Clear Money Guide
What this guide covers
A quick view of the questions and evidence developed below.
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Updated on July 3, 2026
Quick answer (2026): AUM fee meaning: an AUM fee is an advisory fee charged as a percentage of the assets an advisor manages for you. If you are asking what is an AUM fee, it is the assets under management fee on the portfolio balance covered by the advisory agreement. AUM fees are usually quoted as an annual percentage. In dollars, 1.00% AUM costs about $2,500/year on $250,000, $5,000/year on $500,000, $10,000/year on $1,000,000, and $20,000/year on $2,000,000 before fund, platform, overlay, trading, tax-prep, or implementation costs. For average AUM fee for financial advisors 2026 and typical AUM fees for financial advisors 2026 comparisons, ask for the AUM fee structure, by-slice math, effective rate, and every extra cost before comparing the result against AUM fee examples.
The useful move is to convert every percentage into annual dollars. Then ask whether the tiered fee schedule is billed by slice, whether household accounts are aggregated for breakpoints, and what other costs sit on top of the advisory fee. If your comparison is AUM fee vs flat fee advisor pricing, run the quote through the AUM Fee Calculator, compare it against flat, retainer, hourly, and project-fee quotes with the financial advisor fee calculator, and use the Flat Fee vs AUM Break-Even Calculator to see where the flat quote starts to cost less. For worked percentage and tier examples, use AUM fee examples.
Fast tools: AUM Fee Calculator | AUM fee examples | AUM fees by balance | Financial advisor fee calculator | Find a Financial Advisor | fee-only financial advisor near me | fiduciary financial advisor near me | Flat Fee vs AUM Break-Even | 10-Year Fee Comparison | Average Financial Advisor Fees | AUM Fee Breakpoints
Compare AUM fee meaning in annual dollars before an advisor call
Use the tables below to convert AUM percentages, flat annual fees, retainers, hourly quotes, and project fees into dollars. Then run your exact quote through the calculator and ask what is included, excluded, and handled by a fiduciary advisor.
Tool path: Financial advisor fee calculator – AUM fee examples – Flat Fee vs AUM Break-Even – AUM Fee Calculator – Advisor Fee Comparison.
What is an AUM fee? AUM fee meaning and assets under management fees
AUM means assets under management. An AUM fee is the percentage-based advisory fee charged on the assets managed by the advisor or firm. A 0.75% AUM quote means 0.0075 × the managed portfolio value per year. A 1.00% AUM quote means 0.01 × the managed portfolio value per year.
- Annual advisory fee: portfolio value × AUM percentage.
- Monthly estimate: annual advisory fee ÷ 12.
- All-in cost: advisory fee + fund expenses + platform/overlay/UMA fees + any separate planning or implementation charges.
What 0.50%, 0.75%, and 1.00% AUM cost in dollars
| Managed portfolio | 0.50% AUM | 0.75% AUM | 1.00% AUM |
|---|---|---|---|
| $250,000 | $1,250/year | $1,875/year | $2,500/year |
| $500,000 | $2,500/year | $3,750/year | $5,000/year |
| $1,000,000 | $5,000/year | $7,500/year | $10,000/year |
| $2,000,000 | $10,000/year | $15,000/year | $20,000/year |
| $3,000,000 | $15,000/year | $22,500/year | $30,000/year |
These are advisory-fee examples only. They do not include ETF or mutual-fund expense ratios, platform fees, overlay fees, trading costs, tax-prep costs, legal costs, or one-time implementation charges.
Knowing the rate is not the same as knowing whether it is fair.
Once you know what your rate costs in dollars, a second quote is the cheapest way to test it. A matching service will introduce you to fiduciary advisors so you have a written comparison rather than a single quote.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide is paid when you submit the form, whether or not you ever hire anyone. The matching service is free to you and there is no obligation to hire anyone.
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By-slice AUM tiers vs one flat percentage
Many AUM schedules use tiers. The important question is whether the tiers are billed by slice, like tax brackets, or whether one rate applies to the entire balance. A by-slice schedule usually lowers the effective percentage as the managed portfolio grows.
| Portfolio | Example by-slice schedule | Advisory dollars | Effective advisory % | Flat 1.00% cost |
|---|---|---|---|---|
| $250,000 | 1.00% first $250k | $2,500/year | 1.00% | $2,500/year |
| $500,000 | 1.00% first $250k; 0.75% next $250k | $4,375/year | 0.88% | $5,000/year |
| $1,000,000 | 1.00% first $250k; 0.75% next $250k; 0.50% above $500k | $6,875/year | 0.69% | $10,000/year |
| $2,000,000 | Same by-slice tiers | $11,875/year | 0.59% | $20,000/year |
| $3,000,000 | Same by-slice tiers | $16,875/year | 0.56% | $30,000/year |
Use the AUM Fee Breakpoints guide or the AUM Fee Calculator if your proposal has multiple tiers.
