Perpetual Funding Rate Calculator
Calculate estimated funding rates and fees for crypto futures.
Current trading price of the perpetual contract.
Spot price component average.
Usually 0.01% per 8-hour interval.
Total value of your position (Margin × Leverage).
Premium Index:
0.00%
Calculated Funding Rate:
0.00%
Payment Direction:
—
Estimated Fee:
$0.00
How is Funding Rate Calculated?
The funding rate is a periodic payment made to or by traders who are long or short based on the difference between the perpetual contract markets and spot prices. Since perpetual futures contracts do not have an expiry date, the funding mechanism is used to tether the contract price to the spot price.
The calculation generally involves two main components: the Interest Rate and the Premium Index.
1. The Interest Rate Component
Most exchanges utilize a fixed interest rate component, typically set at 0.01% per funding interval (usually every 8 hours). This assumes that holding a cash equivalent usually warrants a higher return than holding the asset itself.
2. The Premium Index
The Premium Index reflects the difference between the perpetual contract's price (Mark Price) and the underlying asset's spot price (Index Price). The formula is typically:
Premium Index (P) = (Mark Price - Index Price) / Index Price
3. The Final Funding Rate Formula
Exchanges apply a "clamp" function to ensure the rate remains stable if the premium is low. The standard formula used by major platforms like Binance and Bybit is:
Funding Rate (F) = Average Premium Index (P) + Clamp(Interest Rate - Premium Index (P), 0.05%, -0.05%)
What this means practically:
- If the difference between the Interest Rate (0.01%) and the Premium Index is within ±0.05%, the Funding Rate will essentially equal the Interest Rate (0.01%).
- If the Mark Price deviates significantly from the Index Price (high volatility), the Funding Rate will increase to encourage arbitrageurs to close the gap.
Who Pays Whom?
The direction of payment depends on the sign of the Funding Rate:
- Positive Funding Rate: Long positions pay Short positions. This happens when the contract is trading at a premium (higher than spot price).
- Negative Funding Rate: Short positions pay Long positions. This happens when the contract is trading at a discount (lower than spot price).
Calculation Example
Assume Bitcoin's Spot Price (Index) is $50,000, but the Futures Contract (Mark Price) is trading at $50,050.
- Premium Index: ($50,050 – $50,000) / $50,000 = 0.001 (or 0.10%).
- Interest Rate: 0.01% (0.0001).
- Clamp Calculation: (0.0001 – 0.001) = -0.0009. The clamp limits are ±0.0005. Since -0.0009 is outside the limit, it is clamped to -0.0005.
- Final Rate: 0.001 + (-0.0005) = 0.0005 (or 0.05%).
If you hold a position worth $10,000, your fee would be $10,000 × 0.05% = $5.00.