What is a funding rate?

A periodic payment between longs and shorts that tethers a perpetual future to its index price. Positive funding: longs pay shorts. Negative: shorts pay longs.

How often is funding charged?

Most venues settle every 8 hours (3× daily); some use 1-hour or 4-hour intervals. Set the intervals-per-day input to match your exchange.

How do I annualise a funding rate?

Rate per interval × intervals per day × 365. The common +0.01% per 8 hours works out to about 10.95% a year.

Is funding based on margin or notional?

Notional — the full position value. That is why high leverage makes funding feel expensive: the payment is unchanged but your margin is smaller.

Yes — hold the side being paid (usually short when funding is positive). Delta-neutral carry trades pair a short perp with spot to harvest funding while hedged against price.

Why did I pay more than the calculator shows?

Actual funding floats each interval and your notional changes with price; the tool assumes both stay at the entered values. Check your exchange's funding history for realised amounts.

Crypto

Funding Rate Calculator

Calculate perpetual futures funding payments from position size, funding rate and holding period — per interval, per day, total and annualised.

A funding rate is the periodic payment exchanged between longs and shorts that keeps a perpetual future's price tied to its index.

Total funding paid

-$180.00

Per interval: -$2.00
Per day: -$6.00
Annualised rate: -10.95%

Assumes the rate and notional stay constant; real funding floats every interval.

Worked example

A trader holds a $20,000 long BTC perpetual for 30 days while funding averages +0.01% per 8-hour interval.

Per interval: $20,000 × 0.01% = $2 paid
Per day: $2 × 3 intervals = $6
Over 30 days: $6 × 30 = $180
Annualised rate: 0.01% × 3 × 365 ≈ 10.95%

The long pays about $180 of funding in a month — an 11% annualised drag on the notional. A short holding through the same period would have received it.

How this is calculated

Funding is exchanged directly between position holders each interval, proportional to notional:

perInterval = notional × rate
total = perInterval × intervalsPerDay × days
annualised = rate × intervalsPerDay × 365

The sign convention: a positive rate means longs pay shorts, so a long's cash flow is negative and a short's positive; a negative rate flips both.

Because payments scale with notional rather than margin, funding feels 10× larger relative to capital at 10× leverage — the hidden carry cost of leveraged perpetual positions.

When to use this calculator

Use this before holding any perpetual position for more than a day. Funding is the invisible cost of perps: at the common +0.01% per 8 hours a long pays roughly 11% annualised on notional, which quietly dominates fees on longer holds.

It is essential for comparing a perp position against alternatives — spot with no funding, or dated futures with a fixed basis — once your expected holding period is known.

Carry traders use it in reverse: enter the rate you expect to receive on the paid side (typically short when funding is positive) to size up what a delta-neutral funding harvest could yield.

Common mistakes

Ignoring funding on multi-day holds — a persistent +0.01%/8h rate costs longs roughly 11% a year, often more than the exchange's trading fees.
Assuming the rate is constant: funding floats every interval and can flip sign; this tool projects the average you enter.
Forgetting that funding applies to notional (position size), not margin — at 10x leverage the funding cost relative to your margin is 10x larger.

Frequently asked questions

What is a funding rate?: A periodic payment between longs and shorts that tethers a perpetual future to its index price. Positive funding: longs pay shorts. Negative: shorts pay longs.
How often is funding charged?: Most venues settle every 8 hours (3× daily); some use 1-hour or 4-hour intervals. Set the intervals-per-day input to match your exchange.
How do I annualise a funding rate?: Rate per interval × intervals per day × 365. The common +0.01% per 8 hours works out to about 10.95% a year.
Is funding based on margin or notional?: Notional — the full position value. That is why high leverage makes funding feel expensive: the payment is unchanged but your margin is smaller.
Can I earn funding?: Yes — hold the side being paid (usually short when funding is positive). Delta-neutral carry trades pair a short perp with spot to harvest funding while hedged against price.
Why did I pay more than the calculator shows?: Actual funding floats each interval and your notional changes with price; the tool assumes both stay at the entered values. Check your exchange's funding history for realised amounts.