Crypto Funding Rate & Funding Cost Calculator
Perpetual futures · Binance, Bybit, OKX · Real cost of carry
Calculate exactly how much holding your position will cost in funding fees.
Position Side
How to use the funding rate calculator
- Select your exchange and trading pair (e.g. BTC-USDT on Binance).
- Enter your position size in USDT and select Long or Short.
- Set the date you opened the position.
- Read the total funding paid or received over your holding period using actual historical rates.
How funding rates work
Funding is a periodic cash transfer between long and short traders — the exchange does not take this money. The mechanism:
- Positive funding rate — longs pay shorts. Perpetual futures price is above spot; market incentivises shorts.
- Negative funding rate — shorts pay longs. Perpetual is below spot; market incentivises longs.
- Payment amount = positionSize × fundingRate (every 8 hours on most exchanges)
Hyperliquid settles funding every hour instead of every 8 hours, which means rates compound more frequently and can deviate less from spot.
Worked example — ETH long on Binance for 7 days
- Position size: $10,000 · Side: Long · Average funding rate: 0.01% per 8h
- Payments per day = 3 (every 8h)
- Cost per payment = $10,000 × 0.0001 = $1.00
- Daily cost = $1.00 × 3 = $3.00
- 7-day total = $3.00 × 7 = $21.00
$21 in funding reduces your net PnL from the trade. At $10,000 position size, that is 0.21% drag over 7 days — meaningful for carry trades or long-term holds. During bull market peaks, rates can spike to 0.1–0.3% per 8h, making $63–$189 per day in funding costs on the same position.
When funding rates matter most
For short-term traders (hours to a day), funding is negligible. But for swing traders holding positions for several days or weeks, it can significantly erode profits. Funding also signals market sentiment — sustained high positive rates indicate crowded longs and potential for a long squeeze. Use this calculator before entering any multi-day position to understand your carrying cost.
Funding rate vs funding cost — what's the difference?
These terms are often used interchangeably but mean different things:
- Funding rate — the rate applied per interval (e.g. 0.01% per 8h). This is what exchanges publish.
- Funding cost — the actual dollar amount you pay or receive: positionSize × rate × numberOfPayments.
A 0.01% rate sounds tiny. On a $50,000 BTC long held for 30 days on Binance (3 payments/day): $50,000 × 0.0001 × 90 = $450 in funding costs. This calculator converts rate into cost automatically.
Exchange notes: Binance and Bybit settle every 8h. OKX and Hyperliquid settle hourly. When comparing carry opportunities across exchanges, always compare funding cost (dollar amount), not just rate.
Include funding in a full pre-trade check
Funding cost is automatically included when you run a full pre-trade risk check — no need to calculate separately:
Run Pre-Trade Risk Check →Use via API or MCP
Funding cost calculations are available as deterministic API calls — useful for carry trade analysis, multi-leg position costing, or AI agent workflows that need exact dollar figures.
Frequently Asked Questions
What is funding rate in crypto futures?
Funding rate is a periodic payment between long and short traders that keeps perpetual futures prices close to the spot price. Positive rate = longs pay shorts; negative rate = shorts pay longs.
How often is funding paid?
Most exchanges pay every 8 hours (3 times per day). Hyperliquid pays every hour. The amount = position size × funding rate.
Can I profit from funding rates?
Yes - if you hold a short position when funding is positive, you receive payments. This is called 'funding farming.' But price risk usually dominates funding income.
How do I calculate total funding cost over time?
Select your instrument, enter position size and the date you opened the position. The calculator fetches actual historical rates and sums the exact cost for your holding period.