Funding Rate Calculator
What holding this perp actually costs you per day
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What funding actually costs
Funding is the mechanism that keeps a perpetual future tethered to spot price. There is no expiry to force convergence, so instead the two sides pay each other: when perps trade above spot the rate goes positive and longs pay shorts, and when perps trade below spot it flips.
payments = holding hours ÷ interval hours
cost = notional × rate × payments
annualised = rate × (8,760 ÷ interval hours)Why the annualised number matters
A rate of 0.01% sounds like nothing. On Hyperliquid's hourly schedule it is 87.6% a year. On a $10,000 position that is $1 an hour, $24 a day, $720 a month — while the same 0.01% on an 8-hour schedule annualises to just 10.95%. Comparing raw funding percentages across venues without normalising for the interval is the single most common mistake in carry trading, and it is off by a factor of eight.
Rules of thumb on an hourly schedule
- Under 0.005%/hr (~44% APR) — normal. Background cost.
- 0.005% to 0.01%/hr (44–88% APR) — elevated. Positioning is getting one-sided.
- Above 0.01%/hr (88%+ APR) — crowded. The cost of holding compounds fast.
- Above 0.05%/hr (438%+ APR) — extreme. Historically these resolve violently.
Sustained extreme funding is a positioning signal as much as a cost. Everyone is on one side, all of them are paying to stay there, and the longer it persists the more forced the eventual unwind tends to be. You can watch this live across every Hyperliquid market on the funding dashboard, or compare it against other venues on the cross-exchange funding table.
Getting paid instead of paying
If you take the side that receives funding and hedge the price exposure with an offsetting spot position, you collect the rate with no directional view. That is the carry trade, and at 88% annualised on a delta-neutral book it is genuinely attractive. The risks are real though: the rate can flip while you are positioned, execution slippage on two legs eats into thin margins, and an under-margined perp leg can still be liquidated even though the combined position is flat. Size the perp leg with the liquidation calculator before assuming neutral means safe.
Frequently asked questions
How is the funding fee calculated?
Funding fee = position notional × funding rate, charged each funding interval. Hyperliquid funds hourly, while most centralised exchanges fund every 8 hours. A 0.01% hourly rate on a $10,000 position costs $1 per hour — $24 a day, or $8,760 annualised on that notional.
Who pays funding, longs or shorts?
When the funding rate is positive, longs pay shorts. When negative, shorts pay longs. The mechanism exists to drag the perpetual price back toward spot: if perps trade above spot, longs are charged to discourage them, and vice versa.
What is a high funding rate?
On an hourly schedule, anything above about 0.01% per hour (roughly 88% annualised) is elevated and signals crowded positioning. Extended periods above that often precede a squeeze, because the cost of holding the crowded side compounds until someone capitulates.
Can I earn funding instead of paying it?
Yes — that is the carry trade. Take the side that receives funding and hedge the price exposure with an offsetting spot position, so you collect the rate without directional risk. The risks are execution slippage, the rate flipping against you, and liquidation on the perp leg if you under-margin it.