Slippage Impact Calculator

    Slippage is the difference between expected and actual execution prices. It can turn profitable trades into losers, especially for large orders or in volatile markets. This calculator shows how slippage affects your profitability.

    Enter your position size, entry/exit prices, slippage assumption, market volatility, and order type. See slippage cost per trade, effective entry/exit prices, total slippage impact, and how slippage varies with position size.

    FeesRisk

    Size of your position

    Expected entry price

    Expected exit price

    Expected slippage percentage (typically 0.05-0.5%)

    Expected market volatility (increases slippage)

    Market orders have higher slippage than limit orders

    Number of trades to calculate total slippage

    Slippage Cost Per Trade

    Total slippage (entry + exit)

    $20.5

    Entry Slippage$10.25
    Exit Slippage$10.25
    Adjusted Slippage0.102%

    Effective Prices

    Actual execution prices

    Entry: $50,051.25

    Exit Price$50,947.72
    Expected Entry$50,000
    Expected Exit$51,000

    Profit Impact

    Net Profit

    $179.5

    Gross Profit$200
    Total Slippage$20.5
    Slippage Impact10.2%

    Break-Even Analysis

    Price move needed to cover slippage

    0.205%

    Actual Price Move2.00%
    Return After Slippage89.8%
    Want to understand this better?Read our risk management guide

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    Slippage vs Position Size

    $4k$9k$14k$20k$26k$32k$38k$44k$50k$56k$62k$68k$74k$80k$86k$92k$100kPosition Size ($)$0k$0k$1k$1k$1kSlippage Cost ($)Your Position

    How slippage cost increases with position size. Larger positions experience more slippage due to consuming more order book depth.

    Slippage vs Volatility

    01234567891011121314151617181920Volatility (%)$0k$0k$0k$0k$0kSlippage Cost ($)Your Volatility

    How slippage cost increases with market volatility. Higher volatility widens spreads and reduces order book depth, increasing slippage.

    How It Works

    Calculation Methodology

    This tool calculates slippage impact on trade profitability. Slippage is the difference between expected and actual execution prices. It adjusts for order type (market vs limit) and market volatility.

    Step 1: Adjust Slippage for Order Type and Volatility
    Market orders: adjustedSlippage = baseSlippage × (1 + volatility × 0.5)
    Limit orders: adjustedSlippage = baseSlippage × 0.3
    // Market orders have higher slippage, limit orders have lower
    Step 2: Calculate Slippage Cost
    entrySlippageCost = positionSize × adjustedSlippage
    exitSlippageCost = positionSize × adjustedSlippage
    slippageCostPerTrade = entrySlippageCost + exitSlippageCost
    Step 3: Calculate Effective Prices
    effectiveEntryPrice = entryPrice × (1 + adjustedSlippage)
    effectiveExitPrice = exitPrice × (1 - adjustedSlippage)
    // You pay more to buy, receive less to sell
    Step 4: Calculate Profit Impact
    grossProfit = positionSize × ((exitPrice - entryPrice) / entryPrice)
    netProfit = grossProfit - totalSlippage
    slippageImpact = (totalSlippage / grossProfit) × 100%
    Step 5: Position Size Impact (Non-Linear)
    sizeMultiplier = (positionSize / baseSize)^0.7
    sizeAdjustedSlippage = adjustedSlippage × sizeMultiplier
    // Larger positions experience more slippage (non-linear relationship)
    Examples:
    $10k position, 0.1% slippage, market order
    → Entry slippage: $10, Exit slippage: $10, Total: $20
    $100k position, 0.1% slippage, market order
    → Entry slippage: ~$140, Exit slippage: ~$140, Total: ~$280
    // Larger position = more slippage (non-linear)

    Key Insight: Slippage is always a cost — you pay more to buy and receive less to sell. It increases non-linearly with position size (larger orders consume more order book depth) and increases with volatility (wider spreads, less depth). Market orders have higher slippage than limit orders. For small price moves or high-frequency trading, slippage can turn profitable trades into losers. Always account for slippage in your profit calculations.

    Learn more about trading costs:

    Risk management guide

    Example Scenario

    Setup: $10,000 position, entry $50,000, exit $51,000, 0.1% slippage, market order, 5% volatility

    Adjusted Slippage: 0.125% (0.1% × 1.25 for volatility)
    Entry Slippage: $12.50
    Exit Slippage: $12.50
    Total Slippage: $25
    Gross Profit: $200 (2% move)
    Net Profit: $175
    Slippage Impact: 12.5% of profit

    What this means: A 2% price move generates $200 gross profit, but slippage costs $25 (12.5% of profit). Net profit is $175. For smaller moves or more trades, slippage impact becomes even more significant.

