The performance prediction of an airfoil fan using a commerical code, STAR/CD, is verified by comparing the calculated results with measured performance data and velocity fields of an airfoil fan. The effects of inlet tip clearance on performance are investigated. The calculations overestimate the pressure rise performance by about 10-25 percent. However, the performance reduction due to tip clearance is well predicted by numerical simulations. Main source of performance decrease is not only the slip factor but also impeller efficiency. The reduction in performance is 12-16 percent for 1 percent gap of the diameter. The calculated reductions in impeller efficiency and slip factor are also linearly proportional to the gap size. The span-wise distributions of phase averaged velocity and pressure at the impeller exit are strongly influenced by the radial gap size. The radial component of velocity and the flow angle increase over the passsage as the gap increases. The slip factor decreases and the loss increases with the gap size. The high velocity of leakage jet affects the impeller inlet and passage flows. With a larger clearance, the main stream moves to the impeller hub side and high loss region extends from the shroud to the hub.