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Trading Cost Calculator

What frequency really costs you per year.

Cost per day$40
Cost per year$10,000
Return needed just to cover costs100.0%

Frequency is a cost multiplier: the same edge traded 5× as often pays 5× the friction before it earns anything.

Educational tool only — not financial advice. Verify figures with your broker.

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What is the Trading Cost Calculator?

The Trading Cost Calculator is a free cost-projection tool that converts your trading frequency into a running friction bill. It answers one exact question: how much do commissions, spreads and fees add up to per day and per year at your trade rate — and what return you'd need just to break even against that friction, before any profit.

How to use it

  1. Enter your average Trades per day in the first field (the default is 5).
  2. Fill in All-in cost per trade ($) — the full spread-plus-commission-plus-fees cost of one round-trip, not just the commission.
  3. Set Trading days per year (250 is the default, roughly a full year of weekdays minus holidays).
  4. Enter your Account equity ($) so the tool can express the yearly cost as a percentage.
  5. Read the highlighted results: Cost per year is your total annual friction, and Return needed just to cover costs is the percentage your account must earn before it breaks even on trading costs alone.

How it's calculated

The math is deliberately simple and deterministic. Cost per day is Trades per day multiplied by All-in cost per trade; Cost per year multiplies that daily figure by Trading days per year. The Return needed just to cover costs is the annual cost divided by Account equity, expressed as a percentage — the hurdle your strategy clears before earning a cent.

Frequently asked

How much does trading cost per year with a trading cost calculator?

It depends entirely on your frequency and per-trade cost. This trading cost calculator multiplies your trades per day by your all-in cost and your trading days per year, so five trades a day at $8 each over 250 days is $10,000 in annual friction regardless of whether you profit.

Why does trading more often cost me more?

Every round-trip pays the spread and commission whether it wins or loses. Frequency is a straight multiplier on friction — the same setup traded five times as often pays five times the cost before it earns anything.

What return do I need just to cover trading costs?

The tool divides your annual cost by your account equity to show the break-even hurdle. On a $10,000 account with $10,000 of yearly costs, you'd need a 100% return just to reach zero — a signal your frequency may be too high for your size.

Keep in mind: This figure only measures friction — the cost you pay to trade. It says nothing about whether your trading earns that cost back; the same edge traded five times as often simply pays five times the friction before it earns anything, and a low cost number is not evidence of profitability.

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