Perpetual Funding Rate Calculator — Exact Cost for Any Position
Every perpetual futures position accumulates funding costs silently every 8 hours. Whether you trade Bitcoin, Ethereum, or altcoin perps on Binance, Bybit, or OKX, this calculator shows you the exact dollar amount you will pay (or receive) before you open the trade — so you can size positions and plan exits accordingly.
Perpetual futures funding cost = Position Size × (Funding Rate / 100) × (Hours Held / 8). At 0.01% per 8h (the standard neutral rate), a $10,000 position held for 24 hours costs $0.30 in funding — paid across 3 settlement windows. Funding settles every 8 hours (00:00, 08:00, 16:00 UTC) on Binance, Bybit, and OKX.
When to use this calculator
- Calculate total funding cost before opening a large leveraged position
- Compare carry-trade yield vs funding drag on delta-neutral strategies
- Estimate annualized funding as a percentage of position
- Determine when to close or roll a position based on cumulative funding
- Model worst-case funding scenarios during high-volatility spikes
Worked Example: $10,000 BTC Long, 72 Hours
- Position size: $10,000
- Funding rate: 0.05% per 8h (bullish market)
- Hours held: 72h (3 days = 9 settlement windows)
- Funding cost = $10,000 × 0.0005 × 9 = $45.00
- That is 0.45% of your position eaten by funding alone
How it works
2 min readPerpetual futures contracts replicate the economics of a futures market without an expiry date. To prevent the perpetual price from diverging from spot, exchanges run a funding mechanism: every 8 hours, traders on the crowded side pay traders on the uncrowded side.
The Formula
Funding Cost = Position Size × (Funding Rate ÷ 100) × (Hours ÷ 8)
Funding Rate Reference Table
| Funding Rate (8h) | Annualized Equivalent | Market Signal |
|---|---|---|
| 0.01% | ~4.4% | Neutral market |
| 0.02% – 0.03% | ~8.8% – 13.1% | Mild bullish lean |
| 0.05% – 0.10% | ~22% – 44% | Heavy longs, elevated risk |
| 0.20% – 0.50% | ~88% – 219% | Extreme — flash rally or crash |
| Negative (–0.01%) | –4.4% | Short-heavy — longs collect |
Funding Cost by Position Size (at 0.01% per 8h, 24 hours)
| Position (USD) | Cost per 24h | Cost per Week | Annual Drag |
|---|---|---|---|
| $1,000 | $0.03 | $0.21 | $10.95 |
| $5,000 | $0.15 | $1.05 | $54.75 |
| $10,000 | $0.30 | $2.10 | $109.50 |
| $50,000 | $1.50 | $10.50 | $547.50 |
| $100,000 | $3.00 | $21.00 | $1,095.00 |
Settlement Schedule
Most Tier-1 exchanges settle every 8 hours at 00:00, 08:00, 16:00 UTC:
Strategic Considerations
What This Calculator Does Not Include
Frequently asked questions
What is the perpetual futures funding rate?
The funding rate is a periodic payment between long and short traders that anchors the perpetual contract price to the spot price. When longs dominate (positive rate), longs pay shorts every 8 hours. When shorts dominate (negative rate), shorts pay longs. The rate is set by the exchange based on the premium between perp and spot.
How is funding calculated exactly?
Funding Cost = Position Size (USD) × Funding Rate (%) ÷ 100 × Number of 8-hour intervals. Example: $10,000 position at 0.05% held for 24h = $10,000 × 0.0005 × 3 intervals = $15.00 paid.
How often does funding settle on Binance and Bybit?
Both Binance and Bybit settle funding every 8 hours at 00:00, 08:00, and 16:00 UTC. OKX uses the same schedule. Some exchanges like dYdX offer hourly settlement. You must be holding the position at settlement time to pay or receive funding.
What is a typical funding rate?
In neutral markets, rates range from 0.01% to 0.03% per 8 hours (roughly 4–11% annualized). During strong bull runs, rates spike to 0.05%–0.15% (18–55% annualized). During bear markets or short squeezes, rates go negative, meaning longs collect instead of pay.
Does funding apply to spot holdings?
No. Funding is exclusive to perpetual futures contracts. If you hold actual Bitcoin, Ethereum, or any spot asset, you pay zero funding. Funding only applies to the leveraged perpetual position you hold on the exchange.
Can funding rates spike suddenly?
Yes — significantly. During flash rallies or liquidation cascades, rates can reach 0.2%–0.5% per 8-hour window (88%–220% annualized). Set exchange alerts for funding rate changes before entering large positions. Always check the current rate before opening.
What happens when funding is negative and I'm long?
You receive payments instead of paying them. Negative funding means short traders outnumber longs — the exchange pays longs to balance the market. This is attractive for long-biased traders but often signals bearish market sentiment.
How do I use funding rates for carry trading?
When funding rates are very high (e.g., 0.10%+ per 8h), you can go spot long + perpetual short on the same asset. The short position collects funding while your spot position hedges directional risk. The net return is the funding yield minus execution costs. Called 'cash-and-carry' or 'funding arbitrage'.
Should I close my position before settlement to avoid funding?
Only if rates are extreme (above 0.05% per interval). For normal rates of 0.01%–0.03%, the round-trip trading fees from closing and reopening will likely exceed the funding saved. Use alerts on your exchange to monitor rate spikes in real time.
How do I find the current funding rate?
On Binance: Markets → Derivatives → Funding Rate. On Bybit: Derivatives → Contract Details → Funding Rate. On OKX: Trading → Swap → Funding Rate tab. Many aggregators like Coinglass (coinglass.com) show funding rates across exchanges in real time.