Compound Funding Calculator
Reinvest earnings · APY projection · Capital growth
Project how your capital grows when you reinvest perpetual futures funding income.
Average funding rate per interval
100% = full compounding · 0% = withdraw all
How to use the compound funding calculator
- Enter your starting capital in USDT.
- Set the funding rate per interval (e.g. 0.01% per 8 hours on Binance).
- Choose the funding interval — 8h for Binance/Bybit, 1h for Hyperliquid.
- Set the projection period in days and your reinvestment percentage.
- Read projected final capital, total earned and annualized APY.
Compound funding formula
Each interval your position earns funding on the current (possibly increased) capital:
- capital_new = capital × (1 + rate × reinvestRatio)
- Repeated each interval over the full period
- APY = (finalCapital / initialCapital)^(365/days) − 1
At 100% reinvestment, each payment increases the base for the next period. At 50% reinvestment, half is withdrawn and only half compounds. The difference in final capital grows larger over longer periods.
Worked example — 30 days at 0.01%/8h, 100% reinvest
- Starting capital: $10,000 · Rate: 0.01% per 8h · Intervals: 3/day · Days: 30
- Total intervals = 30 × 3 = 90
- Final capital = $10,000 × (1 + 0.0001)^90 = $10,090.41
- Total earned = $90.41 (vs. $90.00 simple / non-compounding)
- Annualized APY = (10,090.41 / 10,000)^(365/30) − 1 ≈ 11.4%
The compounding effect adds only $0.41 extra over 30 days at this rate — the real benefit emerges over longer periods or with higher rates. At 0.05%/8h for 90 days, the compounding premium becomes substantial.
When funding farming makes sense
Funding farming — holding a short perp to collect positive funding — works best when rates are consistently positive (bull market), you can hedge directional risk with a spot long, and you have the capital to maintain margin even if the position moves against you. The compound calculator helps you compare different rate scenarios and reinvestment strategies before committing capital.
Frequently Asked Questions
What is compound funding in crypto trading?
Compound funding means reinvesting your perpetual futures funding income back into the position each interval, so subsequent earnings are calculated on a larger base. Instead of withdrawing funding payments, you let them compound — similar to compound interest — which accelerates capital growth over time.
How is annualized APY calculated?
APY = (Final Capital / Initial Capital)^(365 / Days) − 1. This accounts for the compounding effect of reinvesting earnings each interval. A 0.01% funding rate per 8h with 100% reinvestment over 30 days yields roughly 13.5% APY.
What does reinvest percentage mean?
At 100%, every funding payment is added back to your capital immediately, giving full compounding. At 0%, you withdraw all earnings and growth is purely linear. At 50%, you keep half and reinvest half — giving partial compounding. Lower reinvestment rates reduce APY but free up cash.
What is a realistic funding rate to use?
Long-term average funding rates on BTC and ETH perpetuals range from 0.005% to 0.03% per 8h depending on market sentiment. During bull markets rates can spike to 0.1%+. For conservative projections use 0.01% per 8h. For bear markets, rates can go negative — shorts pay longs.