Perpetual futures don’t expire — instead they use funding rates to keep the contract price anchored to spot. This calculator shows exactly what that costs (or earns) you over time.
Funding rates change every period. This projects current rates forward — actual costs will vary. Positive rate: longs pay shorts. Negative rate: shorts pay longs.
How funding rates work
Perpetual futures exchanges charge (or pay) a funding fee at regular intervals — typically every 8 hours:
- Positive rate → Longs pay shorts. The market is leaning bullish and paying a premium.
- Negative rate → Shorts pay longs. The market is leaning bearish or futures trade at a discount.
The fee is simple: Position size × Funding rate per period.
Practical examples
| Scenario | Position | Rate | 8h cost | Daily cost |
|---|---|---|---|---|
| Normal market | $10,000 long | +0.01% | $1.00 | $3.00 |
| Heated bull run | $10,000 long | +0.05% | $5.00 | $15.00 |
| Bearish market | $10,000 short | −0.02% | You earn $2.00 | You earn $6.00 |
Why this matters
- Basis traders use funding to earn yield: go short perps while holding spot, and collect the positive funding. This calculator helps estimate that income.
- Leveraged traders need to account for funding as a carrying cost — at elevated rates, it can eat into profits quickly.
- Timing entries: Extremely high funding rates often precede corrections (crowded long trades).
Common funding intervals
| Exchange | Interval |
|---|---|
| Binance, Bybit, OKX | 8 hours |
| dYdX | 1 hour |
| Some newer exchanges | 4 hours |
Frequently asked questions
Who pays the funding rate — me or the exchange?
Traders pay each other; the exchange just transfers the fee. With a positive rate, longs pay shorts. With a negative rate, shorts pay longs. The exchange does not pocket the funding itself.
How often is funding charged?
Every 8 hours on major venues like Binance, Bybit and OKX, hourly on dYdX, and every 4 hours on some newer exchanges. You only pay or receive funding if you hold the position at the funding timestamp.
Can the funding rate change while my position is open?
Yes — it is recalculated every interval from the gap between the perpetual price and the spot index. This calculator projects the current rate forward; your actual cost will follow the live rate.
Is a high funding rate bullish or bearish?
Persistently high positive funding means longs are crowded and paying a premium to stay long — a bullish-sentiment signal that also warns of overheated leverage, which often precedes sharp corrections.
What is a basis trade?
Holding spot while shorting the perpetual to collect positive funding while staying roughly market-neutral. Our basis trade builder walks through sizing one step by step.
This tool is for education only and is not financial advice. Funding rates change every period — this projects the current rate forward.