Single vs Multi-Family Office Break-Even Calculator
Find the asset level at which running your own single family office costs less than paying a multi-family office, and see which of the three models is cheapest for you. Free, no login, and nothing you type leaves your browser.
How the Calculator Works
A multi-family office charges a percentage of assets, so its cost rises with your wealth. Your own office is mostly fixed cost. The break-even point is the asset level where the two meet: your annual office cost divided by the multi-family office fee rate, after adding any fee savings your own office would capture.
In Centimillionaire Strategies, Richard writes that roughly 25% to 50% of the total cost of running your own team can be covered through reduced fees alone. Enter those savings in basis points to see how much they pull the break-even point down. Cost is only one test. Control, privacy and the family's goals matter too, which is why our answer on when a single family office makes sense goes beyond the math.
Assumptions and Sources
- Multi-family office fees of 80 to 150 basis points for core services. Source: The Single Family Office, by Richard C. Wilson
- Roughly 25% to 50% of the cost of your own team can be covered through reduced fees. Source: Centimillionaire Strategies, by Richard C. Wilson
- Virtual family office cost is whatever you have been quoted; leave it at 0 to compare only two models.. Source: Family Office Club default inputs
Questions About This Calculator
Does the cheapest option mean the right option?
No. It shows cost only. Families also pay for control, privacy and a team that works only for them. Use the result as one input with your advisors.
What is a virtual family office?
A lean model where a small core team, sometimes one person, coordinates outside specialists. See our answer on what a virtual family office is.
Informational only, not financial, legal or tax advice. Confirm figures with your own advisors.