Slippage & Fee Calculator
Calculate the true annual cost of your trading commissions and slippage. See how much you need to profit just to break even.
Free — no signup, no ads, instant results
Inputs
Results
Annual Fee Drag
72.00%
Total Annual Cost
$7200.00
Total Monthly Cost
$600.00
Annual Commissions
$2400.00
Annual Slippage Cost
$4800.00
Break-Even Per Trade
$15.00
Trading costs consume 72.0% of your account annually. Each trade must profit at least $15.00 just to cover fees and slippage.
Who Is This For?
This calculator is for active traders who want to understand how much commissions and slippage eat into their profits. It is especially relevant for scalpers, day traders, and high-frequency traders where trading costs can make the difference between a profitable and losing strategy.
When to Use This Calculator
- When evaluating whether a high-frequency strategy is viable after costs
- When comparing brokers to see which one costs less annually
- When deciding between fewer high-quality trades vs more frequent trades
- During an annual review of your total trading costs
Formula
Most traders underestimate how much commissions and slippage eat into their returns. A strategy that looks profitable on paper can become a loser once you account for the true cost of execution.
Monthly Commission = Commission per Side x 2 x Trades per Month
Monthly Slippage = Slippage % x Avg Trade Size x 2 x Trades per Month
Fee Drag = Annual Total Cost / Account Size
Worked Example
Scenario: 40 trades/month, $2.50 commission per side, 0.05% slippage, $5,000 avg trade size, $25,000 account.
Step 1: Monthly commissions = $2.50 x 2 x 40 = $200.
Step 2: Monthly slippage = 0.05% x $5,000 x 2 x 40 = $200.
Step 3: Total annual cost = ($200 + $200) x 12 = $4,800.
Result: Fee drag = $4,800 / $25,000 = 19.2%. Your strategy must return more than 19.2% annually just to break even after costs.
Assumptions & Edge Cases
- Commission is calculated per side (entry + exit = one round trip)
- Slippage is a percentage of trade size, applied to both entry and exit
- Does not account for variable slippage in different market conditions (e.g., news events, low liquidity)
- Assumes consistent trade size and frequency throughout the year
Frequently Asked Questions
It depends on your trading frequency and commission rates. A trader making 40 trades per month at $5 round-trip commission pays $2,400/year in commissions alone. Add slippage and the true cost can be 2-3x higher. This calculator helps you quantify the total impact.
Slippage is the difference between the expected price of a trade and the actual execution price. It occurs due to market volatility, low liquidity, or large order sizes. Slippage happens on both entry and exit, so the total cost per trade is double the per-fill slippage.
Trade less frequently (quality over quantity), use limit orders instead of market orders to avoid slippage, negotiate lower commissions with your broker, trade during high-liquidity sessions, and avoid trading illiquid assets. Even small cost reductions compound significantly over hundreds of trades.
Fee drag is the percentage of your account that goes to trading costs annually. A 5% fee drag means your strategy must generate at least 5% returns just to break even. High-frequency traders with small edges are especially vulnerable to fee drag eroding their profits.