See exactly how much a 0.25% robo-advisor fee costs you over 10, 20, or 30 years compared to DIY index fund investing.
You invest $50,000 today, add $500/month, earn 7% per year gross, and hold for 30 years.
Robo-advisor (0.25% fee): ≈ $957,395
DIY index funds (0.03% fee): ≈ $1,008,597
Difference: ≈ $51,202 — about 5.1% of the DIY balance
The zero-fee baseline is ≈ $1,015,810, so the robo-advisor's 0.25% fee alone costs you ≈ $58,415 over 30 years.
You invest $10,000 upfront, add $250/month, earn 7%, and hold for 20 years.
Robo-advisor (0.25% fee): ≈ $164,784
DIY index funds (0.03% fee): ≈ $169,906
Difference: ≈ $5,122
Even at a 20-year horizon the 0.25% fee costs about $5,835 — money that would keep compounding long after you retire.
You invest $25,000 upfront, add $1,000/month, earn 7%, and hold for 10 years.
Robo-advisor (0.25% fee): ≈ $219,733
DIY index funds (0.03% fee): ≈ $222,890
Difference: ≈ $3,157
Over shorter horizons the gap looks small — but the same 0.22% fee gap compounds far harder the longer you stay invested.
You invest $100,000 upfront, add $2,000/month, earn 6.5%, and hold for 25 years.
Robo-advisor (0.25% fee): ≈ $1,915,668
DIY index funds (0.03% fee): ≈ $1,992,552
Difference: ≈ $76,884
The 0.25% fee consumes ≈ $87,626 vs the zero-fee baseline — enough to fund a full year of retirement.
Robo-advisor fees are charged as a percentage of assets under management every year, which means they reduce your compounding — not just your returns. A 0.25% fee on a $100,000 portfolio costs $250 in year one, but because that $250 never gets to compound, the true cost grows much larger over time. This calculator runs the same future-value math for three scenarios side by side: the robo-advisor's fee, your DIY index fund fee, and a zero-fee baseline.
Automated portfolio management — automatic rebalancing, tax-loss harvesting, dividend reinvestment, and goal planning. The 0.25% annual fee compounds against you for every year you stay invested.
Buy total-market index funds or ETFs yourself and hold them. Nearly free — but you handle rebalancing, tax-loss harvesting, and the discipline to stay invested on your own.
What your money would grow to if no one took a cut. This is the yardstick the calculator uses to measure the true dollar cost of each fee strategy over your full time horizon.
The classic baseline — 0.25% robo vs 0.03% DIY at 7% over 30 years — matches the verified example that shows a $51,202 gap.
Run the same inputs at different horizons to see how the fee gap widens with every extra decade of compounding.
Your provider may charge 0.15%–0.50%, offer a free tier, or drop to 0.15% above $2M. Enter your real fee for an accurate comparison.
Set both fee inputs to compare robo tiers against each other — or DIY index funds against a higher-fee actively managed fund.
A robo-advisor is an automated investment service that builds and manages a diversified portfolio for you using algorithms. You answer a few questions about your goals, time horizon, and risk tolerance, and the service constructs a portfolio of low-cost ETFs — then handles the day-to-day management from there.
The typical fee is 0.25% of assets under management per year — that's what Betterment and Wealthfront charge on their core tiers, with human-plus tiers running higher. A few providers (like Schwab Intelligent Portfolios and SoFi Automated Investing) offer basic tiers at 0%. Here's what the 0.25% fee typically buys you:
The trade-off is that the fee is charged every single year, on your entire balance, and it compounds against you for as long as you stay invested — which is exactly what this calculator quantifies.
The gap between a 0.25% robo-advisor fee and a 0.03% DIY index fund expense ratio is just 0.22 percentage points per year. That sounds almost too small to matter — but because it's deducted from the amount that compounds, year after year, it quietly grows into a five-figure gap over a 30-year investing career.
The table below shows a $50,000 current balance with $500/month contributions at a 7% gross annual return over 30 years:
| Scenario | Annual Fee | Ending Balance | Lost to Fees |
|---|---|---|---|
| Zero-fee baseline | 0.00% | ≈ $1,015,810 | — |
| Robo-advisor (Betterment / Wealthfront) | 0.25% | ≈ $957,395 | ≈ $58,415 |
| DIY index funds (VTI / VOO) | 0.03% | ≈ $1,008,597 | ≈ $7,213 |
The robo-advisor leaves you ≈ $51,202 less than DIY — about 5.1% of the DIY balance — purely because of the fee. Notice that the damage is not proportional to the fee: a 0.22% annual gap removes over 5% of your ending wealth. That's compounding working against fees the same way it works for returns.
On taxable accounts, automated tax-loss harvesting can add an estimated 0.3%–0.5% per year of after-tax value — which can exceed the 0.25% fee. For large taxable portfolios, this alone can justify the cost.
If you would otherwise procrastinate, chase performance, or sell in a panic, the robo's automation has real value. Paying 0.25% to actually stay invested beats paying 0.03% and bailing out at the bottom.
If you're comfortable rebalancing once a year and holding through drawdowns, the math is clear: DIY index funds at 0.03% keep tens of thousands more over 30 years. Use this calculator to see your exact number.
You can't control the market, but you can control what you pay to participate in it. Fees are the one cost you choose — and over decades, even small choices compound into life-changing differences.
Broad-market index funds and ETFs with expense ratios under 0.20% — many like VTI and VOO sit near 0.03% — give you the whole market for pennies.
Many robo-advisors charge 0.25% up to $2M and 0.15% above that; some offer free basic tiers. Make sure you're on the tier that matches your balance.
Use this calculator to compare any two fee levels before choosing a provider or switching strategies. A 0.22% difference is worth real money.
Fees and tiers change. If your balance has grown past a fee breakpoint, or a cheaper provider now offers the same features, switching can be a raise you give yourself.
When to switch: if you're disciplined, comfortable with a simple 2-3 fund portfolio, and investing in tax-advantaged accounts (where tax-loss harvesting adds little value), moving from a 0.25% robo to 0.03% index funds is one of the easiest fee cuts in personal finance. The calculator above shows exactly what it's worth to you.
⚠️ Important Financial Disclaimer: Past performance does not guarantee future results. Fees shown are estimates; actual robo-advisor fees vary by provider and account size (many charge 0.25% up to $2M then 0.15%). This calculator is for informational and educational purposes only and is not investment advice. Always consult a qualified financial professional before making investment decisions.