Costs toggle

Also seen as: Costs & interests, Costs

In the app it is the switch labelled Costs & interests, shortened to "Costs" in the assumptions summary.

How does Fincanva handle it?

• Trading costs are not included on every plan. Where the plan does not include them, the assumption stays off and the toggle cannot be turned on, so every backtest on that plan is a costless one — the plan line below the list says which plans include it.
• Costs & interests is off by default, so the figures you meet first are gross of costs and financing.
• Flipping it switches the displayed result immediately, with no new run — every combination is pre-computed when the strategy runs (see simulation assumptions).
• It moves every number derived from the equity curve, not only the cost lines: total return, annualized return, the monthly figures and the risk metrics all change.
• What it deducts shows up as its own bands in the P&L breakdown — "Costs" and "Interest paid".
• The two interest-rate markups are saved settings you can edit, separate from the toggle that switches them in or out; the per-trade fee and the slippage fraction are fixed platform assumptions with no setting in the app.
• The Positions view does not follow this toggle: it always reports with costs off, one of its Positions forced assumptions.

Included from Starter upwards. See what each plan includes.

What does turning costs on change?

Turning Costs & interests on deducts every modelled cost of trading and financing from the run you are looking at. Three components get wired in:

• Transaction cost — a flat fee charged once per trade execution.
• Slippage — a proportional cost on each fill, for the gap between the quoted and the filled price.
• Interest-rate markups — the financing cost of borrowing for leverage or for shorting, charged as a spread over a reference rate. The same switch turns on the interest credited to idle cash — see interest received and paid.

With the toggle off, all three are zero: the results assume trading and financing were free.

What does it look like in practice?

One run, viewed twice. With Costs & interests off the run shows a total return of +42.0%. Flip it on and the same run shows +38.6%: the 3.4pp difference is the trading fees, slippage and financing the strategy would have paid over the period. Nothing about the strategy changed and no new backtest ran — you switched from the gross view to the after-cost view of the identical run. How wide the gap is depends on how much the strategy trades: one that rebalances monthly pays the per-trade fee far more often than one that holds for years.

The figures on this page describe what Fincanva models, not what you should do with your money — see Is this financial advice?.