How Much Does a Financial Advisor Cost?

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Financial advisors get paid in several different ways: a percentage of assets under management (commonly around 1% a year), a flat retainer, an hourly rate, or some blend of those. Fee-only fiduciary advisors are legally bound to act in your best interest at all times. Advisors working through a broker-dealer are held to a narrower standard called Regulation Best Interest, which only requires the recommendation to be suitable and in your best interest at the moment it's made, not on an ongoing basis. This calculator treats the fee as an ongoing monthly cost, weighing what you enter against your income and any existing debt.

These key factors affect financial advisor affordability

Fee structures vary widely

Advisors typically charge in one of three ways: a percentage of assets under management (commonly around 1% annually, sometimes stepping down as balances grow), a flat monthly or annual retainer, or an hourly rate. Which model an advisor uses, and how much they're managing, does most of the work in determining whether a given monthly cost is reasonable.

Fiduciary vs. commission-based advisors

A fee-only fiduciary is legally required to put your interests ahead of their own at all times, while a commission-based advisor earns money from the products they sell, brokerage firms, insurance companies, and mutual fund companies included, which creates a conflict of interest even when nothing improper is happening. Ask directly how an advisor is paid and whether they're acting as a fiduciary before signing anything; it's a fair question, and any legitimate advisor should answer it plainly.

What level of service you're paying for

A basic monthly subscription might only cover budgeting and goal-setting. Comprehensive wealth management, tax planning and estate planning included, costs meaningfully more, and usually comes from an advisor holding a credential like the Certified Financial Planner (CFP) designation.

How to use your results

Compare the monthly cost against the value of the specific services included, not just against your income, since a good advisor's guidance can pay for itself over time.
If the fee is a percentage of assets, convert it to a monthly dollar amount so you can see it alongside your other fixed costs.
Reassess whether you need ongoing advice or a one-time planning session, since the right service level changes the monthly commitment.

Ways to make a financial advisor more affordable

Ask about a flat-fee or hourly arrangement instead of a percentage of assets, which can be cheaper for larger balances.
Look into robo-advisors or hybrid services for basic portfolio management if you don't need comprehensive planning.
Negotiate the fee if you're managing a smaller than average portfolio, since some advisors have flexibility for long-term clients.
Start with a single consultation to build your own financial plan, then implement it yourself before committing to ongoing monthly fees.

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Peer comparison data

Bureau of Labor Statistics (median income by age), Experian (credit score by age)

Used by the “how you compare” figures in the sidebar, not by the costs on this page.

Every figure on this site, with its source and the date it was last verified