Fee Impact Calculator

    Most traders ignore fees until they realize their "profitable" strategy is actually losing money. Trading fees, slippage, and funding costs compound with every trade. This calculator shows the true cost of trading and how fees impact your profitability.

    Calculates total trading costs including maker/taker fees, slippage, and funding rates. Shows break-even price moves, fee impact on returns, and cumulative costs over multiple trades.

    FeesPerpsAnalysis

    Total notional position value

    Price at which you enter the position

    Price at which you exit the position

    Type of orders you use (affects fee rate)

    Fee for limit orders (typically 0.02-0.04%)

    Fee for market orders (typically 0.04-0.075%)

    Expected slippage per trade (entry + exit)

    Whether you're trading perpetual futures

    Per-payment funding rate (typically 8h intervals)

    Total number of trades to calculate

    Fee Impact Analysis

    Total Costs

    $31.00

    Trading Fees$8.00
    Slippage$20.00
    Funding$3.00
    Cost per Trade$31.00
    Break-even Move0.310%
    Fee Impact15.5%

    Profitability

    Net Profit

    $169.00

    Gross Profit$200.00
    Price Move2.00%
    Return After Fees84.5%

    Fee Breakdown

    Trading FeesSlippageFunding05101520Cost ($)

    Breakdown of total costs by category across all trades.

    Cumulative Costs & Net Profit Over Trades

    01Number of Trades04590135180Amount ($)

    Shows how costs accumulate and net profit evolves over multiple trades. Net profit grows as trades accumulate.

    Want to understand this better?Read our risk management guide

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    How It Works

    Calculation Methodology

    Trading costs consist of three main components: trading fees (maker/taker), slippage, and funding (for perpetual futures). This calculator shows how these costs compound and impact your profitability.

    Step 1: Calculate Trading Fees
    entryFee = positionSize × feeRate
    exitFee = positionSize × feeRate
    tradingFeesPerTrade = entryFee + exitFee
    // feeRate is maker or taker fee based on order type
    Step 2: Calculate Slippage Cost
    slippageCostPerTrade = positionSize × slippageRate × 2
    // Slippage applies to both entry and exit
    Step 3: Calculate Funding Cost (if perps)
    fundingPaymentsPerTrade = 3 // Assuming 1 day holding, 3 payments per day (8h intervals)
    fundingCostPerTrade = positionSize × fundingRate × fundingPaymentsPerTrade
    Step 4: Calculate Total Costs
    totalCostPerTrade = tradingFees + slippage + funding
    totalCosts = totalCostPerTrade × numberOfTrades
    Step 5: Calculate Profitability
    priceMove = ((exitPrice - entryPrice) / entryPrice) × 100
    grossProfit = positionSize × (priceMove / 100)
    netProfit = grossProfit - totalCosts
    Step 6: Calculate Break-Even
    breakEvenMove = (totalCostPerTrade / positionSize) × 100
    // Minimum price move needed to cover costs
    Step 7: Calculate Fee Impact
    feeImpactOnReturns = (totalCosts / |grossProfit|) × 100
    // Percentage of profit eaten by fees

    Key Insight: Fees compound with every trade. A strategy that makes 0.5% per trade but pays 0.1% in fees loses 20% of profit to costs. Over 100 trades, that's significant. High-frequency traders must account for fees in every calculation — they can turn profitable strategies into losing ones. Always calculate break-even before trading.

    Learn more about trading costs:

    Risk management guide

    Example Scenario

    Setup: $10,000 position, $50,000 entry, $51,000 exit, taker fees (0.04%), 0.1% slippage, 1 trade

    Trading Fees: ($10,000 × 0.04%) × 2 = $8
    Slippage: $10,000 × 0.1% × 2 = $20
    Total Costs: $28
    Gross Profit: $10,000 × 2% = $200
    Net Profit: $200 - $28 = $172
    Break-even: ($28 / $10,000) × 100 = 0.28%
    Fee Impact: ($28 / $200) × 100 = 14%

    What this means: You made $200 gross profit on a 2% price move, but fees cost $28 (14% of profit). Net profit is $172. You need at least 0.28% price move just to break even. This is reasonable — fees are manageable relative to profit.

    Note: If you made 100 trades like this, total costs would be $2,800. If each trade made 2% profit, gross profit would be $20,000, net profit $17,200. Fees still eat 14% of profit, but the strategy remains profitable.

    Common Mistakes & Warnings

    • Ignoring slippage: Most traders assume zero slippage, but it's real. Market orders can have 0.1-0.5% slippage. Limit orders reduce slippage but may not fill. Always assume some slippage — it compounds with every trade.
    • Using wrong fee type: If you use market orders, you pay taker fees (higher). If you use limit orders, you might pay maker fees (lower). Be honest about which you actually use — don't assume maker fees if you're using market orders.
    • Forgetting funding costs: Perpetual futures have funding costs every 8 hours. If you hold for days or weeks, funding can be significant. A 0.01% funding rate = 0.03% per day = 0.9% per month. That's real money.
    • Not calculating break-even: Before every trade, calculate break-even. If you need 0.5% move to break even but only expect 0.6% profit, you're risking a lot for little. Break-even should be small relative to expected profit.
    • High-frequency trading without fee awareness: If you make 100 trades per day, fees compound fast. $10 per trade × 100 = $1,000 per day. You need significant profit to cover that. Most high-frequency traders fail because they ignore fees.
    • Comparing gross vs net profit: A strategy that makes 1% per trade sounds good, but if fees are 0.2%, that's 20% of profit gone. Over 100 trades, that's $2,000 in fees on $10,000 profit. Always calculate net profit, not gross.

