Funding Rate Calculator
See your exact net yield on a delta-neutral funding rate position before entering. Calculates gross funding income, exchange fees on both legs, and net annualized return for Bybit, Binance, Hyperliquid, and OKX.
Trade Parameters
Gross annualized: 11.0%
Total capital committed = 2× this (spot + perp margin)
USDT-M perpetuals. Funding rate is typical; actual rate varies every 8h.
Return Analysis
0.010% × 3 periods/day × 365 days
0.020%
0.86% of position over 30 days
After entry + exit fees, annualized
Minimum rate needed to cover fees over this hold period
Yield assessment
Low yield — compare to stablecoin lending rates
This does not account for basis risk, funding rate reversals, or exchange counterparty risk. Treat as gross economic return only.
Assumes a delta-neutral position (equal long spot + short perp). Funding rates update every 8 hours and can go negative. Always verify live rates on your exchange before entering.
How funding rate arbitrage works
You hold equal long spot and short perpetual positions. When funding is positive, longs pay shorts — your short leg receives payments continuously. The combined position is delta-neutral: price moves cancel out. Your return is the funding rate minus fees.
Why net yield matters more than gross
A 0.03%/8h gross rate sounds attractive. But subtract entry/exit fees on both legs and you may be left with 8–10% net annualized. Compare this to stablecoin lending rates before committing capital and operational overhead.
The risks this calculator cannot model
Funding can flip negative, meaning you pay instead of receive. Basis risk produces paper losses when spot and perp diverge. Exchange counterparty risk is real. This tool models the economics only — always verify live rates on your exchange.
Want the arbitrage automated and monitored?
Manually managing funding arbitrage positions is operationally intensive. We build automation that monitors rates, rebalances legs, and alerts you when to enter or exit. Book a free diagnostic.