)

Tab to move between fields

Results

Self-managed value ($)

$230,899.00

≈ 5 Teslas

Robo-advisor value ($)$218,399.00

Cost of robo fees ($)$12,500.00

Annual fee difference ($)$150.00

Robo + tax-loss harvesting ($)$230,899.00

Hours saved with robo600

How to Use This Calculator

Enter your starting portfolio value and the number of years you plan to invest.
Set the robo-advisor's annual fee percentage (e.g., 0.25% for Betterment or Wealthfront).
Input the average expense ratio of the index funds you'd choose for a self-managed portfolio.
Set your expected annual return before fees.
Compare Robo Final Value versus Self Final Value, and check Total Fee Cost and Hours Saved to decide which approach suits you best.

How the result changes with Years invested

Years invested	Self-managed value ($)
4.9	$73,297.00
15	$157,511.00
26	$365,392.00
36	$785,209.00

What each input means

Portfolio value ($): Current portfolio value.
Years invested: Investment time horizon.
Robo advisory fee (%): Annual robo-advisor management fee.
DIY fund expense ratio (%): Average expense ratio for self-managed funds.
Expected gross return (%): Expected average annual return before fees.

What each result means

Robo-advisor value ($): Final value with robo-advisor.
Self-managed value ($): Final value self-managing.
Cost of robo fees ($): Extra cost of robo-advisor over self-managed.
Annual fee difference ($): Yearly extra cost of robo advisory.
Robo + tax-loss harvesting ($): Robo value including TLH benefit (~0.30%/yr).
Hours saved with robo: Research/management time saved over period.

How this is calculated

Worked example, using the default values

Identify Input Parameters
4 parameters
Portfolio value ($) = 50000, Years invested = 20, Robo advisory fee (%) = 0.25, DIY fund expense ratio (%) = 0.05 = 5 input(s) provided
Calculate Self-managed value
Self-managed value = portfolioValue * pow(1 + selfNetReturn / 100, yearsInvested)
230899 = $230,899
Calculate Robo-advisor value
Robo-advisor value = portfolioValue * pow(1 + roboNetReturn / 100, yearsInvested)
218399 = $218,399
Calculate Cost of robo fees
Cost of robo fees
12500 = $12,500