diff --git a/README.md b/README.md
index 0e51776..33a9657 100644
--- a/README.md
+++ b/README.md
@@ -6,7 +6,7 @@ This package implements distance and similarity metrics for strings, based on th
 
 [![Build Status](https://travis-ci.org/agext/lev.svg?branch=master)](https://travis-ci.org/agext/lev)
 
-v1.0 Stable: Guaranteed no breaking changes to the API in future v1.x releases. No known bugs or performance issues. Probably safe to use in production, though provided on "AS IS" basis.
+v1.1 Stable: Guaranteed no breaking changes to the API in future v1.x releases. No known bugs or performance issues. Probably safe to use in production, though provided on "AS IS" basis.
 
 ## Overview
 
diff --git a/lev.go b/lev.go
index 12a3490..3ad5b72 100644
--- a/lev.go
+++ b/lev.go
@@ -35,9 +35,6 @@ package lev
 // to be greater than maxCost. Therefore, any return value higher than maxCost is a
 // lower bound for the actual distance.
 func Calculate(str1, str2 []rune, maxCost, insCost, subCost, delCost int) (dist, prefixLen, suffixLen int) {
-	// ToDo: This is O(l1*l2) time and O(min(l1,l2)) space; investigate if it is
-	// worth to implement diagonal approach - O(l1*(1+dist)) time, up to O(l1*l2) space
-	// http://www.csse.monash.edu.au/~lloyd/tildeStrings/Alignment/92.IPL.html
 	l1, l2 := len(str1), len(str2)
 	// trim common prefix, if any, as it doesn't affect the distance
 	for ; prefixLen < l1 && prefixLen < l2; prefixLen++ {
@@ -74,51 +71,84 @@ func Calculate(str1, str2 []rune, maxCost, insCost, subCost, delCost int) (dist,
 	if l1 > l2 {
 		str1, str2, l1, l2, insCost, delCost = str2, str1, l2, l1, delCost, insCost
 	}
-
 	d := make([]int, l1+1)
-	for y := 1; y <= l1; y++ {
-		d[y] = y * delCost
+
+	// variables used in inner "for" loops
+	var y, dy, c, l int
+
+	// if maxCost is higher than the maximum possible distance, it's equivalent to 'unlimited'
+	if maxCost > 0 {
+		if subCost < delCost+insCost {
+			if maxCost > l1*subCost+(l2-l1)*insCost {
+				maxCost = 0
+			}
+		} else {
+			if maxCost > l1*delCost+l2*insCost {
+				maxCost = 0
+			}
+		}
 	}
 
 	if maxCost > 0 {
-		overMax := true
-		for x := 1; x <= l2; x++ {
-			d[0] = x * insCost
-			overMax = true
-			for y, minCost := 1, (x-1)*insCost; y <= l1; y++ {
-				if str1[y-1] != str2[x-1] {
-					minCost += subCost
+		// offset and length of d in the current row
+		do, dl := 0, 1
+		for y, dy = 1, delCost; y <= l1 && dy <= maxCost; dl++ {
+			d[y] = dy
+			y++
+			dy = y * delCost
+		}
+
+		for x := 0; x < l2; x++ {
+			dy, d[do] = d[do], d[do]+insCost
+			if l = do + dl; l > l1 {
+				l = l1
+			}
+			for y = do; y < l; dy, d[y] = d[y], dy {
+				if str1[y] != str2[x] {
+					dy += subCost
 				}
-				if cd := d[y-1] + delCost; cd < minCost {
-					minCost = cd
+				if c = d[y] + delCost; c < dy {
+					dy = c
 				}
-				if ci := d[y] + insCost; ci < minCost {
-					minCost = ci
+				y++
+				if c = d[y] + insCost; c < dy {
+					dy = c
 				}
-				if minCost <= maxCost {
-					overMax = false
+				if dy > maxCost {
+					dl = y - do
+					break
 				}
-				minCost, d[y] = d[y], minCost
 			}
-			if overMax {
+			for d[do] > maxCost {
+				do++
+				dl--
+			}
+			if dl == 0 {
 				dist = maxCost + 1
 				return
 			}
 		}
 	} else {
-		for x := 1; x <= l2; x++ {
-			d[0] = x * insCost
-			for y, minCost := 1, (x-1)*insCost; y <= l1; y++ {
-				if str1[y-1] != str2[x-1] {
-					minCost += subCost
+		// ToDo: This is O(l1*l2) time and O(min(l1,l2)) space; investigate if it is
+		// worth to implement diagonal approach - O(l1*(1+dist)) time, up to O(l1*l2) space
+		// http://www.csse.monash.edu.au/~lloyd/tildeStrings/Alignment/92.IPL.html
+
+		for y = 1; y <= l1; y++ {
+			d[y] = y * delCost
+		}
+		for x := 0; x < l2; x++ {
+			dy, d[0] = d[0], d[0]+insCost
+			for y = 0; y < l1; dy, d[y] = d[y], dy {
+				if str1[y] != str2[x] {
+					dy += subCost
 				}
-				if cd := d[y-1] + delCost; cd < minCost {
-					minCost = cd
+				if c = d[y] + delCost; c < dy {
+					dy = c
 				}
-				if ci := d[y] + insCost; ci < minCost {
-					minCost = ci
+				y++
+				if c = d[y] + insCost; c < dy {
+					dy = c
 				}
-				minCost, d[y] = d[y], minCost
 			}
 		}
 	}
diff --git a/lev_test.go b/lev_test.go
index 9a113dc..a2991da 100644
--- a/lev_test.go
+++ b/lev_test.go
@@ -126,6 +126,11 @@ func Test_Metrics(t *testing.T) {
 
 			// When setting a maxCost (should not affect Similarity() and Match())...
 			{"password", "pass1", "(maxCost=1)", NewParams().MaxCost(1), e{2, 4, 0, 4. / 8, 4. / 8}},
+			{"pass1word", "passwords1", "(maxCost=2)", NewParams().MaxCost(2), e{3, 4, 0, 7. / 10, 8.2 / 10}},
+			{"password", "1234", " (D=2,maxCost=1)", NewParams().DelCost(2).MaxCost(1), e{2, 0, 0, 0, 0}},
+			{"pwd", "password", " (I=0,maxCost=0)", NewParams().InsCost(0).MaxCost(0), e{0, 1, 1, 1, 1}},
+			{"passXword", "password", "(maxCost=10)", NewParams().MaxCost(10), e{1, 4, 4, 8. / 9, 8.4 / 9}},
+			{"passXord", "password", "(S=3,maxCost=17)", NewParams().SubCost(3).MaxCost(17), e{2, 4, 3, 14. / 16, 14.8 / 16}},
 			// ... no change because the Calculate is calculated without getting into the main algorithm:
 			{"password", "pass", "(maxCost=1)", NewParams().MaxCost(1), e{4, 4, 0, 4. / 8, 4. / 8}},