Updated on July 3, 2026
Quick answer (2026): AUM fee examples, AUM fee tier tables, and tiered AUM fee schedule comparisons should show the annual dollar cost, the tiered fee schedule effective rate, and the effective AUM fee rate after by-slice math. A straight 1.00% AUM fee costs $5,000/year on $500,000, $10,000/year on $1,000,000, $20,000/year on $2,000,000, and $30,000/year on $3,000,000 before fund, platform, overlay, trading, tax-prep, or implementation costs. If you are still checking AUM fee meaning, remember that the percentage applies to managed assets before fund, platform, and planning add-ons.
Use this page to compare straight AUM percentages, a tiered fee schedule, effective rates, and all-in cost examples before accepting an advisor proposal. The useful question is not only “what is the AUM percentage?” It is “what will I pay in dollars, what is included, what is excluded, and how does this compare with a flat annual, retainer, hourly, or project-fee quote for the same planning scope?” Then run the same quote through the financial advisor fee calculator before an intro call.
Fast tools: AUM Fee Calculator · AUM fee meaning · Financial advisor fee calculator · Compare financial advisor rates · Find a Financial Advisor · fee-only financial advisor near me · fiduciary financial advisor near me · Flat Fee vs AUM Break-Even · AUM Fee Breakpoints · AUM Fees by Balance · Wealth Management Fees · Average Financial Advisor Fees
Compare the AUM fee example and tiered fee schedule before a call
Use the straight and tiered AUM fee examples to turn a percentage quote into annual dollars, tiered fee schedule math, effective rates, all-in cost, and a written scope checklist before you book a conversation.
Tool path: AUM Fee Calculator (enter your quote) – Financial advisor fee calculator (compare other pricing models) – AUM Fee Breakpoints (check tiers) – Wealth management fees (compare all-in cost).
AUM fee examples: straight percentage schedules
| Managed portfolio | 0.50% AUM | 0.75% AUM | 1.00% AUM | Monthly cost at 1.00% |
|---|---|---|---|---|
| $250,000 | $1,250/year | $1,875/year | $2,500/year | About $208/month |
| $500,000 | $2,500/year | $3,750/year | $5,000/year | About $417/month |
| $1,000,000 | $5,000/year | $7,500/year | $10,000/year | About $833/month |
| $2,000,000 | $10,000/year | $15,000/year | $20,000/year | About $1,667/month |
| $3,000,000 | $15,000/year | $22,500/year | $30,000/year | About $2,500/month |
These are advisory-fee examples only. They do not include fund expense ratios, platform fees, overlay fees, trading costs, taxes, tax-prep costs, or implementation charges.
Tiered AUM fee example: by-slice schedule
A tiered AUM schedule usually charges one rate on the first slice of assets, a lower rate on the next slice, and another rate above the next breakpoint. This is often called “by-slice” or “marginal” pricing, similar to tax brackets.
| Example tier | Rate | Fee on that slice |
|---|---|---|
| First $1,000,000 | 1.00% | Up to $10,000/year |
| Next $2,000,000 | 0.80% | Up to $16,000/year |
| Amounts above $3,000,000 | 0.60% | $6,000/year per additional $1,000,000 |
Effective AUM rates from the tiered example
| Portfolio balance | Fee calculation | Annual advisory fee | Effective AUM rate | Flat 1.00% comparison |
|---|---|---|---|---|
| $500,000 | $500k × 1.00% | $5,000/year | 1.00% | $5,000/year |
| $1,000,000 | $1M × 1.00% | $10,000/year | 1.00% | $10,000/year |
| $2,000,000 | $10,000 + $8,000 | $18,000/year | 0.90% | $20,000/year |
| $3,000,000 | $10,000 + $16,000 | $26,000/year | 0.87% | $30,000/year |
| $5,000,000 | $10,000 + $16,000 + $12,000 | $38,000/year | 0.76% | $50,000/year |
The effective AUM rate is the annual advisory fee divided by the portfolio balance. A lower effective percentage can still be a large dollar amount, so compare the fee against the written planning scope.
By-slice tiers vs one rate on the full balance
| Billing method | Example on $2,000,000 | Annual fee | What to ask |
|---|---|---|---|
| By-slice tier schedule | 1.00% on first $1M + 0.80% on next $1M | $18,000/year | Are tiers billed by slice, like tax brackets? |
| One lower rate on full balance | 0.80% × full $2M balance | $16,000/year | Does the lower breakpoint rate apply to the entire account? |
| One flat 1.00% rate | 1.00% × full $2M balance | $20,000/year | Is there any breakpoint schedule at all? |
Do not guess from the proposal headline. Ask the advisor to show the annual advisory fee in dollars at your current balance and at the next likely balance.
