Funding Rate Cost Calculator

How to use this funding rate cost calculator

Three numbers. The notional value is the total size of this futures position — not the margin, but the whole position value after leverage. For example, 1,000 USDT at 10x makes the notional 10,000. For the funding rate, enter the percentage of a single settlement; on Binance it differs by coin every 8 hours, and the default 0.01% is a common, mild value — in a hot market it can be several times higher. Hours held is simply how long you plan to keep it. Once filled, the right side gives the total funding bill for that period, and the comparison bar below puts that cost against the whole position so you can feel how much it's nibbling.

Note one detail: this tool assumes you're the paying side (a long under a positive rate, or a short under a negative rate). Funding is a transfer between longs and shorts, so you might be the side receiving it. If you want to know "am I paying or receiving," look at the sign of the rate and your direction: positive rate, longs pay and shorts receive; negative rate, the reverse. This calculates the absolute amount; check the direction yourself.

What the funding rate is and why it's charged

Perpetual futures have no delivery date, so the price easily drifts from spot, and the funding rate is the mechanism that drags it back: when the contract trades above spot (longs too hot), the rate goes positive and longs pay shorts every 8 hours, forcing some longs to close and cool things off; the reverse, a negative rate, has shorts pay longs. The key point is it has nothing to do with whether you're profitable — as long as your position crosses a settlement timestamp, you pay what's due, and even a flat, motionless market is still bleeding you. For someone holding long-term, accumulated funding can be harsher than the trading fees. The full principle is in What Is the Funding Rate and How It Affects You, and you can also read Binance Academy's perpetual futures explainer.