    Example Scenarios

    Try these realistic scenarios to understand how fees impact profitability in different trading situations.

    Scenario 1: Low Frequency Trading (Spot)

    Occasional trades with maker fees. Low slippage, no funding costs. Typical for swing traders.

    Position Size: $10,000
    Price Move: 2%
    Maker Fee: 0.02%
    Number of Trades: 5
    Total Costs: ~$20
    Net Profit: ~$980

    What this means: With low-frequency trading and maker fees, costs are minimal. You make $1,000 gross profit, pay $20 in fees, net $980. Fee impact is only 2% — very manageable.

    Scenario 2: High Frequency Trading (Perps)

    Many trades with taker fees, funding costs, and slippage. Typical for day traders and scalpers.

    Position Size: $10,000
    Price Move: 2%
    Taker Fee: 0.04%
    Number of Trades: 100
    Total Costs: ~$1,200
    Net Profit: ~$800

    What this means: With high-frequency trading, costs compound quickly. You make $2,000 gross profit, but pay $1,200 in fees (60% of profit!). Net profit is only $800. This shows why high-frequency trading requires very high win rates or larger price moves.

    Scenario 3: Long-Term Holding (Perps with Funding)

    Single trade held for extended period. Funding costs accumulate over time.

    Position Size: $10,000
    Price Move: 10%
    Funding Rate: 0.01%
    Holding Period: 30 days
    Funding Costs: ~$90
    Net Profit: ~$910

    What this means: Even with a large 10% price move, funding costs add up over 30 days. You make $1,000 gross profit, but pay ~$90 in funding (9% of profit). Still profitable, but funding costs are significant for long-term holds. Consider spot trading for long-term positions.

    Frequently Asked Questions

    When should I use this tool?

    Use this tool before every trade to understand the true cost of trading. Fees, slippage, and funding can turn profitable trades into losers. Especially important for high-frequency trading, small price moves, or when using perpetual futures with funding rates.

    What's the difference between maker and taker fees?

    Maker fees are paid when you place an order that adds liquidity to the order book (limit orders that don't fill immediately). Taker fees are paid when you remove liquidity (market orders or limit orders that fill immediately). Maker fees are typically lower (0.02-0.04%) than taker fees (0.04-0.075%).

    How much slippage should I assume?

    Slippage depends on market liquidity and order size. For liquid markets (BTC, ETH): 0.05-0.1% for small orders, 0.1-0.3% for medium orders, 0.3-1%+ for large orders. For less liquid markets, assume 0.2-0.5% minimum. Always assume some slippage — zero slippage is unrealistic.

    Do I need to include funding if I'm not trading perps?

    No — funding only applies to perpetual futures contracts. If you're trading spot, futures with expiration, or other instruments, set 'Is Perps' to No. Funding is a periodic payment between long and short traders that keeps perp prices aligned with spot.

    How do fees affect profitability?

    Fees compound with every trade. If you make 0.5% profit per trade but pay 0.1% in fees, fees eat 20% of your profit. Over 100 trades, that's significant. High-frequency traders need to account for fees in every calculation — they can turn a profitable strategy into a losing one.

    What if fees make my strategy unprofitable?

    Reduce trading frequency, use limit orders (maker fees), trade larger positions (spreads fees over more capital), or find a better exchange with lower fees. If fees consistently eat your profits, your strategy isn't profitable — adjust your approach or stop trading.

    Should I use maker or taker fees?

    Use the fee type you actually pay. If you place limit orders that sit on the book, use maker fees. If you use market orders or limit orders that fill immediately, use taker fees. Most traders pay taker fees unless they're specifically market-making. Be honest about which you use.

    How do I reduce slippage?

    Use limit orders instead of market orders, trade during high liquidity periods, split large orders into smaller chunks, use TWAP/VWAP strategies, or trade more liquid markets. Slippage is unavoidable but can be minimized with better execution.

    What's a good break-even price move?

    Break-even should be small relative to your expected profit. If break-even is 0.5% and you expect 2% profit, that's reasonable (25% of profit goes to fees). If break-even is 1% and you expect 1.5% profit, that's risky (67% of profit goes to fees). Aim for break-even <30% of expected profit.

    How do I calculate fees for multiple trades?

    Enter the number of trades you plan to make. The tool multiplies per-trade costs by the number of trades. This shows cumulative costs over time. For example, 100 trades at $10 cost per trade = $1,000 total costs. This helps evaluate high-frequency strategies.