Free tool
Crypto funding rate calculator
Funding is the periodic payment between long and short traders on perpetual futures. When the rate is positive, longs pay shorts; when it is negative, shorts pay longs. Enter your trade size, the funding rate and how long you plan to hold, and see what funding adds to or takes from the trade.
- Per payment
- $1.00
- Payments
- 9
- You pay in total
- $9.00
- Annualised rate
- 10.95%
Assumes the rate stays constant; real funding changes every interval. Actual payments depend on settlement times, so a short hold can still cross one settlement.
How the calculation works
- Payment per interval = trade size × funding rate.
- Number of payments = holding time ÷ funding interval (for example every 8 hours = 3 a day).
- Total funding = payment per interval × number of payments, assuming the rate stays the same.
- Positive rate: longs pay and shorts receive. Negative rate: shorts pay and longs receive.
Worked example
Say you hold a $10,000 long for 3 days while funding sits at 0.01% every 8 hours. Each payment is $1, there are 9 payments, and you pay about $9 in total.
If funding jumps to 0.10% per 8 hours, the same position pays $10 per payment and about $90 over 3 days. Real funding changes every interval, so treat this as an estimate.
Frequently asked questions
Who pays funding, longs or shorts?
It depends on the sign of the rate. When funding is positive, traders who are long pay those who are short. When it is negative, shorts pay longs. The payment goes between traders; on Binance the exchange does not take a share of it. You only pay or receive if your position is open at the funding time.
How often is funding paid?
On most Binance perpetual contracts funding is settled every 8 hours, at 00:00, 08:00 and 16:00 UTC. Some contracts use 4-hour or 1-hour intervals, and the interval can change in volatile markets. Check the contract page on your exchange before you rely on a number.
What is a high funding rate?
A common baseline on Binance is 0.01% per 8 hours. Rates several times higher mean one side is paying heavily to hold its position, which often happens when a trade is crowded. A high rate is a cost and a sign of positioning, not a prediction of direction.
Why does the annualised rate look so large?
Small rates paid many times a year add up. 0.01% every 8 hours is about 10.95% a year if it never changed. Funding does change constantly, so the annualised figure is only a way to compare costs, not a forecast.
For education and planning only, not financial advice. Exchange rules, fees and funding vary.