Slippage Cost Calculator

What is Slippage Cost?

Slippage is the difference between the price you expected when placing an order and the price at which it was actually filled. Slippage cost is that difference expressed in money: (price difference) × quantity. For a buy, positive slippage cost means you paid more than expected; for a sell, it means you received less. High volatility and large order size relative to liquidity often increase slippage.

How to Use This Slippage Cost Calculator

1. Select order side: Buy or Sell.
2. Enter expected price: The price you had in mind when you sent the order (e.g. last quoted price or your limit).
3. Enter actual fill price: The price at which the order was executed (from your broker or exchange).
4. Enter quantity: Number of units (shares, contracts, or lots).
5. Read the result: Total slippage cost, cost per unit, and slippage percentage are shown. Positive cost = unfavorable; negative = favorable.

Why Slippage Cost Matters

Slippage is a real execution cost. It reduces profit on winning trades and increases loss on losing trades. Knowing your slippage cost helps you:

• Compare execution quality: Track slippage across brokers or venues to see who gives better fills.
• Size orders: In illiquid or volatile markets, large size can cause large slippage; factor it into position sizing.
• Set limits: Use limit orders or tiered orders to cap how much slippage you accept.

Frequently Asked Questions