Scope
Does the fee cover investment management only, or also taxes, retirement, cash flow, insurance, estate coordination, and ongoing decisions?
Free advisor fee calculator
Flat Fee vs AUM Calculator
See the dollar difference between a flat annualized financial planning fee and a percentage-of-assets fee using your own numbers.
Direct answer
How do flat financial advisor fees compare with AUM fees?
A flat fee stays fixed unless the scope or price changes. An AUM fee is calculated as a percentage of managed investments, so the dollar cost generally rises as the portfolio grows. At a 1% rate, a $1 million portfolio starts with an estimated $10,000 annual advisory fee, compared with the $6,600 annualized Flames Premier fee in the default example.
Interactive calculator
Compare the two fee models
Adjust the portfolio, AUM rate, assumed growth, flat annualized fee, and comparison period. Results update instantly. Use Copy scenario link when you want to share your assumptions; the browser address stays clean.
Your assumptions
Adjust the values to model your scenario.
Flames annualized fee presetsPremier selected
Estimated impact
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Estimated savings with the flat fee
Over 10 years at these assumptions
Year-one AUM fee Based on the starting portfolio
Cumulative AUM fees
Cumulative flat fees
Cumulative fee comparison
AUM fee model
Flat-fee model
Assumptions and limitations: This is a simplified educational illustration, not a performance forecast. It applies the selected AUM rate to each year's beginning portfolio balance, grows that balance at the selected rate for the next year, and holds the flat annualized fee constant. Both fees are treated as paid separately and do not reduce the modeled portfolio balance. It excludes withdrawals, deposits, taxes, fund expenses, trading costs, service differences, and future price changes.
Read the result
The fee is only one part of the decision
Compare the cost in dollars, then compare what each relationship actually includes.
Conflicts
Ask whether the advisor earns more when you roll over assets, keep money under management, or avoid paying down debt.
Service model
Compare advisor access, planning updates, tax-return preparation, implementation support, custody, and who will answer when life changes.
Example
What does 1% AUM mean in dollars?
A 1% fee equals $2,500 per year on $250,000, $5,000 on $500,000, $10,000 on $1 million, and $20,000 on $2 million before considering portfolio growth or compounding. Translating the percentage into dollars makes the comparison easier to evaluate.
$500,000 portfolio
A 1% AUM fee is approximately $5,000 per year if the portfolio stays at $500,000.
$1 million portfolio
A 1% AUM fee is approximately $10,000 per year if the portfolio stays at $1 million.
$2 million portfolio
A 1% AUM fee is approximately $20,000 per year if the portfolio stays at $2 million.
Watch and learn
Watch the Flat Fee vs AUM Walkthrough
Start with three videos selected for this page, then use the controls to explore every published Flames FP video guide.
Videos 1–3 of 14
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Flat Fee vs 1% Financial Advisor
See how a percentage fee changes in dollars as a portfolio grows and what to compare beyond the headline rate. -
What Nobody Tells You About Earning $400K a Year
See why a $400K income can still leave too little investable margin and how taxes, lifestyle growth, and deliberate investing change the result. -
The 3-Account System for a $250K Income
Use cash reserves, tax-advantaged accounts, and a taxable brokerage account to turn a strong income into a repeatable wealth-building system. -
The 6 Levels of Wealth for $200K+ Households
Use six stages to separate a high income from the wealth it actually creates. -
The RSU Strategy Most $300K Tech Earners Miss
Understand taxation at vesting, check the withholding gap, and turn each RSU vest into a deliberate diversification and household-planning decision. -
The Most Underrated Retirement Account
How a taxable brokerage account can support retirement flexibility alongside tax-advantaged accounts. -
How to Decrease Your Tax Bill
Review practical tax-planning decisions that can connect income, investments, retirement, and withholding. -
Should You Invest or Spend Your HSA?
A practical framework for deciding how an HSA fits healthcare costs, taxes, and retirement planning. -
Four Common Backdoor Roth IRA Mistakes
Understand contribution, conversion, pro-rata, and reporting mistakes before they create tax problems. -
Direct Indexing vs ETFs in a Taxable Account
Compare diversification, tax management, cost, and complexity before changing an investment strategy. -
My New Favorite Account to Gift Money to Kids and Grandkids
Compare the new child investment account with 529 plans, custodial accounts, Roth IRAs for earned income, and the family's actual goals. -
Estate Planning Documents You May Need
A plain-English review of wills, powers of attorney, healthcare directives, beneficiaries, and trusts. -
How Much Life Insurance Do You Need?
Think through income replacement, debt, children, childcare, education, and family risk. -
Five Money Mistakes High Earners Make
Common coordination gaps involving taxes, cash flow, investments, insurance, and estate planning.
Common questions
Questions About Financial Advisor Fees
What is an AUM fee?
An AUM fee is an advisory fee based on assets under management. A 1% annual rate on $1 million is approximately $10,000, although billing methods and breakpoints vary by firm.
Is a flat-fee financial advisor always cheaper?
No. The answer depends on the flat fee, the AUM rate, portfolio size, included services, and how long the relationship lasts. Cost should be compared alongside scope and value.
Does this calculator include investment growth?
Yes. It uses the annual growth rate you select to illustrate how the AUM fee can change as the portfolio changes. The result is educational and not a performance forecast.
Does Flames FP charge an AUM fee?
No. Flames FP uses flat quarterly memberships of $150, $900, or $1,650 based on service scope, not a percentage of the investment portfolio.
Compare the complete relationship
See What Each Flames Membership Includes
Compare Flames Access, Planning, and Premier at $150, $900, or $1,650 per quarter, then choose the relationship that matches the help you need.