Commission Impact Calculator
Calculate how trading commissions eat into your profits.
See commission as a percentage of profit and annual cost.
Commission Impact
Commission impact measures how much of your trading profits are consumed by broker commissions and fees.
Monthly Commission Cost = Commission per Trade × Trades per Month
Commission as % of Profit = (Monthly Commission / Monthly Profit) × 100
Net Profit = Gross Profit − Total Commissions
Typical commission structures:
- US Stocks: $0–$0.005/share (many brokers now commission-free)
- Futures: $1.50–$4.00 per contract per side
- Forex: $3–$7 per standard lot (or built into spread)
- Options: $0.50–$0.65 per contract
The hidden cost of high frequency:
- 20 trades/month at $5/trade = $100/month ($1,200/year)
- 100 trades/month at $5/trade = $500/month ($6,000/year)
- 500 trades/month at $5/trade = $2,500/month ($30,000/year)
Rule of thumb: If commissions exceed 10% of gross profit, your strategy may not be viable at the current frequency.