For finance nerds

How the calculator works

Our savings calculator compares two scenarios: keeping your current AUM-based advisor vs. switching to Smarter Way Wealth's $100/month flat fee. Here is the exact math.

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Monthly compounding

Both scenarios compound monthly using a true monthly equivalent of your selected annual growth rate. This is more accurate than annual compounding because fees and growth happen continuously throughout the year.

r_monthly = (1 + r_annual)^1/12 − 1

Example: 8% annual → (1.08)^1/12− 1 ≈ 0.6434% per month

Scenario A: Smarter Way Wealth flat fee ($100/month)

Each month, the portfolio grows by the monthly rate, then $100 is deducted. The dollar cost is fixed regardless of portfolio size.

balance₀ = initial portfolio

For each month m = 1 to N × 12:

balance_m = balance_m−1 × (1 + r_monthly) − $100

Total flat fees = $100 × total months = $1,200 × years

Scenario B: Traditional AUM advisor

Each month, the portfolio grows by the monthly rate, then a proportional share of the annual AUM fee is deducted. The dollar cost scales with the portfolio — the larger it grows, the more you pay.

aum_monthly = annual AUM% / 12

For each month m = 1 to N × 12:

gross_m = balance_m−1 × (1 + r_monthly)

fee_m = gross_m × aum_monthly

balance_m = gross_m − fee_m

Equivalently: balance_m = balance_m−1× (1 + r_monthly) × (1 − aum_monthly)

Your savings

savings = Smarter Way Wealth ending balance − AUM ending balance

This is the additional wealth you keep by paying a fixed $100/month instead of a percentage of your growing portfolio. The difference compounds over time because every dollar not lost to fees continues earning returns.

Worked example

$1,000,000 portfolio • 8% annual growth • 1% AUM fee • 20 years

Year	With Smarter Way Wealth ($100/mo)	With 1% AUM	Savings
0	$1,000,000	$1,000,000	—
5	$1,462,034	$1,397,639	$64,395
10	$2,140,913	$1,953,395	$187,518
20	$4,604,057	$3,815,751	$788,306

Total flat fees paid: $24,000. Total AUM fees paid: ~$422,058.

Assumptions & limitations

Constant annual rate of return (no sequence-of-returns risk).
No taxes, inflation adjustments, or withdrawals modeled.
No additional contributions during the projection period.
AUM fee divided linearly across 12 months (industry standard).
Fees deducted after growth is applied each month.
This calculator is for illustration only and does not constitute financial advice. Past performance does not guarantee future results.
See the site's important disclosures.

Crunching the numbers for your scenario. This should only take a moment.

Monthly compounding

r_monthly = (1 + r_annual)^1/12 − 1

Example: 8% annual → (1.08)^1/12− 1 ≈ 0.6434% per month

Scenario B: Traditional AUM advisor

Each month, the portfolio grows by the monthly rate, then a proportional share of the annual AUM fee is deducted. The dollar cost scales with the portfolio — the larger it grows, the more you pay.

aum_monthly = annual AUM% / 12

For each month m = 1 to N × 12:

gross_m = balance_m−1 × (1 + r_monthly)

fee_m = gross_m × aum_monthly

balance_m = gross_m − fee_m

Equivalently: balance_m = balance_m−1× (1 + r_monthly) × (1 − aum_monthly)

Year

With Smarter Way Wealth ($100/mo)

With 1% AUM

Savings

$1,000,000

—

$1,462,034

$1,397,639

$64,395

$2,140,913

$1,953,395

$187,518

$4,604,057

$3,815,751

$788,306

Assumptions & limitations

Constant annual rate of return (no sequence-of-returns risk).

No taxes, inflation adjustments, or withdrawals modeled.

No additional contributions during the projection period.

AUM fee divided linearly across 12 months (industry standard).

Fees deducted after growth is applied each month.

This calculator is for illustration only and does not constitute financial advice. Past performance does not guarantee future results.

See the site's important disclosures.