What does a funding rate estimate show?
This calculator estimates the cumulative funding transfers for a perpetual futures position when the notional value and funding rate remain constant. Enter the position's notional value, the funding rate per settlement as a percentage, the number of hours between settlements, and the duration. The result shows an estimated amount paid or received under one stated sign convention.
For example, a $10,000 notional position at a positive 0.01% funding rate every eight hours has a modeled transfer of $1 per settlement. Over 30 days there are 90 such settlement intervals, so the simple estimate is $90. The example is arithmetic, not a current market observation. With this calculator, positive rates represent a payment by longs to shorts; a negative rate reverses that direction. Some platforms describe rates or positions from the opposite perspective, so confirm the exchange's convention before interpreting a result.
Funding is a periodic transfer mechanism used by many perpetual contracts to help keep contract prices near an underlying reference price. It is distinct from a trading commission and may be paid by one side of the market to the other. The applicable rate can change at each settlement. The amount due may also depend on the exchange's formula, contract type, mark price, position size, caps, and account rules.
Source and date: Binance describes funding as a transfer between opposing perpetual-contract positions and gives the venue-specific formula as position notional multiplied by the funding rate; its settlement schedule and notional definition depend on contract specifications. Source: Binance Futures funding-rate guide, accessed 2026-11-03. This calculator uses the simple fixed-notional form and does not reproduce all venue rules.
This model holds notional value and rate constant and multiplies the amount per settlement by the number of intervals in the selected duration. If the period ends between settlement times, it uses a fractional interval. Actual venues may settle only at discrete times, so treat this as a planning approximation. It does not fetch live rates or predict future rates.
Price changes can alter notional exposure, while adding to or reducing a position changes subsequent transfers. This estimate does not model either effect. It also excludes trading fees, slippage, collateral interest, margin requirements, liquidation, taxes, and conversion costs. It cannot determine whether a contract or position is suitable for anyone. Review the contract specifications and funding history directly with the venue, and consider independent advice where appropriate.
Frequently asked questions
Who pays funding?
The sign convention used here treats a positive rate as a payment from longs to shorts and a negative rate as a payment from shorts to longs. Exchange conventions and displayed signs should be checked.
Is the position value constant?
Yes. The estimate applies every settlement to the same entered notional value; it does not model price changes, position changes, or compounding.
Does this include trading fees?
No. Trading fees, slippage, margin interest, liquidation, and taxes are excluded.