Perpetual Futures Funding Rate Impact Calculator
Funding rates are the hidden cost of holding perpetual futures positions. What looks like a tiny 0.01% every 8 hours compounds into serious margin erosion over days and weeks. This calculator shows the true cost of holding your position.
See exactly how much of your margin gets consumed by funding, the break-even price move you need just to cover costs, and visualize your margin declining over time.
Total notional position value
Leverage used on the position
Per-payment funding rate (typically 8h)
How long you plan to hold
Hours between funding payments
Results
Total Funding Cost
$90.00
Cumulative Funding Cost Over Time
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Calculation Methodology
Funding rates are periodic payments between long and short traders that keep perpetual contract prices aligned with spot prices. The cost accumulates over time and is charged on the full notional position value, not just margin.
Key Insight: Funding is charged on the full position size, not margin. A $10,000 position with 5x leverage uses $2,000 margin, but funding is calculated on $10,000. This means funding can consume a significant portion of your margin over time, especially with high leverage.
Learn more about perpetual contracts:
Perps basics guideExample Scenario
Setup: $10,000 position, 5x leverage, 0.01% funding rate, 8-hour interval, 30 days
What this means: Over 30 days, you'll pay $90 in funding (4.5% of your margin). Price needs to move 0.9% in your favor just to break even on funding costs. The chart above shows how funding accumulates linearly over time.
Common Mistakes & Warnings
- ⚠Ignoring funding on long holds: Funding compounds over time. A position held for 3 months can lose 10-15% of margin just to funding, even with moderate rates.
- ⚠Not checking funding direction: Positive rates mean longs pay shorts. Negative rates mean shorts pay longs. Always check which side you're on.
- ⚠Funding on notional vs margin: Funding is calculated on full position size, not margin. A $10k position with 10x leverage pays funding on $10k, not $1k margin.
- ⚠Funding reduces margin: Each funding payment comes out of your margin balance. Over time, this can push you closer to liquidation even without price movement.
- ⚠High leverage amplifies impact: With 50x leverage, funding can consume 1-2% of margin per week. This is unsustainable for long-term holds.
Example Scenarios
Try these realistic scenarios to understand how funding rates impact your positions over time.
Scenario 1: Low Funding, Short Hold
Low funding rate with short holding period. Minimal impact on returns.
Step-by-Step Calculation:
- Margin: $10,000 ÷ 5 = $2,000
- Funding per payment: $10,000 × 0.00005 = $0.50
- Payments per day: 24 ÷ 8 = 3
- Daily funding: $0.50 × 3 = $1.50
- Total funding (7 days): $1.50 × 7 = $10.50
- % of margin: ($10.50 ÷ $2,000) × 100 = 0.525%
What this means: Over 7 days, you pay $10.50 in funding (0.525% of margin). This is minimal impact - price only needs to move 0.105% to offset funding costs.
Scenario 2: Normal Funding, Medium Hold
Standard funding rate with 30-day hold. Noticeable impact on returns.
Step-by-Step Calculation:
- Margin: $10,000 ÷ 5 = $2,000
- Funding per payment: $10,000 × 0.0001 = $1
- Payments per day: 24 ÷ 8 = 3
- Daily funding: $1 × 3 = $3
- Total funding (30 days): $3 × 30 = $90
- % of margin: ($90 ÷ $2,000) × 100 = 4.5%
What this means: Over 30 days, you pay $90 in funding (4.5% of margin). Price needs to move 0.9% just to break even on funding. This is significant - funding becomes a real cost over longer holds.
Scenario 3: High Funding, Long Hold
High funding rate with extended hold. Funding can consume significant margin. ⚠️ High cost
Step-by-Step Calculation:
- Margin: $10,000 ÷ 10 = $1,000
- Funding per payment: $10,000 × 0.0005 = $5
- Payments per day: 24 ÷ 8 = 3
- Daily funding: $5 × 3 = $15
- Total funding (90 days): $15 × 90 = $1,350
- % of margin: ($1,350 ÷ $1,000) × 100 = 135%
What this means: Over 90 days, you pay $1,350 in funding - more than your entire margin! This would liquidate you even without price movement. Price needs to move 13.5% just to offset funding. This is unsustainable.
Edge Case Warning: With funding consuming 135% of margin over 90 days, you would be liquidated by funding alone before 90 days. High funding rates make long-term holds impossible without significant price movement in your favor.
What If Variations
Explore how changing parameters affects funding costs:
What if I'm short and funding is positive?
Using Scenario 2: You receive $90 instead of paying it. This reduces your break-even price move from 0.9% to effectively 0% (or even negative). 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 30 days becomes $720 instead of $90. More frequent payments multiply costs.
What if I increase leverage from 5x to 20x?
Using Scenario 2: Margin drops from $2,000 to $500, but funding stays $90 (calculated on position size). Funding as % of margin jumps from 4.5% to 18%. Higher leverage amplifies funding impact on margin.
Frequently Asked Questions
What is funding rate?
Funding is a periodic payment between long and short traders that keeps perpetual contract prices aligned with spot. Positive = longs pay shorts.
Can I earn from funding?
Yes — if you're on the receiving side. Shorts receive funding when rates are positive, and longs receive when negative.
How often is funding paid?
Most exchanges use 8-hour intervals (3x/day), but some use 1-hour or 4-hour intervals. Check your exchange's specific terms.
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