We present the results of performance simulations characterizing the Stabilized sPeckle Integral Field Spectrograph (SPIFS). Our simulations of images distorted by Kolmogorov atmospheric turbulence confirm that stabilization of the single brightest speckle via a fast steering mirror (FSM) produces near-diffraction-limited spatial resolution for the red part of the visible spectrum (0.6 μm-1.0 μm). On a 10-meter class telescope this corresponds to an angle of ~13 mas. We also demonstrate that the Strehl ratio of the stabilized speckle will be between 1 and 3% for r 0 = 20cm on a 10-meter class telescopes. The guide star limiting magnitude, through the use of a shutter, will be I=16.5. Simulations also reveal that the guide star can be as far away as 20" from the source and still recover tip-tilt information to drive SPIFS.