How Much Does a Financial Advisor Cost?

How much does a financial advisor cost?

Most financial advisors charge in one of four ways, and the right comparison depends on which model they use. The most common is a percentage of the assets they manage — frequently around 1% per year, and often lower as your balance grows. Others charge flat project fees, hourly rates, or annual retainers. A good advisor will always share their fees in writing before you commit.

The four common fee structures

Each model fits a different kind of service. Here are the typical ranges you are likely to see:

Fee model	How it works	Commonly reported range
Assets under management (AUM)	A yearly percentage of the money the advisor manages	About 0.75%–1.50% per year, often near 1% for $500,000–$1 million portfolios
Flat / project fee	A set price for a financial plan or defined project	About $2,000–$6,000 per project
Hourly	You pay for the advisor's time	About $250–$600 per hour
Annual retainer	A fixed yearly fee for ongoing advice	About $3,000–$12,000 per year

These ranges are drawn from Domain Money's 2026 fee guide, which reports typical AUM fees around 0.75%–1.50%, project-based planning around $2,000–$6,000, annual flat fees around $3,000–$12,000, and hourly rates around $250–$600. They are also broadly consistent with Kitces Research (2024), which finds the median AUM fee on portfolios up to $1 million is about 1% (roughly 100–120 basis points at the 25th–75th percentile, declining at higher balances). Your actual cost depends on the advisor, your assets, and the complexity of your situation. Always confirm the exact figure in the advisor's Form ADV and engagement agreement.

What an AUM fee looks like in dollars

Because the AUM model is the most common, it helps to translate the percentage into dollars. At a 1% annual fee:

• A $100,000 portfolio costs about $1,000 per year.
• A $500,000 portfolio costs about $5,000 per year.
• A $1,000,000 portfolio costs about $10,000 per year.

Many advisors use a tiered schedule, so the percentage drops on higher balances. Remember that the AUM fee is charged on the assets managed, not on your investment returns — you pay it whether your portfolio rises or falls. The fee-based vs. commission-based page explains how this differs from commissions and performance fees.

What affects the price?

Several factors move an advisor's fee up or down:

1. How much you invest. Percentage fees usually decline at higher asset levels.
2. The services included. Comprehensive planning, tax coordination, and estate work cost more than investment management alone.
3. The fee model. A one-time flat plan can be cheaper than ongoing AUM fees if you mainly need a plan, not continuous management.
4. Complexity. Business owners, equity compensation, and multi-account households take more work.

Is it worth the cost?

Whether an advisor is worth the fee depends on the value you receive — planning, tax-aware decisions, and steady guidance during volatile markets can outweigh the cost for many people. We cover this in depth in is a financial advisor worth it, and the lower-cost automated option in financial advisor vs. robo-advisor.

Get matched at no cost

Comparing fees is easier when you start with the right advisors. Our service is free, and it matches you with vetted fiduciary advisors who will explain their fees clearly and in writing — with no obligation to move forward.