How to use the crypto liquidation calculator
Choose long or short, then enter your entry price, leverage and the maintenance margin rate your exchange lists for that contract. The calculator estimates the price at which an isolated-margin position would be liquidated and how far price would have to move to get there.
What liquidation means
When you trade crypto futures or perpetual contracts with leverage, you put up margin as collateral for a larger position. As the trade moves against you, losses come out of that margin. Once the remaining margin falls to the maintenance margin level, the exchange closes the position automatically. That forced close is liquidation. You lose the margin committed to the position, and some exchanges also charge a liquidation fee.
The formula behind the estimate
The calculator uses a simplified isolated-margin formula:
- Long: liquidation price ≈ entry × (1 − 1/leverage + maintenance margin rate)
- Short: liquidation price ≈ entry × (1 + 1/leverage − maintenance margin rate)
Put simply, price only has to move against you by about 1/leverage minus the maintenance margin rate before you are liquidated. At 10x that is roughly 10% minus the maintenance rate. At 100x it is roughly 1% minus the maintenance rate.
The formula ignores trading fees, funding payments and tiered maintenance margin, where larger positions face higher maintenance rates. Each exchange also calculates liquidation in its own way, often from a mark price rather than the last traded price. Treat the result as an estimate, and check the liquidation price your exchange shows before you open the trade.
Worked example: long BTC at 10x and 50x
You go long bitcoin at $60,000 with 10x leverage and a 0.5% maintenance margin rate. The estimate is 60,000 × (1 − 0.10 + 0.005) = 60,000 × 0.905 = $54,300. Price would need to fall 9.5% to reach that level.
At 50x, with the same entry and rate, the estimate is 60,000 × (1 − 0.02 + 0.005) = 60,000 × 0.985 = $59,100, a drop of just 1.5%. A move of that size can happen very quickly in crypto.
A short works the other way. Shorting at $60,000 with 10x and 0.5% gives 60,000 × (1 + 0.10 − 0.005) = 60,000 × 1.095 = $65,700, a rise of 9.5%.
| Leverage | Estimated liquidation price (long from $60,000, 0.5% rate) | Move to liquidation |
|---|---|---|
| 2x | $30,300 | 49.5% |
| 5x | $48,300 | 19.5% |
| 10x | $54,300 | 9.5% |
| 20x | $57,300 | 4.5% |
| 50x | $59,100 | 1.5% |
Isolated versus cross margin
With isolated margin, each position has its own margin. If it is liquidated, you lose that margin, but the rest of your account balance is not used to keep it open. This calculator models isolated margin.
With cross margin, your available balance backs all open positions. A losing trade can draw on that balance, which pushes its liquidation price further away, but a liquidation can then take much more of your account. Cross-margin liquidation prices depend on your balance and your other positions, so this formula does not apply to them. Our guide to leverage and margin explains the mechanics, and the margin calculator shows how much collateral a position needs.
Set your stop well before liquidation
Liquidation is not a risk plan. It is the point where the exchange takes over your trade, usually at a worse price than a stop you would have chosen. A better approach is to decide where your trade idea is proven wrong, place a stop loss there, and make sure that level sits well inside the liquidation price. Then size the position so that hitting the stop costs an amount you planned for, using the position size calculator. If the stop you need sits beyond the liquidation price, the leverage is too high for that trade. Using less leverage for the same position means posting more margin, which moves the liquidation price further from your entry.
Funding rates
Perpetual contracts have no expiry date. To keep their price close to the spot market, exchanges use periodic funding payments between longs and shorts. When funding is positive, longs pay shorts; when it is negative, shorts pay longs. Depending on the exchange, funding may be taken from the position's margin, which moves the liquidation price closer, or from your available balance. Either way, holding a leveraged position for days or weeks can cost more than many traders expect.
Regulation and availability
Leveraged crypto derivatives are restricted or unavailable to retail traders in some countries. In the UK, for example, the sale of crypto derivatives to retail consumers is banned. Rules differ elsewhere and can change, so check what is permitted where you live before opening an account. If you are new to the asset class, start with our crypto trading guide for beginners.
Trading risk
Leveraged crypto trading is very high risk. Prices can move sharply at any hour, and you can lose your entire margin quickly. The figures here are estimates for education and are not financial advice. Please read our risk disclaimer.