Funding Rate Calculator

What a perpetual position costs or pays to hold, across the settlement intervals your venue uses — and what that rate looks like annualised.

Your position

Position notional

USD

Funding rate per payment

Can be negative; read the current rate on your venuePayments per day

Settlement interval varies by venueDays held

Per payment: -1.00 USD
Per day: -3.00 USD
Over 30 days: -90.00 USD
Annualised rate: 10.95%
Direction: You pay funding

A positive funding rate means longs pay shorts; a negative rate reverses it. Settlement intervals differ by venue, so enter the number of payments per day yours uses. Rates change every interval — this projects the current one forward, which is a model, not a forecast.

What funding is for

A perpetual contract has no expiry, so nothing forces it to converge on the underlying price. Funding is the mechanism that does it: when the contract trades above spot, longs pay shorts, which makes being long more expensive and pushes the price back down. When it trades below, the flow reverses.

payment = notional × funding rate

positive rate → longs pay shorts
negative rate → shorts pay longs

Note it is charged on notional, not on margin. A leveraged position pays funding on the full position value, so at 10× the funding cost is ten times larger relative to the margin posted than the headline rate suggests.

The rate is small and the interval is not

Funding rates are quoted per settlement, and per settlement they look negligible. Multiplied by the number of settlements in a day and then by the days held, they stop looking negligible — which is what the annualised row is for.

This is the cost that separates a trade from a position. Intraday, funding barely registers. Held across a week, it can exceed the round-trip trading fees several times over, and it accrues whether or not the position is going your way.

It moves your liquidation price

Funding you pay is deducted from margin. A position held through many settlements is progressively less well collateralised than when it opened, so its liquidation price creeps toward the entry.

The liquidation price calculator does not model this, and neither does any venue's static display of the level. For a position you intend to hold, subtract the expected funding from your margin before deciding whether the distance is comfortable.

Receiving funding is not free money

A persistently negative rate means shorts are being paid to hold, and that looks like income. It is income conditional on carrying directional risk in a market whose positioning is already lopsided — and the rate that pays you is a symptom of that lopsidedness, which can resolve quickly and in the direction that costs you more than the funding earned.

The arithmetic here tells you the size of the carry. It says nothing about whether holding the position is a good idea, and the two are frequently confused.

A model, not a projection

The rate is recalculated every interval. Projecting the current one forward over thirty days assumes something that will not be true. Use the output to understand the order of magnitude of the cost, and re-check the live rate rather than trusting a figure computed days ago.

FAQ

Who pays funding, longs or shorts?

It depends on the sign of the rate. When funding is positive, longs pay shorts; when it is negative, shorts pay longs. The mechanism exists to keep a perpetual contract tracking the underlying price — when the contract trades above spot, holding a long costs money, which discourages the imbalance.

How often is funding settled?

It varies by venue and sometimes by instrument, which is why the number of payments per day is an input here rather than a constant. Check your venue documentation, because the same nominal rate costs very different amounts depending on whether it settles a few times a day or once.

Is the annualised figure a forecast?

No. It projects the current rate forward as though it held constant, which it will not — funding is recalculated every interval and responds to the balance of positioning. Read it as a way to compare the current rate against other costs on a common scale, not as a prediction of what holding will cost.

Does funding affect my liquidation price?

Yes, when you are paying it. Funding payments come out of your margin, so a position held through several settlements has less margin backing it than when it opened, and liquidation moves closer. Estimates that ignore funding are optimistic for exactly this reason.