Fee transparency calculator
Advisor fees, translated into lifetime dollars.
See how fund expenses, a percentage-based advisory fee, and a flat monthly fee change the same portfolio over time.
Assumptions used
Every input is adjustable and bounded. Percentage figures are annual quotes; the model applies them monthly using the conventions shown below.
Portfolio value at the beginning of the projection.
Allowed range: 0 to 100000000.
Added as twelve equal end-of-month contributions.
Allowed range: 0 to 1000000.
A constant effective annual return, converted to its true monthly equivalent.
Allowed range: -20 to 20 %.
The annual expense ratio charged in every scenario, divided by 12 monthly.
Allowed range: 0 to 5 %.
The annual percentage advisory fee in the AUM scenario, divided by 12 monthly.
Allowed range: 0 to 5 %.
A fixed dollar fee deducted at the end of each month in the flat-fee scenario.
Allowed range: 0 to 5000.
Choose how many complete projection years to model.
- Monthly contribution
- $0
- Equivalent monthly return
- 0.5654%
- Monthly fund rate
- 0.0083%
- Monthly AUM rate
- 0.0833%
Positive result
No-advisory-fee ending balance
$7,387,270
Includes fund expenses, but no advisory fee.
Caution
AUM advice ending balance
$5,471,803
$791,914 in modeled advisory fees; $1,915,467 modeled opportunity cost.
Caution
Flat-fee advice ending balance
$7,272,604
$36,000 in modeled advisory fees; $114,666 modeled opportunity cost.
Caution
AUM versus flat annual-fee crossover
Year 1
$10,322 of actual AUM advisory fees in that year first exceed $1,200 of stated flat fees. The AUM portfolio ends that year at $1,058,289.
Fee and drag reconciliation
| Scenario | Ending balance | Advisory fees | Fund expenses | Opportunity cost | Blended annualized fee rate |
|---|---|---|---|---|---|
| No advisory fee | $7,387,270 | $0 | $96,095 | $0 | 0.10% |
| AUM percentage advice | $5,471,803 | $791,914 | $79,191 | $1,915,467 | 1.10% |
| Flat monthly advice | $7,272,604 | $36,000 | $94,912 | $114,666 | 0.14% |
Monthly conventionGrow the opening balance → add the end-of-month contribution → calculate every percentage fee from that same pre-fee balance → deduct percentage fees → deduct the flat fee. Balances stop at zero.
How the three balances diverge
The chart and table show the same annual values. Line pattern and labels carry the meaning; color is not the only cue.
| Projection year | No advisory fee | AUM percentage advice | Flat monthly advice |
|---|---|---|---|
| Start | $1,000,000 | $1,000,000 | $1,000,000 |
| Year 1 | $1,068,930 | $1,058,289 | $1,067,693 |
| Year 2 | $1,142,612 | $1,119,976 | $1,140,052 |
| Year 3 | $1,221,373 | $1,185,258 | $1,217,399 |
| Year 4 | $1,305,563 | $1,254,346 | $1,300,078 |
| Year 5 | $1,395,556 | $1,327,461 | $1,388,455 |
| Year 6 | $1,491,753 | $1,404,837 | $1,482,925 |
| Year 7 | $1,594,580 | $1,486,724 | $1,583,906 |
| Year 8 | $1,704,495 | $1,573,384 | $1,691,848 |
| Year 9 | $1,821,987 | $1,665,095 | $1,807,230 |
| Year 10 | $1,947,577 | $1,762,152 | $1,930,566 |
| Year 11 | $2,081,825 | $1,864,867 | $2,062,403 |
| Year 12 | $2,225,326 | $1,973,568 | $2,203,328 |
| Year 13 | $2,378,718 | $2,088,606 | $2,353,967 |
| Year 14 | $2,542,685 | $2,210,349 | $2,514,990 |
| Year 15 | $2,717,953 | $2,339,188 | $2,687,112 |
| Year 16 | $2,905,303 | $2,475,538 | $2,871,099 |
| Year 17 | $3,105,567 | $2,619,835 | $3,067,767 |
| Year 18 | $3,319,635 | $2,772,543 | $3,277,993 |
| Year 19 | $3,548,459 | $2,934,152 | $3,502,709 |
| Year 20 | $3,793,056 | $3,105,181 | $3,742,915 |
| Year 21 | $4,054,514 | $3,286,180 | $3,999,678 |
| Year 22 | $4,333,993 | $3,477,728 | $4,274,141 |
| Year 23 | $4,632,738 | $3,680,442 | $4,567,522 |
| Year 24 | $4,952,074 | $3,894,972 | $4,881,126 |
| Year 25 | $5,293,423 | $4,122,007 | $5,216,347 |
| Year 26 | $5,658,302 | $4,362,275 | $5,574,675 |
| Year 27 | $6,048,331 | $4,616,548 | $5,957,702 |
| Year 28 | $6,465,246 | $4,885,643 | $6,367,132 |
| Year 29 | $6,910,898 | $5,170,423 | $6,804,784 |
| Year 30 | $7,387,270 | $5,471,803 | $7,272,604 |
Formula and interpretation notes
Equivalent monthly return = (1 + annual return)^(1/12) − 1. Quoted annual fee percentages are divided by 12. Calculations keep full precision and round only the values shown on screen.
Blended annualized fee rate = 12 × total modeled fees ÷ sum of monthly pre-fee balances. “Total modeled fees” includes fund expenses and advisory fees actually deducted in that scenario.
Opportunity cost is the no-advisory-fee ending balance minus the ending balance for a fee-paying scenario. It reflects this model's constant assumptions and the growth that deducted fees no longer earn. Real markets, cash flows, services, taxes, and billing methods differ.
Educational illustration only. This calculator is not a forecast, guarantee, tax analysis, or individualized investment recommendation.
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Questions this model answers
How does the advisor fee calculator model each month?
It grows the opening balance using the equivalent monthly return, adds one-twelfth of the annual contribution, calculates percentage fees from that same pre-fee balance, and then deducts the applicable fees without allowing the balance to fall below zero.
What does opportunity cost mean here?
It is the difference between the modeled no-advisory-fee ending balance and a fee-paying scenario's ending balance. It includes both fees paid and the modeled growth those dollars no longer earn, so it is not a guaranteed saving.
What is the crossover year?
It is the first projection year when the actual AUM advisory fees deducted during that year exceed twelve months of the selected flat fee.
Is this a forecast or financial advice?
No. It is an educational, deterministic illustration based on the assumptions entered. Actual returns, cash flows, fees, taxes, and account values will differ.