All-in AUM cost: advisory fee + fund + platform costs
AUM is only one line item. The all-in cost can be higher if the portfolio also has ETF or mutual-fund expenses, platform fees, overlay fees, UMA program fees, trading costs, or separate planning charges. Ask for the annual dollar amount for each layer before comparing AUM to a flat annual fee.
| Example | Advisory fee | Fund ER at 0.06% | Platform/overlay at 0.10% | All-in annual cost |
|---|---|---|---|---|
| $500,000 portfolio using the by-slice example | $4,375 | $300 | $500 | $5,175/year |
| $1,000,000 portfolio using the by-slice example | $6,875 | $600 | $1,000 | $8,475/year |
| $2,000,000 portfolio using the by-slice example | $11,875 | $1,200 | $2,000 | $15,075/year |
What is a UMA fee on a statement?
A UMA fee usually refers to a Unified Managed Account or managed-account program fee. On a statement, a line such as “UMA fee,” “program fee,” “overlay fee,” or “platform fee” may be separate from, or bundled into, the advisory fee. A “final” UMA fee can reflect the billing period, proration, account changes, or the final charge for a closing period.
Do not guess from the statement label. Ask the advisor or platform for the annualized cost in dollars, the billing period, whether the fee is advisory, platform, overlay, or program-related, and whether it is in addition to fund expense ratios.
AUM vs flat fee vs hourly: what to compare
- AUM can fit when you want ongoing portfolio management bundled with planning, but the fee rises as managed assets rise.
- Flat annual planning can fit when you want predictable annual dollars, a written scope, service calendar, and ongoing advice not priced only as a percentage of assets.
- Hourly or project work can fit when you need a narrow second opinion, rollover review, Roth-conversion analysis, RSU review, or fee audit.
- Retainers can fit when you want a subscription-style relationship, but you still need the annual dollar cost and cancellation terms.
For a direct comparison, use the Advisor Fee Calculator. To find the portfolio size where a flat fee becomes cheaper than AUM, use the Flat Fee vs AUM Break-Even Calculator. For broader benchmarks, see Average Financial Advisor Fees, Flat-Fee Financial Advisor, and Hourly Advisor Rates.
Copy/paste: ask for the AUM schedule in dollars
Subject: AUM fee schedule — annual dollars and all-in cost Hi — I’m reviewing the proposed advisory fee and want to make sure I understand the total cost. Could you send a short written summary covering: 1) My annual advisory fee in dollars at my current portfolio size. 2) The AUM tier schedule and whether tiers are billed by slice or applied to the full balance. 3) Whether household accounts are aggregated for lower breakpoints. 4) Any fund expense ratios, platform fees, overlay fees, UMA/program fees, trading costs, or implementation charges. 5) Whether financial planning is included in the AUM fee or billed separately. 6) What is included, what is excluded, and what becomes hourly or out-of-scope. 7) Whether you can provide a flat annual, retainer, hourly, or project-fee quote for the same planning scope. 8) Whether you act as a fiduciary at all times. My goal is to compare AUM, flat-fee, retainer, hourly, and project-fee options apples-to-apples in annual dollars. Thanks!
Methodology
- Dollar-first comparison. This page converts AUM percentages into annual dollars so readers can compare percentage-based quotes against flat, retainer, hourly, and project-fee options.
- Tier examples. By-slice examples use a simple illustrative schedule: 1.00% on the first $250,000, 0.75% on the next $250,000, and 0.50% above $500,000.
- All-in cost examples. All-in examples add illustrative fund and platform costs to the advisory fee. Actual proposals may include different expense ratios, platform fees, overlay fees, trading costs, tax-prep costs, or implementation charges.
- Scope-first review. AUM is only a pricing model. A quote is only useful when paired with written scope, planning deliverables, meeting cadence, implementation help, response-time expectations, and exclusions.
- Data freshness. This page was last reviewed on July 3, 2026. Fee schedules, fund costs, platform costs, and planning assumptions can change over time.
- Educational only. This is not tax, legal, or investment advice. For personal recommendations, talk to a qualified fiduciary advisor.
Editorial standards: Editorial Policy · Corrections · Disclaimer
What the filings actually say. We measured the fee schedules 176 SEC-registered advisers publish in their Form ADV Part 2A filings: at $250,000 only 28.4% disclose a fee you can price at all, and the weighted median annual cost among those that do is $2,000 to $2,500. The full benchmark, with method.