Free crypto tool
Funding Rate Calculator
See what perpetual-futures funding really costs your position, per interval, over the trade, and annualized.
You pay over the trade
−$9
over 9 funding intervals
Per interval
−$1
Intervals
9
Annualized
−10.9%
How the funding rate calculator works
Perpetual futures never expire, so exchanges use a funding rate to keep the perp price anchored to spot. Every interval, one side pays the other: when funding is positive, longs pay shorts; when negative, shorts pay longs. The payment is position size × funding rate, charged each interval you hold.
A rate that looks tiny per interval compounds fast. 0.01% every 8 hours is three payments a day, which annualises to roughly 11% on your notional. That is why funding, not direction, quietly decides the outcome of many carry trades. Hyperliquid charges hourly, most CEXs every eight hours.
If you hold the side that receives funding, this drag becomes income, the basis of funding-rate arbitrage. Otomato can alert you when the funding on a position you hold spikes, so an expensive carry never sneaks up on you.
The complete guide
What a funding rate is
Perpetual futures have no expiry date, so there is nothing to force their price back toward spot. The funding rate does that job: at regular intervals, traders on one side pay traders on the other. When funding is positive, longs pay shorts, which discourages crowded longs and nudges the perp price back down toward spot. When it is negative, shorts pay longs.
You are charged position size times the funding rate every interval you hold, regardless of whether your trade is up or down.
Small rates annualise into real money
Funding rates look tiny per interval, which is exactly why traders underestimate them. Multiply by the number of intervals in a year and the picture changes.
- 0.01% every 8 hours is three payments a day, about 11% per year.
- Hyperliquid settles funding hourly; most centralised exchanges every 8 hours.
- On a large or long-held position, funding can quietly outweigh the price move you were trading.
When funding pays you
Hold the side that receives funding and the drag becomes income. This is the core of funding-rate arbitrage: hedge the price risk and collect the funding. Either way, funding is a live cost that changes constantly. Otomato can alert you when the funding on a position you hold spikes, so an expensive carry never sneaks up on you.
Frequently asked questions
- What is a funding rate on perpetual futures?
- Perpetual futures have no expiry, so a periodic funding payment keeps their price tethered to spot. When funding is positive, longs pay shorts; when negative, shorts pay longs. It is charged every interval (commonly every 8 hours, or every hour on some venues like Hyperliquid) on your position size.
- How much does funding cost me?
- Cost per interval = position size × funding rate. Over time it compounds with how long you hold and how many intervals pass. A rate that looks tiny per interval can annualise into a large drag: 0.01% every 8 hours is roughly 11% per year.
- Can funding ever pay me?
- Yes. If you hold the side that receives funding (a short when funding is positive, a long when it is negative), you get paid each interval. Funding-rate arbitrage strategies are built around this. Otomato can alert you when the funding on a position you hold turns expensive.
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Get alerted when funding turns expensive
Otomato monitors your perp positions and pings you when funding spikes against you, so you can close or hedge in time.
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