Compare two ad management fee quotes across changing monthly ad spend, including base fees, percentages, monthly minimums, and one-time setup fees.
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Ad Management Fee Comparison Formula
For each quote and each month, calculate F = max(M, B + S × r ÷ 100). Round that month’s fee to the nearest cent, with half-cent ties rounded up. The term fee is T = sum of rounded monthly fees + U.
- F: management fee for the month, in USD.
- M: minimum total monthly management fee, in USD.
- B: fixed monthly base fee, in USD, added to the percentage fee.
- S: that month’s managed ad spend, in USD.
- r: percentage charged on that ad spend.
- U: one-time setup fee, in USD, charged once over the entered term.
The primary difference is TB − TA. A positive result means Quote B costs more for the entered months; a negative result means it costs less. Management fees exclude the ad spend itself.
Which Quotes Can Be Compared?
Use this tool when both quotes follow the stated base-plus-percentage formula, subject to a minimum total monthly fee. Enter zero for components that do not apply: a flat fee can use a base with a zero percentage, and a simple percentage quote can use a zero base.
Enter setup only when it is additional to the monthly fee; do not add a first-month price that already includes management again. Both quotes must use the same managed-spend basis, currency, full-month service periods, and coverage. The model excludes tiers, caps, taxes, credits, partial months, and fees outside the entered terms. It compares supplied costs; it does not assess service quality, advertising returns, or contract obligations.
How to Use the Calculator
- Select one to twelve months and enter each month’s managed ad spend.
- Enter both quotes’ monthly base, percentage, minimum total monthly fee, and setup fee. Enter zero rather than leaving an unused component blank.
- Select Calculate. Compare the term totals, setup fees, and month-by-month results.
Worked Example
Suppose managed spend is $1,000 in Month 1 and $10,000 in Month 2. Quote A has a $100 monthly base, a 5% fee, a $200 monthly minimum, and $500 setup. Its monthly fees are max(200, 100 + 1,000 × 0.05) = $200 and max(200, 100 + 10,000 × 0.05) = $600. Its term total is $200 + $600 + $500 = $1,300.
Quote B has no base or setup fee, a 10% fee, and a $100 minimum. Its monthly fees are $100 and $1,000, totaling $1,100. B minus A is −$200. Each quote has the lower monthly fee in one month, but Quote A’s setup fee changes the term comparison.
FAQ
Why enter each month’s spend instead of an average?
A minimum applies separately each month. With a $300 minimum and a 10% fee, spends of $0 and $4,000 produce fees of $300 and $400: $700 total. Using the $2,000 average for both months gives $600, which misses the higher-spend month’s fee.
Is the minimum added to the base and percentage?
No. The model takes the higher of the minimum and the base-plus-percentage amount. Confirm that your quotes use this rule.
Do the monthly comparison counts include setup?
No. Those counts compare recurring fees for each entered month. Each quote’s setup fee is included once in its term total.
What if the setup fee was already paid?
Enter the setup amount you intend to include in this comparison. Use zero when comparing future recurring costs without another setup charge.
Sources
- Montrelia: flat versus percentage management fees describes base, minimum, percentage, and setup components. This calculator accepts your own two quote schedules and different spend for each month.
