How is the liquidation price estimated?

For isolated margin, ignoring fees: long ≈ entry × (1 − 1/leverage) and short ≈ entry × (1 + 1/leverage). A maintenance margin rate refines the estimate.

Is this liquidation price exact?

No. It is an approximation. Real liquidation depends on each exchange's maintenance-margin tiers, funding and fees, so always check your exchange.

Why does higher leverage move the liquidation price closer to entry?

Higher leverage means a smaller margin cushion relative to position size, so a smaller adverse price move exhausts that margin — 1/leverage shrinks as leverage rises.

What does the maintenance margin rate do?

It reserves a buffer so the position is closed before margin actually reaches zero; a higher maintenance rate moves the estimated liquidation price closer to entry (more conservative).

Does funding rate affect liquidation?

Not in this simplified model. Funding payments gradually add to or subtract from margin over time on perpetual futures, which real exchanges factor into liquidation.

Is cross margin different from isolated margin here?

Yes — this estimates isolated margin, where only the margin allocated to this position is at risk. Cross margin shares your whole account balance as a buffer, giving a different (usually more distant) liquidation price.

Crypto

Crypto Position & Liquidation Calculator

Estimate crypto position margin and an approximate isolated-margin liquidation price from entry, leverage, direction and size. Educational approximation.

A liquidation price is the price level at which a leveraged crypto position's margin is exhausted and the exchange force-closes the trade.

Est. liquidation price

$27,150.00

Notional value: $30,000.00
Margin used: $3,000.00

Approximate, isolated margin, fees ignored. Always confirm on your exchange.

Worked example

A trader opens a 10x long of 0.5 BTC at $30,000 entry, with a 0.5% maintenance margin rate.

Notional: $30,000 × 0.5 = $15,000
Margin used: $15,000 ÷ 10 = $1,500
1 ÷ leverage: 1 ÷ 10 = 0.10
Liquidation price: $30,000 × (1 − 0.10 + 0.005) = $27,150

The position is liquidated (approximately) if BTC falls to about $27,150 — a 9.5% drop — despite the account only committing $1,500 in margin.

How this is calculated

Notional = entry × size and margin used = notional ÷ leverage. The approximate isolated-margin liquidation price (ignoring fees) is:

long ≈ entry × (1 − 1/leverage + m)
short ≈ entry × (1 + 1/leverage − m)

where m is the maintenance margin rate. Real exchanges use tiered maintenance margins, funding and fees, so your actual liquidation price will differ.

When to use this calculator

Use this before opening a leveraged crypto position to estimate the margin the trade will consume and — more importantly — roughly where the exchange would liquidate it. At 10x leverage a ~10% adverse move ends the position; seeing that number in advance is the point.

It is most useful when choosing leverage. Step the leverage input up and down and watch the liquidation price approach or retreat from entry; the trade-off between capital efficiency and survival room becomes visible immediately.

Treat the output as a conservative planning estimate, not the exchange's exact trigger. Maintenance-margin tiers, funding and fees shift the real liquidation price, usually closer to entry — always confirm on your exchange before relying on it.

Common mistakes

Treating the liquidation price as exact — real exchanges add fees, funding and margin tiers that usually move it closer than this estimate suggests.
Using cross-margin assumptions (whole account as buffer) when the position is actually isolated margin, or vice versa.
Ignoring how quickly the liquidation price approaches entry at high leverage — 20x+ leaves very little room for normal volatility.

Frequently asked questions

How is the liquidation price estimated?: For isolated margin, ignoring fees: long ≈ entry × (1 − 1/leverage) and short ≈ entry × (1 + 1/leverage). A maintenance margin rate refines the estimate.
Is this liquidation price exact?: No. It is an approximation. Real liquidation depends on each exchange's maintenance-margin tiers, funding and fees, so always check your exchange.
Why does higher leverage move the liquidation price closer to entry?: Higher leverage means a smaller margin cushion relative to position size, so a smaller adverse price move exhausts that margin — 1/leverage shrinks as leverage rises.
What does the maintenance margin rate do?: It reserves a buffer so the position is closed before margin actually reaches zero; a higher maintenance rate moves the estimated liquidation price closer to entry (more conservative).
Does funding rate affect liquidation?: Not in this simplified model. Funding payments gradually add to or subtract from margin over time on perpetual futures, which real exchanges factor into liquidation.
Is cross margin different from isolated margin here?: Yes — this estimates isolated margin, where only the margin allocated to this position is at risk. Cross margin shares your whole account balance as a buffer, giving a different (usually more distant) liquidation price.