All-in AUM cost examples with UMA/platform fees
AUM is usually only one layer of cost. Ask for the advisory fee, fund expenses, platform fees, overlay fees, UMA/program fees, trading costs, tax-prep costs, and implementation charges separately. If a quote includes a UMA (unified managed account), compare the platform layer by balance in AUM fees by balance and UMA platform costs before accepting the tier schedule.
| Portfolio | Tiered advisory fee | ETF/fund cost at 0.06% | UMA/platform at 0.10% | All-in annual example |
|---|---|---|---|---|
| $1,000,000 | $10,000 | $600 | $1,000 | $11,600/year |
| $2,000,000 | $18,000 | $1,200 | $2,000 | $21,200/year |
| $3,000,000 | $26,000 | $1,800 | $3,000 | $30,800/year |
Use the AUM Fee Calculator to model your exact tier schedule and the Advisor Fee Calculator to compare AUM against flat annual, retainer, hourly, and project-fee quotes.
When a tiered AUM schedule may fit
- You want ongoing portfolio management bundled with planning, rebalancing, and implementation help.
- The advisor’s planning scope includes retirement income, Roth-conversion windows, Medicare/IRMAA, RMDs, taxable withdrawals, estate-adjacent coordination, or equity-compensation planning.
- The proposal has real breakpoint relief as assets rise.
- Fund, platform, overlay, and program costs are low and clearly disclosed in dollars.
- The advisor will show the all-in annual cost and effective percentage before you sign.
When to compare against flat fee, retainer, or hourly
- The AUM quote creates a high dollar fee relative to the planning work you need.
- You want advice-only planning or a second opinion, not ongoing discretionary portfolio management.
- You have a narrow question: rollover analysis, Roth-conversion window, RSU withholding, concentrated-stock sale, or fee review.
- You want a predictable annual dollar amount that does not automatically rise with portfolio growth.
- The AUM proposal is vague about what is included, what is excluded, or what becomes hourly.
For break-even math, use the Flat Fee vs AUM Break-Even Calculator. For broader benchmarks, see Average Financial Advisor Fees and AUM Fees by Balance.
Copy/paste: ask for the AUM tier schedule in dollars
Subject: AUM tier schedule — annual dollars and effective rate Hi — I’m reviewing the proposed AUM fee and want to compare it apples-to-apples against flat-fee, retainer, hourly, and project-fee options. Could you send a short written summary covering: 1) My annual advisory fee in dollars at my current portfolio balance. 2) The AUM tier schedule and whether tiers are billed by slice or applied to the full balance. 3) My effective AUM rate after breakpoints. 4) Whether household, spouse, trust, taxable, IRA, Roth, and inherited accounts are aggregated for lower breakpoints. 5) Any fund expense ratios, platform fees, overlay fees, UMA/program fees, trading costs, tax-prep costs, or implementation charges. 6) Whether financial planning is included in the AUM fee or billed separately. 7) What is included, what is excluded, and what becomes hourly or out-of-scope. 8) Whether you can provide a flat annual, retainer, hourly, or project-fee quote for the same planning scope. 9) Whether you act as a fiduciary at all times. Thanks!
Balance-specific AUM checks: Compare AUM fees at $500k, AUM fees at $1M, and AUM fees at $2M; use the AUM breakpoints visual and AUM calculator how-to before you accept a percentage quote. For broader planning examples, use the financial advisor fees by portfolio size guide.
Effective rates have a state counterpart
A tiered schedule produces an effective rate lower than its headline tier, which is why this page works in effective terms. State tax behaves the same way: statutory brackets and exemption thresholds combine into an effective rate on retirement income that is rarely the headline number either. The same arithmetic applied to residency is at retirement tax relocation, and the personalised ranker computes it for all 51 jurisdictions against your own figures.
You have the effective rate, not the headline rate. Quote it back at them.
The tiered schedule and the blended rate it actually produces are two different numbers, and only one of them appears in a pitch. Ask the advisers below what YOUR effective rate would be, in dollars, before anything is signed. It is free to you, and it is not the only way to find an adviser.
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Methodology
- Dollar-first comparison. This page converts AUM percentages and tier schedules into annual advisory dollars so readers can compare AUM, flat-fee, retainer, hourly, and project-fee proposals.
- Tier examples. The tiered examples use an illustrative by-slice schedule: 1.00% on the first $1,000,000, 0.80% on the next $2,000,000, and 0.60% above $3,000,000.
- Effective rate math. Effective AUM rate equals total annual advisory fee divided by portfolio balance.
- All-in examples. All-in examples add illustrative ETF/fund costs and platform/overlay costs to the advisory fee. Real proposals may include different fund expenses, platform fees, overlay fees, UMA/program fees, trading costs, tax-prep costs, or implementation charges.
- Scope-first review. A fee is only meaningful when paired with written scope, 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.
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