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Funding Rate Calculator

Calculate periodic funding payments for perpetual swap positions.

e.g., 0.01 for 0.01%

Frequently Asked Questions

What is the funding rate?

The funding rate is a periodic payment exchanged between long and short traders in perpetual futures to keep the contract price close to the spot price.

Who pays the funding rate?

When the rate is positive, longs pay shorts. When negative, shorts pay longs.

How often is funding paid?

Most exchanges pay funding every 8 hours (Binance, Bybit), while some use 1-hour intervals.

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๐Ÿ“Š Data Summary (auto-filled)

Tool: Funding Rate Calculator ยท /tools/funding-rate/

direction: long

hours: 8

compounding: simple

What is this tool?

Funding rate is a periodic payment between long and short traders in perpetual futures contracts, designed to keep the contract price anchored to spot. Positive funding means longs pay shorts. Funding typically settles every 8 hours. Annualized funding can range from -50% to +50% in extreme markets.

How to use

  1. 1

    Enter position size

    Input your position notional value.

  2. 2

    Set funding rate

    Enter the current funding rate percentage per interval.

  3. 3

    Choose hours held

    Set how many hours you plan to hold the position.

  4. 4

    View payment amount

    See total funding payment and annualized rate.

  5. 5

    Review time breakdown

    Compare funding costs at different holding periods.

Frequently Asked Questions

What is funding rate?

Funding rate is a mechanism in perpetual futures that keeps the contract price close to spot. Traders pay each other, not the exchange.

How often is funding paid?

Most exchanges settle every 8 hours at 00:00, 08:00, and 16:00 UTC. Some use 4-hour or 1-hour intervals.

Can I profit from funding rates?

Funding rate arbitrage involves taking opposite positions on spot and perpetual futures to earn the funding rate difference.