What is a liquidation price estimate?
This calculator estimates the price at which a simplified isolated-margin position reaches its maintenance margin threshold. Enter a long or short direction, entry price, leverage, maintenance margin rate, and any added collateral as a percentage of entry notional. The result is a modeled quote price per unit; it is not a prediction or an exchange-specific liquidation quote.
The model assumes a linear contract with position quantity fixed. For a position entered at price E with quantity Q and isolated collateral C, it sets account equity equal to maintenance margin at liquidation. For a long, equity is C + Q(P − E) and maintenance margin is Q × P × m, giving P = (E − C/Q) ÷ (1 − m). For a short, equity is C + Q(E − P), giving P = (E + C/Q) ÷ (1 + m). Here P is the estimated liquidation price and m is the maintenance margin rate as a decimal.
Collateral is modeled as initial margin plus added collateral: C = Q × E × (1/L + a), where L is leverage and a is the added-collateral percentage entered as a decimal. Since quantity cancels out, the calculator needs no position size. For example, a long entered at 50,000 with 10× leverage, a 0.5% maintenance rate, and no added collateral has C/Q of 5,000. The formula gives an estimate near 45,226. This is an arithmetic illustration, not a live market value.
Actual venue calculations can differ. Maintenance requirements may change by position-size tier; venues may use mark prices, fee reserves, funding payments, risk limits, or other collateral rules. Cross margin, inverse contracts, portfolio margin, partial liquidation, and changing positions are outside this model. It assumes the entered maintenance rate applies throughout and that added collateral remains available. If added collateral is large enough, the long formula can reach zero or below; a nonpositive result means this simplified model does not provide a meaningful positive liquidation price under the entered assumptions.
Source and date: Binance states that its futures liquidation uses maintenance-margin and collateral rules, and that liquidation prices are based on mark price; its published procedures include venue-specific risk controls. Source: Binance Futures liquidation protocols, accessed 2026-11-03. This is an example of exchange-specific behavior, not a universal rule; the calculator remains an input-driven simplified model.
Check the contract specifications and the venue's own margin display before relying on any threshold. This tool does not fetch prices, margin schedules, or account data, and it cannot determine suitability. Liquidation can occur under rules or price references that differ from this calculation. The result is educational arithmetic only, not financial, investment, or trading advice.
Frequently asked questions
What formula does this use?
For a long, price equals (entry price minus isolated collateral per unit) divided by (1 minus maintenance margin rate). For a short, price equals (entry price plus isolated collateral per unit) divided by (1 plus maintenance margin rate). Collateral includes initial margin at the entered leverage plus added collateral.
Is this an exchange liquidation price?
No. It is a simplified estimate. Exchanges may use tiered maintenance margins, fees, mark prices, funding, and other rules that change liquidation thresholds.
What does added collateral mean?
It is extra isolated collateral expressed as a percentage of entry notional, beyond the initial margin implied by leverage.