Funding Annualized Calculator
Convert a per-period funding rate and periods per day into nominal and compounding-equivalent annualized rates.
Results
Fill in the inputs and click Calculate.
- Nominal Annualized
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- Effective Annualized
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Risk disclaimer
Annualization is an extrapolation, not a forecast; real funding moves with market conditions.
Why annualize funding?
Funding settles periodically (often every 8 hours, i.e. 3 per day); one period alone says little about a full year of holding cost.
Nominal = rate × periods/day × 365; the compounding view reinvests each period and is slightly higher but more realistic.
How to use
- Enter the per-period funding rate (e.g. 0.01%).
- Enter periods per day (8h → 3, default 3).
- Click Calculate for both annualized views.
Formula
- Nominal annualized = rate × periods/day × 365
- Effective annualized = (1 + rate)^(periods/day×365) − 1
Example
0.01% × 3/day → nominal ≈ 10.95%, effective ≈ 11.57%.
Doubling the rate to 0.02% → nominal ≈ 21.9%.
FAQ
Is funding always positive?
No — it oscillates around spot over time; annualization estimates the cost “if this persisted”.