Funding Rate Calculator [Free Tool]
Estimate the funding you pay or receive for holding a perpetual crypto futures position. See how a small per-interval rate compounds into a real cost across days and weeks.
Disclaimer: Trading financial instruments involves risk, and everything on this page is provided for educational purposes only. Nothing here is financial advice or a recommendation to buy or sell any instrument.
Total Funding Fee
$3.0000
You pay this amount over your holding period (positive funding, long pay short).
How is this calculated?
Funding Fee = Position Value × Funding Rate × (Hours Held ÷ Funding Interval)
Most exchanges settle funding every 8 hours; positive funding means longs pay shorts.
Read the full user guide
Every parameter, formula, and worked example — a complete reference for this tool.
What is the funding rate?
The funding rate is a periodic payment that moves between long and short traders in perpetual futures, nudging the contract's price so it stays anchored to spot. When funding is positive, longs pay shorts; when negative, the flow reverses. It is not a fee the exchange collects — it is a transfer between traders — but for anyone holding a position across funding intervals it is a real, recurring cost or credit that quietly shapes the trade's economics.
Key concepts
Perpetual futures
Contracts without expiry, kept near spot via funding.
Payment
Transferred between counterparties every funding interval, not charged by the exchange.
Sentiment signal
Extremely positive funding can indicate crowded longs, and vice versa.
A worked example with real numbers
- 1
Enter the position and the rate
You hold a $10,000 perpetual long with funding currently at 0.01% per 8 hours.
- 2
Compute the interval payment
$10,000 × 0.01% = $1.00 per 8-hour interval, paid from longs to shorts while the rate is positive.
- 3
Annualize the drag
Three payments a day means $3.00 daily, or roughly $1,095 per year if the rate stayed constant — a real drag on a $10,000 position.
- 4
Read the sentiment signal
A persistently high positive rate suggests crowded longs; a deeply negative one suggests crowded shorts. Use it as one input, not a trigger.
How to use it
Enter position value and rate
The notional size and the current funding rate.
Enter the interval
Typically 8 hours.
Read the fee
The amount paid or received each interval.
The formula, step by step
Funding fee
Fee = Position value × Funding rate × Leverage-adjusted factor
Exact formula follows the exchange contract spec.
Mistakes traders make
✗ Ignoring funding on a position held across many intervals
✓Small payments compound into a meaningful drag when rates are elevated. Funding belongs in any longer-horizon perpetual calculation.
✗ Treating extreme funding as a reliable fade signal
✓Crowded positions can stay crowded. Extremes mark tension, not a timing entry, and the rate can go higher before it normalizes.
✗ Forgetting funding is a transfer, not an exchange fee
✓You pay the other side, not the venue. That does not make it cheap — it is still a real cost from your equity every interval.
When this tool fits — and when it does not
Use it when
- ✓Before holding a perpetual position across a funding interval.
- ✓Projecting the holding cost of a longer-term futures trade.
- ✓Reading market sentiment through the sign and size of the rate.
Skip it when
- ✗Using funding extremes as a standalone entry signal.
- ✗Ignoring funding when comparing perp trading to spot.
- ✗Assuming the rate stays constant while you hold.
Practical tips that actually help
Price funding into the trade
A strategy that is only marginal before funding can be negative after it. Add the interval cost to the plan before entry.
Check the interval for your venue
Most exchanges use 8-hour funding, but some differ. The tool lets you set the interval to match where you trade.
Read funding as a thermometer, not a compass
Rates show how crowded a side is; they do not tell you when price resolves. Combine with price and structure.
Related & next steps
Frequently asked questions
Why does funding exist?▾
Without expiry, nothing forces the perpetual price to spot. Funding transfers value between sides to pull the contract price toward spot.
Who actually pays the funding rate?▾
It depends on your side and the sign. Positive funding flows from longs to shorts; negative funding flows from shorts to longs. If you are on the paying side, it comes out of your position's equity every interval.
How often is funding charged?▾
Most common is every 8 hours, three times a day, but intervals vary by exchange. The calculator lets you set the interval to match the venue you trade.
Is high funding always a signal to fade the crowd?▾
Not reliably. Persistently high positive funding can mark crowded longs, but crowded positions can stay crowded for a long time. Treat it as one sentiment input among many, not a standalone trigger.
How does funding affect a long-held position?▾
For a position held across many intervals, repeated funding payments compound into a meaningful drag when rates are elevated — which is why funding belongs in any longer-horizon perpetual trade calculation.
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Funding rates vary by exchange and change constantly; use live exchange data for real positions.
Disclaimer: The tools and content on this site are provided for educational purposes only and do not constitute investment advice. Trading and investing involve a substantial risk of loss, and past performance does not guarantee future results.