FINANCEVELIX / Investment calculators
Crypto liquidation price calculator
FINANCEVELIX / CRYPTO
Crypto tools
Estimate where a long or short position on a USDT-margined perpetual contract would be liquidated in isolated margin. Enter your entry price, position size, leverage and the maintenance margin rate from your exchange's tier table.
Liquidation price
Use the same currency for every price, fee and amount. Changing this label does not convert values.
FINANCEVELIX / Your calculation
Your calculation
Enter your assumptions, then select Calculate.
FINANCEVELIX / Method
How the liquidation price is calculated
In isolated margin, only the margin assigned to the position can be lost. The position is liquidated when its equity, the margin plus the unrealized profit or loss at the mark price, falls to the maintenance margin. Maintenance margin is the position value at the mark price multiplied by the maintenance margin rate (MMR), minus the tier's maintenance amount.
Solving that condition for the price gives the formula Binance publishes for USDⓈ-M contracts in isolated mode: liquidation price = (margin + maintenance amount − side × quantity × entry price) ÷ (quantity × MMR − side × quantity), where side is 1 for a long and −1 for a short.
Example: a 10,000 USDT long at 50,000 with 10× leverage uses 1,000 USDT of margin for 0.2 BTC. With a 0.4% MMR, the liquidation price is about 45,180.72, or 9.64% below entry. The bankruptcy price, where the whole margin is gone, is 45,000.
Other exchanges use similar formulas but may include an estimated closing fee or the taker fee rate, so their figures can differ slightly.
Frequently asked questions
Why is the liquidation price closer to entry than entry × (1 − 1/leverage)?
That simple estimate is the bankruptcy price, where the full margin is used up. Exchanges liquidate earlier, when equity falls to the maintenance margin, so the liquidation price lies between the entry price and the bankruptcy price. A higher maintenance margin rate moves it closer to entry.
Does adding margin change the liquidation price?
Yes. In isolated margin, extra margin increases the equity the position can lose before it reaches the maintenance margin. That moves a long's liquidation price down and a short's liquidation price up, and it lowers the effective leverage.
Which price triggers liquidation?
Major derivatives exchanges such as Binance and Bybit use the mark price, a reference price based on index prices from several spot markets, rather than the last traded price. This reduces liquidations caused by brief price spikes on one exchange. Fees and funding payments can also change the margin available to a position.