How Advisor Fees Affect Long-Term Portfolio Value

Flat-Fee vs. AUM: Annual Cost Comparison

A 1% AUM fee rises as your portfolio grows. A flat-fee stays consistent.

This comparison uses Mayfair Financial's $12,500 standard annual fee for illustration. That fee applies to W-2 wage earners with a net worth under $10 million, a simple estate, and U.S. citizenship and tax home. Business owners and clients with a net worth above $10 million or more complex circumstances are priced individually.

Annual cost at different portfolio levels

$1.5M

$12.5k vs. $15k

$2.5M
$12.5k vs. $25k

$5M

$12.5k vs. $50k

$7.5M

$12.5k vs. $75k

$10M

$12.5k vs. $100k

Flat-fee: $12,500 1% AUM fee

At $2.5M, a 1% AUM fee is $25,000 per year compared with a $12,500 flat-fee.

Flat-fee shown as current annual cost. In the long-term projection below, the flat fee increases 3% annually.

The annual difference is only part of the story. Over time, fees can also affect how much your portfolio has left to grow.

Estimated Portfolio Value After Fees

Move the slider to compare long-term portfolio impact.

Starting Portfolio: $2,500,000

$1.5M$2.5M$5M$7.5M$10M

Difference in portfolio value
(flat-fee vs. AUM)

$876,233

Hover over the lines to see estimated portfolio value by year.

Estimated portfolio value after fees: Flat-fee: $7,434,079 AUM: $6,557,846

Time horizon:

Assumes 6% annual growth before fees

These figures show estimated portfolio value after fees — not the fees paid.

Hypothetical example. Assumes a 6% return before fees, a $12,500 flat annual fee growing 3% annually, and a 1% AUM fee. This does not reflect actual investment performance, tax outcomes, or the value of financial advice. Results will vary.