Funding fee calculator

Worked example

You hold a $10,000 long on a perpetual that charges funding every 8 hours, and the rate is 0.01% per payment. Each payment costs $10,000 × 0.0001 = $1. Three payments a day make $3, and holding for 7 days costs $21.

Over a full year at that rate you would pay about 10.95% of the position. That surprises people who only look at the $1. If the rate turns negative, the flow reverses and the long gets paid instead.

A short at the same positive rate receives the $1 per payment. The fee moves between traders; the exchange does not keep it.

The formula

Funding per payment = position value × rate. Payments per day = 24 ÷ hours between payments. When the rate is positive, longs pay shorts. When it is negative, shorts pay longs.

Only positions open at the funding time pay or receive it. The calculator assumes the rate stays the same for every payment, which it rarely does, so use it for the size of the cost, not an exact bill.

Questions and answers

How is the funding fee calculated?

Multiply the position value by the funding rate. A $10,000 position at 0.01% pays or receives $1 at each funding time.

Who pays funding, longs or shorts?

With a positive rate, longs pay shorts. With a negative rate, shorts pay longs. The exchange passes the fee between traders.

Do I pay funding if I close before the funding time?

No. Only positions that are open at the exact funding time pay or receive it.

How often is funding charged?

Many contracts charge every 8 hours. Some charge every 4 hours or every hour, so check the interval on your exchange and enter it here.

More calculators: position size calculator, liquidation price calculator, crypto profit calculator.