Liquidation Price Calculator

In leveraged futures trading, a liquidation price is the mark price at which the exchange automatically force-closes your position because the equity remaining in the position has fallen to the maintenance margin level. Below that point the exchange cannot guarantee it can cover any further loss from the insurance fund, so it closes your trade immediately — typically at a loss equal to your entire posted margin.

For a long position in isolated mode: Liquidation Price = Entry Price × (1 − 1/Leverage + MMR), where MMR is the maintenance margin rate as a decimal. The loss fraction before liquidation is 1/Leverage − MMR: the initial margin (1/Leverage of notional) minus the maintenance margin (MMR of notional) that the exchange keeps. For example, at 10× leverage and 0.5% MMR: 30,000 × (1 − 0.1 + 0.005) = 30,000 × 0.905 = 27,150 USDT.

For a short position the signs flip: Liquidation Price = Entry Price × (1 + 1/Leverage − MMR). A short is liquidated when the price rises above entry, so the liquidation price is above the entry price. Using the same example, at 10× leverage and 0.5% MMR: 30,000 × (1 + 0.1 − 0.005) = 30,000 × 1.095 = 32,850 USDT. The distance to liquidation is symmetric — both long and short positions are 9.5% away from entry for these inputs.

With higher leverage, a smaller fraction of the notional value is posted as initial margin. For example, at 100× leverage only 1% of the position value is posted. A mere 1% adverse move wipes out the initial margin, which is why the liquidation price is extremely close to the entry price. At 10× leverage the initial margin is 10% of notional, giving far more room before liquidation. The rule of thumb is: distance to liquidation ≈ (1/Leverage − MMR) × 100%.

The maintenance margin rate (MMR) is the minimum equity, as a percentage of notional value, that an exchange requires to keep a futures position open. Each exchange publishes its MMR schedule, which is typically tier-dependent — rising as position size grows. For the lowest position tier on major USDT-margined perpetual exchanges, MMR is commonly 0.4% to 0.5%. You can find the exact rate for your symbol and position size in the exchange's fee/margin schedule (for example, Binance's USDT-M Futures margin tiers page or KuCoin Futures margin details).

It is an estimate. The closed-form formula gives the fee-free, single-tier liquidation price. Real-exchange liquidation prices can differ for three reasons: (1) exchanges apply a tiered MMR ladder with a maintenance-amount deduction at each tier, not a flat rate; (2) accrued funding payments shift the effective balance; and (3) some exchanges add a liquidation fee (typically 0.04%–0.06% of notional) that shifts the liquidation price slightly closer to entry. For most retail position sizes the estimate is within 0.1%–0.2% of the real exchange liquidation price.

Adding extra isolated margin to a position increases the equity buffer, which widens the distance to liquidation. For a long position, each additional unit of quote currency added lowers the liquidation price by ExtraMargin / PositionSize. For example, adding 1,000 USDT to a 1-BTC position lowers the liquidation price by 1,000 USDT. For a short position, extra margin raises the liquidation price (further above entry). This is one of the primary tools traders use to reduce the risk of getting liquidated during a price spike.

No. Cross-margin mode uses the total wallet balance — including all other open positions and free balance — to cover losses. The liquidation price in cross mode depends on the account’s entire equity position, not just the isolated entry price and leverage. The closed-form isolated-margin formula does not apply to cross-margin. If you are in cross mode, use your exchange’s built-in position details screen, which reads the live wallet balance.

No. This calculator is designed for linear USDT-margined (quote-settled) contracts, where profit and loss are settled in USDT. Coin-margined (inverse) contracts are settled in the underlying asset (e.g. BTC), and their liquidation price formula inverts the relationship: for a long inverse contract the liquidation price is above the entry price for the same leverage, not below. Use your exchange’s own inverse-contract calculator for coin-margined positions.

A stop-loss is a voluntary order you place to close a position at a chosen price before losses become too large. The liquidation price is the involuntary exchange-imposed closure that happens if you do not manage the position. The key difference is control: a stop-loss is set by you and executes at or near your chosen level; liquidation is triggered by the exchange and occurs at the maintenance-margin price, often with a liquidation fee. Best practice is to set a stop-loss well before the liquidation price to avoid forced closure.

The formula applies conceptually to any margined position where a maintenance-margin requirement exists. For a traditional stock margin account, the liquidation (margin-call) price follows the same equity = maintenance-margin condition, though the terminology differs (Reg T initial margin 50%, FINRA maintenance minimum 25%). For crypto spot margin lending the same logic applies. This calculator uses the perpetual-futures convention of expressing MMR as a percentage of position notional, which is the most common form in cryptocurrency derivatives markets.

Perpetual futures contracts settle funding payments periodically — typically every 8 hours — between long and short holders. When funding is positive, longs pay shorts; when negative, shorts pay longs. Each funding payment is debited from (or credited to) the position's margin balance. For a long position in a positive-funding environment, each payment reduces the effective margin, which moves the liquidation price incrementally closer to the current mark price over time. For a short position, positive funding means margin is being added, which actually increases the buffer. This drift is not captured by the closed-form formula in this calculator — it uses a single snapshot of the posted margin. If you hold a position for multiple funding cycles, check your exchange's position details screen for the live effective liquidation price, as it will differ from the initial estimate.

Mark price is a fair-value reference derived from a weighted index of prices across multiple spot exchanges, adjusted by the current funding rate basis. Exchanges use it — rather than the futures order book's last traded price — to prevent "wick liquidations": situations where a briefly thin order book allows a single large order to momentarily push the futures price far below (or above) fair value, triggering liquidations that would not have occurred at a fair price. Because the mark price reflects the broader spot market, it is far harder to manipulate than the last traded price on a single venue. Liquidation is triggered only when the mark price reaches your liquidation level, not when the order book shows a transient spike.