Financial Advisor Fee Calculator: Compare Costs

Financial advisor fees can range widely, and if you’re not careful, they may eat away at your long-term returns

Our financial advisor fee calculator will show you how much you might pay under two common advisor fee models — and how those fees may affect your total investment growth. » Looking for an advisor

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How to use the financial advisor fee calculatorEnter an initial investment amount

If you’re considering a financial advisor who charges a fee based on your assets under management, your first fee typically is based on this beginning balance

This will allow you to see how fees may affect your investment growth over time

Select the type of advisor fee

The financial advisor fee calculator allows you to compare the impact of paying an AUM fee or a flat annual fee

If you are comparing financial advisor fees, you can plug it into the calculator as a percentage or as a dollar amount, if you’re paying a flat fee

If you’re not at that stage, you can estimate how much a financial advisor costs

Advisors who charge flat fees cost $4,484 on average in 2024, according to Envestnet, a company that develops software for the wealth management industry[0]Envestnet. 2024 State of Financial Planning and Fees: nology’s Impacts

Enter annual contributions

Assuming you’ll add to your investments each year, how much you’ll pay in fees will change if your advisor charges an AUM fee

Input an estimated rate of return

In addition to growth through annual contributions, the calculator takes into account potential returns on your investments. » MORE: How to choose a financial advisorHow financial advisor fees could affect returnsThe financial advisor fee calculator takes into account that advisors charge fees annually

Also, if your advisor charges an AUM fee, your fee may change if the value of your investments changes

The calculator will show you:Estimated gross balance: This is the estimated value of your investments at the end of the period

It includes any annual contributions, as well as annual returns

It does not include any fees paid

Estimated net balance: This is the estimated value of your investments at the end of the period minus annual fees

Fees paid: This is the total amount you’d pay in fees to your financial advisor over the given timeframe

Total cost of fees: This is the difference between your estimated gross balance and your estimated net balance

This accounts for investment earnings you’d lose because paying annual fees reduces your investment balance each year. » MORE: 10 questions to ask a financial advisor the authorTaryn PhaneufTaryn Phaneuf is a lead writer and content strategist covering wealth management, financial planning and other topics

She previously covered personal finance news