CALCULATORS · COST OF TRADING

Cost of trading calculator

Costs are charged on the way in and the way out, every time. At a few trades a week that is a meaningful share of the year.

What is friction costing me?

A strategy that trades daily pays its spread roughly five hundred times a year. Our own backtests charge five basis points of commission and two and a half of slippage per side for exactly this reason — a cost-free backtest is a fantasy.

HOW IT WORKS

Four steps, in order

1

Enter the account and typical position size.

2

Set how many round trips you take a year.

3

Enter commission plus slippage, per side.

4

Read the drag on the year.

Cost of trading

year = position × bps ÷ 10,000 × 2 sides × trades

Per round trip
$7.50
Over a year
$1,500.00
Drag on the account
6.00%
Notional traded
$1,000,000.00

Frequent questions

Short, practical answers. Trade-offs explained, no advice framing.

Other calculators