This document summarizes a computational analysis of the effect of tip clearance on a low-speed centrifugal compressor. A centrifugal compressor impeller with three tip clearances (0%, 2%, and 5% of blade height) was examined at five flow coefficients using computational fluid dynamics software. The results found that static and total pressure decreased with increasing tip clearance. Blade loading charts and pressure/velocity contours showed lower pressures and velocities on the blade surfaces with larger tip clearances. In conclusion, tip clearances were found to increase losses in the centrifugal compressor.