    Common Mistakes & Warnings

    • Ignoring slippage: Many traders calculate profits without accounting for slippage. For small moves or high-frequency trading, slippage can turn profitable trades into losers. Always include slippage in your calculations.
    • Assuming zero slippage: Zero slippage is unrealistic, especially for market orders or large positions. Always assume some slippage — 0.05-0.1% minimum for liquid markets, 0.2-0.5%+ for less liquid markets.
    • Not adjusting for position size: Slippage increases non-linearly with position size. Doubling position size more than doubles slippage in illiquid markets. Use the position size chart to see how slippage scales.
    • Using market orders for large positions: Market orders have higher slippage than limit orders. For large positions, consider splitting into smaller chunks or using limit orders to reduce slippage.

    Example Scenarios

    Try these realistic scenarios to understand slippage impact in different market conditions.

    Scenario 1: Small Position, Market Order

    Small position with market order. Low slippage impact.

    Position: $1,000
    Order Type: Market
    Slippage: 0.1%
    Total Cost: ~$2
    Gross Profit: $20 (2% move)
    Net Profit: $18

    What this means: Small positions experience minimal slippage. A $1,000 position with 0.1% slippage costs ~$2 total. Slippage impact is only 10% of profit.

    Scenario 2: Large Position, Market Order

    Large position with market order. Significant slippage impact.

    Position: $100,000
    Order Type: Market
    Slippage: ~0.14% (adjusted)
    Total Cost: ~$280
    Gross Profit: $2,000 (2% move)
    Net Profit: $1,720

    What this means: Large positions experience more slippage due to consuming more order book depth. A $100,000 position with 0.1% base slippage actually experiences ~0.14% slippage (non-linear scaling). Slippage costs $280, eating 14% of profit.

    Scenario 3: Limit Order

    Same position with limit order. Lower slippage impact.

    Position: $10,000
    Order Type: Limit
    Slippage: 0.03% (adjusted)
    Total Cost: ~$6
    Gross Profit: $200 (2% move)
    Net Profit: $194

    What this means: Limit orders have much lower slippage than market orders. A $10,000 position with 0.1% base slippage experiences only 0.03% slippage with limit orders. Slippage costs only $6, eating just 3% of profit. However, limit orders may not fill if price moves away.

    Frequently Asked Questions

    When should I use this tool?

    Use this tool before placing trades, especially large orders or in volatile markets. Slippage can significantly impact profitability, especially for market orders or when trading illiquid assets. Understanding slippage helps you choose the right order type and position size.

    What is slippage?

    Slippage is the difference between the expected price and the actual execution price. For market orders, you get filled at the best available price, which may be worse than the displayed price. For limit orders, slippage occurs if the order partially fills at different prices. Slippage is always a cost — you pay more to buy and receive less to sell.

    How much slippage should I assume?

    Slippage depends on market liquidity, order size, and volatility. 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. High volatility increases slippage. Always assume some slippage — zero slippage is unrealistic.

    What's the difference between market and limit orders for slippage?

    Market orders execute immediately at the best available price, typically experiencing more slippage (0.1-0.5%+). Limit orders only fill at your specified price or better, experiencing less slippage (0-0.1%) but may not fill if price moves away. Limit orders give you control over slippage but risk non-execution.

    How does volatility affect slippage?

    Higher volatility increases slippage because prices move faster and order book depth changes more rapidly. In volatile markets, the spread widens and order book depth decreases, making it harder to fill large orders without moving price. Assume 1.5-2x normal slippage in high volatility conditions.

    How does position size affect slippage?

    Larger positions experience more slippage because they consume more order book depth. A $1,000 order might have 0.05% slippage, but a $100,000 order might have 0.3% slippage. The relationship is non-linear — doubling position size more than doubles slippage in illiquid markets.

    What are effective entry/exit prices?

    Effective prices are the actual average prices you get after slippage. If you want to buy at $50,000 with 0.1% slippage, your effective entry price is $50,050. If you want to sell at $51,000 with 0.1% slippage, your effective exit price is $50,949. Effective prices show the true cost of trading.

    How do I reduce slippage?

    Use limit orders instead of market orders, split large orders into smaller chunks, trade during high liquidity periods, use exchanges with deeper order books, and avoid trading during high volatility. For very large orders, consider using TWAP (Time-Weighted Average Price) or VWAP (Volume-Weighted Average Price) strategies.

    What's the difference between this and Fee Impact Calculator?

    Slippage Impact Calculator focuses specifically on slippage costs and how they vary with position size and market conditions. Fee Impact Calculator includes trading fees, slippage, and funding costs together. Use Slippage Impact to understand slippage specifically, Fee Impact to see total trading costs.

    Can slippage make a profitable trade unprofitable?

    Yes — slippage can turn profitable trades into losers, especially for small price moves or high-frequency trading. If you expect 0.5% profit but experience 0.3% slippage on entry and exit, slippage eats 60% of your profit. Always account for slippage in your profit calculations.