About the Funding Rate Calculator
This funding rate calculator shows how much a perpetual futures position pays or receives in funding over time. Enter the position size, the funding rate per interval, how often funding is charged and how long you plan to hold, and it returns the payment per interval, per day and in total — plus the annualized rate and what it means relative to your margin.
Perpetual contracts have no expiry, so exchanges use periodic funding payments between longs and shorts to keep the contract price close to spot. When the rate is positive, longs pay shorts; when it is negative, shorts pay longs. A rate that looks tiny — 0.01% every 8 hours — adds up to about 11% a year on the full notional, and far more as a share of a leveraged margin balance.
The calculator assumes the rate and your notional position stay constant. Real funding rates change every interval, so use a recent average rate for planning and re-check before holding a position for weeks.
With the default inputs, the total funding paid (negative = received) is $90.00. Change any value above to recalculate instantly.
How to use the funding rate calculator
- 1Enter the notional size of your position and whether it is long or short.
- 2Enter the current or average funding rate shown by your exchange.
- 3Pick the exchange's funding interval — most use 8 hours.
- 4Enter how many days you plan to hold and your leverage.
- 5Read total funding and compare it with your expected profit.
Formula and method
Each funding payment equals the position's notional value multiplied by the funding rate for that interval. Longs pay when the rate is positive and receive when it is negative; shorts do the opposite. The total is the payment per interval times the number of complete intervals you hold through.
Notional value is the full contract value, not your margin, so leverage magnifies funding relative to the money you have at risk. The annualized rate multiplies the per-interval rate by the number of intervals in a year (1,095 for 8-hour funding) without compounding.
- Notional
- Position size = contracts × mark price
- Rate
- Funding rate per interval (0.01% = 0.0001)
- Interval
- Hours between funding payments
Worked examples
$10,000 long for 30 days at 0.01% per 8h
Each 8-hour payment is $10,000 × 0.01% = $1. Thirty days has 90 intervals, so the long pays $90. On a 5× position the margin is $2,000, so funding eats 4.5% of it in a month.
Short $50,000 for a week in a hot market
At 0.03% every 8 hours longs pay shorts $15 per interval on $50,000. Over 21 intervals the short receives $315 — 6.3% of its $5,000 margin.
Long with negative hourly funding
With funding every hour at −0.005%, shorts pay longs $1.25 per hour on $25,000. Over 14 days (336 payments) the long collects $420.
Frequently asked questions
What is a funding rate?+
A funding rate is a periodic payment between long and short traders of a perpetual futures contract. It keeps the perpetual price anchored to the spot index: when perps trade above spot, the rate is positive and longs pay shorts.
How often is funding paid?+
Most major exchanges settle funding every 8 hours (three times a day), while some contracts and exchanges use 4-hour or hourly intervals. You only pay or receive if you hold a position at the funding timestamp.
Is funding calculated on margin or position size?+
On the notional position size. A $10,000 position opened with $1,000 of margin at 10× pays funding on the full $10,000, which is why funding can be a large share of margin for leveraged traders.
What is a normal funding rate?+
Many exchanges use a baseline of about 0.01% per 8 hours, roughly 11% a year. In strong bull markets it can reach 0.05–0.1% per interval or more, and it turns negative when shorts dominate.
Can I earn money from funding rates?+
Yes. A cash-and-carry or basis trade holds spot and shorts the perpetual to collect positive funding while staying price-neutral. Returns change as rates change, and exchange, liquidation and fee risks remain.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.