Multi-Family Office Cost Calculator

Multi-family offices charge 0.5-1.5% of AUM vs. private banking at 0.75-1.25%. SFOs cost $2-5M/year to operate. Calculate the break-even point and true cost of each option.

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Frequently Asked Questions

When does a family office make financial sense?
Family office break-even analysis: Single Family Office (SFO): setup cost: $500K-1M (legal, tech, staffing); annual operating: $2-5M (6-10 staff: CIO, CFO, estate attorney, accountant, PA); breaks even vs. alternatives at ~$100-200M AUM (2-5% fee on $100M = $2-5M); functions: consolidated reporting, direct deal access, bill pay, family governance, estate admin; Multi-Family Office (MFO) — Bessemer Trust, Glenmede, Whittier Trust: minimum AUM: $10-25M; fees: 0.5-1.0% all-in; services: investment management, tax, estate, family governance; Private Banking — JP Morgan, Goldman, UBS: minimum: $5-25M relationship; fees: 0.75-1.25%; services: investment, credit, trust, limited family office.
What services do family offices provide?
Family office services and specialists: Investment management: CIO + investment committee; direct PE/VC/real estate co-investment; manager selection and due diligence; consolidated performance reporting; Wealth transfer: estate planning with in-house/retained attorneys; family governance: family council, investment committee, family constitution; trustee services: serving as corporate trustee for family trusts; philanthropy: private foundation management, DAF administration; Tax: multi-state/international tax compliance; tax planning and entity structuring; family partnership administration; Lifestyle services: concierge (travel, events, property management); household payroll and bill pay; aircraft, yacht, property coordination; Technology: Addepar, BlackDiamond, Orion — family office software $50K-500K/year; cybersecurity: $100K-500K/year for family data protection; Key staff costs 2026: CIO $500K-1M+; CFO $350K-600K; Estate attorney $400K-700K; Family Office Director $300K-500K; Operations $150K-250K each.
When should I work with a family office vs. private bank?
Family offices (single or multi) make sense at $50M+ in investable assets. Below that, private banking (JP Morgan Private Bank, Goldman Sachs PWM, UBS) offers similar services with lower minimums ($5-25M). Family offices provide consolidated reporting, direct deal access, and custom investment mandates unavailable at private banks. Multi-family offices (Bessemer Trust, Glenmede) offer a middle ground at $10M+ with family-office-level service at lower cost.
How much should ultra-high-net-worth individuals keep in cash?
Most wealth advisors recommend 3-5% of liquid net worth in cash/cash equivalents for UHNW individuals — enough to cover 12-24 months of lifestyle expenses plus opportunistic investments. Excess cash above this benchmark costs 5-8% annually in opportunity cost vs. diversified portfolios. Treasury bills, money market funds, and short-duration bonds provide liquidity with yield while maintaining capital preservation objectives.

Multi-Family Office Cost Calculator — 2026 Guide

Multi-family offices charge 0.5-1.5% of AUM vs. private banking at 0.75-1.25%. SFOs cost $2-5M/year to operate. Calculate the break-even point and true cost of each option. Sophisticated wealth planning requires understanding the interplay of investment returns, tax efficiency, legal structure, and generational transfer. High-net-worth individuals who work with dedicated wealth advisors typically outperform self-managed portfolios by 1-3% annually after fees — a significant difference at scale.

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