Funding Rate Break-Even Calculator
Funding rates are a hidden cost that can turn profitable trades into losers. This tool calculates exactly how much price movement you need just to break even after funding costs.
Enter your position details and holding period. See the break-even price, required price movement, and visualize how funding costs accumulate over time.
Total notional position value
Leverage used on the position
Your entry price
Long pays funding when rate is positive
Per-payment funding rate
Hours between funding payments
How long you plan to hold
Break-Even Analysis
Break-Even Price
$100.21
Funding Cost & Break-Even Over Time
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Calculation Methodology
Funding rates create a hidden cost (or benefit) for holding positions. This tool calculates how much price must move to offset funding costs, showing your true break-even point.
Key Insight: Funding is a hidden cost that compounds over time. A $10,000 long position at 0.01% funding costs $3/day. Over 7 days, that's $21 (0.21% of position). Price must move up 0.21% just to break even, before any profit. Shorts benefit from positive funding rates.
Learn more about perpetual contracts:
Perps basics guideExample Scenario
Setup: $10,000 long, 0.01% funding, 8-hour interval, 7 days
What this means: After 7 days, you've paid $21 in funding. Price must move up 0.21% from entry just to break even. The chart shows how break-even price changes over time.
Note: If you're short and funding is positive, you receive funding instead of paying it. This reduces your break-even price move.
Common Mistakes & Warnings
- ⚠Ignoring funding in profit calculations: You might think you're up 1%, but after funding, you're only up 0.5%. Always account for funding.
- ⚠Not checking break-even before entering: If funding is 0.05% and you plan to hold 30 days, you need 4.5% move just to break even. That's a high bar.
- ⚠Holding too long in high funding: High funding rates (0.05%+) can consume 1-2% per week. Long holds become unprofitable quickly.
- ⚠Not considering funding direction: Positive rates favor shorts, negative rates favor longs. Check which side you're on.
- ⚠Funding reduces margin: Each funding payment comes from margin. Over time, this can push you closer to liquidation even without price movement.
Example Scenarios
Try these realistic scenarios to understand funding rate break-even calculations.
Scenario 1: Low Funding, Short Hold
Low funding rate with quick exit. Minimal break-even requirement.
Step-by-Step Calculation:
- Funding per payment: $10,000 × 0.00005 = $0.50
- Payments per day: 24 ÷ 8 = 3
- Daily funding: $0.50 × 3 = $1.50
- Total funding (3 days): $1.50 × 3 = $4.50
- Break-even move: ($4.50 ÷ $10,000) × 100 = 0.045%
- Break-even price: $50,000 × 1.00045 = $50,022.50
What this means: After 3 days, you pay $4.50 in funding. Price needs to move up only 0.045% (to $50,022.50) to break even. This is negligible - funding has minimal impact on short-term trades.
Scenario 2: Normal Funding, Medium Hold
Standard funding rate with 2-week hold. Noticeable break-even requirement.
Step-by-Step Calculation:
- Funding per payment: $10,000 × 0.0001 = $1
- Payments per day: 24 ÷ 8 = 3
- Daily funding: $1 × 3 = $3
- Total funding (14 days): $3 × 14 = $42
- Break-even move: ($42 ÷ $10,000) × 100 = 0.42%
- Break-even price: $50,000 × 1.0042 = $50,210
What this means: After 14 days, you pay $42 in funding. Price needs to move up 0.42% (to $50,210) to break even. This is noticeable but manageable - funding becomes a real cost over medium-term holds.
Scenario 3: High Funding, Long Hold
High funding rate with extended hold. Significant break-even requirement. ⚠️ High cost
Step-by-Step Calculation:
- Funding per payment: $10,000 × 0.0005 = $5
- Payments per day: 24 ÷ 8 = 3
- Daily funding: $5 × 3 = $15
- Total funding (30 days): $15 × 30 = $450
- Break-even move: ($450 ÷ $10,000) × 100 = 4.5%
- Break-even price: $50,000 × 1.045 = $52,250
What this means: After 30 days, you pay $450 in funding. Price needs to move up 4.5% (to $52,250) just to break even. This is significant - funding becomes a major cost that requires substantial price movement to offset.
Edge Case Warning: With 4.5% break-even requirement, you need a significant price move just to cover funding. If price doesn't move or moves slowly, funding will consume your margin over time. High funding rates make long-term holds unprofitable.
What If Variations
Explore how changing parameters affects break-even price:
What if I'm short and funding is positive?
Using Scenario 2: You receive $42 instead of paying it. Break-even price becomes $49,790 (down 0.42% instead of up). Shorts benefit from positive funding rates.
What if funding interval is 1 hour instead of 8 hours?
Using Scenario 2: Payments per day increases from 3 to 24. Daily funding becomes $24 instead of $3. Total funding over 14 days becomes $336 instead of $42. Break-even move becomes 3.36% instead of 0.42%.
What if I hold for 60 days instead of 30?
Using Scenario 3: Total funding doubles from $450 to $900. Break-even move doubles from 4.5% to 9%. Funding compounds linearly over time - longer holds require exponentially larger price moves.
Frequently Asked Questions
When should I use this tool?
Use this tool before opening leveraged positions to see if funding costs make the trade unprofitable. Check it whenever funding rates change significantly, when holding positions for more than a few days, or when funding rates are elevated. It shows the true cost of holding leveraged positions.
What is break-even price?
The break-even price is where your position needs to move to cover all funding costs. For longs paying funding, you need upward price movement. For shorts receiving funding, you can profit even with flat price. Break-even shows the minimum price movement needed to offset funding.
How often should I check this?
Check break-even whenever funding rates change significantly, or when holding positions for more than a few days. High funding can eat into profits quickly. If you're holding for weeks, funding can become a major cost — check regularly.
Can funding make a trade unprofitable?
Yes. If funding costs exceed your expected profit from price movement, the trade becomes unprofitable even if price moves in your favor. Always factor funding into your risk/reward. Use this tool to see if your expected profit target is realistic after funding costs.
What if break-even requires a huge price move?
If you need 10%+ price movement just to break even, the trade might not be worth it. Consider reducing leverage, reducing holding time, or waiting for better funding rates. High break-even requirements mean you need significant price movement to profit — that's risky.
How does leverage affect break-even?
Leverage multiplies your position size, which multiplies funding costs. A 5x leveraged position pays 5x the funding of a 1x position (same capital). Higher leverage = higher funding costs = higher break-even requirement. Use the Funding Rate Impact Tool to see cumulative funding costs.
What's the difference between this and Funding Rate Impact?
Funding Rate Impact shows cumulative funding costs over time. Break-Even shows how much price movement you need to offset those costs. Use Impact to understand the cost, Break-Even to see if your trade is still profitable. They work together.
Should I avoid trading when break-even is high?
Not necessarily — high break-even can indicate strong directional bias (high funding = many longs = bullish sentiment). But factor it into your risk/reward. If break-even is 5% and you expect 6% profit, funding eats 83% of your profit. That might not be worth it.
How does funding interval affect break-even?
More frequent funding (1-hour vs 8-hour) means funding compounds faster, requiring larger price moves to break even. However, the total funding over time is similar — it's just paid more frequently. The tool accounts for different intervals.
Can I use this for short positions?
Yes — for shorts, break-even works differently. If funding is positive (longs pay shorts), shorts receive funding, so break-even can be negative (price can drop less and still profit). Shorts benefit from positive funding rates, longs benefit from negative rates.