Funding Rate Calculator
Calculate crypto futures funding rate income or costs per 8 hours, daily, monthly, and annually. Supports delta-neutral strategy profitability analysis.
Short position: earns funding when positive, pays when negative
Recent BTC average funding rate: 0.01% per 8h (bullish market avg ~0.03β0.05%)
Income/Cost Projection
Current rate 0.01% is β above break-even
Note: Funding rates change every 8 hours and depend on market conditions. Long-term projections are estimates only. Always account for exchange fees and slippage.
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Frequently Asked Questions
Q. What is delta-neutral strategy?
It simultaneously holds a spot long and futures short of equal size, eliminating price risk and collecting funding rate payments. Effective when funding rates are consistently positive.
Q. How much can I earn from funding rates?
At 0.01% per 8h, a $10,000 short position earns ~$3/day or ~$90/month. During bull markets with 0.1%+ sustained rates, the same position can earn $900+ per month.
Q. When do longs pay shorts vs. shorts pay longs?
When funding rate is positive (+), longs pay shorts β happens during bullish/overheated markets. When negative (-), shorts pay longs β occurs during bearish/oversold conditions.
Q. What is the funding rate?
A fee exchanged every 8 hours between long and short holders to keep futures prices anchored to spot prices. Positive = longs pay shorts; negative = shorts pay longs.
Q. What does a negative funding rate mean?
It signals the market is overly bearish (excessive short positions). Short position holders pay long position holders the funding fee.
Q. Can I profit from funding rates?
Yes β holding spot long + futures short (carry trade) lets you collect funding fees steadily. Always account for market volatility and liquidation risk.
How to Use
Choose Long (pays funding), Short (receives funding), or Delta Neutral (spot long + futures short hedge).
Enter position size in USDT and leverage. Delta neutral assumes equal amounts in spot and futures.
Input the current funding rate from your exchange, or choose a preset: Low 0.01% / Medium 0.05% / High 0.10%.
Check funding revenue or cost per 8h, daily, weekly, monthly, and annually, plus the breakeven funding rate.
Expert Knowledge: Funding Rate Calculator
The funding rate is the mechanism that keeps perpetual futures prices anchored to spot prices. Charged every 8 hours, positive rates mean longs pay shorts (bullish market), negative rates mean shorts pay longs (bearish market).
Delta neutral strategy buys spot while holding an equal-size futures short, eliminating price exposure and collecting pure funding. Profitable when funding is persistently positive and exceeds exchange fees and slippage. The break-even analysis is critical: if fees and slippage exceed 0.01% per 8h, the strategy is unprofitable.
Historical average BTC funding rate is ~0.01% per 8h (β10.95% annualized). In bull markets, rates can spike above 0.1% for extended periods. However, funding rates shift rapidly with market sentiment β use conservative assumptions (0.01β0.03%) for long-range projections.
Advanced traders exploit funding rate arbitrage between exchanges. Binance, Bybit, and OKX apply different rates simultaneously. Holding a long on a low-funding exchange and a short on a high-funding exchange captures the spread β a strategy used by quantitative trading desks.
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