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    Funding costs, calculated.

    How much of your margin do perpetual funding payments eat per day, week and month — at your leverage, with live rates.

    Margin and P&L: USDT. Prices and notional: USDT.

    Changing the contract or margin coin clears amounts and prices. Enter values in the new units.

    The worked examples and formula walkthroughs on this page use linear USDT/USDC contracts unless stated otherwise.

    Funding uses the entered mark price and rate throughout the holding period. Change the mark price to model a different funding cost.

    Your position

    Direction

    Funding cost

    You PAY funding at the current rate

    ⁦3.00 USDT⁩ / day

    0.30% of your margin per day

    Notional size

    ⁦10,000.00 USDT⁩

    Per 8h settlement

    ⁦1.00 USDT⁩

    Per week

    ⁦21.00 USDT⁩

    Per month (30 days)

    ⁦90.00 USDT⁩

    Total over 7 days

    ⁦21.00 USDT⁩

    Funding budget left: ⁦979.00 USDT⁩ of the ⁦1,000.00 USDT⁩ margin you entered (97.9%)

    At this rate, funding alone consumes 10% of your margin in ~33 days and 50% in ~167 days.

    A fixed-notional projection at a constant rate. Where each payment is taken from depends on the venue — Bybit debits your available balance first and only then the position's margin — so treat this as a budget, not a forecast of the margin you will actually have left.

    Projection at the current rate. Funding rates change every interval with market conditions — treat this as a planning estimate, not a fixed cost.

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    What is a funding rate?

    A positive funding rate means longs pay shorts; a negative rate reverses the payment. Receiving funding does not remove price, liquidation, execution or counterparty risk.

    The math that eats your margin

    Funding is charged on your notional position (margin × leverage). That's the trap: at 10x leverage, a 0.01% rate per 8-hour settlement is 0.01% of notional — which is 0.1% of your margin per settlement, 0.3% every day, roughly 2.1% a week and 9% a month, before the price moves a cent. At 50x the same "tiny" rate is 1.5% of margin daily. Contracts that settle every 4 hours or every hour charge proportionally more often. Which balance the exchange debits depends on its rules — Bybit, for example, takes funding from your available balance first and only then from the position's margin — but a budget you never top up is eroded toward liquidation all the same if you hold long enough.

    How to keep funding costs down

    Compare the native rate, interval and contract at the same position value. Lower leverage reduces funding only if it also reduces that value; adding collateral to the same position does not reduce its funding payment. Future rates can change.

    Frequently Asked Questions

    What is a funding rate?

    A periodic payment between long and short traders that keeps a perpetual contract's price anchored to the spot index. Perps have no expiry, so funding is the mechanism that pulls the contract back toward the underlying price.

    Who pays whom?

    A positive funding rate means longs pay shorts; a negative rate reverses the payment. Receiving funding does not remove price, liquidation, execution or counterparty risk.

    How often is funding charged?

    Most Binance and Bybit perpetuals settle every 8 hours (00:00, 08:00 and 16:00 UTC), but the interval is set per contract: Binance runs some pairs on 4-hour or 1-hour funding. This calculator uses the interval of the contract you prefill, and lets you set it by hand for a typed rate.

    Why does funding eat margin so fast at high leverage?

    Funding is charged on notional (margin × leverage), so at 20x a 0.01% rate is 0.2% of your margin per interval — 0.6% a day and roughly 18% a month, before the market moves at all. Whether each payment comes out of your available balance or the position's margin depends on the venue's rules; the projection above treats it as a budget against the margin you entered.

    What does a negative funding rate mean for me?

    A positive funding rate means longs pay shorts; a negative rate reverses the payment. Receiving funding does not remove price, liquidation, execution or counterparty risk.

    How can I reduce funding costs?

    Compare the native rate, interval and contract at the same position value. Lower leverage reduces funding only if it also reduces that value; adding collateral to the same position does not reduce its funding payment. Future rates can change.

    Methodology, checks and sources

    Educational scenarios for linear USDT/USDC and inverse coin-margined contracts. These are not exchange-specific liquidation engines or forecasts.

    For derivatives, leverage is notional exposure divided by initial margin. At 8×, 1 unit of margin backs 8 units of exposure; this does not itself create a loan. Spot margin borrowing is a different product.

    • Maintenance is fixed at entry. Cross margin models one position backed by the entered wallet balance. Fees, funding, changing risk tiers, other positions and collateral haircuts are excluded. Actual venues can use different formulas and mark-price triggers.
    • Size targets a planned loss at an exact stop fill. Fees, funding, gaps and slippage are excluded. The bankruptcy boundary is not the actual liquidation trigger; maintenance and costs can cause earlier liquidation.
    • The projection holds rate, position value, mark price and interval constant. It does not model changing rates or actual settlement timestamps. Kraken accrues funding continuously; its hourly equivalent is a comparison basis.
    • Annualized % = native rate % × 24 ÷ interval hours × 365. This is simple annualization without compounding, not a promised yield. Missing quotes are not zero rates.

    Worked verification examples

    • Isolated USDT: entry 65,000, margin 1,000, 10×, maintenance 0.5% → long 58,825; short 71,175.
    • The same position with cross collateral 2,000 USDT → long 52,325 USDT.
    • Inverse BTC: entry 65,000 USD, margin 0.01 BTC, 10×, maintenance 0.5% → long 59,360.73 USD.
    • USDT account 10,000, planned risk 1%, stop distance 5%, 5× → notional 2,000, margin 400, planned loss 100 USDT.
    • USDT margin 1,000, 10×, constant 0.01% per 8 hours for 7 days → long pays 21 USDT; short receives the same amount.

    Zero entry prices, zero stop distances and maintenance at or above collateral cannot define a valid position. Zero funding produces zero cost; negative funding reverses payer and recipient.

    Primary sources

    Responsible publisher: MN Media s.r.o.

    Model and source checks: . Calculation tests and source review; not an independent financial certification.