Perpetual futures have no expiry date. A "funding" payment, settled every 8 hours, keeps the contract price close to spot. That fee passes directly between longs and shorts. Below, read Binance's current rates, then work out what a position would pay or receive.
The rate settles every 8 hours; a positive number means longs pay shorts, a negative number means shorts pay longs. The annualized figure is a rough "single-period rate × 3 × 365" conversion, meant only to give a sense of scale.
Positive = if you're long, you pay; negative = if you're long, you receive. You can copy a value from the live section above.
Funding is only one part of your holding cost. Your real profit and loss comes mainly from price moves, and futures also carry liquidation risk. This only counts funding — no trading fees or slippage — so the numbers are estimates only.
| Single-period rate (per 8h) | Rough annualized | Market-state reference |
|---|---|---|
| 0.01% (common baseline) | about 10.95% | Longs and shorts roughly balanced, leaning neutral |
| 0.05% | about 54.75% | Longs somewhat crowded, longs pay more |
| 0.10% and up | about 109% and up | Longs very crowded, often an overheating signal |
| Negative rate | Negative annualized | Shorts crowded — shorting actually means paying the longs |
Rate ranges vary by exchange and by coin; the above is a common-scale illustration only and is not trading advice.
Funding rates, your open positions and liquidation prices all show up fully only inside your own account. Register with code BN771 for up to 20% off trading fees*.
Sign up on Binance with BN771 →Start with perpetual futures. The biggest difference from ordinary futures is that they have no expiry date, so you can hold them indefinitely. But precisely because they never settle, the contract price can drift further and further from the spot price. The funding rate is the rope that pulls the two back together: every 8 hours the exchange settles, and the more crowded side pays the other side directly — the payment equals the position's notional value times the rate. That money doesn't go into the exchange's pocket; it's a transfer between longs and shorts.
A positive rate means there are too many longs right now and the contract price is above spot, so longs pay shorts — like adding a small "holding tax" on the crowded side to discourage an overheated long crowd. A negative rate is the reverse: too many shorts, contract price below spot, so shorts pay longs. So when you see a positive rate, don't just think "bullish" — it's more like a sign that "the long side is already very crowded." Negative rates are the same idea for a crowded short side.
Why are extreme rates worth watching? Because the rate is a thermometer for how crowded a position is. When it spikes to very high levels, it means a lot of leveraged longs are piled into the same direction — and if price reverses, cascading liquidations arrive fast and hard, a so-called long squeeze. When the negative rate is extreme, the short side faces the same risk. The rate itself doesn't predict direction, but an extreme reading tells you: this side is already packed, and risk is building up.
When you use this calculator, remember it only counts the funding cost. Around nine-tenths of your real profit and loss comes from price moves, and you still have to account for trading fees, slippage, and — most dangerous of all — liquidation risk. To understand it more systematically, read the funding rate explained; before trading live, use the PnL Calculator to work out the whole bill rather than staring at funding alone.