How much does a robo-advisor cost?
Direct Answer
Most robo-advisors charge 0.25% per year of assets as a management fee, with the underlying ETF expense ratios adding another 0.05–0.15%. On a $100,000 balance that's about $300–$400 a year, all-in. Schwab Intelligent Portfolios charges 0% management; Vanguard Digital Advisor charges 0.15%; Wealthfront and Betterment charge 0.25%.
Cost scenarios
| Scenario | Cost | Notes |
|---|---|---|
| Schwab Intelligent Portfolios | 0.00% mgmt + ~0.10% funds | |
| Vanguard Digital Advisor | 0.15% mgmt + ~0.05% funds | |
| Betterment / Wealthfront | 0.25% mgmt + ~0.10% funds | |
| Traditional human advisor | 1.00% mgmt + ~0.50% funds |
When the fee is worth it
For an investor who would otherwise leave cash on the sidelines or pick funds based on past performance, the 0.25% fee is typically money well spent. For someone who can already build and rebalance a three-fund portfolio, a DIY approach at a discount broker costs roughly 0.05% all-in.
Frequently Asked Questions
- Are robo-advisor fees tax-deductible?
- No. Investment management fees stopped being deductible for individuals under the 2017 Tax Cuts and Jobs Act. Only certain IRAs allow advisory fees to be paid from the account itself, which is functionally similar.
Sources
- Robo-Advisers Investor Bulletin , U.S. Securities and Exchange Commission. Verified May 10, 2026.
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