Binance Funding Rate Calculator
function calculateFundingCost() {
var positionSize = parseFloat(document.getElementById("positionSize").value);
var entryPrice = parseFloat(document.getElementById("entryPrice").value);
var currentPrice = parseFloat(document.getElementById("currentPrice").value);
var fundingRate = parseFloat(document.getElementById("fundingRate").value);
var positionType = document.getElementById("positionType").value;
var fundingCostValueElement = document.getElementById("fundingCostValue");
if (isNaN(positionSize) || isNaN(entryPrice) || isNaN(currentPrice) || isNaN(fundingRate)) {
fundingCostValueElement.textContent = "Please enter valid numbers for all fields.";
return;
}
// Calculate the notional value of the position
var notionalValue = positionSize * entryPrice;
// Calculate the funding amount
var fundingAmount = notionalValue * fundingRate;
// Determine if it's a cost or payment based on position type and funding rate sign (though Binance's rate is usually positive, we'll assume a standard calculation)
var resultText = "";
if (positionType === "long") {
// Long position pays short
resultText = "You will pay: " + fundingAmount.toFixed(4) + " USDT";
} else { // short
// Short position pays long
resultText = "You will receive: " + fundingAmount.toFixed(4) + " USDT";
}
// For simplicity, this calculator assumes you are calculating the cost/payment for a single funding period and the rate is applied to the notional value.
// Binance funding rate is typically calculated and paid out every 8 hours. The rate displayed is the rate for that 8-hour period.
// The actual calculation on Binance might involve more nuances like liquidation price, but this provides a good estimate.
fundingCostValueElement.textContent = resultText;
}
.calculator-container {
font-family: sans-serif;
max-width: 600px;
margin: 20px auto;
padding: 20px;
border: 1px solid #ccc;
border-radius: 8px;
background-color: #f9f9f9;
}
.calculator-container h2 {
text-align: center;
margin-bottom: 20px;
color: #333;
}
.calculator-inputs {
display: grid;
grid-template-columns: 1fr;
gap: 15px;
}
.input-group {
display: flex;
flex-direction: column;
}
.input-group label {
margin-bottom: 5px;
font-weight: bold;
color: #555;
}
.input-group input,
.input-group select {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 1em;
}
.calculator-container button {
background-color: #4CAF50;
color: white;
padding: 12px 20px;
border: none;
border-radius: 4px;
cursor: pointer;
font-size: 1.1em;
transition: background-color 0.3s ease;
margin-top: 10px;
}
.calculator-container button:hover {
background-color: #45a049;
}
.calculator-result {
margin-top: 25px;
padding: 15px;
border: 1px solid #eee;
border-radius: 4px;
background-color: #fff;
text-align: center;
}
.calculator-result h3 {
margin-top: 0;
color: #333;
}
#fundingCostValue {
font-size: 1.2em;
font-weight: bold;
color: #d9534f; /* Default to a color that suggests cost, can be adjusted */
}
## Understanding the Binance Funding Rate and Its Calculation
The Binance Funding Rate is a crucial mechanism in Binance's perpetual futures contracts. It aims to keep the futures price closely aligned with the spot price of the underlying asset. It achieves this by facilitating payments between traders who hold long and short positions. When the funding rate is positive, traders with long positions pay traders with short positions. Conversely, when the funding rate is negative, short position holders pay long position holders. This incentivizes traders to align their positions with the spot market, thereby reducing price discrepancies.
The funding rate is calculated and paid out every 8 hours. The rate itself is determined by two main components: the Interest Rate and the Premium Index.
### Key Components for Calculation:
1. **Position Size (in Quote Currency, e.g., USDT):** This is the total value of your position in the quote currency (the currency you're trading against, usually USDT for most pairs).
2. **Entry Price (in Base Currency):** The price at which you opened your position.
3. **Current Price (in Base Currency):** The current market price of the asset.
4. **Funding Rate (Decimal):** This is the rate provided by Binance, typically expressed as a decimal for the 8-hour period. For example, 0.0001 represents 0.01%.
5. **Position Type:** Whether you hold a Long or Short position.
### How the Funding Cost is Calculated:
The core idea is that the funding fee is a percentage of your **notional value**, multiplied by the **funding rate**.
* **Notional Value:** This is the total value of your position without leverage.
* `Notional Value = Position Size (in Quote Currency) * Entry Price (in Base Currency)`
* *Correction based on common Binance practice:* In Binance perpetual futures, the "Position Size" is usually quoted in the *base currency* (e.g., 0.1 BTC). The "Entry Price" is in the *quote currency* (e.g., $30,000). The notional value is thus `Position Size (Base Currency) * Entry Price (Quote Currency)`.
