Advisor Fee Drag Calculator — What a 1% Fee Costs Over 20 Years
See how advisory fees compound into six-figure drag over decades. Compare your managed portfolio against a low-cost index alternative with the same gross return.
Over 20 years, a 1.00% advisory fee would cost you about $313,272 more than a low-cost index alternative.
That is 16.34% of the wealth you could have built — compounding invisibly in annual fee payments.
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This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.
Coach Insight
A 1% annual advisory fee on a $500,000 portfolio does not cost $5,000 per year — it costs the compounded growth on that $5,000 as well. Over 20 years, a 1% fee drag on a 7% gross-return portfolio reduces wealth by roughly 20-25% compared to a 0.05% index fund alternative. This calculator makes that invisible cost visible.
Reviewed Jun 24, 2026 · Methodology
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Frequently Asked Questions
Frequently Asked Questions
Everything you need to know.
Why This Matters
A 1% annual advisory fee on a $500,000 portfolio does not cost $5,000 per year — it costs the compounded growth on that $5,000 as well. Over 20 years, a 1% fee drag on a 7% gross-return portfolio reduces wealth by roughly 20-25% compared to a 0.05% index fund alternative. This calculator makes that invisible cost visible.
How to Use It
- 1Enter your numbers in the input panel.
- 2Review the live results and interpretation on the right.
- 3Use the diagnostic outputs to compare options or plan the next step.
- 4Use the related links below if you want to move from analysis to action.
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