How to use the liquidation price calculator
The Liquidation price tool estimates the level at which a position would be closed. The Leverage for a stop tool works the other way, from a stop-loss to the highest leverage that keeps liquidation beyond it.
- Choose long or short. A long position loses when the price falls; a short loses when it rises.
- Enter what you know: the position size (the notional value, quantity × entry price) or the margin you put up. The other follows from the leverage.
- Enter the entry price and the leverage, from 1× to 125×.
- Enter the maintenance margin rate. It varies by exchange, contract and position tier; larger positions usually carry a higher rate. Find it on your exchange’s margin or contract specification page.
- Enter a price to test to see the profit or loss and the return on margin there.
Compare the result with the liquidation price your exchange shows for the open position. If they differ, trust the exchange’s figure.
The formula
Long liquidation price = Entry × (1 − 1 ÷ Leverage + MMR)
Short liquidation price = Entry × (1 + 1 ÷ Leverage − MMR)
Distance to liquidation = 1 ÷ Leverage − MMRMMR is the maintenance margin rate as a decimal (0.5% = 0.005). This is a simplified isolated-margin formula for USD-margined contracts. It leaves out trading fees, funding payments, mark-price differences, tiered rates and each exchange's own adjustments.
Return on margin (ROE) = Profit or loss ÷ Initial marginQuantity = Position size ÷ Entry price. ROE is roughly the price move multiplied by the leverage.
A worked example
You open a long position worth $10,000 on a Coin A perpetual at $100, with 10× leverage. The initial margin is $1,000.00 and the maintenance margin at 0.5% is $50.00.
The estimated liquidation price is $90.50, a fall of 9.50% from the entry. At that price the loss is $950.00, leaving only the maintenance margin, and the exchange closes the position. With no maintenance margin at all, the margin would be gone at $90.00.
If instead the price rises to $110, the profit is $1,000.00, a +100.00% return on margin from a 10.00% price move. If it falls to $95, the result is -$500.00, a -50.00% return on margin.
A short position mirrors this: the same trade as a short would be liquidated at $109.50, above the entry.
How leverage moves the liquidation price
For the same $10,000 position, only the margin changes with leverage, but the distance to liquidation shrinks quickly:
| Leverage | Initial margin | Liquidation price (long) | Distance |
|---|---|---|---|
| 3× | $3,333.33 | $67.17 | 32.83% |
| 10× | $1,000.00 | $90.50 | 9.50% |
| 25× | $400.00 | $96.50 | 3.50% |
| 100× | $100.00 | $99.50 | 0.50% |
At 100× a move of 0.50% closes the position. Crypto prices can move that far in seconds, and a brief spike on the exchange’s mark price is enough. The full table under the results runs from 2× to 125×. Where the initial margin rate falls to the maintenance rate, the position cannot be opened at all.
The maintenance rate matters most at high leverage. Raising it from 0.5% to 1% moves the liquidation price at 10× from $90.50 to $91.00.
Choosing leverage from your stop
A stop-loss only protects you if it is hit before liquidation. The second tool takes your entry, stop and maintenance rate and solves for the leverage at which liquidation lands exactly on the stop:
With a stop at $94 on a $100 entry, a 6.00% distance, liquidation reaches the stop at 15.38×. At the planned 10×, the estimated liquidation price is $90.50, and a stop filled at its price would cost 60.00% of the margin. Using leverage close to the maximum leaves no room for slippage on the stop, or for fees and funding, which push the real liquidation level closer.
A common alternative is to size the position from the dollar risk first, using the position size calculator, and only then check that the leverage it implies keeps liquidation well beyond the stop.
Risks to understand before using leverage
- Liquidation usually costs the whole margin. Exchanges charge liquidation fees, and the position may close at a worse price than the estimate.
- Mark price, not last price. Most exchanges trigger liquidation on a mark price derived from spot indexes, which can differ from the price on your chart.
- Funding and fees erode the margin while you hold the position, moving the liquidation price closer over time. The funding rate calculator estimates that cost.
- Gaps and fast markets. Stops can fill far from their price, and thin markets can move several percent in moments.
- Leverage magnifies losses as much as gains. At 10×, a 1% move against you costs 10.00% of your margin.
What this calculator does not include
The estimate uses one maintenance rate and the entry price. It does not model tiered maintenance rates, cross margin, coin-margined (inverse) contracts, trading or liquidation fees, funding payments, maintenance-amount deductions that some exchanges apply, partial liquidations, or adding margin to an open position. Leveraged crypto derivatives are restricted or unavailable to retail traders in some countries, and the products on offer differ by jurisdiction. Nothing here is a recommendation to trade with leverage.