Loading
Crunching the numbers for your scenario. This should only take a moment.
Crunching the numbers for your scenario. This should only take a moment.
For finance nerds
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.
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.
rmonthly = (1 + rannual)1/12 − 1
Example: 8% annual → (1.08)1/12 − 1 ≈ 0.6434% per 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:
balancem = balancem−1 × (1 + rmonthly) − $100
Total flat fees = $100 × total months = $1,200 × years
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.
aummonthly = annual AUM% / 12
For each month m = 1 to N × 12:
grossm = balancem−1 × (1 + rmonthly)
feem = grossm × aummonthly
balancem = grossm − feem
Equivalently: balancem = balancem−1 × (1 + rmonthly) × (1 − aummonthly)
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.
$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 | $1,450,305 | $1,400,498 | $49,807 |
| 10 | $2,108,568 | $1,961,399 | $147,169 |
| 20 | $4,478,105 | $3,842,165 | $635,940 |
Total flat fees paid: $24,000. Total AUM fees paid: ~$399,084.