* However, the calculator above uses "Position Size (in Quote Currency)". Let's adjust the understanding and the calculator for clarity based on common user input:
Let's re-align the calculator's inputs to be more typical for a futures trader:
* **Position Size (Base Currency, e.g., BTC):** e.g., 0.1 BTC
* **Entry Price (Quote Currency, e.g., USDT):** e.g., 30000 USDT
* **Current Price (Quote Currency, e.g., USDT):** e.g., 30100 USDT
* **Funding Rate (Decimal):** e.g., 0.0001
With these inputs, the **Notional Value** is:
`Notional Value = Position Size (Base Currency) * Entry Price (Quote Currency)`
`Notional Value = 0.1 BTC * 30000 USDT/BTC = 3000 USDT`
* **Funding Amount:** This is the calculated amount to be paid or received for one funding period.
* `Funding Amount = Notional Value * Funding Rate`
* `Funding Amount = 3000 USDT * 0.0001 = 0.3 USDT`
* **Who Pays Whom:**
* If you have a **Long** position and the funding rate is positive, you *pay* the funding fee to the short position holders.
* If you have a **Short** position and the funding rate is positive, you *receive* the funding fee from the long position holders.
* The opposite is true if the funding rate is negative.
### Example:
Let's say you have a **Long** position on BTCUSDT perpetual futures:
* **Position Size:** 0.1 BTC
* **Entry Price:** 30,000 USDT
* **Current Price:** 30,100 USDT
* **Funding Rate (for this 8-hour period):** 0.0001 (which is 0.01%)
* **Position Type:** Long
**Calculation:**
1. **Notional Value:**
`Notional Value = 0.1 BTC * 30,000 USDT/BTC = 3,000 USDT`
2. **Funding Amount:**
`Funding Amount = 3,000 USDT * 0.0001 = 0.3 USDT`
3. **Outcome:** Since you hold a **Long** position and the funding rate is positive (0.0001), you will **pay 0.3 USDT** as a funding fee. This fee is paid to the traders holding short positions.
This calculator provides a simplified estimation. The actual funding rate on Binance is a dynamic calculation based on interest rates and the premium/discount of the futures contract compared to the spot market. The formula used by Binance is `Funding Rate = Initial Funding Rate + ((Mark Price – Index Price) / Index Price) * Spread`. The `Initial Funding Rate` is typically set at 0.0001 or -0.0001, and the `Spread` is also a fixed value. The premium index is calculated based on the difference between the futures mark price and the index price.
—
Binance Funding Rate Calculator (Revised Inputs)
Funding Cost/Payment (for 8-hour period):
function calculateFundingCostRevised() {
var positionSizeBase = parseFloat(document.getElementById("positionSizeBase").value);
var entryPriceQuote = parseFloat(document.getElementById("entryPriceQuote").value);
var fundingRateDecimal = parseFloat(document.getElementById("fundingRateDecimal").value);
var positionType = document.getElementById("positionTypeRevised").value;
var fundingCostValueElement = document.getElementById("fundingCostValueRevised");
if (isNaN(positionSizeBase) || isNaN(entryPriceQuote) || isNaN(fundingRateDecimal)) {
fundingCostValueElement.textContent = "Please enter valid numbers for all fields.";
return;
}
// Calculate the notional value of the position
var notionalValue = positionSizeBase * entryPriceQuote;
// Calculate the funding amount for the 8-hour period
var fundingAmount = notionalValue * fundingRateDecimal;
var resultText = "";
if (positionType === "long") {
// Long position pays short if funding rate is positive
resultText = "You will pay: " + fundingAmount.toFixed(4) + " USDT";
} else { // short
// Short position pays long if funding rate is positive
resultText = "You will receive: " + fundingAmount.toFixed(4) + " USDT";
}
// Clarification for negative rates
if (fundingRateDecimal < 0) {
if (positionType === "long") {
resultText = "You will receive: " + Math.abs(fundingAmount).toFixed(4) + " USDT (Negative Funding Rate)";
} else { // short
resultText = "You will pay: " + Math.abs(fundingAmount).toFixed(4) + " USDT (Negative Funding Rate)";
}
}
fundingCostValueElement.textContent = resultText;
}
.calculator-container {
font-family: sans-serif;
max-width: 600px;
margin: 20px auto;
padding: 20px;
border: 1px solid #ccc;
border-radius: 8px;
background-color: #f9f9f9;
}
.calculator-container h2 {
text-align: center;
margin-bottom: 20px;
color: #333;
}
.calculator-inputs {
display: grid;
grid-template-columns: 1fr;
gap: 15px;
}
.input-group {
display: flex;
flex-direction: column;
}
.input-group label {
margin-bottom: 5px;
font-weight: bold;
color: #555;
}
.input-group input,
.input-group select {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 1em;
}
.calculator-container button {
background-color: #007bff; /* Binance blue */
color: white;
padding: 12px 20px;
border: none;
border-radius: 4px;
cursor: pointer;
font-size: 1.1em;
transition: background-color 0.3s ease;
margin-top: 10px;
}
.calculator-container button:hover {
background-color: #0056b3;
}
.calculator-result {
margin-top: 25px;
padding: 15px;
border: 1px solid #eee;
border-radius: 4px;
background-color: #fff;
text-align: center;
}
.calculator-result h3 {
margin-top: 0;
color: #333;
}
#fundingCostValueRevised {
font-size: 1.2em;
font-weight: bold;
color: #333; /* Neutral color */
}