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Advisor Fee Drag Calculator
Compare outcomes and understand what percentage-based advice fees cost long-term.
Advisor Fee Drag Inputs
See how advisory fees impact long-term portfolio growth.
Fee drag result
Portfolio without advisor fee
$1,573,103
Portfolio after fee drag
$1,302,155
Total cost of fee drag
$270,949
Portfolio reduction
17.2%
Effective net return after fees: 6.00%.
Fee transparency improves decisions
A small annual fee can look harmless in year one, but compounding makes it expensive over 20 to 30 years. This calculator isolates that effect so you can compare options clearly.
How to use this calculator effectively
1. Start with your realistic portfolio value. Use your current invested balance, not your target balance.
2. Test at least three fee scenarios. Compare your current fee to lower-cost options and a no-fee baseline.
3. Choose a long enough time horizon. Use 10, 20, and 30-year views to see compounding fee drag clearly.
How to interpret your results
The most important number is the difference in ending portfolio value between scenarios. That is your lifetime fee drag estimate.
If the gap is large, review whether the extra fee is justified by better net returns, tax planning, risk management, or behavioral coaching.
Use this as a decision aid, then validate assumptions annually as markets and your portfolio change.
FAQ
Are lower fees always better?
Not always. The real question is net value after fees and taxes.
Can I model multiple fee options?
Yes, rerun this tool with different fee percentages and horizons.
What fee level should I compare first?
A practical baseline is your current fee against 0.25% and 0.75% options.
Can I include ETF and platform fees too?
Yes. Use your all-in annual fee so the output reflects true cost.
Track net returns, not just gross returns
MoneyCoach helps you track progress against your real after-cost plan.
Get MoneyCoachImportant Disclaimer
This tool is for educational and planning purposes only. It does not provide financial, tax, or legal advice. Results are estimates based on your inputs and may differ from real-world outcomes.