Betterment vs Wealthfront
Business model, scale, and a side-by-side Litmus framework score — which model wins, and for whom.
Wealthfront is leaner and higher-margin; Betterment is broader with human advisors and a 401(k) channel.
At a glance
| Metric | Betterment | Wealthfront |
|---|---|---|
| Revenue | ~$350M (2025 est.) | $338.6M (TTM to Jul 2025) |
| Profit | Profitable (EBITDA positive) | $122.8M net income (TTM to Jul 2025) |
| Active users | 1,000,000+ customers | ~1.3M clients |
| Employees | ~500 | ~250+ |
| Founded | 2008 | 2008 |
| HQ | New York, NY | Palo Alto, CA |
LLitmus Framework Score
Overall: Betterment 89 · Wealthfront 91
Customer Segment
92
96
Value Proposition
95
98
Marketing Channel
88
85
Engagement
84
92
Income Source
90
88
Asset Validation
93
95
Core Operations
87
91
Strategic Alliance
85
83
Expense Validation
89
89
Betterment leads 3 modules, Wealthfront leads 5. Overall edge: Wealthfront.
Head to head
| Dimension | Betterment | Wealthfront |
|---|---|---|
| Advisory fee | 0.25%-0.40% of AUM | ~0.25% of AUM |
| AUM | $65B+ | $80B+ |
| Human advisors | Yes (Premium tier) | No — software only |
| B2B / 401(k) | Betterment for Work + Advisors | None |
| Net margin | ~12% EBITDA | ~36% net margin |
FAQ
Is Betterment or Wealthfront a better business?
Wealthfront is leaner and higher-margin; Betterment is broader with human advisors and a 401(k) channel. It depends on what you optimise for — see the module-by-module breakdown above.
What is the difference between Betterment and Wealthfront's business model?
Betterment operates in Fintech (The smart way to invest and save), while Wealthfront is Fintech / WealthTech (Get a head start on your wealth). Their revenue, scale and Litmus scores are compared in detail above.
Which is more profitable, Betterment or Wealthfront?
Betterment: Profitable (EBITDA positive). Wealthfront: $122.8M net income (TTM to Jul 2025).