Funding Rate Arbitrage Calculator
Estimate the annualized return of a one-sided funding-collection strategy from notional, per-period funding rate, settlements per day and borrow cost.
Results
Fill in the inputs and click Calculate.
- Funding / Period
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- Periods / Year
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- Gross Annual
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- Net Annual
- –
- Net APR
- –
Risk disclaimer
This is an estimate under a fixed-rate assumption, not investment advice. Reversals in funding direction or price moves can make the strategy lose money.
How do you annualize funding carry?
Perpetuals settle funding at fixed intervals (commonly every 8h, i.e. 3/day). If you reliably sit on the receiving side, gross annual ≈ rate × notional × daily periods × 365.
Real setups often need an offsetting position or borrowed coin; this tool subtracts an annual borrow cost to show net carry.
How to use
- Enter notional and the per-period funding rate in percent (e.g. 0.01 = 0.01%).
- Enter settlements per day (3 for mainstream) and annual borrow cost % (0 if none).
- Click Calculate to see per-period, annual gross/net and the net annualized rate.
Estimation formula
- Funding / Period = Notional × Rate
- Gross Annual = Per Period × Daily × 365
- Borrow Cost = Notional × Borrow APR
- Net APR = (Gross − Cost) ÷ Notional × 100%
Example
Notional 10,000, rate 0.01%, 3/day, no borrow: per period 1, gross 1,095, net ≈ 10.95%.
With 5% borrow cost: net ≈ (1,095−500)/10,000 = 5.95%.
FAQ
Is the direction stable?
Funding direction flips with positioning and basis; you may become the payer. This tool assumes the rate stays favorable to you.
Other costs?
Open/close fees, slippage and risk-limit usage all reduce real returns; fold them into the borrow rate if you wish.
Can these calculations be executed automatically?
Yes. Work out the parameters and risk limits here first, then hand the same rules to a quant system such as CubeQuants so you don't have to place orders manually. Fills still depend on your exchange, so verify with a small size first.