Free calculator
Adviser Fee Calculator
Compare how two yearly fee levels, such as 1% and 0.25%, change your portfolio's value over time. Uses the same method as the SEC's fee illustration.
Fees are taken from the balance once a year after growth, the same method the SEC uses in its fee illustration. This is an illustration, not a forecast: returns vary and can be negative, and it doesn't include taxes or fund expenses beyond the fee you enter.
Short answer: This calculator compares how two yearly fee levels affect the same investment over time. With its default settings, it reproduces the SEC's example: $100,000 growing 4% a year for 20 years ends at about $179,000 with a 1% fee versus about $208,000 with a 0.25% fee.
Why Do Small Fees Matter So Much?
A fee that looks small in any single year is charged on your whole balance, every year, and the money taken out can no longer grow. The SEC puts it this way: over time, even small ongoing fees have a big impact on your investment portfolio.
In the SEC's illustration, a $100,000 investment growing 4% a year for 20 years ends at approximately:
| Annual fee | Ending value after 20 years |
|---|---|
| 0.25% | About $208,000 |
| 0.50% | About $198,000 |
| 1.00% | About $179,000 |
How Does the Calculator Work?
Each year, your balance grows at the return you assume, any yearly contribution is added, and then the fee is taken from the total. That's run separately for Fee A and Fee B so you can see the gap between them, along with the total dollars paid at Fee A.
How Can You Use the Results?
- Enter your current balance and the fee your adviser charges as Fee A.
- Enter a lower-cost alternative as Fee B, such as a robo-advisor or a fee-only planner who charges a flat amount.
- Look at the difference, then ask whether the services you receive are worth it.
A higher fee can be reasonable if it pays for planning you'd otherwise buy separately. The point is to know what you're paying. The SEC recommends asking your investment professional to explain all of the fees you will pay.
What Does This Calculator Leave Out?
It's an illustration, not a forecast. Real returns change from year to year and can be negative, and it doesn't include taxes. For more on choosing someone to work with, read our guide to checking a financial adviser's background.
Frequently asked questions
How much does a 1% advisory fee cost over time?
In the SEC's example, $100,000 growing 4% a year for 20 years ends at about $179,000 with a 1% annual fee, compared with about $208,000 with a 0.25% fee.
Is a 1% fee too high?
It depends on what you get for it. Some advisers include planning, tax and estate help; others mainly manage investments. Compare the services offered with the total cost you'll pay.
What fees should I ask an adviser about?
The SEC suggests asking your investment professional to explain all of the fees you'll pay. That can include advisory fees, fund expenses, trading costs and account fees.
Does this calculator include mutual fund expenses?
Only if you include them in the fee you enter. To estimate your total cost, add your adviser's fee to the expense ratios of the funds you hold.
Sources
- Investor.gov (SEC): How Fees and Expenses Affect Your Investment Portfolio
- Investor.gov (SEC): Understanding Fees
This guide is general information, not personal advice. Your situation may differ, so consider talking with a qualified professional, such as a fiduciary financial adviser, CPA or licensed agent, before making a decision.