Slippage Cost Calculator

Six-step workflow

1. Copy current values from the official account, platform, or journal.
2. Keep every unit consistent; do not mix ticks, points, pips, dollars, or percentages.
3. Enter the planning assumptions without changing them to force a preferred answer.
4. Calculate and read every output, including the warning below the headline number.
5. Verify instrument specifications and binding firm rules at the official source.
6. Save the result with its date and compare it with what actually happened.

Understand the output

Formula: Slippage cost = absolute fill difference ÷ tick size × tick value × quantity.

Worked example: A 0.50-point difference with a 0.25 tick, $5 tick value, and four contracts equals two ticks × $5 × four, or $40.

Common mistakes: mixing tick sizes, ignoring partial fills, averaging only bad fills, and omitting slippage from backtests.