Robo-Advisor vs Self-Investing Calculator
Robo vs DIY costs.
Compare robo-advisor fees vs self-investing in low-cost ETFs over a long horizon — see when the convenience premium starts costing you real money.
What this tool does
This calculator models the difference in net returns between using a robo-advisor service and managing a portfolio of exchange-traded funds independently over a set period. It shows how fees charged by each approach affect your final portfolio value, starting from an initial investment amount and a chosen annual return rate. The robo-advisor fee and ETF fee are the primary drivers of the outcome—even small differences compound significantly over time. A typical scenario might compare a robo-advisor charging 0.5% annually against self-directed ETF investing at 0.1% in fees. The calculation assumes consistent annual returns and does not account for taxes, trading costs beyond the stated fees, market volatility, or changes in fee structure. Results are for educational illustration only and reflect a simplified model of cost comparison.
Quick answer: with the default values, the result is $59,844.90 (Self-Invest Saves). Adjust the values below for your own figures.
Enter Values
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Formula Used
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Robo-advisor vs self-investing calculator quantifies fee impact. Robo-advisors (Vanguard, Wealthfront, Schwab Intelligent Portfolios) charge 0.25-0.50% on top of underlying fund fees. Self-investing in same ETFs at 0.05-0.20% costs less. 100k over 30 years at 7%: 0.40% extra fee = about 79k less terminal wealth.
Example: 100k invested 30 years at 7% gross. Self-allocate to Vanguard ETFs (0.10% expense ratio): 740k. Robo-advisor (0.50% total fees): 661k. Self-invest saves 79k - about 12% more terminal wealth. The robo's value (rebalancing, tax-loss harvesting, simplicity) needs to add 0.40%/year to break even - high bar.
Robo value-add: (1) Automatic rebalancing (worth ~0.10-0.30% over decades), (2) Tax-loss harvesting (worth ~0.10-0.50% in taxable accounts), (3) Goal planning and behavioural support, (4) No-decision investing (worth a lot if alternative is cash sitting un-invested). For tax-advantaged accounts: self-invest wins easily. For taxable + behavioural support needs: robo can be worth it. Hybrid: self-invest core portfolio, use robo for taxable account + tax optimisation.
A worked example
In this example: an initial investment of 100,000, gross annual return of 7%, robo-advisor total fee of 0.4%, self-invest etf fee of 0.1%. The tool returns 59,844.90.
What moves the number most
The result responds to Initial Investment, Gross Annual Return %, Robo-Advisor Total Fee %, Self-Invest ETF Fee %, and Years. The rate and the time horizon usually dominate — compounding means a small change in either reshapes the final figure more than a similar shift in contribution size.
The formula behind this
Compare future values at robo net rate vs self-invest net rate.
£100,000 at 7% over 30y: robo 0.4% vs self 0.1% = $59,844.90.
Inputs
| Robo-Advisor FV | $680,324.55 |
|---|---|
| Self-Invest FV | $740,169.45 |
| Extra Fee Drag | 0.30% annually |
| Period | 30 years |
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
This calculator computes the cumulative cost difference between robo-advisor investing and self-directed investing by projecting both portfolios forward over time. It applies compound growth to your initial investment under two separate fee scenarios. The robo-advisor scenario grows at your gross annual return minus the robo-advisor's total fee; the self-investing scenario grows at the same gross return minus the ETF fee you would pay. The difference between these two future values represents the savings or additional cost of choosing one approach over the other. The model assumes a constant annual return and constant fees throughout the period, applies compounding annually, and does not account for deposits, withdrawals, tax effects, rebalancing costs, or changes in market conditions.
References
Frequently Asked Questions
Are robo-advisors worth it?
Best robo-advisors?
Tax-loss harvesting value?
Self-invest simplicity?
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